Yield of rent of villas on Phuket in 2026

Market of short-term rent on Phuket in 2026 — mature segment with clear rules. After surge of 2022–2024 supply of villas grew, competition per night intensified. It is important for investor to look not at percentage in PDF of developer, but at net cash flow in baht.

Harmony Ocean Property from 2019 conducts transactions for rent: selection, DD, launch of management company. Below — methodology of calculation, which we show to client before signing.

Gross and net yield

Gross = revenue ÷ price. Net = revenue minus management company, utilities, repairs, downtime. On villas 3–4 bedrooms Bang Tao / Layan gross 6–9%, net 4–6% with normal management.

Example in numbers

Villa 38 million baht, occupancy 68%, ADR mixed. Gross revenue ~2.9 million baht. Minus 18% management company, 420 thousand utilities, 180 thousand consumables, downtime 45 days. Net ~1.95 million — 5.1%.

We allocate 45–60 days of downtime and reserve for equipment once every 2–3 years.

What affects income

• Distance to beach and swimming pool
• 3–4 bedrooms — optimum for families
• Quality of photos and furniture
• Management company: dynamic pricing
• Rules of village on short-term

Seasonality

High season November–April. May–October revenue −30–50%. Price reduction in low season is better than empty calendar.

Villa vs condo

Condo in south — higher gross, higher wear. Villa — family segment, longer cycle of furniture. Portfolio often: condo for liquidity + villa for check.

What to request

P&L for 12 months
Structure of commission of management company
Occupancy by months
Who pays capital repair of swimming pool

Conclusion

5–6% net — good result. Promise of 10% net without table of expenses — red flag. Calculation we do for free during selection.

How we calculate yield for client

Before purchase Harmony Ocean Property prepares table for 12 months: occupancy by months, average price of night, commission of management company, utility payments, consumables, reserve for repairs. We do not use «ideal scenario» with 90% occupancy all year round — such does not happen on villas of western coast.

High season on Phuket — from November to April. In these months ADR on villas 3–4 bedrooms in Bang Tao and Layan stays at level of 12–18 thousand baht per night depending on area, view and distance to beach. May–October revenue falls by 30–50%: tourists less, competition per night higher, part of owners reduces price, so as not to keep empty calendar.

Management company: what to look at

Commission 15–22% of gross revenue — norm for full cycle
Dynamic pricing: who makes decision on discounts
Marketing: Airbnb, Booking, direct bookings, photo sessions once every 2 years
Maintenance: swimming pool, air conditioners, garden, cleaning
Reporting: monthly P&L, and not «everything is fine» in WhatsApp

Weak management company can «eat» 2–3 percentage points of net yield: empty calendar, inflated expenses on minor repairs, absence of work with reviews. We recommend 2–3 companies from verified pool and give to client to compare conditions before signing of management contract.

Villa vs condominium

Condominium in south (Kata, Karon) often shows higher gross on paper: less area, higher occupancy on studios and one-bedrooms. But wear of furniture and finishing is higher, noise from neighbors and bars affects reviews, and rules of juristic person can limit short-term. Villa in west — another segment: families, long stays, higher check, longer cycle of interior renewal.

Portfolio approach, which we often discuss with investors: condo for liquidity and quick entry + villa for check and premium niche. One object rarely closes all goals.

Typical mistakes of investor

To believe percentage from booklet of developer without table of expenses
To buy villa without right of short-term in village
To save on furniture and photos — calendar empties for months
Not to allocate downtime for repair of swimming pool or roof
To compare gross of different objects without unified methodology

Frequent questions

Is it realistic to get 8% net?

On individual objects in successful year — yes. As average bar for whole market of villas — no. 5–6% net with normal management we consider good result. Promise of 10% without detail of expenses — reason to be cautious.

Is it necessary to come to Phuket?

For final choice — desirable. One day on object and beach gives more than ten PDFs. If there is no possibility — we do video inspection in real time and engineering report.

When does villa pay off?

Simple payback by rent in west — 14–18 years with net 5–6%. Most clients combine personal use, growth of value of asset and income in baht. We do not sell «quick payback in 7 years».

What to do next

If you are considering villa for rent — request from us calculation for your budget and period of ownership. We prepare for free comparative table of 3–5 objects with net scenario, and not only price on site. Consultation takes 40–60 minutes, after it you will have clear picture before trip to island.