Phuket has become one of Thailand’s most attractive investment hotspots, drawing in property buyers from across the globe. But when it comes to maximising returns, owners often face a key question: should you rent your villa or condo short-term or long-term? Let’s break down the ROI of both strategies in the Phuket market.
Short-Term Rentals: Higher Returns, Higher Management
What It Means
Short-term rentals usually target holidaymakers, with bookings ranging from a few nights to a few weeks. These are often listed on platforms like Airbnb, Agoda, or Booking.com.
ROI Advantages
- Premium nightly rates: In high season, a well-positioned villa can command double or triple long-term rates.
- Flexibility: Owners can block dates for personal use.
- Dynamic pricing: Rates can be adjusted for peak seasons, holidays, and events.
ROI Challenges
- Fluctuations: Occupancy is highly seasonal, with peak months (Nov–Mar) offsetting quieter periods.
- Higher running costs: Utilities, cleaning, and maintenance must be factored in.
- Active management: Success relies on marketing, guest service, and platform optimisation.
Long-Term Rentals: Stability and Predictability
What It Means
Long-term rentals are typically six months to one year (or more), appealing to expats, digital nomads, and retirees seeking stability.
ROI Advantages
- Steady income: Consistent monthly cash flow with less volatility.
- Lower operating costs: Tenants usually cover utilities, reducing the owner’s expenses.
- Less wear and tear: Longer stays mean fewer turnovers and reduced management workload.
ROI Challenges
- Lower yields: Monthly rent is significantly less than peak short-term rates.
- Less flexibility: Owners cannot use the property during the rental period.
- Market sensitivity: Rental prices are tied closely to local expat demand and long-stay visas.
Which Strategy Wins in Phuket?
- Short-Term ROI Potential: Higher gross yields—often 8–12% annually—if managed effectively with strong marketing and guest turnover.
- Long-Term ROI Potential: Lower gross yields—typically 4–6% annually—but with predictable, hassle-free cash flow.
The best choice depends on the owner’s goals:
- For investors seeking maximum profit, short-term rentals managed by a professional company deliver the best ROI.
- For owners valuing stability and low effort, long-term rentals are the safer path.
Final Word
At Inter Property Phuket, we specialise in helping owners maximise ROI, whether through full-service short-term villa management or stable long-term rental programs. With over 1,000 properties under management and our Net Guarantee, we ensure your investment performs—no matter which rental strategy you choose.
✨ Phuket property success starts with the right rental strategy.
