How to calculate real rental yield
A simple net yield formula and the costs most buyers forget.
Updated 10/14/2026 · 5 min read
In short
- Gross yield = annual rent / purchase price. Net yield is after all costs — usually 2–4 points lower.
- Use the total purchase cost with taxes, fees and furniture, not just the list price.
- Use realistic occupancy for your area, not peak-season numbers.
- A guaranteed yield is a contract term — check who pays it and for how long.
Costs on top of the price
Management company
of income for short lets
Building maintenance
aidat / service charge
Utilities
yours on short lets
Rental income tax
by country
Repairs and furniture
reserve
Worked example
A $150,000 flat + $15,000 taxes and furniture = $165,000. Rent $1,100 × 10 occupied months = $11,000. Less 20% management ($2,200), maintenance $1,200, taxes and reserve $1,600 = $6,000 net. That's 3.6% net — not the “7.3% gross” from the ad.
FAQ
What's a good yield?+
For resort property, 5–7% net is a strong result with reliable demand.
Rental yield · All countries
Find a property for my budgetThis guide is for information only and is not legal advice. Rates and rules change — confirm them with a lawyer before you buy.