Phnom Penh: Short-Term vs Long-Term Rental – Which Delivers Better Returns?

Introduction: Why This Question Is Critical in Phnom Penh

In Phnom Penh, most investors make the same mistake:

They copy rental models from Thailand or Bali and try to apply them to a market that works completely differently.

Phnom Penh:

• is not a tourism market
• has no strong high season
• relies on business and expat demand
• rewards stability and punishes instability

That's why the question "short-term or long-term rental?" isn't ideological.

It's pure mathematics of risk, costs, and vacancy rates.

In this article:

• I break down both rental models
• I show real rates and costs
• I calculate net ROI, not brochure figures
• I explain when short-term makes sense and when it kills your returns

Phnom Penh in 30 Seconds – The Key Fact

In Phnom Penh, long-term rental wins in 70–80% of cases if you're calculating investment returns, not emotions.

Short-term rental can work, but:

• only in very specific locations
• with the right unit size
• and with full awareness of higher operating costs

What Rental Demand Looks Like in Phnom Penh (Reality, Not Marketing)

Dominant Tenant Profile

• foreign company managers
• NGO and international institution staff
• diplomats on 6–24 month contracts
• expats with relocation packages

What They're Looking For

• stability
• quiet environment
• security
• good building management
• predictable costs

These are not tourists looking for "views and Instagram-worthy pools."

Demand sources:

• https://www.worldbank.org/en/country/cambodia
• https://www.jica.go.jp/english/
• https://www.knightfrank.com/research

Long-Term Rental in Phnom Penh – The Math

Typical Rates (2025–2026)

Unit TypeCentral LocationMonthly RateStudioBKK1 / Tonle Bassac$550–$7001BRBKK1 / Chamkarmon$800–$1,1002BRBKK1 / Riverside$1,300–$1,800

Sources:

• https://www.cbre.com.kh
• https://www.realestate.com.kh

Operating Costs – Long-Term Rental

Management

• 8–12% of rent (typically 10%)
• for contracts >12 months, sometimes 0% for corporate tenants

Maintenance Fee

• $0.80–$1.50 / sqm / month
• (e.g., 60 sqm → $50–$90)

Repairs and Reserve

• 5–7% of annual rent

Vacancy

• realistically: 0.5–1 month / year

Example Calculation (1BR, 60 sqm)

• Purchase price: $150,000
• Rent: $950 / month
• Annual gross income: $11,400

Annual Costs

• Management (10%): $1,140
• Maintenance: ~$900
• Repair reserve: ~$600
• Vacancy (1 month): ~$950

Net income: ~$7,810

Net ROI: ~5.2%

➡️ stable, predictable, defensive

Short-Term Rental – Promise vs Reality

Short-term rental in Phnom Penh is not tourism-based, but relies on:

• short business contracts
• business delegations
• 1–4 week stays

Typical Daily-Monthly Rates

• Studio: $45–$65 / night
• 1BR: $60–$90 / night

Sources:

• https://www.airdna.co
• https://www.booking.com

Occupancy – Real, Not Advertised

• Annual average: 45–55%
• No "peak" season like Thailand
• Weekly fluctuations, not seasonal

Short-Term Costs (Where ROI Disappears)

Management

• 20–30% of revenue (!)

Cleaning

• $20–$30 / stay
• realistically $800–$1,200 / year

Utilities

• higher consumption: +25–40%

Marketing / OTA

• 12–18% commission

Wear and Tear

• furniture, appliances, AC depreciate faster

The Most Common Myth About Phnom Penh

"Short-term always delivers higher ROI"

In Phnom Penh very often:

• gross is higher
• net is lower
• risk is significantly greater

3 Facts You Must Know

1. Phnom Penh is a contract market, not a tourism market
2. Short-term costs are structurally higher
3. Stability beats rate ambition

Short-Term Rental in Phnom Penh: Numbers, Not Promises

Short-term rental in Phnom Penh looks attractive mainly on marketing slides. In practice, it's an operational model, not passive income. It works, but only under very specific conditions.

Who Actually Rents Short-Term in Phnom Penh

Short-term rental in Cambodia's capital relies mainly on:

• expats on project assignments (NGOs, banks, developers),
• regional consultants (ASEAN),
• business trips 5–21 days,
• very limited tourism segment (Phnom Penh ≠ Siem Reap).

This means lower seasonality than resort markets, but also a lower price ceiling.

Real Short-Term Rates (2025/2026)

For central districts (BKK1, Tonle Bassac, Daun Penh):

• Studio: $35–$55 / night
• 1BR: $45–$70 / night
• 2BR: $65–$95 / night

Rate sources:

• https://www.airdna.co/
• https://www.airbnb.com/
• https://www.booking.com/

Real Occupancy (Not Brochure Figures)

Average annual short-term occupancy in Phnom Penh:

• 45–55% for well-managed units
• above 60% only with aggressive pricing and high guest churn

That's 160–200 nights annually, not 300.

Short-Term Operating Costs (OPEX)

This is where ROI typically "escapes":

• Management: 20–30% of revenue
• Cleaning: $25–$40 / stay
• Utilities (AC, water, internet): $120–$180 / month
• Wear and tear reserve: 5–8% of revenue
• Platforms (Airbnb/Booking): 3–5%

Numerical Model – Short-Term (1BR, BKK1)

Assumptions:

• Purchase price: $120,000
• Rate: $60 / night
• Occupancy: 50% (183 nights)

Gross revenue:

60 × 183 = $10,980 / year

Costs:

• Management 25%: −$2,745
• Utilities: −$1,800
• Cleaning: −$1,200
• Reserve: −$700
• Platforms: −$400

Net income:

≈ $4,135

Net ROI:

≈ 3.4%

Short-term works operationally, but doesn't maximize ROI in Phnom Penh.

Long-Term Rental: Quiet Math, Better Stability

Long-term rental is the backbone of the Phnom Penh market. It's not sexy, but it's predictable.

Who Rents Long-Term

• expats on 6–24 month contracts
• management staff
• international organization employees
• companies renting for their staff

This segment is less price-sensitive, but very sensitive to location and standard.

Real Long-Term Rates (2025/2026)

• Studio: $450–$650 / month
• 1BR: $650–$900 / month
• 2BR: $900–$1,300 / month

Sources:

• https://www.realestate.com.kh/
• https://www.knightfrank.com.kh/
• https://www.cbre.com/insights/figures/asia-pacific

Long-Term Costs

• Management: 8–12%
• Utilities: often covered by tenant
• Vacancy: 1–2 months / year
• Wear and tear: significantly slower

Numerical Model – Long-Term (1BR, BKK1)

Assumptions:

• Purchase price: $120,000
• Rent: $800
• Vacancy: 1 month

Gross revenue:

800 × 11 = $8,800

Costs:

• Management 10%: −$880
• Repair fund: −$600

Net income:

≈ $7,320

Net ROI:

≈ 6.1%

Side-by-Side Comparison (No Marketing Spin)

The Most Common Myth

"Short-term always delivers higher ROI"

Not in business cities.

This is a myth imported from Phuket and Bali.

3 Facts You Must Know – Phnom Penh

1. Phnom Penh is a residential market, not a tourism market
2. Stability > maximum rate
3. Long-term builds better net cash flow

Investor Checklist (5 Points)

1. Are you calculating ROI after all costs?
2. Do you know real occupancy, not declared figures?
3. Is OPEX eating your short-term returns?
4. Do you have a vacancy plan?
5. Does your model fit the city, not your dream?

Summary

In Phnom Penh, it's not the highest rate that wins,

but the most stable rental strategy.

Short-term is a tool.

Long-term is a foundation.