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Fees and agreements

Property management fees in Phuket

You came here for a number. You will not find one on this page, and the first section explains why. Everything else is here in full: how managers are paid, on what base, what is deducted first, and what quietly appears on a statement later.

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The short answer

Why the number starts at ten and does not stop there.

Our management fee starts at 10 percent, and where a property lands above that depends on the work it actually needs. In Phuket a manager is paid either a fixed monthly fee or a share of the rental income, and the headline percentage matters far less than what it is applied to and what is deducted first. Ask any manager, including us, for a worked example on one real booking before you compare two companies. We quote per property, in writing, after a visit.

  • A rate without a base is not information

    Two managers quoting the identical percentage can hand you very different amounts at the end of the month. One applies it to what the guest paid; the other to what actually landed in the account once the platform, the card charges and the cleaning came out. Until you know which, the number tells you nothing you can act on. The first question is never how much, it is on what.

  • A rate card would be a fiction here

    A three-bedroom villa inside a managed estate, with the pool service already contracted and a security gate at the entrance, is not the same job as a six-bedroom house on its own land with a garden, a generator and live-in staff. Published pricing means quoting the easy property too high to cover the hard one, or quoting the hard one too low and cutting the service to survive it. Neither is a deal you want.

  • What we do instead

    We come and look at the house. We ask what you want from it (income, upkeep, or a place kept ready for you) and what state it is actually in. Then we quote in writing, itemised, with the base spelled out and the exclusions listed. The visit costs you nothing and commits you to nothing.

  • And the reason we would rather name than hide

    There is a second reason, and we would rather name it than act as though it does not exist: published pricing is the first thing a competitor uses against you, and this island is small. That does not change the advice above. Ask us for a worked example on your villa and you get the number that matters, in writing, before you commit to anything.

How managers are paid

Four arrangements you will meet in Phuket.

Almost every agreement on the island is one of these four, or a negotiated version of one. Which one suits you depends on how much the house actually rents, not on which sounds cheaper on a first call.

  • A share of the rental income

    The standard arrangement for a villa that rents to holiday guests. The manager earns when the property earns, which aligns the interests properly. But only if the base is defined and the villa genuinely rents. Ask what happens in a month with no bookings: if the answer is that nobody is paid, ask who is visiting the house that month and why they would.

  • A fixed monthly fee

    Normal where the property is not rented, or barely. You are paying for presence: scheduled inspections, supervision of the pool and garden contractors, someone to open the door for a technician and someone to call when the neighbour reports a noise. It is predictable, it can be budgeted, and it does not rise because the house had a good February.

  • A blend of the two

    A smaller monthly amount that covers care of the house, plus a share of what it earns when it earns. This suits the common case: an owner who uses the villa for part of the year and rents the rest of it. The fixed part keeps the house maintained through the quiet months; the variable part keeps the manager interested in the calendar.

  • Per service, as you go

    No ongoing fee at all. You are billed for each job as it happens. It is the cheapest thing on paper and it works well for an owner who lives here and wants an extra pair of hands. It falls apart when the house is empty and you are abroad, because nothing gets looked at unless you ask, and from the other side of the world you do not know what to ask about. The invoices are small every month until the month a deferred problem arrives with a guest already in the house.

Villa management staff at work in Phuket while guests relax on the terrace

The base

What the share is applied to, and what comes out before it.

This is the part that decides how much money you keep, and it is the part nobody puts on a website. Read your agreement against this list, line by line, before you sign it.

  • What the guest paid, or what arrived

    The guest pays one figure. The platform takes its cut, the payment processor takes another, the cleaning may be split out, and a smaller figure reaches the account. A share applied to the first is a different sum from the same share applied to the last. You want that written in one sentence you could read aloud to an accountant.

  • Where the platform commission sits

    The platforms do not all work the same way, and this is worth getting right. Airbnb takes its commission out of the payout before the money reaches anyone. Booking.com, in the model most villas here run on, lets the payment arrive first and invoices its commission afterwards, monthly. Agoda does it either way depending on which payment model your listing sits in. So on the same villa the platform charge can land before the manager’s share is calculated or after it, and some agreements calculate that share on the gross while some calculate it on what remains. Neither is dishonest and both exist on this island, but they produce different results on the same booking. Know which one you signed, and know which model each of your listings runs on.

  • Cleaning: income, or a cost passed through

    Guests are charged for the turnaround. The question is whether that charge is treated as rental income the management share applies to, or as a cost collected on behalf of the cleaner and passed straight through. If it counts as income and the cleaner is also billed to you separately, the same line is being paid for twice. Ask the question directly; the answer is short.

  • Card charges, conversion and the transfer out

    Money arriving from abroad loses something on the way in, and again on the way out to your own bank. Processing, currency conversion, the international transfer itself. Individually small, permanently there. Ask who absorbs them and, more usefully, ask to see the line on a statement where they appear.

  • Tax lines are not the manager’s money

    Rental income in Thailand carries tax obligations, and when the party paying the rent is a company rather than a private guest, part of the payment is withheld at source before it reaches you. That trigger is about who is paying, not about how you hold the villa: the structure you own it through changes the tax you owe, not the withholding mechanism. Either way, those amounts are set by law, not by your manager, and they belong on their own lines. A statement that folds them in with management charges makes it impossible to see what you are paying for management at all. We are not accountants. Take a Thai accountant’s view on your own structure.

The other charges

The line items that appear after you sign.

None of these is a scandal on its own, and a manager charging for them is not cheating you. But this is usually where the real difference between two quotes lives, and it is never in the headline the salesperson gave you.

  • Getting the property ready to let

    Photography, listing copy in more than one language, an inventory, key sets, a lock guests can be given a code for, and linen and towels brought up to a standard that survives turnarounds. Some managers charge for this separately; some absorb it and recover it over the first season. Ask which, and ask who owns the photographs afterwards. That one matters the day you leave.

  • Mark-up on supplier invoices

    The single most consequential question on this page. When a plumber comes to your villa, does the amount on your statement match the amount on the plumber’s invoice? Some managers add a margin to trade work, and a manager who declares it is running a legitimate model. A manager who does it quietly has an incentive you do not want them to have: the more that breaks, the better their month. Ask for original invoices attached to statements and see what happens.

  • Using your own house

    Whether you are charged for the cleaning around your own stay, how much notice you must give to block dates, and whether the agreement imposes a minimum block or a closed period in high season. Owners discover this in December, which is the worst possible month to discover it.

  • Consumables and restocking

    Guest supplies, cleaning products, pool chemicals, garden materials, replacement glassware and the linen that wears out. These are genuine costs and they recur monthly. What you want to know is whether they are billed at what they cost, and whether the statement shows what was bought or only a single total at the bottom.

  • Leaving

    Notice period on both sides, any charge for terminating, and what transfers back to you: the listing and its review history, the photographs, the guest records, the calendars, the keys and the arrangements with your staff. A company that needs a penalty clause to keep you has told you what it thinks of its own service.

Our side of it

What we never charge for.

This is the part of a fee conversation that is genuinely comparable between companies, because it does not depend on the size of your house. It does not make us the cheapest quote you will get; a boutique house with few properties per person costs what it costs. It makes the statement readable, which is a different promise and, we think, the more useful one.

  • A mark-up on a contractor’s invoice

    You pay the electrician what the electrician charged. The invoice is attached to the statement, in the contractor’s name, with the amount unchanged. Our work in finding them, being at the house while they work and checking what they did is in our fee, where it belongs. We never want a month where something breaking is good news for us.

  • Reporting, statements and answering the phone

    The monthly statement, the receipts behind it, the photographs of work carried out, and a person who replies when you write. None of that is an add-on. It is the product. A company that bills you to see what happened in your own house has an odd view of whose house it is.

  • Anything you did not approve

    The agreement sets an amount above which we ask you before spending, and that threshold is your decision, not ours. Above it we ask first, even when asking costs a day. Below it we get on with it and the receipt is on the statement. Nothing appears that you are seeing for the first time.

  • A fee for staying in your own villa

    Block the dates and the house is yours. The clean before and after your stay is real work and it appears at what it costs, but there is nothing added on top for the privilege of sleeping in a house you own. We also do not impose a minimum stay on owners or close your own villa to you in high season.

  • An exit charge

    Give us reasonable notice and everything goes with you: the listing, the reviews, the photographs, the guest history, the keys, the supplier contacts and the staff arrangements. There is no penalty and no tail on future bookings. If we are not doing the job, holding you contractually is not going to fix it.

Open-plan living, dining and kitchen inside a Phuket villa

Comparing quotes

Why the headline percentage is the wrong criterion.

Owners line three companies up in a spreadsheet, sort by rate and pick the lowest. It is the most reasonable-looking mistake in this business.

  • Compare the amount, not the rate

    Take one real booking (a week in your area, in a month you care about) and ask every company to work it through the same way. The guest pays this; the platform deducts that; the cleaning is handled like so; our share applies to this base; you receive this. Three companies, one booking, three figures you can actually put side by side. Any manager who will not do this exercise has answered a different question.

  • How many houses, and how many people

    Ask both numbers and divide. The cheapest quote usually means your villa is one of a long list on one person’s phone, and a long list is why nobody noticed the aircon was leaking down the wall. We work across the whole island of Phuket and we are deliberately small. That is the trade we have made, and it is a trade, not a boast.

  • The cost that never appears on any quote

    A pool pump serviced on schedule outlasts one that is only touched the day it dies. Aircon cleaned before high season is far less likely to fail on a guest’s first night. It is not impossible; a compressor can go whatever you do, but both the odds and the timing move in your favour. In salt air and monsoon humidity, deferred maintenance is measured in equipment replacements, not service calls. It is invisible in a fee comparison until the year it is not.

  • Ask what happens in the bad month

    September. Monsoon, and a calendar that holds very little. Does anyone still visit the house? Is the garden still cut, the pool still balanced, the generator still run under load? On a pure share arrangement that month pays the manager close to nothing, and what they do anyway tells you more about them than any percentage will. Ask for the inspection record from last September rather than the answer they give you now.

  • Cheap can be the right answer

    If your property is a condo in a building with its own staff, a lean arrangement may be exactly right and paying for a full villa operation would be waste. The point is not that expensive is better. It is that a fee only means something once you know what work sits behind it.

Get it in writing

Five lines the agreement should contain.

Not a legal review, but a list you can check in ten minutes with the document open in front of you. If any of these is missing, that is the conversation to have before signing rather than after.

  • The base, in one sentence

    What the management share is calculated on, and what is deducted before it. If the clause needs a phone call to interpret, it is not clear enough. Attach the worked example to the agreement as an annex: it costs nothing and it removes an entire category of future argument.

  • The spending threshold

    The amount above which the manager must ask you before committing. Without one, repairs become line items you learn about afterwards. Set too low, you get asked about lightbulbs while you are in a meeting in Zurich. Pick a figure that reflects how involved you actually want to be.

  • What the fee includes, and what it does not

    Listed both ways, because an inclusion list alone leaves everything unlisted in a grey area. Inspections and their frequency, guest handling, supervision of contractors, reporting. Then the exclusions: major works, staff wages, utilities, pool and garden contracts if they are held in your name.

  • Who holds the money, and when you are paid

    Whether income passes through the manager’s account or straight into yours, the payout date, the currency, and who bears the transfer cost. Also what happens to any deposit held against damage, and who decides when it is kept. Vagueness here is not usually dishonesty, but it becomes a dispute at the worst possible moment.

  • Notice, and what leaves with you

    The notice period, both ways. Then the handover, and the form it takes matters: everything that comes back to you belongs in a signed annex, item by item, not in one sentence buried inside a clause. A list inside a paragraph is a list nobody checks against on the day it matters. Read that annex for one thing in particular: whose account each listing sits in. Reviews stay with the listing, so a listing built under a manager’s account does not always come back carrying them, and rebuilding a review history is the one part of a handover money cannot shorten. This is the clause owners never read and the one that costs them a season when it goes wrong.

Straight answers

What owners ask us about fees.

What return can I expect?
We do not guarantee a return, and we would be wary of anyone who does. What we commit to is the work: the calendar priced through the season, the property kept in the condition that holds its rate, and problems handled before they reach a review. We work to keep occupancy high, and we report what actually happened either way. As a general picture, a well run Phuket property tends to return somewhere around 5 to 8 percent net a year, after management, cleaning, utilities, maintenance and platform commissions, and before your own financing and tax position. That is an estimate drawn from what we see, not a projection for your property: two houses on the same road can sit either side of that range depending on the plot, the pool, the age of the systems and how much you use it yourself. We send you the real twelve month booking record of comparable properties in your area so you can judge where yours would sit.
How much do property managers charge in Phuket?
Managers here are paid in one of four ways: a fixed monthly fee, a share of the rental income, a smaller fixed amount plus a share, or per job as it happens. Short-term holiday letting is materially more expensive to manage than a property let by the month, because there is a clean, a check-in and a guest to look after every few nights. But the headline rate is not the number to compare: what it is applied to, and what is deducted before it, changes the result far more than the rate itself. Ask each company for a worked example on one real booking and compare the amount you would receive.
What do you charge?
Our management fee starts at 10 percent. Where a property lands above that depends on what it actually takes to run: a compact villa in a managed estate and a large house with land, staff and a generator are not the same job, and one flat figure covering both means overcharging one owner to subsidise the other. That is why the number starts at ten rather than stopping there. The percentage on its own still tells you little without knowing what it applies to and what comes off first, so we quote per property, in writing, after a visit, with the base and the exclusions spelled out.
Is a fixed monthly fee cheaper than a commission?
It depends entirely on whether the house rents. For a villa that sits empty most of the year and is used by the owner for a few weeks in high season, a fixed arrangement is usually both cheaper and more honest, because there is little income for a share to attach to. For a villa that rents regularly, a share aligns the manager with the calendar in a way a flat fee never does. The blend exists precisely because most villas are somewhere in between.
Do you add a margin to repairs and maintenance?
No. You pay the contractor’s invoice, in the contractor’s name, for the amount the contractor charged, and the invoice is attached to your statement. Arranging the work, being there while it happens and checking it afterwards is part of what our fee covers. Ask every company you speak to the same question, and ask to see original invoices on a real statement rather than a summary line.
Can I see what I would actually receive before I commit?
Yes, and you should insist on it everywhere, not only with us. We will work one real booking through end to end so you can see the base, the deductions and what reaches you. We will also show you what comparable properties in your area actually booked over the past twelve months, by month, so you can see the shape of a year here rather than an average. That is data on other people’s villas, gathered from the market rather than promised by us, and we will not tell you where yours would land inside it. Anyone who does is guessing at your calendar before it has traded a season. The data is yours whether or not you ever speak to us again.

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