Rental yields in Phuket: short-term vs long-term, and what drives them

Short-term or long-term — what's the difference? Short-term (holiday) rentals target tourists by the night and can earn more per night, but come with higher management costs, seasonality and vacancy, and licensing considerations. Long-term rentals (monthly, to residents or long-stay visitors) earn less headline yield but are steadier and cheaper to run.

What are typical yields on Phuket? As island benchmarks, gross short-term yields commonly fall in the 5–8% range and long-term in the 4–6% range, before costs. These are broad guides, not guarantees — the real number depends heavily on the specific project, location and management, so always verify with actual, recent operating data rather than a developer's projection.

What drives the number? Location and walkability to the beach and amenities; the strength of the local rental market (Bang Tao, Patong and Kata have the deepest short-term demand); brand and professional management; unit size and layout (compact, well-located units often out-yield large ones); and total costs — common fees, management commission, furnishing, and vacancy between guests.

Gross vs net — read carefully. Advertised yields are usually gross. Net yield, after common fees, management commission (often 20–35% for short-term), maintenance and vacancy, can be materially lower. When a project quotes a "guaranteed" return, check its length, what happens afterwards, and how it is funded.

How should a buyer use this? Treat benchmark ranges as a sanity check, not a promise. Ask for a realistic net-yield model with all costs, compare it to comparable resale units' actual performance, and weigh steadiness against headline return based on your own goals.