Renting Out Property in Phuket in 2026 as a Non-Resident: Strategies and Key Considerations
Property in Phuket may generate up to 12% annual yield when rented out. The result depends on the location, the developer’s terms, the specific project and the unit itself. In this article, we explain how rental property works in Phuket and how to choose a project with the strongest yield potential.
Up to 80,000 holidaymakers arrive in Phuket every day. Visitor numbers rise further around the New Year holidays
Real estate expert, CEO of Neginski
At a Glance
You can rent out property in Phuket on a short-term or long-term basis, either independently or through a property management company. Yield depends on the rental and management model you choose and typically ranges from 5% to 12% per year.
Patong, Kata and Karon are generally better suited to short-term rentals. Rawai and Nai Harn tend to work better for long-term rentals. Bangtao, Kamala and Surin can fit both strategies.
To calculate net yield, you need to factor in additional costs both at the time of purchase and during ownership. As a rule, investors should allow an extra 5% to 6% on top of the property price for transaction and set-up costs.
Rental Strategies in Phuket
In Phuket, your rental strategy depends on how comfortable you are with seasonal demand. In the high season, the island receives a much larger flow of visitors and tourism revenue rises, so short-term rentals usually deliver a stronger gross result. In the low season, demand for short-term rentals falls. At that point, investors usually have three options:
continue with short-term rentals and accept the risk of vacancy and lower yield;
move to the island and use the property themselves until the next high season;
switch to long-term rental.
Below is a breakdown of the yield you may expect from different rental models.
| Criteria/rental way | Short-term rental | Long-term rental | Mixed strategy (to live and rent) | Mixed seasonal strategy |
|---|---|---|---|---|
|
Yield |
Up to 12% per year |
5%–8% per year |
Up to 5% per year |
Up to 12% per year |
|
Features |
Possible rental formats: |
The contract is usually signed for 6 to 12 months. Yield is less dependent on seasonality because the target audience is made up of expats rather than tourists. |
You can rent the property out in the high season, from November to May, and live in it yourself in the low season, from June to October. |
In the high season, from November to May, the property is rented out short-term. In the low season, from June to October, it is rented out long-term. |
|
Drawbacks |
As a rule, you cannot use the unit yourself in the high season. This is usually offset by higher yield. |
There is less possibility for personal use because you need to wait until the tenant’s contract ends. In return, this format gives the most stable and predictable income. |
The yield is roughly twice as low because the rental period is roughly half as long. That said, if you only stay in the property for 2 to 4 weeks a year, the vacancy period may not materially affect the result. |
This requires more involvement from the owner. In the first half of the year, the property is usually operated through a property management company. In the second half, it may be leased on a long-term basis. Even so, long-term rental does not require the owner to stay on the island or manage tenants day to day. |
Key points to know about renting property out in Phuket:
1. You cannot legally let an apartment on a short-term basis by yourself. Rentals of less than 30 days are treated as hotel activity, so they may only be operated by a company with the relevant licence.
2. A guaranteed return programme only applies for one contract term. Once that term ends, yield may fall and will depend on real market conditions. However, you may be able to switch to a rental pool. In that model, income is less exposed to vacancy because the operator distributes occupancy across the whole inventory.
Which Areas of Phuket Are Best for Rental Property
For short-term rentals, areas with established resort infrastructure and strong seasonal demand tend to work best. For long-term rentals, quieter residential locations with everyday infrastructure and good transport access are usually a better fit.
| Criteria/location | Bangtao, Surin, Kamala | Patong, Kata, Karon | Ravai, Nai Harn |
|---|---|---|---|
|
Type of demand |
Short-term and long-term rentals with higher ticket sizes. |
Mainly short-term rentals by tourists. |
Mainly long-term rentals by expat families. |
|
What matters when choosing a project |
Privacy, views and proximity to premium infrastructure such as golf courses, restaurants, spa complexes and private leisure areas. |
Proximity to the beach and nightlife, plus separate sleeping areas or multiple bedrooms. |
Spacious layouts, a quiet setting, proximity to shops and schools and quick access to main roads. |
|
Typical property budget |
$150,000–$500,000 |
$100,000–$200,000 |
$90,000–$250,000 |
Learn more about Phuket districts in our article: Which Phuket areas work for living and investing | Neginski Real Estate.
How to Rent Out Property in Phuket
The way you manage a rental property affects several things at once:
net yield;
whether the income is passive or requires your attention;
occupancy;
the stability of capital income.
There are two main ways to rent out property in Phuket:
1. Independently. This is only possible for long-term rental. It gives the investor less flexibility in pricing, but there is no need to look for tenants too often. In this model, utilities and minor repairs are usually paid for by the tenant. This format is also less exposed to seasonality because expats rarely move house frequently.
2. Through a property management company. This is mainly relevant for short-term rental, but you should first ask the operator for proof of its hotel licence. In this model, the investor has very limited scope for personal use, but the yield potential is higher. In the high season, rental rates may be up to five times higher. Utilities, service costs and the property management company’s fee are usually paid by the owner.
Phuket already has an established professional property management market. Examples include Kora Brand, The Esquire, Holy Cow Phuket and Mirasset Group. Some of the best-known developers also have their own reliable management structures, including projects under Laguna, Layan Green Park and Botanica Hythe.
Find out how much your Phuket rental can really bring in
We'll calculate your ROI for your budget and property type\_— factoring in seasonality, vacancy, and management costs
Taxes and Ongoing Costs for Property in Phuket
An owner’s costs in Phuket fall into two categories: one-off costs and ongoing costs. When buying property, it is sensible to allow an additional 5% to 6% for transaction expenses. Most other payments depend on the size of the unit and the income it generates.
| Amount | Payment frequency | |
|---|---|---|
|
Land transfer fee |
1.1% of the property value when acquiring a long-term land lease; 2% of the property value when acquiring full ownership |
Once, at purchase |
|
Income tax |
15% of rental income |
Annual |
|
Property tax |
0.3% of the property value |
Annual |
|
Utilities |
$45–140, depending on the size of the apartment |
Monthly |
|
Registration fee |
5%–6% of the property value, usually split 50/50 between buyer and seller |
Once, at purchase |
|
Sinking fund |
$16–31 per m² |
Once, on handover |
|
Service charges |
Up to $3 per m² |
Annually in advance |
|
Property management fee |
30–40% of income |
Monthly or annual, depending on the management agreement |
|
Interior refresh |
On average $3,800 for a one-bedroom apartment |
Annual or less often, depending on wear and tear |
Rental Yield for Property in Phuket
Rental yield in Phuket is always tied to the tourist flow. The higher the island’s occupancy, the easier it is to maintain rental rates and reduce vacancy periods.
According to the Phuket Provincial Commerce Office, the island welcomed 1,450,185 visitors in January 2025 and generated more than THB 58 million in tourism income. In May, the figures fell to 916,000 visitors and THB 34 million, while in August they rose again to 996,000 visitors and more than THB 36 million.
That is why, when calculating net yield, it is important to account for both rental rate volatility and vacancy. For example, in high season a property may be occupied for up to 24 days a month at a rate of USD 180 per day, while in low season it may only be occupied for 15 to 16 days at USD 160 per day. In that case, you should calculate an average rate across the year and use that figure in your model.
Best areas in Phuket for apartments with steady rentals
We’ll show where demand stays strong, which property types rent out most reliably, and how to set up management so you’re not handling guest searches yourself
How to calculate net yield on rental property in Phuket
To calculate net yield, you need to include all regular and one-off costs in addition to the purchase price and then apply the formula below.
Net yield formula
Net yield = (Annual rental income − Annual property costs) / Total investment amount × 100%
The example below shows a sample calculation for a property in Bang Tao.
This result may be achievable if you choose a property in a premium area and rent it out through a property management company. That may help keep the property occupied for up to 24 days a month
About the Author & the Company
Andrey Neginskiy
Real estate expert, CEO of Neginski
This article was prepared by the Neginski team — an international real estate agency with teams in Phuket, Moscow and the UAE. We support clients at every stage, from clarifying goals and selecting a project to completing the purchase and managing the property.
We work with 300+ developers, get early access to off-market launches, source rare listings and negotiate discounts. More than 30% of our clients come back for repeat purchases. Learn more about us.
Disclaimer
The information presented in this article is for general guidance only and does not constitute individual legal, investment or immigration advice. Property purchase terms, instalment plans, mortgage financing, rental arrangements and residency visa options in Thailand depend on the specific project, developer, bank, property status and the buyer’s individual profile.
Thailand’s laws and regulatory requirements may change. Before making any decisions, we recommend seeking personalised advice and checking the latest terms with the Land Department, the developer, the bank or licenced advisers.
Sources
This article is based on publicly available data, Neginski’s analysis and the team’s hands-on experience.
Links:
Which Phuket areas work for living and investing | Neginski Real Estate
Factsheet 2024–2025 (2567–2568) Presentation
Land and Buildings Tax Act 2019-FINAL.docx
Laguna Phuket, Thailand - Asia’s premier integrated destination
FAQ
-
In Phuket, short-term rental is generally more profitable, but only in a popular location and with professional management. Higher income here is driven by seasonality. Long-term rental usually delivers a lower result, but the income tends to be more stable. If you want to aim for a stronger result, you can combine both strategies by season.
-
Yes, short-term rental is possible in Phuket, but only through a property management company with a hotel licence. You cannot independently let an apartment on the island for fewer than 30 days.
-
The yield shown in a brochure usually does not account for vacancy or the owner’s additional costs. The actual result depends on occupancy, rental rates, the property management fee, ongoing property costs and how often the owner uses the property personally.
-
It is important to check whether the operator has a hotel licence, what yield programmes it offers to owners and how they are calculated, who pays for cleaning, repairs, marketing and guest check-in, how often reporting is provided and what restrictions apply to the owner’s personal use of the property.
-
You can combine the two, but not without some loss of yield. Every month the property is kept vacant for personal use may reduce annual profit by up to 1%.
-
Patong and Karon are better suited to short-term rental because of strong tourist demand. In Bangtao and Kamala, property is востребовано both for long-term and short-term rental, which makes these areas more attractive for investors looking to maximise yield.
-
On average, property management services cost the investor 30% to 40% of monthly income. This usually covers guest sourcing and bookings, cleaning, technical maintenance and reporting.
