By Phuket News Property Editorial Team · February 16, 2026
Thai authorities have confirmed that penalties linked to illegal short-term rental activity are under formal review, following sustained pressure from hotel industry groups and residential building managers. The move comes amid growing concern that existing fines have not been sufficient to deter unlicensed daily and weekly rentals in condominium buildings.
Short-term rentals in residential condominiums are generally prohibited under current regulations unless operators hold a valid hotel licence. Despite this, enforcement gaps and limited penalties have allowed informal activity to persist in key tourism markets, including Phuket.
Current penalty framework seen as insufficient
Under existing law, operators found renting accommodation without the appropriate licence face financial penalties and potential daily fines for continued violations. Industry groups and legal observers have indicated that these penalties have often been treated as a manageable business cost rather than an effective deterrent.
The current review aims to assess whether higher fines or revised enforcement mechanisms are required to improve compliance and reduce repeat offences.
Industry groups push for stronger deterrents
Hotel sector representatives have been vocal in calling for clearer and more enforceable penalties. They argue that unlicensed short-term rentals create unfair competition for licensed accommodation providers who must comply with safety, insurance, and operational standards.
At the same time, condominium management bodies have expressed concern over building security, resident disruption, and the administrative burden of dealing with repeated bylaw breaches.
Enforcement coordination remains a key focus
Authorities have acknowledged that enforcement challenges have not been limited to penalty levels alone. Coordination between local officials, licensing departments, and condominium juristic persons has been inconsistent, making it difficult to pursue repeat offenders effectively.
The current policy review is expected to consider both stronger penalties and improved enforcement coordination to address these long-standing gaps.
Implications for condominium communities
For residential buildings, clearer enforcement tools could strengthen the ability of juristic persons to uphold bylaws that prohibit daily rentals. This may reduce short-term guest turnover and reinforce residential usage within condominium developments.
Property managers and long-term residents have generally welcomed the prospect of stronger enforcement, citing improved community stability and security as key benefits.
Next steps in the review process
Details of any revised penalty structure have not yet been released, and further announcements are expected once the review process is completed. If approved, updated penalties and enforcement guidelines could begin rolling out during 2026.
For Phuket’s residential market, clearer deterrents and more consistent enforcement would represent another step toward more structured management of short-term rental activity in condominium communities.
