Thread: Confusion as condo owners told they must have a work permit to rent out units

Confusion as condo owners told they must have a work permit to rent out units

Just over a week after condo owners were told they face jail and hefty fines if they rent out their units for less than 30 days, one condominium in Phuket has taken the step of informing its condo owners they need a work permit if they want to rent out their units.

Following consultation with lawyers, juristic staff at the Phuket Palace Condominium in Patong claim the Ministry of Labour has confirmed that condo owners who rent out their units require a work permit. They say this is because money is exchanged for the rental of the unit. They also claim that the proper taxation must be paid to Patong municipality.

The notice reads: “the Ministry of Labour confirmed that the owner must have a work permit because there is money in exchange for rentals and proper taxation must be paid to Patong municipality too.”
We must stress that Thaivisa has been unable to verify the claims made in the notice which is dated June 29.

It comes at time when many foreign condo owners in Phuket and throughout Thailand are confused and concerned regarding the legality of them being able to rent out their condos for periods of 30 days or less.

On Saturday July 2nd, the Phuket News reported that Phuket’s Provincial Land Office issued a formal warning to condo owners, developers and managers that renting out their properties on a daily basis was in breach of Thailand’s Hotel Act and that they could be fined or even spend up to one year in jail.

The notice read:

“To managers/developers of condominiums,

“Today, there is a lot of news about condominium developers/owners renting out rooms or buildings that they have ownership of to foreigners or tourists on a daily basis (daily rental) rate that generate income as if they were a hotel (under the Hotel Act 2004).

“This type of operation is causes a public nuisance for renters in the same complex and creates unsafe places for tourists, which may lead to loss of life and property. It is inacceptable to operate an illegal hotel. The penalty for this is up to one year in jail or a fine of up to B20,000, or both.”

The crackdown on condo owners renting out their properties was then confirmed by Phuket Vice Governor Chokdee Amornwat, the Phuket Gazette reported on Tuesday.

It is not only the authorities in Phuket which have issued warnings to property owners about renting out their condos illegally.

In May, local government officials raided residential villas and condos in Pranburi, south of Hua Hin, which were suspected of renting out rooms and operating without a hotel license.

According to local business operators, it was part of a crackdown on illegal hotel accommodation properties, reported Bill Barnett from C9 Hotelworks.

Thaivisa also understands that a similar warning about renting out rooms for less than 30 days and, as far as the authorities are concerned operating illegally as a hotel, have started to be issued to condo owners, developers and managers in Bangkok.

The move to get tough on people renting out condos follows complaints from hoteliers across Thailand who claim that many condo rooms are actually being used illegally as resorts and hotels.

Despite a record 30 million tourists visiting Thailand in 2015, occupancy rates in hotels across Thailand have been in decline for a number of years.

A report published in 2015 by hospitality consultants Horwath HTL in collaboration with the Thai Hotels Association revealed that hotel occupancy rates in Thailand had declined by 15 percent.

More recent data from C9 Hotelworks also revealed that hotel occupancy across Phuket continues to decline.


http://www.samuitimes.com/confusion-...ent-out-units/

Well, the local labour department office isn't going to give work permits to foreigners on the basis of renting out a condo. So that's that then, innit.

Why don't the hotel owners hire a demolition company to knock all those nasty condos down .

Only for those renting them out on airbnb etc for daily/weekly holidayers.

Fair enough really.

Just rent it out to your wife for 12 months and then she can sublet it daily on airbnb.

Originally Posted by Luigi

Just rent it out to your wife for 12 months

Do you have a work permit for that?

It's unbelievable what they dream upp... a few years ago an immigration muppet tried to tell my gf she was in breach of the hotel act by letting me stay in her house and would have to pay a fine of 1000/day for the length of my stay.

What they are cracking down on is missing out on their share of the tax on these short term rentals.

Hotels pay Tax and must record peoples details. Also these short term rentals take business away from the legit Hotels and guesthouses.

If ya have a gaff and are renting it short term of course you will not be happy but to the rest of us it sounds perfectly reasonable.

Originally Posted by terry57

What they are cracking down on is missing out on their share of the tax on these short term rentals.

Hotels pay Tax and must record peoples details. Also these short term rentals take business away from the legit Hotels and guesthouses.

It started in Phuket.

Are there any hotels or holiday apartments there that aren't owned by the corrupt officials there, or paying them.

foreign scum actually move in and start renting out their condos as hotels and holiday apartments, fok off.

If anyone doesn't abide and continues to do it, they might well find their visa is cancelled and they are deported and blacklisted the next time they go for a 90 day report.

Don't move into the jungle and start standing on the monkey's bananas.

^

That's it Innit.

Us nasty Foreign tossers are simply not wanted in their loop. On top of that you are taking money from them by renting out your Gaff.

Exactly why I would never buy or invest more than 30 Baht in this shit hole.

Saying that, it's a brilliant place to be when the little fukers have nothing hanging over you.

Learned that stuff 30 years ago.

Originally Posted by terry57

On top of that you are taking money from them by renting out your Gaff.

And that's the sole issue, which to be fair, is completely fair.

They don't mind us nasty foreigners moving in and buying their condos at over inflated prices. Just when we rent them out as hotels.

Originally Posted by stroller

It's unbelievable what they dream up

not really

but the tax should be paid to the central govt , not the local parachute badge wearers

surprising that it took them so long.

it is a perfectly valid crackdown for once.

Originally Posted by taxexile

it is a perfectly valid crackdown for once.

as long as the thai renters pay also

Seems this is related to the issue of Chinese owned condos being rented out as part of Chinese tour group packages.

Originally Posted by Norton

Seems this is related to the issue of Chinese owned condos being rented out as part of Chinese tour group packages.

Have one of them near me. Thai restaurant downstairs. Went in when it opened. Tom Yam Gung was about 4,500 baht.

Hey but spare a thought for these Guys.

Down on Samui there is a compound which has many Hi-So houses built on it and the foreigners have done so using the 30 year lease system. Perfectly legal and upfront. All Hi-So abodes worth big dollars. Beach front land.

Some punters reside there but many of the filthy rich punters only holiday a few weeks a year and the rest of the time they leases them out. Around $ 300 per night.

Recently the owner of the land had them all turfed out , it went to court and the owner won the case so all done and dusted now. Happened this year.

The owners were given a choice to remain but the land owner had increased the annual fees to such a level that this was not feasible. Idea was to fok them off.

The owners were given Ex amount of time to remove their belongings or the belongings where to be confiscated and sold. This happened.

The complex is called " Coconut Grove. "

It's on Drummonds sight now.

Beware the " Monkey Town."

These Corrupt tossers can do anything they like.

It's all over now,

The filth have said punters can rent their Condos out and no work permit needed.

Ya just need to wait a few days and the Monkeys back flip back into their cage.

One of the top boys has a few condo complexes nearly complete and for sale at farang price.

Just rented a room at View Talay 5 in Patters last month off of Agoda. Owner was Chinese but had a local hand me the key and cleaned once during my stay. Nice room, great view for a decent rate. Be sad to see that this option no longer available now.

^

It's all again so no problem, the only problem is that you are in that shit hole.

You enjoy it Eh.

^Don't be such a prude, Terry