Short-Term Rental of a Condominium Unit

Can a foreigner rent out their condominium unit on a daily basis? And can they do so without a work permit? Here is what the current laws say.

Condominium Act

The Condominium Act Thailand does not contain a direct prohibition on short-term rentals. However, it does restrict commercial activities to specifically designated areas and requires that such activities do not disturb other residents.

It is also important to consider internal condominium regulations, which may impose additional restrictions or even prohibit short-term rentals altogether.

For example, a real estate agency may operate from a designated commercial unit (such as on the ground floor) and manage short-term rentals within the condominium—provided tenants do not disturb public order. If condominium rules prohibit daily rentals, lease terms must comply with those rules.

Hotel Act

According to the Hotel Act Thailand, a hotel is defined as a property intended for temporary accommodation on a commercial basis, consisting of at least 4 rooms and capable of hosting more than 20 guests.

Residential properties with fewer than 4 rooms (even across multiple floors or buildings) and accommodating fewer than 20 guests do not fall under the definition of a hotel.

However, hotel operations require a license.

Alien Working Act

The Alien Working Act Thailand defines work as any physical or intellectual activity, whether paid or unpaid. A foreigner must obtain a work permit before engaging in such activity.

To obtain a work permit, a company must act as the employer and handle the required documentation. It is not possible to obtain a work permit solely for renting out personal property.

If the foreign owner is not personally involved in finding tenants, then no “work” is being performed, and a work permit is not required.

In such cases, a real estate agency typically handles tenant sourcing. A formal agreement should be signed with the agency, authorizing it to find tenants and conclude lease agreements on behalf of the owner.

Alternatively, a foreigner may register a company to manage rental activities, appoint Thai directors and staff, and hold up to 49% of shares—without working in the company. In this case, a work permit is also not required.

Immigration Act

The Immigration Act Thailand requires property owners to notify immigration authorities of any foreign tenant within 24 hours of their arrival.

If an owner submits such notifications daily (for frequent short-term rentals), immigration authorities may reasonably question whether the owner is effectively working and request a work permit.

Practical Recommendations

Check condominium regulations to confirm whether short-term rentals are allowed
If prohibited, request the official rules and clarify the restrictions
Sign a management agreement with a real estate agency, granting them authority to handle rentals and comply with laws and condominium rules
If you own multiple units and manage rentals independently, consider registering a company and obtaining a work permit