Despite complaints from residents and the Bangkok Metropolitan Administration's (BMA) recognition of the issue, a condo building in Sukhumvit 11 developed by an SET-listed company has not been able to prevent half of the 450 units from being illegally rented out on a daily basis via online platforms, reflecting the critical situation concerning weak law enforcement in Thailand.
According to a source, who is a foreign resident and owned a unit at the condominium, over 250 units are being rented out daily via online travel platforms such as Booking.com and Airbnb.
The source said these activities caused a disturbance and safety concerns among residents. The BMA has already inspected the building and confirmed the practice of daily rentals.
A letter in January from the Wattana district office to the condo's juristic person urged them to submit information regarding the owners who might have been violating the law in order to forward this issue to the relevant authorities to continue with the legal process.
The letter clearly stated that renting out rooms daily may be regarded as violating the 1979 Building Control Act, the 1992 Public Health Act, and the 2004 Hotel Act.
However, so far there have been no legal proceedings taken, said the source.
The source said this business is mostly run by a Taiwanese national, who owned a unit at the condo and has chaired the condo's board of nine members since the middle of last year.
The signs prohibiting daily rentals have been removed, while a room at the back of the condo was dedicated to a daily check-in and luggage storage area for tourists. Housekeepers with cleaning equipment and bedding could also often be seen in the building.
Under this business model, an agent would rent many rooms from different owners on a long-term basis, and sublease them to guests on a daily basis via online platforms.
The source said some condo owners may not even be aware that their units were utilised illegally.
Besides, the condo developer also provided 40 units for this alleged agent, as the company has seats among the board members, meaning they were aware of the practice of daily rentals.
Its juristic person was changed to a management company under a large SET-listed company last month.
"I wrote several complaints to the building management, but they basically told me it is prohibited as stated in the rules, but they cannot do anything about it," said the source.
According to the Interior Ministry, the number of registered hotels in Thailand tallied 15,984, with 677,493 rooms, in 2024.
Patcha Techaruvichit, secretary-general of the Thai Hotels Association (THA), said the practice of renting out condo units on a daily basis is prevalent in Bangkok, particularly where Chinese guests prefer to stay, such as areas near Pratunam Market.
Ms Patcha, who is also the on board of directors of Asia Hotel Group, said that based on searches on hotel booking platforms, several condos have been illegally converted into accommodation rented out on a daily basis, reflecting the problem of weak law enforcement in Thailand.
She said that even though some countries have already legalised this type of lodging, Thailand should consider the matter carefully as some properties might not be able to provide safety measures to guests of the same standard as hotels.
Moreover, in many provinces there are no issues regarding insufficient hotel rooms, she noted.