Over the past 18 months of monitoring the short-term rental market across Phuket and Koh Samui, our analysts have identified a consistent pattern: buyers systematically underestimate operating costs by 35-50% relative to actual expenditure. The result is that a projected net yield of 7-8% contracts to 3-4% in practice, and in some cases to near zero.
The problem is not the property itself. It is the gap between a pre-purchase spreadsheet and the actual profit-and-loss account after 12 months of live operations. Below we present anonymised cases from 2024-2026, grounded in data our team collects on the ground.
Quick answer
- Real operating costs charged by rental operators in Phuket (management fee plus maintenance plus marketing) absorb 30-45% of gross rental revenue, not the 15-20% most buyers budget
- Professional operator fees in the Bang Tao and Kamala areas sit at 25-35% of gross revenue as of Q1 2026
- Annual maintenance costs for a three-bedroom pool villa (~250 sqm) in the Layan area run 180,000-280,000 THB per year before any operator commission is applied
- Average occupancy on Koh Samui during the low season (May-October 2025) dropped to 38% per booking platform data, materially reducing annual revenue
- Buyers routinely omit short-term rental licence costs, OTA platform commissions of 15-18%, and rental income tax from their projections
Options and scenarios
Case 1: Layan villa (Phuket) - pool and garden maintenance underestimated
A buyer acquired a three-bedroom pool villa in the Layan area in 2024 for 14.5 million THB. The pre-purchase model assumed gross rental revenue of 1.8 million THB per year at 65% occupancy, with operating costs of 270,000 THB (15% of revenue). Projected net yield: 10.5%.
After 12 months of operations the actual gross revenue was 1.45 million THB (52% occupancy), while operating costs reached 615,000 THB. The most significantly underestimated line items were pool servicing (6,000 THB per month), a resident gardener (4,500 THB per month), operator commission (30% of gross revenue, totalling 435,000 THB), post-monsoon air-conditioning repairs (45,000 THB), and property insurance (18,000 THB). Net yield settled at 5.7% versus the projected 10.5%. The annual cost gap was over 500,000 THB.
Warning signs that were identifiable in advance: no detailed cost schedule from the operator before signing, no technical audit of the pool plant or AC units, and an occupancy assumption of 65% with no seasonality analysis specific to the Layan micro-market.
Case 2: Kamala condo (Phuket) - OTA fees and rental tax omitted
A buyer purchased a 45 sqm studio in a condominium complex in Kamala for 4.2 million THB in 2024. The model projected rental income from Booking.com and Airbnb of 420,000 THB per year. Costs were limited to a common-area fee of 3,500 THB per month and an operator commission of 20%. Projected net yield: 7.0%.
The following were not included: OTA platform commissions (15-18% of gross revenue), rental income tax (5-15% depending on ownership and filing structure), professional cleaning between guests (800-1,200 THB per turnover), linen and towel replacement every 8-10 months (8,000-12,000 THB), and photography plus listing refresh costs (15,000-25,000 THB per year). After accounting for all costs, net yield came to 2.8%.
The core error was double-counting: the buyer treated the operator commission as the sole intermediary cost, unaware that the operator passes OTA fees directly through to the owner as a separate charge.
Case 3: Bophut villa (Koh Samui) - low-season depth ignored
A buyer acquired a four-bedroom villa in Bophut for 18 million THB in 2023. The model was built on a nightly rate of 8,500 THB and 60% occupancy year-round. Projected annual revenue: 1.86 million THB.
In practice, nightly rates in the low season (May-October) dropped to 4,500-5,500 THB, and occupancy across those months was only 22-35% (per 2025 data from our monitoring). Actual gross revenue: 1.18 million THB. Combined, the operator fee (35% of gross), maintenance (320,000 THB per year for a large plot with an infinity pool), and post-rainy-season repairs consumed 733,000 THB. Net yield: 2.5% versus the projected 7.8%**.
What our team would model differently: a three-band seasonal model separating high season (December-April), shoulder season (November and May), and low season (June-October), each with its own rate and occupancy assumption. On Koh Samui the low season is longer and more pronounced than on Phuket's west coast.
Comparison table
| Parameter | Villa - Layan, Phuket | Studio condo - Kamala, Phuket | Villa - Bophut, Koh Samui |
|---|---|---|---|
| Purchase price (THB) | 14,500,000 | 4,200,000 | 18,000,000 |
| Projected gross revenue | 1,800,000 THB/yr | 420,000 THB/yr | 1,860,000 THB/yr |
| Actual gross revenue | 1,450,000 THB/yr | 340,000 THB/yr | 1,180,000 THB/yr |
| Projected operating costs | 270,000 THB (15%) | 84,000 THB (20%) | 279,000 THB (15%) |
| Actual operating costs | 615,000 THB (42%) | 222,000 THB (65%) | 733,000 THB (62%) |
| Projected net yield | 10.5% | 7.0% | 7.8% |
| Actual net yield | 5.7% | 2.8% | 2.5% |
| Cost underestimate (THB/yr) | 345,000 | 138,000 | 454,000 |
Risks and mistakes
Mistake 1: modelling on a single nightly rate applied year-round
In Phuket, the gap between peak-season rates (December-February) and low-season rates (June-September) is 40-60%. On Koh Samui the spread is wider. Using one blended average overstates revenue by 15-25% before any other variable is considered.
Mistake 2: excluding OTA platform commissions
Booking.com charges 15-17% of the booking value. Airbnb charges the host approximately 3% and adds a guest-side fee of roughly 14%, which compresses effective price competitiveness. These costs rarely appear in developer marketing materials, and our analysts have seen them absent from operator summary sheets as well.
Mistake 3: underestimating tropical maintenance costs
Air-conditioning units in Thailand require servicing every 3-4 months (cost: 2,000-4,000 THB per unit). Pools need daily chemical treatment. Tropical humidity accelerates wear on furniture and finishes 2-3 times faster than in temperate climates. Based on our estimates, the minimum annual maintenance cost for a pool villa on Phuket is 150,000-280,000 THB, depending on floor area and specification.
Mistake 4: no vacancy reserve in the model
Professional operators recommend setting aside 10-15% of gross revenue to cover void periods, emergency repairs, and equipment rotation. In our data sets, this line item is almost universally absent from buyer projections coming into the market from outside Thailand.
Mistake 5: ignoring legal compliance costs
Short-term rental of a villa on Phuket requires either a hotel licence or registration under the Thai Hotels Act. The one-off cost of obtaining a licence ranges from 50,000-150,000 THB depending on room count and location, plus annual administrative renewal fees. Operating without a licence carries a penalty of up to 20,000 THB per day of unlicensed activity (as of the 2026 legal position). This is a hard cost that appears in no developer brochure we have reviewed.
FAQ
What is the realistic operator commission for short-term rentals in Phuket in 2026?
Professional short-term rental operators in Phuket charge 25-35% of gross revenue. Rates quoted at 15-20% typically exclude marketing, cleaning coordination and OTA management, which are then billed separately, arriving at a similar or higher effective total.
What hidden rental costs do buyers most often miss in Thailand?
The most frequently omitted costs are: OTA platform commissions (15-18%), pool servicing (72,000-96,000 THB per year), garden maintenance (54,000-72,000 THB per year), AC repairs and servicing, linen and furniture replacement, property insurance, and the short-term rental licence fee under the Thai Hotels Act.
What is a realistic net rental yield for property in Phuket?
Based on our 2025-2026 data, realistic net yields (after all operating costs and applicable taxes) are 3-6% for villas and 2-5% for condominiums in Phuket. Figures above 7% net require above-average occupancy or an unusually low entry price, and our analysts treat any projection above that threshold with caution.
Is Koh Samui's low season more severe than Phuket's?
Yes. Koh Samui has a longer and deeper low season. Occupancy in May-October drops to 22-38% on Samui, while the west coast of Phuket (Bang Tao, Surin, Kamala, Layan) maintains 30-45% occupancy during the same months, supported by a broader base of year-round visitors.
How should buyers account for the THB exchange rate in their yield models?
Over the 24 months to Q1 2026, the THB has moved across a range that meaningfully shifts yields when converted to other currencies. We recommend running base, downside and upside exchange-rate scenarios rather than locking in a single rate. Any yield expressed in a foreign currency should be treated as an estimate, not a guarantee.
Does the rental operator cover repair and maintenance costs?
In the standard Phuket and Koh Samui operator model, the operator manages bookings and guest relations in exchange for their commission. Repair costs, technical servicing, and equipment replacement remain the owner's responsibility. Before signing any operator agreement, we recommend obtaining a written cost-allocation schedule that specifies every category of expenditure.
How much does a short-term rental licence cost for a villa in Phuket?
Obtaining a licence under the Thai Hotels Act costs 50,000-150,000 THB as a one-off fee, depending on room count and district, plus annual renewal charges. Operating short-term rentals (stays under 30 nights) without this licence is formally prohibited and carries substantial daily penalties.
What occupancy rate is realistic for a rental property in Phuket?
Per our 2025 monitoring data, professionally managed villas in prime locations (Bang Tao, Layan, Surin) achieve average annual occupancy of 50-60%. Condominiums across Phuket average 45-55%. We regard any first-year projection above 65% as optimistic and flag it as a modelling risk in our data briefs.
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