If you own a property in Thailand and you would like to rent it out, determining rules depend on the following criteria; the number of rooms and length of rental. Below 4 rooms, you will only need to register before the City Hall but over 4 rooms and below 1-month rental period, you will need a hotel license to comply with the Hotel Act 2004.
1) Up to 4 rooms
- The accommodation has a maximum of 4 rooms for rent in the same building or in multiple buildings in the same project; and
- The accommodation can not accommodate over 20 guests at the same time.
- the money earned is an extra income. However, you will have to register it before the City Hall. After reviewing all the required documents, the City Hall will inspect for safety of the building and its hygiene. The process can take up to 4 months.
Documents for submission to City Hall
- ID card or passport of owner or director (if any)
- Company affidavit (if any)
- Floor plan of the building
- Map of the building
- Title deed of the building
- Pictures of the building such as room, car park, swimming pool, laundry room etc.
What are the risks if you rent out up to 4 rooms without registration at City Hall?
1) Imprisonment for up to 1 year and/or
2) Fine of up to 20,000 THB. and
3) Fine of up to 10,000 THB. per day throughout period of violation
2) Hotel License
Renting out over 4 rooms means that you will have to apply for a hotel license. The application for the hotel license is to be done by the owner or lessee of the property and the process can take up to 8 months.
Documents required for submission for application for hotel license
- ID card or passport of director
- Company affidavit
- Floor plan of the hotel
- Map of the hotel
- Report of engineer certification of the hotel building
- Title deed of the hotel
- EIA Report of the hotel
- Pictures of the hotel such as room, car park, swimming pool, laundry room etc.
Yearly Fee
- First time between 10,000 – 40,000 THB. depending on size and type of the hotel
- Year by Year: 80 THB/room/year e.g. 10 rooms = 800 THB per year
What are the risks if you rent out over 4 rooms without hotel license?
1) Imprisonment for up to 1 year and/or
2) Fine of up to 20,000 THB. and
3) Fine of up to 10,000 THB. per day throughout period of violation
Opera Consulting can advise you on this matter, please feel free to contact us : contact@opera.co.th
Remark : This article is a general briefing note and does not replace advice for any one individual situation. The firm shall not be held liable for its contents.
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