A new condo development in Phuket has found a way around Thailand’s confusing short term letting laws. The project in Mai Khao is possibly the 1st to find a way around the Hotel Act which states owners aren’t allowed to rent out their properties for 30 days or less, according to Phuket-based media.
The development will be a condotel, a hotel-managed property with units owned by individuals. The Mai Khao Beach Condotel will be managed by a well-known hotel brand and is close to Phuket’s Mai Khao Beach in an area with several 5-star resorts and luxury condos.
“Other major drawcards are the 10 per cent guaranteed rental return for 5 years program, and with unit prices from THB 1.999 to THB6 million, the option of freehold ownership has had incredible appeal. We are in negotiations with 3 different Western hotel chain companies to get a 4- to 5-star hotel brand of one of those companies to manage the Mai Khao Beach Condotel,” says TBD Company Group CEO Igor Protasov to the Phuket News.
Since the project is freehold and a hotel, foreigners can own their units and rent them out at daily rates without violating any laws. The project has been designed to comply with the Hotel Act. It also meets other standards such as being managed by a hotel operator.
“The decision to ensure the project complies with both the Condominium Act and the Hotel Act was made before we launched into the design and planning of the project. The main factor was to create a project that is interesting for buyers as an investment. Owners can legally rent out of their units on a daily basis allows to guaranty to the customers 10 per cent return on investment per year from rentals,” says Protasov.
The development already has its building permit and had its Environmental Impact Assessment approved. This has allowed the developer to start selling units. Nearly half of the 320 units have already been sold.
Receive the latest property news on email from Thailand’s No.1 property website here, or read more project reviews
