Phuket Net Rental Income Scenarios

A yield can be calculated perfectly and still answer the wrong question if the denominator is only the advertised purchase price. The useful denominator is the cash required to acquire and prepare the condo for its first lease.

The worked example uses a 34 sqm foreign-quota unit at Dcondo Reef Phuket. Its sale listing shows THB 3.2 million, full furnishing and a common-area fee of THB 1,870 per month. For the model, THB 3.2 million is treated as an illustrative acquisition price taken from the current asking listing, not as evidence of a completed transaction.

Buyer-paid registration and closing items belong on top of that amount once the actual settlement terms are known. The Department of Lands' general condominium registration schedule includes a 2% fee on the applicable appraised base, but that does not justify adding THB 64,000 to every buyer's model: the applicable base, any current relief and the agreed allocation between the parties must be established for the transaction. No generic furniture budget is inserted because this particular unit is advertised as fully furnished.

So the model keeps total capital as THB 3.2 million plus documented buyer costs and any necessary initial work. Until those numbers are available, the final yield percentage stays open. Financing interest and currency gains or losses sit outside the property's operating return.

A current one-year listing for a 34 sqm Dcondo Reef unit asks THB 22,000 per month. Other September 2026 listings for roughly 34–35 sqm units in the same project sit around THB 22,000–27,000 per month across major portals. Those figures show what landlords are asking, not what a signed lease ultimately clears at, so the worked model uses THB 22,000 as a visible input instead of presenting a portal price as a guaranteed rent.

At that rate, twelve paid months would produce THB 264,000 of collected rent. Nothing in a listing proves that a future tenant will occupy the unit for all twelve months, that a gap between leases will be avoided, or that the asking figure will survive negotiation.

The 8-, 10- and 12-month cases are therefore sensitivity points for one condo. They are deliberately neutral labels. None is presented as a forecast or as a typical Phuket occupancy level.

Owner use is kept at zero in the table so market vacancy is easy to see: four vacant months in the 8-month case, two in the 10-month case and none in the 12-month case. If the owner blocks part of the year for personal stays, those months should be recorded separately because they reduce rental availability without describing tenant demand.

A refundable tenant deposit also stays outside rental income while it remains repayable under the lease. Cash held as security is not the same thing as rent collected.

All three rows hold the asset and pricing assumptions constant: the same 34 sqm condo, an illustrative THB 3.2 million acquisition price and THB 22,000 monthly rent. Paid months are the only revenue variable that changes, so vacancy is not disguised by switching to a different unit or a different price.

Ongoing management is set at 10% of rent actually collected. That is a modelling assumption, not a quoted contract for this condo. The example also assumes one new annual lease with a tenant-placement fee equal to one month's rent, THB 22,000. The unit's published common-area charge contributes THB 22,440 per year, and a THB 16,000 annual maintenance allowance is included as an explicit sensitivity assumption rather than a claimed Phuket market norm.

Metered utilities are assumed to be tenant-paid. No separate owner insurance premium is available for the selected unit, so the model does not invent one; an actual policy premium should be deducted from every scenario. Under the stated assumptions, collected rent equals THB 22,000 multiplied by paid months, management equals 10% of collected rent, and pre-owner-tax operating cash flow equals collected rent minus management, THB 22,440 of common fees, THB 22,000 of tenant placement and the THB 16,000 maintenance allowance.

The final capital denominator is still open because buyer-paid acquisition costs are unknown. The percentages shown with the cash flows are therefore ceilings based on total capital being at least THB 3.2 million, not completed after-tax return figures.

At THB 22,000 per month, collected rent is THB 176,000, THB 220,000 and THB 264,000 across the three cases. Every row keeps the same 10% management charge, THB 22,440 annual common fees, one THB 22,000 tenant-placement fee and a THB 16,000 maintenance allowance. Cash flow is before owner-specific income tax and any separate insurance premium; the percentage is only a ceiling until actual buyer costs are added to the THB 3.2 million acquisition assumption.

Each paid month contributes THB 19,800 toward fixed owner costs after the model's 10% management charge is taken from THB 22,000 of rent. The fixed annual amount is THB 60,440: THB 22,440 of common fees, THB 22,000 for one tenant placement and the THB 16,000 maintenance allowance.

Dividing THB 60,440 by THB 19,800 gives 3.05 paid months. In whole-month terms, three paid months leave the model THB 1,040 short, while four paid months put it THB 18,760 above the included operating costs. Four full paid months are therefore the break-even point under these exact assumptions.

That number is not the payback period for the condo. A lease renewal with no new placement fee would lower it; owner-paid insurance, utilities, larger repairs or other real bills would raise it. The useful break-even threshold is the one rebuilt from the actual management agreement and annual owner statements.

Thai Revenue Code Section 40(5) places rent from property within assessable income. The Revenue Department's English PIT guidance lists a 30% standard deduction for building rent and a 5% withholding rate for rents. Those are components of the tax framework, not a universal statement that every owner ultimately pays 5% of gross rent.

The same official guidance says tax withheld at source is credited against the taxpayer's final liability when the return is filed. The after-tax outcome depends on the owner's status and residence, the ownership structure, who pays the rent, applicable deductions and whether withholding can be credited. That is why the comparison stops at pre-owner-tax operating cash flow; an after-tax figure needs owner-specific facts for the relevant tax year.