Rental Yield Calculadora

A 'good' rental yield depends on market conditions, investor goals, and financing costs. In developed market prime locations, gross yields of 3–5% may be acceptable if strong capital appreciation is expected. In secondary markets or buy-to-let focused strategies, investors typically target gross yields of 6–8% or net yields of 4–6%. The key test is whether the net yield exceeds the cost of financing — if mortgage rates are 6% and your net yield is 4%, you have negative cash flow leverage.

Rental yield and cap rate are closely related but have a subtle difference. Net rental yield = Net Annual Rent / Property Value — it typically uses scheduled rent minus expenses, not necessarily accounting for vacancy. Cap rate = NOI / Property Value — where NOI explicitly includes a vacancy allowance and all standard operating expenses. In practice, a well-computed net rental yield is equivalent to a cap rate. Gross rental yield is a simpler, pre-expense metric not equivalent to cap rate.

A mortgage transforms gross rental yield into cash-on-cash return on your equity investment. If you buy a $300,000 property with $60,000 down payment and a $240,000 mortgage at 6%, your annual interest is approximately $14,400. If net operating income is $18,000, your cash-on-cash return = ($18,000 − $14,400) / $60,000 = 6.0% on equity — higher than the 6% net yield on property value because positive leverage amplifies returns when the yield exceeds the mortgage rate.

It depends on the purpose. Use purchase price to assess how your investment is performing relative to your cost of capital (yield on cost). Use current market value to compare your holding to alternative investments and to assess whether to sell or hold — the opportunity cost of staying invested is the yield on current value. Active portfolio managers track both metrics: a property with a very high yield-on-cost but low yield-on-value may be a strong hold if the capital gain is embedded and the income is excellent.

Vacancy and bad debt reduce your effective annual rent below the theoretical gross rent, lowering your actual yield. If you target a 7% gross yield but have 8% vacancy and 2% bad debt, your effective gross yield falls to about 6.3%. Net yield falls further after expenses. Always underwrite with realistic vacancy and bad debt assumptions (use local market averages) rather than assuming full occupancy to get an accurate picture of expected returns.

Professional property management fees typically run 8–12% of gross rent, which directly reduces net yield by a similar amount. On a property with 7% gross yield, a 10% management fee reduces net yield by about 0.7 percentage points. Many investors self-manage to preserve yield, but this requires significant time investment and expertise. Always include a market-rate management fee in your underwriting even if you plan to self-manage — it reveals the true economic cost and ensures the investment would still work if you needed to hire management.

You can invert the yield formula to estimate value: Property Value = Annual Rent / Required Yield. If comparable properties in the market trade at a 5% net yield and your property generates $25,000 in annual net rent, the estimated value = $25,000 / 0.05 = $500,000. This is essentially the same as the cap rate valuation method used in commercial real estate. It is a quick way to back-calculate what a buyer would pay given market yield expectations.

Rising interest rates increase the cost of mortgage financing, raising the yield required for an investment property to generate positive cash flow. When the risk-free rate (government bonds) rises from 2% to 5%, investors require higher property yields to compensate for the higher cost of debt and the higher opportunity cost of capital. This is why property values tend to fall as interest rates rise — yields must rise (prices fall) to remain competitive with the higher rates available elsewhere.