Most Phuket new-build buyers plan to rent out. Here is how the island's rental market works and what owners actually earn.
What rental brings
The island welcomes 12M+ tourists a year with a November–April high season. Quality studios and 1-bedrooms near beaches earn 5–8% per year from short-term rental; villas yield a lower percentage but a higher cheque plus land appreciation. The key income drivers: beach distance, the management company and the project's amenities.
Three management models
- Guaranteed income — the developer pays a fixed percentage regardless of occupancy: ESSENCE pays 4% a year for 5 years (studios and 1BR) while owners keep 30 days of personal stay;
- Rental pool / revenue share — 70% to the owner / 30% to the operator, with no stay limits;
- Hotel operator — the project runs as a hotel: Next Point is managed by Radisson — brand, distribution and chain standards with zero owner involvement.
Owner costs
Common fee ฿25–100 per m² monthly, a one-off sinking fund of ฿300–800 per m², metered utilities, and a 20–30% agency fee if you self-manage. Model net yield: from 8% gross, 5–6.5% typically remains after all costs.
Legal nuances
Short-term letting (under 30 days) formally requires a hotel licence — operator-run projects solve this for the owner, another argument for professional management. Long-term leases need no licence.
Want numbers for a specific unit? Pick one in the catalog and we will send a yield model with every cost included.