ROI After All Fees in Thailand: What Phuket Property Investors Actually
Marketing brochures often quote gross rental yields of 7-9% in Phuket’s condo investment segment. Experienced investors know gross is where the story starts, not where it ends. After management fees (often 15-20% of revenue), OTA commissions (often 15-20% of booking value when using Airbnb/Booking.com), CAM fees (often ~$1,000-$1,500/year for a 50 sqm unit depending on tier), and tax withholding (often modeled around 15% of gross rental income for some non-resident cases), net yields frequently fall into a 4-6% band for typical short-term rental operations, unless you optimize operations (direct bookings, lower commissions, strong occupancy).
Step-by-step: from gross to net (example)
- Purchase price: $200,000
- Gross annual revenue: $18,000 (9% gross yield)
- Management fee: 18% of gross revenue = $3,240
- OTA commissions: 15% of gross revenue = $2,700
- CAM + other building: $1,200/year
- Withholding tax (illustrative 15% of gross) = $2,700
| Line | USD |
|---|---|
| Gross revenue | $18,000 |
| − Management | $3,240 |
| − OTA | $2,700 |
| − CAM | $1,200 |
| − Tax (illustrative) | $2,700 |
| Net cash (illustrative) | $8,160 |
Net yield: $8,160 / $200,000 = 4.08%.
Sensitivity table: OTA + management dominate
| Mgmt + OTA combined | Illustrative fees | Net before CAM/tax |
|---|---|---|
| 30% | $5,400 | $12,600 |
| 35% | $6,300 | $11,700 |
| 40% | $7,200 | $10,800 |
This is why distribution strategy matters as much as location.
Better scenario: direct bookings and lower management
- Combined = 17% → $3,060
- Same gross $18,000, same CAM $1,200, same illustrative tax $2,700
- Net = $18,000 − $3,060 − $1,200 − $2,700 = $11,040 → 5.52% net
| Strategy | Tradeoff |
|---|---|
| More direct bookings | More owner time / systems |
| Full-service operator | Less time, higher fee % |
Why CAM is not “small” in low gross months
| Month type | Revenue | CAM |
|---|---|---|
| High season | High | Same |
| Low season | Lower | Same |
Occupancy: the silent variable that beats fees
| Occupancy | Revenue impact |
|---|---|
| 70% vs 60% | Material |
ADR vs occupancy: Phuket dynamics
| Strategy | Tradeoff |
|---|---|
| Premium ADR | Higher risk in soft periods |
| Occupancy-first | Lower ADR, steadier cash |
Gross yield traps in marketing materials
| Yield type | Reliability |
|---|---|
| TTM actual | Higher |
| Peak-season extrapolation | Lower |
Sensitivity table: management fee changes
| Management % of gross | Fee USD |
|---|---|
| 15% | $2,700 |
| 18% | $3,240 |
| 22% | $3,960 |
Small percentage moves matter because they scale with gross.
Deep dive: building a defensible net-yield model (template)
Final takeaway
Net yield is operating skill as much as asset selection.
Appendix: closing thought
Net yield is the scoreboard, gross yield is marketing.
Net yield is earned operationally, not granted by purchase price.
Building a “management fee sensitivity” matrix
| Mgmt % | Fee USD |
|---|---|
| 15% | $2,700 |
| 18% | $3,240 |
| 22% | $3,960 |
That swing alone is $1,260/year, more than CAM for many 50 sqm units.
Building an OTA sensitivity matrix
| OTA % | Fee USD |
|---|---|
| 12% | $2,160 |
| 16% | $2,880 |
| 20% | $3,600 |
Fee percentages feel abstract until you translate them into dollars per year.
Net yield is a process, not a day-one promise.
Apples-to-apples yields only, everything else is noise.
Disclaimer
Stress-test net yield before you buy
We model gross-to-net scenarios using realistic fee stacks for Phuket short-term rentals, then compare projects fairly.
Frequently Asked Questions
Many investors land in a roughly 4-6% net range after management, OTA, CAM, and taxes, but results vary widely by occupancy, pricing, and operations.
Gross yield excludes operating costs, commissions, building fees, and taxes. Those deductions can be large in short-term rental models.
Rates vary by platform, promotions, and geography. Some bookings are direct with near-zero OTA fees, while others are heavily commission-dependent.
Not always. Tax rules depend on residency status and filing routes. Treat 15% as a planning illustration unless your accountant confirms.
Common levers include direct bookings, strong listing optimization, competitive management fee negotiation, and controlling utility costs.
Related Guides:
- Thailand Property Tax for Foreign Buyers, the tax line inside the net figure
- Hidden Costs of Buying Property in Thailand, the entry costs the denominator needs
- How Foreigners Buy Phuket Property 2026, the process behind the numbers
Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
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