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Airbnb in Thailand: Goldmine or legal minefield?

Airbnb in Thailand: Goldmine or legal minefield?

You’ve seen the Instagram reels. A dreamy villa, an infinity pool and a “booked solid on Airbnb” caption. But behind the hashtags and high yields lies a murky legal maze that most property owners in Thailand are either ignoring ‒ or tiptoeing through like it's a minefield.

tourismproperty
By The Phuket News

Saturday 14 June 2025 12:30 PM


Image: James Hutley / Canva

Image: James Hutley / Canva

I’ve spoken to owners, scoured legal briefs and unpacked the numbers. Here’s what you actually need to know if you’re thinking about listing your property on Airbnb ‒ or already doing it under the radar.

The Legal Lowdown

Most short-term rentals in Thailand aren’t technically legal. If you’re renting for less than 30 days without a hotel license, you’re likely in breach of the Hotel Act. That could mean fines up to B20,000, plus B10,000 per day if you stay non-compliant. In some cases, you might even face jail time.

There are exceptions. If you’ve got up to eight rooms, no more than 30 guests and you live onsite ‒ and you’ve notified your local district office ‒ you may qualify under the exemption. Renting for 30-plus days also keeps you in the clear.

If you are a condo owner, you’ll face even more restrictions. Most juristic offices explicitly ban short-term rentals. Enforcement is often triggered by complaints from neighbours or building management.

Big Returns, Bigger Responsibility

Done right, short-term rentals can outperform long-term leases significantly ‒ sometimes earning two to three times more during peak months.

With Phuket back in full swing post-COVID, occupancy rates are climbing. A Kata Beach owner told me, “I earn more in two peak months than I used to in six.”

But it’s not passive income. From guest communication to cleaning and turnovers, running an Airbnb is work. Without solid systems, the cracks show fast.

How to Stay Legal and Profitable

Go long-term. Rentals of 30 days or more avoid licensing headaches and appeal to digital nomads, retirees and seasonal residents.

Get creative. Some hosts are exploring co-living or serviced apartment models. These offer flexibility while maintaining compliance with local laws.

Pursue licensing. If you meet the requirements, registering your villa as a hotel can legally open the door to short stays.
Stay on top of taxes. Rental income is taxable. If you earn more than B1.8 million annually, you need to register for VAT.

Platform Comparisons

Airbnb leads in curated, experience-based stays. It’s great for design-led or unique properties but comes with high guest expectations and rules.

Booking.com delivers volume and visibility but favours a hotel-style setup. In short: Less interaction, more turnover.

Agoda is strong in Asia and ideal for price-competitive units, though it leans traditional and does not highlight personal hosting touches.

Voices on the Ground

“We were doing well on Airbnb until our building clamped down,” said one Bangkok condo owner. “Now we just do month-to-month with expats. It’s slower, but safer.”

A Phuket-based manager added, “You need a legit setup or a backup plan. Flying under the radar isn’t a strategy ‒ it’s a gamble.”

Final Take

Short-term rentals can be incredibly profitable in Thailand ‒ but only if you’re playing a smart game. Understand the law. Know your building’s policies. And above all, treat your property like a business.

You can make real money. Just don’t cut corners or assume the rules don’t apply to you.

By James Hutley


James Hutley is a real estate entrepreneur based in Phuket. For more market insights, follow @james.l.hutley on Instagram, connect on Facebook at facebook.com/james.l.hutley, or visit www.atlasamg.com