The Basic Calculation
Gross rental yield = (Annual rental income / Purchase price) x 100
Example: Apartment in Calpe
- Purchase price: €250,000
- Weekly rate high season: €1,200
- Weekly rate low season: €600
- Estimated occupancy: 25 weeks/year
Income
- 15 weeks high season: €18,000
- 10 weeks low season: €6,000
- Total: €24,000 gross
Costs
- Management (20%): €4,800
- Cleaning: €2,500
- Maintenance: €1,500
- Insurance: €500
- Taxes: €2,000
- Total: €11,300
Net Yield
- Net income: €12,700
- Yield: 5.1%
Tips for Higher Yield
- Invest in good photos
- Get 5-star reviews
- Offer extras (bikes, baby package)
- Consider longer rentals in low season
