Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
Phuket remains one of the most attractive rental investment destinations in Southeast Asia for foreigners, thanks to its strong tourism economy and established expat community.
This guide covers everything you need to know about legally renting out residential property in Phuket as a foreign owner in 2026, from ownership structures to realistic yield expectations.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Phuket.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Phuket.
Insights
- Phuket short-term rentals average around 50% to 60% occupancy annually, but this masks wild swings between 80%+ in peak season (November to February) and under 40% during the monsoon months.
- The 30-day minimum stay rule is the practical compliance line most Phuket landlords use to avoid Thailand's Hotel Act licensing requirements for short-term rentals.
- Foreigners can only own condos freehold in Phuket (within the 49% foreign quota per building), while villas and houses typically require leasehold or other legal structures.
- Phuket's gross rental yields range from 4.5% to 6.5% for long-term rentals and 6% to 10% for well-managed short-term rentals, but net yields often drop to 3% to 7% after real operating costs.
- Bang Tao, Laguna, and Cherng Talay command the highest rents in Phuket, but their elevated purchase prices often compress yields compared to areas like Rawai or Kathu.
- Thailand introduced stronger consumer protection rules for residential leases in September 2025, limiting aggressive deposit and utility markup clauses for business landlords.
- AirDNA reports Phuket's average nightly rate for short-term rentals sits around $180 to $200, though older inland condos can go much lower and luxury villas much higher.
- Furnished rentals rent significantly faster in Phuket because the island attracts a high share of international tenants, remote workers, and short-to-mid-term stays who want move-in-ready units.
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
Can I legally rent out a property in Phuket as a foreigner right now?
Can a foreigner own-and-rent a residential property in Phuket in 2026?
As of early 2026, foreigners can legally own and rent out residential property in Phuket, but the ownership structure you use determines what rights you actually have.
The most common route for foreigners is buying a condominium freehold, which is permitted under Thailand's Condominium Act as long as foreign ownership in that building stays within the 49% quota by sellable area.
If you want a villa or house with land in Phuket, the main limitation is that foreigners generally cannot own land directly under the Land Code, so you would typically hold property through a long-term leasehold arrangement or other legal structures.
If you're not a local, you might want to read our guide to foreign property ownership in Phuket.
Do I need residency to rent out in Phuket right now?
No, you do not need to be a Thai resident to own and rent out property in Phuket, and many foreign landlords manage their investments entirely from abroad.
However, you will need a Thai Tax ID number to properly file and document your rental income with Thailand's Revenue Department.
A local Thai bank account is not strictly required by law, but it is strongly recommended because tenants and property managers typically pay in Thai baht, and you will have local expenses like common fees and repairs.
Managing a Phuket rental remotely is entirely feasible if you hire a reliable property manager to handle tenant communications, cleaning, repairs, and bill payments on your behalf.
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What rental strategy makes the most money in Phuket in 2026?
Is long-term renting more profitable than short-term in Phuket in 2026?
As of early 2026, short-term rentals in Phuket can generate higher gross revenue, but long-term rentals often deliver better stress-adjusted net profits because of lower operating costs and clearer legal compliance.
A well-managed short-term rental in a good Phuket location might gross 20% to 40% more annually than a long-term lease on the same unit, but after accounting for management fees, cleaning, turnover, and vacancy, the net difference shrinks significantly.
Short-term renting tends to outperform financially in prime tourist areas like Bang Tao, Kamala, and Patong where nightly rates spike during peak season, while long-term renting is often the smarter choice for inland areas like Kathu or Phuket Town where year-round local demand is steadier.
What's the average gross rental yield in Phuket in 2026?
As of early 2026, the average gross rental yield for residential properties in Phuket ranges from about 4.5% to 6.5% for long-term rentals and 6% to 10% for efficiently operated short-term rentals.
The realistic range spans from around 4% on the low end (overpriced luxury units in competitive areas) to 10% on the high end (well-positioned STR properties with strong occupancy).
Studios and one-bedroom condos in tourist-heavy zones like Rawai, Patong, or Cherng Talay typically achieve the highest gross yields in Phuket because they attract both short-stay tourists and longer-term expats at accessible price points.
By the way, we have much more granular data about rental yields in our property pack about Phuket.
What's the realistic net rental yield after costs in Phuket in 2026?
As of early 2026, the average net rental yield after all costs for residential properties in Phuket is around 3% to 4.8% for long-term rentals and 3.5% to 7% for short-term rentals.
Most Phuket landlords realistically experience net yields between 3% and 5%, with the wide range reflecting differences in management efficiency, vacancy rates, and property condition.
The three main cost categories that reduce gross yield to net yield specifically in Phuket are property management fees (typically 8% to 15% of rent), condo common area fees (which can be substantial in resort-style projects), and the high turnover costs of STR operations including cleaning, repairs, and vacant utility bills.
You might want to check our latest analysis about gross and net rental yields in Phuket.
What monthly rent can I get in Phuket in 2026?
As of early 2026, typical monthly rents in Phuket for long-term leases are around 15,000 to 30,000 baht ($430 to $860 or €400 to €800) for a studio, 20,000 to 45,000 baht ($570 to $1,290 or €530 to €1,200) for a one-bedroom, and 35,000 to 80,000 baht ($1,000 to $2,290 or €930 to €2,130) for a two-bedroom.
A realistic entry-level monthly rent for a decent studio in Phuket starts around 12,000 to 18,000 baht ($345 to $515 or €320 to €480), typically found in Phuket Town, Kathu, or older inland projects.
A typical mid-range one-bedroom apartment in Phuket rents for about 25,000 to 35,000 baht ($715 to $1,000 or €665 to €930) per month in areas like Chalong, Rawai, or mid-tier Cherng Talay developments.
A mid-to-high range two-bedroom apartment in Phuket commands around 50,000 to 70,000 baht ($1,430 to $2,000 or €1,330 to €1,860) monthly, especially in Bang Tao, Laguna, Surin, or newer sea-view projects.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Phuket.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Phuket in 2026?
What's the total "all-in" monthly cost to hold a rental in Phuket in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Phuket is around 6,000 to 18,000 baht ($170 to $515 or €160 to €480) for long-term rentals and 12,000 to 35,000 baht ($345 to $1,000 or €320 to €930) for short-term rentals.
The realistic range covers most standard Phuket rental properties, with lower costs for simple inland condos and higher costs for managed resort-style units or villas with pools.
The single largest contributor to monthly holding costs in Phuket is typically the common area maintenance fee for condos (often 40 to 80 baht per square meter monthly), which can easily reach 3,000 to 8,000 baht for a standard unit in a well-maintained project.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Phuket.
What's the typical vacancy rate in Phuket in 2026?
As of early 2026, the typical vacancy rate for long-term rentals in Phuket is around 8% to 17% (roughly one to two months per year), while short-term rentals average 40% to 50% vacant nights annually based on occupancy data.
Phuket landlords should realistically budget for one to two months of vacancy per year for long-term rentals because the island has significant new supply in investor zones and seasonal tenant turnover patterns.
The main factor that causes vacancy rates to differ across Phuket neighborhoods is whether the area attracts year-round residents (like Phuket Town or Kathu) versus seasonal tourists (like Patong or Kata), with tourism-dependent zones experiencing more volatility.
The highest tenant turnover and vacancy in Phuket typically occurs during the low season from May to October when tourism drops due to the monsoon, causing short-term rental occupancy to fall significantly and some long-term tenants to relocate.
We have a whole part covering the best rental strategies in our pack about buying a property in Phuket.
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Where do rentals perform best in Phuket in 2026?
Which neighborhoods have the highest long-term demand in Phuket in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Phuket are Kathu (central and close to employment hubs), Phuket Town (hospitals, schools, and year-round local economy), and Chalong (practical southern base with pier access).
Families looking for long-term rentals in Phuket tend to concentrate in Cherng Talay, Bang Tao, and the Laguna area because of the international schools, family amenities, and master-planned community feel.
Students and younger renters in Phuket gravitate toward Phuket Town and Kathu where rents are more affordable and daily conveniences are within easy reach.
Expats and international professionals seeking long-term rentals in Phuket favor Rawai, Nai Harn, Bang Tao, and Kamala because these areas offer established expat communities, lifestyle amenities, and longer-stay accommodation options.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Phuket.
Which neighborhoods have the best yield in Phuket in 2026?
As of early 2026, the top three neighborhoods with the best rental yield in Phuket are Rawai (strong expat demand with moderate prices), Chalong (practical location with year-round renters), and Kathu (local employment base keeps occupancy stable).
These top-yielding Phuket neighborhoods typically deliver gross rental yields in the range of 5.5% to 7.5%, compared to 4% to 5.5% in the premium beachfront strips.
The main characteristic that allows these neighborhoods to achieve higher yields is that purchase prices have not run away as fast as rents, unlike luxury zones where prestige pricing compresses returns even when absolute rents are high.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Phuket.
Where do tenants pay the highest rents in Phuket in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Phuket are Bang Tao and Laguna (70,000 to 150,000 baht or $2,000 to $4,300 or €1,860 to €4,000 monthly), Surin (60,000 to 120,000 baht or $1,715 to $3,430 or €1,600 to €3,200), and Kamala (50,000 to 100,000 baht or $1,430 to $2,860 or €1,330 to €2,660).
A standard two-bedroom apartment in these premium Phuket neighborhoods typically rents for 60,000 to 100,000 baht ($1,715 to $2,860 or €1,600 to €2,660) per month, with luxury villas commanding significantly more.
The main characteristic that makes these neighborhoods command the highest rents is their combination of walkable access to upscale beach clubs, international restaurants, and lifestyle hubs like Boat Avenue, which creates a "resort living" experience tenants pay a premium for.
The typical tenant profile in these highest-rent Phuket neighborhoods includes senior expat executives, remote-working entrepreneurs, and affluent families seeking international school proximity combined with a high-end beach lifestyle.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Thailand. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Phuket in 2026?
What features increase rent the most in Phuket in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Phuket are genuine sea or sunset views (not obstructed), walkability to a beach or lifestyle hub like Boat Avenue, and high-quality air conditioning with proper soundproofing for tropical comfort.
A genuine unobstructed sea view can add a 15% to 30% rent premium in Phuket compared to identical units without the view, making it the single most valuable feature for maximizing rental income.
One commonly overrated feature that Phuket landlords invest in but tenants do not pay much extra for is expensive imported kitchen appliances, since most renters prioritize location and cooling over cooking equipment they rarely use.
One affordable upgrade that provides a strong return on investment for Phuket landlords is installing fast, reliable Wi-Fi infrastructure and creating a dedicated workspace area, because the island attracts a large remote-worker population who will pay more for connectivity.
Do furnished rentals rent faster in Phuket in 2026?
As of early 2026, furnished apartments in Phuket typically rent two to four weeks faster than unfurnished ones because the island's tenant base is heavily skewed toward international renters and short-to-mid-term stays who want move-in-ready units.
Furnished rentals in Phuket generally command a 10% to 20% rent premium over unfurnished equivalents, and this premium is even higher in expat-heavy areas like Rawai, Bang Tao, and Kamala where turnkey living is the market expectation.
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How regulated is long-term renting in Phuket right now?
Can I freely set rent prices in Phuket right now?
Landlords in Phuket have broad freedom to set initial rent prices at market rates, as Thailand does not impose rent control caps like some European cities do.
However, since September 2025, Thailand has strengthened consumer protection rules for residential leases, which limits unfair contract clauses around deposits and utility markups but does not cap rent increases during a tenancy if the lease allows for adjustments.
What's the standard lease length in Phuket right now?
The standard lease length for residential rentals in Phuket is 12 months, though six-month and 24-month leases are also common depending on tenant type and whether the unit is furnished.
The most common security deposit structure in Phuket is two months' rent as deposit plus one month's rent upfront, which means for a 30,000 baht unit you would typically collect 90,000 baht ($2,570 or €2,400) at signing.
Thailand's 2025 consumer protection rules require landlords to return the security deposit within a reasonable timeframe after tenancy ends, minus documented deductions for damages, though specific return deadlines depend on what the lease contract states.
We made this infographic to show you how property prices in Thailand compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Phuket in 2026?
Is Airbnb legal in Phuket right now?
Airbnb-style short-term rentals in Phuket exist in a legal gray zone because providing paid accommodation to travelers can fall under Thailand's Hotel Act, which requires proper hotel licensing for stays under 30 days.
If you want to legally operate nightly or weekly rentals in Phuket, you generally need a hotel license, and your building's juristic person (condo management) must also permit short-term rentals, which many do not.
Thailand does not impose a simple annual night cap like some cities, but the practical compliance line most Phuket owners follow is offering minimum 30-day stays to avoid being classified as operating a hotel business.
The most common consequence for operating an unlicensed short-term rental in Phuket is enforcement action from your condo's juristic person (fines or rental bans), and in more serious cases, potential penalties under the Hotel Act including fines up to 20,000 baht and daily penalties.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Phuket.
What's the average short-term occupancy in Phuket in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Phuket is around 50% to 60%, meaning your unit will likely sit empty nearly half the year on average.
The realistic range spans from about 40% occupancy for poorly positioned or overpriced units to 70% or higher for well-managed properties in prime locations with strong reviews.
The highest occupancy months for Phuket short-term rentals are November through February (peak tourist season), when occupancy can surge to 75% to 85% in popular areas.
The lowest occupancy months are May through October (monsoon and low season), when occupancy often drops to 30% to 45% even for decent properties.
Finally, please note that you can find much more granular data about this topic in our property pack about Phuket.
What's the average nightly rate in Phuket in 2026?
As of early 2026, the average nightly rate for short-term rentals in Phuket is around 6,300 to 7,000 baht ($180 to $200 or €170 to €185), though this varies enormously by property type and location.
The realistic range covers most Phuket STR listings, from about 2,000 to 3,500 baht ($57 to $100 or €53 to €93) per night for older inland condos up to 15,000 to 35,000 baht ($430 to $1,000 or €400 to €930) for luxury beachfront villas.
The typical nightly rate difference between peak season (December to January) and low season (June to September) in Phuket is around 30% to 50%, with peak rates commanding 8,000 to 10,000 baht ($230 to $285 or €215 to €265) for mid-range units versus 5,000 to 6,500 baht ($145 to $185 or €135 to €175) in low season.
Is short-term rental supply saturated in Phuket in 2026?
As of early 2026, the short-term rental market in Phuket's main investor corridors is moderately to heavily saturated, meaning you face significant competition from similar inventory and cannot assume easy bookings.
The number of active short-term rental listings in Phuket has been growing, with CBRE noting substantial future completions (including 2026 deliveries) and many new projects bundling rental management services.
The most oversaturated neighborhoods for short-term rentals in Phuket include Bang Tao, Cherng Talay, and Patong, where investor-grade condo supply is densest and competition for guests is fiercest.
Neighborhoods that still have room for new short-term rental supply in Phuket include parts of Rawai, Nai Harn, and Kamala, where the unit mix is more varied and there is less cookie-cutter investor product flooding the market.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Phuket, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Bank of Thailand (BOT) | Thailand's central bank with official property price index data. | We used it to anchor the big picture of Thailand's housing market. We also referenced its methodology to validate other market reports. |
| CBRE Thailand | Top-tier global real estate consultancy with structured Phuket market data. | We used it for Phuket supply, sales, and hotel KPIs that influence rental economics. We also used it to check claims about demand and saturation. |
| Knight Frank Thailand | Globally recognized consultancy with a dedicated Phuket market survey. | We used it to identify which Phuket zones are investment versus lifestyle areas. We also used its supply numbers for neighborhood recommendations. |
| AirDNA | Widely used STR analytics provider with consistent occupancy and rate metrics. | We used it for Phuket short-term rental occupancy and ADR benchmarks. We cross-checked it against CBRE's hotel data for context. |
| Thailand Hotel Act (DOPA) | Government-hosted official legal text on hotel business regulations. | We used it to explain the legal line between hotel business and longer stays. We translated it into practical STR compliance guidance. |
| Condominium Act B.E. 2522 | Direct English act text commonly referenced for condo ownership rules. | We used it to ground the foreign freehold condo pathway. We cross-checked the 49% foreign quota rule with multiple sources. |
| Land Code Act | Consolidated legal PDF widely referenced for Thailand land law. | We used it to explain why foreigners cannot own land directly. We translated that into what rental investors can and cannot do. |
| Thailand Revenue Department | Thai tax authority with primary source PIT and withholding rules. | We used it to explain rental income tax handling at the individual level. We kept it practical for non-professional landlords. |
| Tilleke & Gibbins | Established regional law firm citing official Government Gazette publications. | We used it to explain 2025 changes for business landlords. We translated legal changes into practical lease compliance steps. |
| PropertyScout | Large Thailand brokerage portal with published rent averages and ranges. | We used it as one leg of rent triangulation. We cross-checked it against FazWaz for 2026 rent ranges by unit size. |
| FazWaz | Major Thai portal with large live sample for reality-checking asking rents. | We used it to ground rent ranges by unit type and Phuket location. We haircut asking rents slightly to estimate achievable rents. |
We have made this infographic to give you a quick and clear snapshot of the property market in Thailand. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.