Contracted rental — what it means
A “contracted rental” is a developer’s marketing promise to pay a fixed percentage (usually 5–8%) for the first years. The contractual commitment is only as strong as the entity giving it — and is often priced into the unit. Check who contractually fixes it and what happens when it ends.
A contractual commitment is the developer’s promise
A contracted yield is the developer’s contractual promise to pay a fixed percentage of the unit price for the first years. It is not a verified rental return but the obligation of a specific legal entity: the contractual commitment is only as reliable as the company that signed it. Future payouts are often partly built into the unit price.
What to check in the contractual commitment contract
Look at who exactly contractually fixes — the developer, the management company or a separate entity; what base the percentage is calculated on; who pays CAM and taxes during the commitment period; whether the owner can stay in the unit; and what follows the term: a move into the rental pool, open-market letting or renewal on new terms.
How this works with us
We have gathered Phuket’s projects with contracted-income programmes into a dedicated catalogue collection and compare their terms side by side: the term, the rate, the calculation base and what awaits the owner after the commitment period. On a specific property we show the calculation and the contractual commitment contract itself before reservation.
Frequently asked questions
Is contracted yield a scam?
Not necessarily: with strong developers the programmes run for years. But it is a marketing and financial instrument, not risk-free income — the contractual commitment is exactly as sound as the legal entity behind it.
What happens when the commitment period ends?
The unit usually moves into the rental pool or open-market letting, where income depends on the market. Understand the transition terms before buying, not after.
Is the contractual commitment built into the unit price?
Often partly, yes: projects with a contractual commitment can cost more than comparables. So compare the full economics of ownership, not just the promised percentage.
What “contracted yield” hides →
Projects with contracted rental yield →
See it on a real property
Terms matter when there is an actual deal behind them. We will show how this one works on a project from the catalogue — documents and numbers included.
Projects with contracted rental yield