Sihanoukville Rentals: Short-Term vs Long-Term ROI Analysis (2025)

Introduction: Why the "Rental Model" Determines Your Returns in Sihanoukville

Sihanoukville isn't a market where simply choosing the right property automatically guarantees strong investment returns. In practice, profitability is determined by your rental strategy, not just purchase price or finish quality. The same apartment can generate +6–8% net under one model and 3–4% under another — purely due to operational differences.

In this article, I compare two rental models:

Short-term rentals,
Long-term rentals,

based on real market assumptions, including:

rental rates,
seasonality,
vacancy rates,
operating costs,
legal and logistical risks.

Sihanoukville in 30 Seconds: The Key Fact

The most important fact is simple:

In Sihanoukville, it's not the highest daily rate that wins — it's stable cash flow after costs.

Sihanoukville Rental Market Characteristics

City Profile

Sihanoukville is a mixed market: a port city, special economic zone, Chinese business tourism hub, and growing contract worker segment. This means:

demand is less seasonal than tourist resort destinations,
long-term rentals have a genuine demand base,
short-term works, but not in every location or building.

Typical Tenant

Short-term: project workers, corporate delegations, short business stays,
Long-term: expats, management staff, SEZ employees, NGOs, logistics companies.

Model 1: Short-Term Rentals – Assumptions

Sample Apartment

Size: 45–55 m²
Standard: medium/good
Location: city center/near port/good transport links

Market Rates (2025/2026)

Average daily rate: $45–70 USD
Realistic annual occupancy: 40–55%

This translates to:

6–9 nights per month (weaker periods),
15–18 nights per month (stronger periods).

Gross Revenue – Short-Term

Let's take a realistic scenario:

$55 USD/night
50% occupancy

Annual Gross Revenue

$55 USD × 182 nights ≈ $10,010 USD/year

Operating Costs – Short-Term

Property Management

Property manager: 20–30% of revenue
Average: 25% = ~$2,500 USD

Utilities

Electricity (air conditioning): $60–90 USD/month
Water + internet: $20–30 USD/month
Total: ~$1,200 USD/year

Cleaning & Service

Cleaning: $15–25 USD/stay
Average: $800–1,000 USD/year

Maintenance & Reserve

Minor repairs, wear and tear: $500–700 USD/year

Total OPEX (Short-Term)

≈ $5,000–5,400 USD/year

Net Return – Short-Term

Gross revenue: ~$10,010 USD
Costs: ~$5,200 USD

Net Income: ~$4,800 USD/year

At purchase price:

$85,000 USD → ~5.6% net yield
$95,000 USD → ~5.0% net yield

Model 2: Long-Term Rentals – Assumptions

Market Rates

1BR/50 m²: $650–900 USD/month
Realistic rate without vacancies: $750 USD

Annual Gross Revenue

$750 USD × 12 = $9,000 USD

Operating Costs – Long-Term

Management

8–12% of rent
Average: 10% = $900 USD

Maintenance & Reserve

Minor repairs: $400–600 USD/year

Vacancy

1 month every 2–3 years
Averaged: $300 USD/year

Total OPEX (Long-Term)

≈ $1,600–1,800 USD/year

Net Return – Long-Term

Gross revenue: $9,000 USD
Costs: ~$1,700 USD

Net Income: ~$7,300 USD/year

At purchase price:

$85,000 USD → ~8.6% net yield
$95,000 USD → ~7.7% net yield

The Most Common Myth About Sihanoukville: "Short-Term Always Pays More"

This is a myth imported from Phuket and Bali.

In Sihanoukville, short-term costs eat up the rate advantage, and long-term rentals often win on pure mathematics.

3 Facts You Must Know

Short-term = more work and higher fixed costs
Long-term = stability and better ROI predictability
Not every building is suitable for short-term rentals

Investor Checklist (Part 1)

Does the building allow short-term rentals?
What are the real management costs?
Which model better suits the location profile?

Data Sources

When Short-Term Rentals in Sihanoukville MAKE Sense

Short-term rentals in Sihanoukville aren't inherently bad, but they only work under very specific conditions. Investors who achieve sensible returns typically meet several simultaneous criteria.

Location with Real Transient Demand

Short-term works best in:

city center,
port vicinity,
areas with concentration of infrastructure projects and foreign companies.

An apartment that's "nice but logistically isolated" has virtually no chance of maintaining occupancy.

Operationally Equipped Building

24/7 reception,
elevator, security, reliable utilities,
clear rental management policies.

In buildings without operational infrastructure, chaos costs quickly eat into margins.

Investor Calculates Net, Not Marketing

If short-term:

generates minimum 6–7% net after costs,
has confirmed occupancy from building history,

— then it may make sense. If ROI is based on "potential" and sales presentations, it's not a strategy, just an assumption.

When Long-Term Rentals WIN Without Question

Long-term rentals in Sihanoukville very often win in three situations.

Apartment Purchased Strictly for ROI

If your goals are:

stable cash flow,
minimal operations,
predictability,

then long-term is the default model.

Business Tenant Profile

Expats, contractors, management staff:

pay on time,
stay 12–24 months,
use the property less intensively than short-term guests.

This translates to lower maintenance and fewer vacancies.

Remote Investor

If you're not on location:

don't want to manage a team,
don't want to react to emergencies weekly,

then long-term allows you to control returns without being a hotel operator.

Hybrid Model: The Strategy Experienced Investors Choose

More and more investors in Sihanoukville use a mixed model, especially in the first 2–3 years.

How It Works in Practice

6–9 months long-term (base cash flow),
3–6 months short-term during peak demand periods.

Why It Works

limits vacancy risk,
allows testing real market rates,
doesn't tie ROI to a single scenario.

This is a model that better withstands market volatility, especially in port and project-driven cities like Sihanoukville.

Risks Investors Don't Calculate in Excel

Regulatory Risk

Short-term rental rules can change at the level of:

building,
property manager,
local regulations.

Long-term is significantly more resistant to administrative changes.

Competition Risk

In short-term:

new building nearby = pricing pressure,
new promotions = occupancy drop.

In long-term:

tenant doesn't change properties monthly,
competition works more slowly.

Energy Cost Risk

Electricity and air conditioning in Cambodia is a real cost:

Short-term: +30–40% annual consumption,
Long-term: stable level.

Sihanoukville vs Other Markets

Unlike:

Phuket,
Bali,
Koh Samui,

Sihanoukville:

doesn't rely on mass tourism,
has a stronger business component,
rewards stability, not aggressive pricing.

That's why strategies copied from resort markets often fail.

Final Comparison – Math, Not Emotions

Short-Term (Realistic)

Net ROI: ~5–6%
Work: high
Risk: medium–high

Long-Term

Net ROI: ~7–9%
Work: low
Risk: low–medium

Hybrid Model

Net ROI: ~6.5–8%
Work: medium
Flexibility: high

Most Common Investor Mistake

Choosing a rental model before choosing the property, not the other way around.

The correct sequence always looks like this:

Location,
Building,
Demand profile,
Only then rental model.

3 Facts You Must Know (Part 2)

Sihanoukville rewards stability, not aggression
Long-term often wins on net returns, despite lower headline rates
The best investments look "boring" on paper

Final Investor Checklist

Is ROI calculated after all costs?
Does the building actually support the chosen model?
Do I have a Plan B if the short-term market slows?
Does the model fit my management style?
Does the return hold up without price appreciation?

If you don't have answers to any of these questions — this isn't a strategy, it's hope.

Summary

In Sihanoukville, better returns come not from the rental model itself, but from matching the model to market realities. Short-term rentals can be profitable, but only under specific conditions. Long-term rentals more often win with clean, repeatable profitability.

An investor who understands this doesn't chase promises — they count cash.

Sihanoukville: Short-Term vs Long-Term Rentals – Which Delivers Better Returns? (Apartments & Condos)