Crackdown in Thailand: Landlords Arrested for Rental Regulation Violations

The situation in Thailand’s short-term rental market has escalated. Hotel industry representatives and members of the Kingdom’s parliament are demanding stricter regulations. Law enforcement agencies have already launched intensive inspections of condominiums rented out without licenses, which is illegal. Authorities are imposing not only fines but also arrests.

Registration or Closure

Thailand’s hotel industry is urging the government to take decisive action against the spread of “condominiums without intermediaries” and enforce mandatory registration for the rental market. Business owners are also advocating against unregulated short-term rentals through platforms like Airbnb, reports Nation Thailand.

Representatives of the Thai Hotels Association (THA) argue that such rentals create unfair competition and safety concerns. The primary issue involves condominium owners, often Chinese nationals, who buy multiple apartments and list them on online platforms at significantly lower prices.

THA President Thienprasith Chaiyaphatranan believes this practice undermines the integrity of the legal system. He has proposed temporarily shutting down online rental platforms or introducing mandatory landlord registration.
The hotel industry is losing market share due to unregulated rentals. Moreover, property owners and their agents frequently fail to comply with the law requiring them to report foreign tourists to the Immigration Bureau within 24 hours, creating security risks and disturbing condominium residents.

To address these concerns, THA has suggested banning short-term rentals in condominiums and residential complexes. Additionally, THA opposes the proposed increase in foreign ownership limits in condominiums from 49% to 75%, arguing that this could lead to speculative purchases rather than genuine residency. Concerns have also been raised about individual foreign investors acquiring an excessive number of villas, particularly in popular locations like Phuket.

Regulations Favor the Hospitality Industry

Tirayot Chirathivat, CEO of Centara Hotels & Resorts, called the unregulated rental market “an unfair business”. He explained that hotels bear significant licensing and operational costs, while condominium rentals require minimal investment. He emphasized the need for stricter oversight and enforcement.

Tirayot also noted that since the pandemic, there has been a shift from group tours to individual travel among Chinese tourists, leading to higher accommodation prices and expenses. He suggested that reducing the number of budget travelers by tightening rental regulations could benefit Thailand’s tourism sector. “We need quality tourists who appreciate Thailand, come here to eat Thai food, and spend as much as necessary,” he added.

According to local regulations, non-hotel accommodations rented to tourists must be registered. Owners of small residential properties with a maximum of eight rooms across one or more buildings and a total capacity of up to 30 guests must obtain a permit valid for five years. However, many landlords avoid formal registration and tax payments, choosing instead to purchase multiple condominium units and list them on online platforms without a license. This issue has drawn complaints not only from the hotel industry but also from neighbors.

Short-term condominium rentals without a license violate Thailand’s 2004 Hotel Act, which prescribes penalties of up to one year in prison, fines of up to 20,000 baht (~$600), or a combination of both. Additionally, landlords can face daily fines of up to 10,000 baht (~$300) for continued violations.

Inspections and Arrests

Authorities have responded to business leaders’ and parliamentarians’ concerns by stepping up enforcement measures. According to news outlet Khaosod, Thai officials conducted inspections of Bangkok condominiums on March 6, 2025, focusing on those offering daily rentals without proper hotel licenses.

Officers from the Investigation and Legal Affairs Division booked two units under the guise of tourists for $82.40 per night. They discovered three rental businesses operating without permits, offering both short-term and monthly rentals, with between 53 and 120 units. As a result, property owners in the Huai Khwang-Sutthisan district were arrested.

Some condominium owners engaging in illegal daily rentals have also been attracting foreign investors using nominee accounts, which violates Thai law and “is subject to further investigation.”

The issue is prevalent in other areas as well. Sittipong Sittipatraprapha, president of the Hat Yai Hotels Association in Songkhla Province, stated that investments in short-term rental condominiums are increasing among both Thai and foreign nationals. Notably, Malaysian investors have been actively purchasing properties and setting up daily rental businesses.

Teerarat Samretwanich, Deputy Minister of the Interior, emphasized the need for more frequent and stricter inspections. Officials believe that the arrests of foreigners illegally renting out condominiums should serve as a warning to others.