Any Phuket villa or condo owner hoping to generate a rental income from their property, must ensure they are following Thailand laws.

There are plenty of laws which protect foreign owners, but investors may also see certain statutes as obstacles to be overcome.

For example, owners renting their Phuket condominium unit to holiday makers on a short-term basis, must know that this is technically illegal without a hotel license (Legal action taken against Airbnb by various countries and cities around the world has highlighted similar restrictions elsewhere). 

If you are buying a Phuket condominium purely as an investment, with limited use of your own, then such “little nuances” are important to understand.

Thailand’s short-term rental laws continue to create uncertainty for investors and property owners in Phuket. With platforms like Airbnb and Booking.com popular among tourists, it’s tempting for condo and villa owners to explore lucrative daily or weekly rentals. However, there are strict legal limits in place that foreign buyers must be aware of before proceeding.

What the Law Says About Short-Term Rentals in Phuket

Under Thailand’s Hotel Act, any property rented for less than 30 days is generally considered to be operating as a hotel. To legally operate short-term rentals, a property must be registered as a hotel with the Thai authorities, which involves strict requirements regarding safety, parking, accessibility, and fire protection systems.

Most people who have purchased a condominium unit or even one of the many pool villas for sale in Phuket are not aware that their new Phuket property very likely does not meet these standards and therefore cannot be legally rented out on a nightly basis.

Condominium Rentals: Where It Gets Complicated

Even though many foreign condo owners in Phuket rent their properties short-term, the practice exists in a legal grey area. Most condominiums are not registered as hotels, and many juristic offices explicitly prohibit daily rentals in their bylaws. Owners who violate these rules risk fines or eviction notices, as well as complaints from other residents.

Related Reading: Condominium Juristic Person – What It Is and Why It Matters

Villa Rentals: Slightly More Flexibility

Villa owners sometimes assume they can avoid scrutiny, but villas fall under the same restrictions. A 30-day minimum lease is typically the legal standard unless the villa is in a licensed hotel or resort project. Attempts to rent private homes on a nightly basis may lead to complaints or investigations.

Enforcement Has Increased Since 2023

While enforcement in past years was lax, the authorities in Phuket have stepped up their efforts to crack down on unlicensed short-term rentals. Since late 2023 and into 2024, there have been numerous inspections and fines issued, especially in high-traffic tourist zones.

In 2025, enforcement continues, particularly targeting condos and villas frequently advertised on Airbnb or Booking.com. Owners face risks of fines, blacklisting, or legal action if found in violation.

What Buyers Should Know Before Purchasing

If you are considering buying a condo or villa in Phuket with the intent to rent it out, it’s vital to understand the following:

  • Nightly rentals are not legally allowed unless the property is a licensed hotel or resort residence.

  • Most developments only allow long-term (30+ day) rentals, as written into the rules of the juristic person or developer.

  • Management companies or agents offering short-term rental services may expose you to risk if the property is not compliant.

  • Foreign freehold condos remain the best legal ownership structure for investors aiming for long-term leasing.

See why foreign freehold condominiums are the safest option

Alternatives: Rental Income Without the Legal Risks

Phuket’s long-term rental market continues to perform well, especially in areas like Rawai, Nai Harn, Laguna, and Bang Tao. Monthly and yearly rentals offer more stable income and eliminate legal uncertainty.

If rental income is part of your investment strategy, we recommend:

  • Choosing a Phuket condo with strong demand for long-term tenants

  • Working with licensed property managers

  • Avoiding nightly rentals unless your property is part of a resort licensed as a hotel

The Latest Amnesty for Unlicensed Hotel Operators

Under Thailand’s Hotel Act of 2004, property rentals of less than 30 days are illegal unless the property has the appropriate hotel license. Despite this clear regulation, thousands of unlicensed hotels, condos, and villas have operated short-term rentals over the years — prompting the government to issue temporary amnesties to bring them into compliance.

In a move to address the widespread issue, the Thai government granted a grace period until August 2021 for illegal operators to legalize their status. According to the Bangkok Post, all such establishments were expected to register and work towards full compliance with the Hotel Act, the Building Control Act, and any other applicable laws.

Only properties that registered as a non-compliant hotel business during the grace period could qualify for amnesty. However, the path to full compliance requires upgrades to meet strict safety and regulatory standards — something that is often impractical for boutique hotels or condominiums due to space limitations and cost.

What Does This Mean for Condominium Owners?

Most condominiums are not registered as hotels and would face major obstacles in trying to become compliant. Even if a developer initially promoted short-term rentals, once a project is sold out, responsibility shifts to the condominium’s juristic person and resident committee.

In older developments, where people have lived for years, owners pushing for nightly rentals may face strong resistance from long-term residents or committee members. Even if an amnesty exists in theory, very few condos are expected to apply or make the necessary upgrades, as the costs and regulatory hurdles are substantial.

For buyers interested in Phuket property investment, this highlights the importance of purchasing in developments that support long-term rentals, or in rare cases, are properly licensed to allow short-term stays.

The Short-Term Rental Risks in Condominiums: What Every Buyer Should Know

When it comes to short-term rentals in Phuket, the legal situation for condominiums is far more complex than for villas.

While it may be theoretically possible for a condo development to obtain a hotel license or exemption, in practice, no such license has ever been granted to an individual condominium unit. Most condominium rules and regulations clearly prohibit rentals of fewer than 30 days, and for that restriction to be lifted, 100% of the unit owners must agree — a near-impossible scenario in larger buildings.

Even if consensus is reached, securing a hotel license involves meeting extensive regulatory requirements under the Building Control Act and other laws. The condominium must have a hotel manager, proper zoning and permits, and fire safety measures — conditions that most completed projects cannot meet, either structurally or financially.

Crackdown on Illegal Rentals: National and Local Pressure

In 2015, Dr. Kritsada Tonsakul, then president of the Southern Thai chapter of the Thai Hotels Association, launched a petition calling for government enforcement against what he described as 92,000 illegal hotel rooms in Phuket — a figure that represented nearly 70% of all available rooms at the time (Bangkok Post).

The association pushed for greater accountability to protect licensed hoteliers, who were operating under legal burdens and compliance costs, while unlicensed rentals continued to thrive through platforms like Airbnb and Booking.com.

Landmark Legal Case: The Hua Hin Court Ruling

In 2018, the Prachuap Khiri Khan Provincial Court in Hua Hin issued a decisive ruling stating that condo owners who rented their units short term without a hotel license were violating the law. This precedent confirmed that such rentals were illegal unless the property had the appropriate hotel certification, reinforcing the authority of the Hotel Act 2004.

Penalties: Fines from Courts and Condominium Juristic Persons (CJPs)

Although the Hotel Act allows for fines of up to THB 20,000 and even jail sentences, actual penalties have been relatively minor. In one case, a Hua Hin condo owner was fined THB 5,000, plus THB 500 per day for 20 days — totaling THB 15,000. Another was fined THB 13,000 for 81 days of illegal rental activity.

However, the real enforcement often comes from within. Condominium Juristic Persons (CJPs) have increasingly taken action, imposing steep internal fines on owners who violate the building’s rental rules — some exceeding THB 70,000.

The Condominium Act 2008: What the Law Says

According to the official English translation of the Condominium Act 2008 by Thailand’s Department of Lands, the law specifically restricts commercial activity in residential buildings.

Section 17/1: “No commercial trading shall be conducted in a condominium building except in the commercial area… access to such area must be arranged to be separate from normal residential access to avoid disturbing peaceful living.”

Section 65: “Whoever violates Section 17/1 shall be fined up to THB 50,000, with a further daily fine of up to THB 5,000 during the period of violation.”

Some CJPs are actively invoking this law to shut down short-term rentals, with increased surveillance and enforcement at reception desks. In one case, a Hong Kong-based owner who rented to a Chinese tenant found out too late that the tenant was subletting on Airbnb. Despite having no knowledge of the violation, the owner was still fined.

Final Thoughts: Buyer Beware

For investors considering Phuket condo investment, it’s crucial to recognize that short-term rental opportunities in condominiums are legally and practically limited. Even if the developer promotes rental potential, once the project is complete, control shifts to the CJP and owners’ committee — who may not support such activity.

Buyers looking to generate income through short stays should instead consider:

  • Licensed branded residences designed for hospitality

  • Leasehold villas with hotel management

  • Properties within fully compliant mixed-use developments

These options reduce legal risk and improve long-term ROI potential in Thailand’s evolving regulatory landscape.

Short-term rentals can seem like an attractive income stream, but for most owners in Phuket, they are not legal or worth the risk. The safest route is to focus on long-term rental opportunities that align with Thai law.

Can I Really Get Caught?

Many foreign buyers wondering about short-term rentals in Phuket often ask the same question: “Can I really get caught?”

The reality is, enforcement by government authorities is rare. It’s highly unlikely that officials will show up at your property or issue you a formal letter without cause. But that doesn’t mean you’re immune.

The greatest risk of being caught doesn’t come from the government — it comes from your own condominium management. The Condominium Juristic Person (CJP), which oversees building operations, has the power to monitor and penalize owners who breach the community’s rules.

In buildings where access is controlled by reception staff or security checkpoints, it’s easy for the CJP to spot a frequent turnover of guests, particularly when they’re carrying luggage and checking in like tourists. Even if your guests come and go discreetly, a curious neighbour may alert the CJP if they notice an unusual pattern of comings and goings.

If the CJP is aware and motivated, they can levy internal fines under the building’s Rules and Regulations, regardless of whether any court or authority has taken action.

In short, while prosecution by the state is unlikely, internal enforcement by your building’s management is very real — and the penalties can be significant. This is especially important to understand if you are buying a Phuket condo for investment and plan to rent it on a short-term basis.

Can My Old Condominium Obtain a Hotel License?

As mentioned earlier, the first hurdle for any established condominium wanting to operate legally as a hotel is getting 100% consent from the co-owners. That’s often a challenge. Many permanent residents oppose short-term rentals, concerned that a steady stream of holidaymakers may disrupt the peaceful lifestyle they’ve invested in.

But even if full consent is obtained, there are still significant legal, structural, and safety requirements to be met under the Hotel Act and Building Control Act — from correct building usage permits to fire escapes and hotel management standards.

That said, it’s not entirely impossible. Some older condominiums in Thailand — and a handful in Phuket — have successfully obtained full hotel licenses. But these cases are rare and usually involve major renovations and long-term commitment by the co-owners.

FAQ – Phuket Short-Term Rental Rules

Can I legally rent my Phuket condo on Airbnb?
Not unless your condo is part of a licensed hotel. Most condominium juristic persons prohibit short-term rentals under 30 days.

What’s the penalty for illegal short-term rentals?
Fines, legal action, and even forced cancellation of bookings. Enforcement has increased significantly in 2024 and 2025.

Are villas treated differently than condos?
No. Private villas must still comply with the Hotel Act unless they’re part of a licensed resort project.

Can I rent my property for 30 days or more?
Yes, long-term rentals (30+ days) are legal and widely accepted for both condos and villas.

What are the best areas for long-term rentals?
Popular areas include Nai Harn, Rawai, Chalong, Bang Tao, Laguna, and Surin, where tenant demand remains strong.

Thinking of Investing in Phuket?

For any serious buyers, who wish to invest in a fully licensed investment condominium in Phuket, they may ask Thai Residential for the current options available on the island.

If you’d like some easy reading and to learn more about investing in Phuket real estate safely, then you may like to read our comprehensive Phuket Property Guide

Whether you plan to live in your new home or rent it out, we’re here to help.
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