Rethinking short rentals in Thailand

POLICY FOCUS

- WICHAYADA AMPONKITVIWAT KHEMMPAT TRISADIKOON

The global rebound in tourism after Covid-19 has driven a notable surge in short-term rentals (STRs) through online platforms. Offering travellers greater flexibility, STRs have become a popular alternative to traditional hotels, particularly in urban and tourist-heavy areas. In the European Union, their use has expanded rapidly, reflecting forecasts that predict continued growth fuelled by competitive pricing and evolving travel preferences.

In Thailand, many property owners are increasingly turning to short-term rentals to supplement their income. However, the regulatory environment remains murky — especially when it comes to condominiums. While short-term leasing was previously tolerated under certain interpretations, a 2022 directive from the Department of Lands reaffirmed that condominiums are for residential use only, effectively banning daily rentals.

Despite this restriction, demand from tourists and supply from owners have persisted, fuelling a parallel market that often operates outside official oversight. This unregulated growth poses several problems: it disrupts long-term residents, undermines the authority of condominium associations, and prevents the state from collecting appropriate taxes. Without a modern legal framework, Thailand risks allowing informal practices to erode community trust and economic opportunity alike.

This policy gap invites a crucial question: how can Thailand balance the rights of individual property owners with the collective rights of co-owners and communities? The answer may lie in a dual-layer regulatory approach that ensures both state oversight and local autonomy.