Disclosure first: I run Shibumi Services, a villa management company in Kamala, so I have an interest here. Answering anyway, because nobody has given you actual numbers. I am aware this posting is years old, but perhaps this answer will be helpful all the same. Whether it is profitable depends almost entirely on the cost base, and most projections you will be shown ignore half of it. What comes off a short-term booking, in order: The booking platform takes its cut first. Airbnb's single-fee structure, which is mandatory for anyone whose manager uses property management software, takes 15.5% out of the host payout. Booking.com is in the same territory. Management commission then comes off what is left, not off the gross. A "flat 20%" quoted on net payouts works out closer to 32% of the gross once the platform has taken its share. Ask anyone quoting you a percentage to show you the arithmetic on a real booking rather than the headline rate. Then staff. A five-bedroom villa run properly carries a manager, housekeeping, a gardener and pool care. That cost runs whether or not anyone is staying. Then maintenance. In this climate it is not optional and it is not occasional. Ask specifically whether repairs are billed at cost or with a markup on the contractor. On the revenue side, the season is the whole game. Mid-December to mid-March is where the year is made. Peak season occupancy above 85% is achievable on a well-run luxury villa. It is the shoulder and low months where projections usually fall apart, and where the honest ones and the optimistic ones separate. The people telling you to sit back and enjoy it are not wrong for everyone. If you want a return without the work, a villa is a poor instrument. If you want a house you will use yourself and would rather it earned something while you are not in it, it can work. The single question I would put to any developer or manager: show me the net figure the owner actually receives on one real booking. Not the gross, and not the commission rate. You are unlikely to make your fortune in rentals alone, unless you get in at an extremely good price. But rentals, plus appreciation of the asset, plus depreciation against your taxes, plus your own personal use over time, can certainly come out as an excellent, even spectacular investment. Like any investment, a lot depends on the price you pay to get the return you want. Pay 50 million baht for a 25 million baht property and your return will be awful. Luck out and do the opposite and you will hit a home run, as long as you have good management. I hope this helps. For those interested in how we manage villas, I would be happy to chat with you further. Please find us online at shibumithailand.com
