Owning a Villa or Condo in Phuket: Running Costs and Property Management

Running costs depend on the property far more than on the area. Use this as a checklist and ask the seller for real bills from the last twelve months.

The common-fee and sinking-fund ranges are market practice, not law, and vary building by building. A primary home where the owner is registered on the house book has a large land tax exemption; most foreign second homes do not.

Phuket's heat, humidity, salt air and monsoon rain from roughly May to October are the main reason maintenance budgets get blown. The common failures are predictable:

• Roofs and waterproofing: flat roofs and terraces need inspection before each rainy season.
• Timber: decks, screens and doors weather fast; budget for regular oiling and replacement.
• Mould: closed, unventilated houses grow mould within weeks. Dehumidifiers and airing matter when the owner is away.
• Pumps and pool equipment: run continuously and fail.
• Air conditioning: needs cleaning every few months in heavy use.
• Metal: fixings, railings and outdoor fittings corrode near the sea; stainless grade matters.

A villa that sits empty for months without care costs more to bring back than one that is lived in or let. If you will be away, a caretaking contract with monthly visits and photos is cheap insurance.

If you rent out the property, someone has to market it, take bookings, clean, check guests in, report them to immigration, fix things and account for the money. Managers commonly charge a percentage of rental revenue; agencies cite figures in the 20–35% range for full management, but the number alone tells you little. What matters is what it covers.

Questions for any manager

• Is the fee charged on gross revenue or on revenue after platform commissions?
• Who pays OTA commissions (Airbnb, Booking.com), payment fees, cleaning, linen, amenities, utilities during stays, and repairs?
• What licence does the property operate under for stays under 30 days? See our legal renting guide.
• How are owner nights booked, and can the manager block your dates?
• What is the term and the notice period? Is there a fee to leave?
• Will you get monthly statements with booking-level detail, matched to bank deposits? Can you audit?
• Who holds guest deposits, and in whose name are the platform accounts?

Guaranteed returns

Some developers offer a fixed return for a few years. Read it as part of the price: the guarantee is often funded by a higher purchase price, and after it ends the real performance takes over. Check who guarantees it and what happens if they cannot pay.

• Rental income is taxable in Thailand whether or not you live there. Individuals file by 31 March for the previous year. Some tenants and operators withhold tax at source; keep the certificates.
• Land and building tax is billed by the local administration each year. A unit used commercially can be taxed at the higher "other use" rate.
• Immigration reporting: guests and tenants staying at your property must be reported (TM30). Managers usually do it; make sure someone does.
• Condo juristic person: attend or vote by proxy at the annual meeting; it sets the fees and the rules on rentals.
• Home-country tax: many countries tax worldwide rental income; Thai tax paid may be creditable under a treaty.
• Thai tax residence: if you spend 180 days or more a year in Thailand, foreign income you bring in can be taxable.

For the full picture of taxes on buying, owning and selling, with worked examples, see our taxes and fees guide.

1. Monthly: owner statement reconciled with bank deposits; caretaker report with photos if the property is empty.
2. Before the rainy season (April–May): roof, gutters, drainage, terraces and sealants checked.
3. Twice a year: air conditioning service; pool equipment check; timber oiled.
4. Yearly: land and building tax paid; insurance renewed; annual meeting attended; tax return filed by 31 March.
5. Every few years: repaint, replace worn decking, refresh soft furnishings for rentals.

When you compare properties, compare these costs, not just prices. Our rental yield guide shows how they change your net return, and when you are ready, our catalogue lists the monthly fees for each property where the seller has provided them.