Airbnb is a popular means to secure accommodation giving hosts and users flexibility.
Founded in 2008, Airbnb is now a household name. An online marketplace with a global reach where owners, known as hosts, can rent out their properties for any length of time. The host is responsible for marketing their property. They add comprehensive details about their listing that includes a description, photographs, location and house rules. The terms of the letting are transparent. For example whether pets or smoking are permitted and the length of stay. Amenities such as Internet, doormen and safety features are also highlighted.
Every host and user has a profile. Each can review each other which aids in users assessing the suitability of prospective bookings. Booking is made easy and is all done online.
Airbnb has created a whole new industry. It has allowed people to rent out their homes privately to generate an income. It is predicted that there are 100 million users and 640,000 hosts. With an estimated 2.3 million listings worldwide there are 500,000 stays occurring every night. Listings are across 65,000 cities in 191 countries. The most active city is Paris where stays average 2.9 days longer than stays in a hotel. This longer duration boasts the local economy and figures from Airbnb reveal that the company generated USD 240 million in economic activity in Paris alone.
With figures like this you would expect that Airbnb would be welcomed with open arms. However this is not always the case. The short term letting industry is already under fire in Thailand because it can influence the hotel trade with the rise of people opting for this over a hotel. Conscious of this the government have already tried to crackdown on short term lettings in Phuket. Advising property owners that they cannot let their property out for any period less than 30 days.
So what does the law state?
There are two areas of Thai law that need to be considered, the Hotel Act and the Condo Act. Some believe that the terms of the Hotel Act aren’t very transparent when it comes to short term lettings. One argument is that short term lets are hotels operating illegally. But under the Hotel Act this is only applicable to anyone who has in excess of three units in a building. This then means if you are letting out just one Airbnb you are within this law to do so. However that is not to say this act is regularly cited by condominiums to deter owners from renting out their property via the online marketplace. This is despite actually not technically being able to refer to this act.
However short term lets are not permitted in a building should it be clearly stated in the said condominium’s own rules. These are covered in a comprehensive handbook that is provided with each unit. It is also usually written in Thai. Any new proposed terms needs to be raised within and agreed by over 50 percent of the building. Essentially the Condo Act means that any rules of a condominium are enforceable by law. Therefore if there is no mention of short term lettings, again you are permitted to carry them out.
Now that Bangkok is crowned the city that receives the most number of visitors, the popularity of Airbnb is expected to continue. Provided that you are within the laws of the Hotel and Condo Act, there should be no reason for hosts to benefit from this revenue generator. However it is advised to keep an eye on the news for any changes to the law that could alter this.
