REGULATORY MEASURES FOR LOCAL HOUSING BUSINESSES : A CASE STUDY OF RENTING A CONDOMINIUM UNIT

Abstract

Local housing businesses similar to hotel operations providing daily or weekly rental of condominium units are regulated by the state. The government controls the service standards through hotel operating licenses under the Hotel Act B.E. 2547 (2004). On the other hand, private sector entrepreneurs rent out their condominium units on a daily or weekly basis to earn additional incomes in accordance with the “Sharing Economy” concept under the Condominium Act B.E. 2522 (1979). Based on the Black Case No. 50/2561 and the Red Case No. 59/2561 of the Hua Hin Provincial Court, the Black Case No. 277/256 and the Red Case No. 900/2561 of the Phetchaburi Provincial Court, the application of hotel business licensing principles that the government used to regulate local housing businesses, particularly in the case of the rent of condominium units under the Hotel Act B.E.2547 (2004), may not be appropriate for this type of business. As this sector is rapidly growing in Thailand's digital economy and society, it could be irrational to restrict people's right and freedom to pursue their occupation or business, guaranteed and protected by the Constitution of the Kingdom of Thailand B.E. 2560 (2017). This consequently results in problems for private sector entrepreneurs who rent out condominium units.

This article aims to study and compare regulatory measures in terms of condominium unit rental business on digital platforms in Thailand as well as in other related countries for example Japan and the United States of America (San Francisco) by analyzing relevant legal issues. Hence, it provides recommendations regarding regulatory measures for the more efficient and appropriate renting of condominium units in Thailand. The findings show that the definition of the type of residence in the Ministerial Regulation Prescribing the Types of Hotels and the Criteria for Hotel Business Operation No. 2 B.E. 2566 (2023) shall be amended. The amendment shall be committed under the conformity of the provisions of the law, it shall not obstruct the occupation or business operation of the people and it shall be updated to the current socio-economic circumstances.     Thus, the governmental sector should provide people freedom of entrepreneurship by allowing them to exercise their property rights. They shall legally be able to rent their condominium units for lucrative purposes. The government shall establish appropriate regulatory measures for this type of business so that the private sector operators can provide their services in compliance with the law and regulations. This will provide confidence to consumers about the stability and safety in their life, and property.