Rentals & investment
Investing in a Pattaya condo: how much rental income to expect
Many people buy a condo in Pattaya to rent it out. We explain how to calculate the income honestly, which costs people forget, and why we never promise "guaranteed 10% a year".
In short
- A common benchmark for investment condos in Pattaya: 6–7% a year before expenses (gross).
- Net yield is lower: building fees, management, vacancy and tax come out of the income.
- Calculate each property separately, using real rental rates in that same building.
Gross and net: two different yields
When people say "the condo yields 7%", they almost always mean gross: annual rent divided by the purchase price. It is handy for comparing projects, but less ends up in your pocket. Net yield is calculated after all of the owner's costs.
For investment condos in Pattaya, a common gross benchmark is 6–7% a year. Whether you actually get it depends on the purchase price, district, view, rental rate and occupancy.
Worked example
An illustrative 30 m² studio bought for 3,000,000 ฿, on a long-term rental. The rates are only an example, every building has its own:
- Rent 15,000 ฿ × 11 months (one month to find a tenant)
- 165,000 ฿
- Maintenance Fee, 30 m² × 60 ฿ × 12
- − 21,600 ฿
- Management company, 15% of rent
- − 24,750 ฿
- Minor repairs and appliance replacement
- − 10,000 ฿
- Net income before tax
- 108,650 ฿
- Net yield before tax
- ≈ 3.6% a year
Gross yield in this example is 6% (180,000 ฿ at full occupancy). The gap between that and net is exactly the costs people tend to forget. You also need to account for tax on rental income in Thailand, which depends on the amount of income and your tax status. More in our article on long-term vs short-term rentals.
What income depends on
- Purchase price. The cheaper the entry relative to the rent, the higher the yield. That is why studios often outperform larger units.
- District. Jomtien and the centre are in steady demand with tenants. More in our article on Pattaya's districts.
- Seasonality. From November to March, demand and rates are higher; in summer they are lower.
- Competition in the building. When a large complex is completed, many identical units hit the rental market at once.
- Rental model. Long-term rental is simpler and clearer from a legal standpoint; short-term can earn more, but you need to check the rules.
Capital growth: the second part of the return
Besides rent, investors count on the property rising in value. In new developments, developer prices usually rise as construction progresses, but there are no guarantees: when you resell, you compete with other units in the same building. That is why it matters to buy something that will be easy to sell: a good location, a view, a sensible layout.
You do not have to manage the rental yourself
If you do not live in Thailand, you can hand the rental over to a management company: finding tenants, viewings, the lease, payment collection, cleaning, minor repairs and reports. The cost depends on the services included: a percentage of rent or a fixed fee. Avalon helps with rentals and management after the purchase, and our management fee is 15% of the rent.
How to choose a condo for renting out
- Decide on the model
Long-term or short-term rental, as this determines which building to choose.
- Find out the real rates
What similar units rent for in this exact complex, not in advertising.
- Calculate net
Deduct fees, management, vacancy and tax.
- Check the building rules
Some condominiums restrict short-term rentals.
- Think about resale
A unit that is easy to sell matters more than an extra percent of yield.
FAQ
What is the rental yield on a condo in Pattaya?
A common benchmark is 6–7% a year before expenses. Net yield, after fees, management and vacancy, is lower.
Is guaranteed rental yield real?
Only if it is written into a contract with the developer or operator for a specific term. Verbal promises are not a guarantee.
How much does rental management cost?
At Avalon, the management fee is 15% of the rent.
Sources
- Avalon guide, chapter on rentals (in Russian)
- Revenue Department: personal income tax on rental income
This article is for general information and is not legal or tax advice. Laws, fees and project terms change: before a deal we check the current conditions for the specific property.
