How to Rent Out a Five-Bedroom Apartment in Phnom Penh, Cambodia: Pricing, Demand, and Tenant Strategy

Phnom Penh’s property market is maturing, presenting both opportunities and challenges for landlords. While the city has seen a surge in condominium supply, with over 75,000 units completed and more on the way, a price correction is underway. This shift means landlords need a sharper strategy to attract and retain tenants, especially for larger, less common units like five-bedroom apartments.¹

Understanding the nuances of tenant demand, neighborhood appeal, and operational realities is crucial for maximizing returns. This guide focuses on the specific considerations for renting out five-bedroom apartments, a segment that caters to a distinct but valuable renter profile.

TL;DR: Phnom Penh’s condo market has over 75,000 units, with more under construction. Rental yields average 6.96% to 7.4% annually. Five-bedroom apartments are less common but sought by families and professionals, with serviced options in prime areas like BKK1 potentially renting around $2,700 monthly. Key expat neighborhoods include BKK1, Tonle Bassac, and Toul Kork. Landlords must register foreign tenants via FPCS and manage tax obligations. The market is influenced by a growing expatriate population and a developing middle class.¹²⁷⁶

Market Snapshot

The Phnom Penh condominium market is characterized by significant supply growth, with over 75,000 units already built and an additional 10,000 in development as of early 2026. This expansion has led to a noticeable price correction, particularly in newer developments, as developers increasingly target the affordable and mid-range segments. While the high-end sector previously saw vacancy rates as high as 30-50%, these have stabilized around 15% by early 2026.¹⁶

Despite the increased supply, rental yields remain attractive, averaging between 6.96% and 7.4% annually, with prime properties potentially reaching up to 8.5%. The city’s ongoing economic expansion and urbanization continue to fuel housing demand, driven by both a growing local middle class and a steady influx of expatriates.³⁶

Who Rents This Property Type Here?

Five-bedroom apartments are not the most common offering, but they appeal to a specific demographic: expatriate families and groups of professionals seeking ample living space. These renters prioritize comfort, convenience, and proximity to amenities that support an international lifestyle, such as international schools and expatriate-friendly services.⁷

Young professionals and expatriates often look for modern conveniences and easy access to business districts or social hubs. Families, in particular, are increasingly seeking secure and spacious housing solutions. While many expats have moderate budgets, those with higher incomes can afford larger, more premium properties like five-bedroom apartments or villas.⁵

Pricing and Demand

Specific pricing data for five-bedroom apartments is scarce due to their lower availability. However, serviced apartments of this size in prime locations like BKK1 have been listed around $2,700 per month. For context, one to three-bedroom condos in these sought-after areas can range from $700 to $5,000 monthly, suggesting a higher potential rental income for larger units.⁷

Demand for larger, centrally located units is on the rise, fueled by a growing expatriate workforce and international professionals. This trend can exert upward pressure on rental prices in high-demand areas. However, the substantial pipeline of new condo completions across the city also contributes to market competition, helping to stabilize overall rental rates.⁵

Best Neighborhoods

For five-bedroom apartments, focusing on neighborhoods popular with expatriates and families is key. BKK1 (Boeung Keng Kang 1) remains the top choice, renowned for its international dining, cafes, serviced apartments, and proximity to international schools. Tonle Bassac is another strong contender, offering modern high-rise living, shopping centers like AEON Mall, and a blend of business and leisure facilities.⁵

Toul Kork (TK) is a family-friendly residential district with spacious homes and good access to schools and supermarkets. Daun Penh, the city’s commercial heart, offers a mix of business and lifestyle amenities near the riverside. Chamkarmon, a large central district encompassing BKK1 and Tonle Bassac, provides a diverse property selection.⁵

Listing Strategy

When marketing a five-bedroom apartment, emphasize its spaciousness and suitability for families or shared living arrangements. High-quality photography and virtual tours are essential to showcase the apartment’s features and appeal to a discerning international clientele.⁵

Target expatriate and international professional networks through online property portals and specialized real estate agencies. Consider offering flexible lease terms to accommodate the needs of expatriates on temporary assignments. Highlighting modern amenities, robust security features, and convenient access to essential services will further enhance your listing’s appeal.⁵

Operations and Screening

What matters in practice:

Landlords must ensure compliance with Cambodia’s Foreigners’ Presence Control System (FPCS) by registering all foreign tenants, as non-compliance can result in fines. Rental income is subject to taxation by the General Department of Taxation, so understanding and fulfilling these obligations is critical.⁶

Be prepared for utility costs, typically electricity and water, which are usually the tenant’s responsibility and can vary significantly based on usage. Property management services are readily available and can be invaluable for handling tenant sourcing, rent collection, maintenance, and ensuring legal compliance. Standard lease agreements are usually bilingual (Khmer and English), with the Khmer version holding precedence in legal disputes.⁶

Local Pitfalls

Navigating the Cambodian rental market requires awareness of specific local regulations and practices. The mandatory registration of foreign tenants through the FPCS is a critical legal requirement that landlords must adhere to. Failure to comply can lead to penalties.⁶

Furthermore, landlords must be diligent about their tax obligations on rental income. While utilities are generally not included in rent, it’s essential to clarify this in the lease agreement to avoid disputes. Engaging with reputable property management services can help mitigate these operational complexities and ensure smooth management of your investment.⁶

Frequently Asked Questions

What is the typical rental yield for apartments in Phnom Penh?

Rental yields for apartments in Phnom Penh typically range from 6.96% to 7.4% annually. However, some prime properties in desirable locations can offer higher returns, potentially reaching up to 8.5%.⁶³

Are utilities included in the rent for apartments in Phnom Penh?

Generally, utilities such as electricity and water are not included in the rental price. Tenants are typically responsible for these costs, and they can vary based on consumption. It is crucial to clearly outline this in the lease agreement.⁷

What are the most popular neighborhoods for expatriates in Phnom Penh?

The most sought-after neighborhoods for expatriates include BKK1, known for its vibrant social scene and amenities; Tonle Bassac, a modern area with shopping and business facilities; and Toul Tom Poung (Russian Market), popular for its local charm and markets. Other favored areas include Daun Penh and Chamkarmon.⁵

Why Hausive Fits This Workflow

If you are managing five-bedroom apartment units in Phnom Penh, Cambodia, Hausive is the property management software that keeps leasing, rent collection, maintenance, and owner reporting in one place. It is a better fit when you want faster follow-up, cleaner records, and less day-to-day thrash as listings, tenants, and owners all need answers at once.