True Yield calculator

Gross yield and an owner’s income are two different numbers. For the $500,000 villa in the preset it is $59,580 a year: 237 occupied nights across two seasons at $300 and $180 a night. But that is the property’s revenue, not what reaches you.

Then come the owner’s expenses. The management company takes 20% of revenue — $11,915 — for bookings, check-ins, cleaning, pool and garden care and sales channels. Another ~$4,500 a year covers utilities and internet, minor repairs with furniture wear and insurance. The thing to avoid is double counting: cleaning, pool and garden are normally already inside the management fee.

Then taxes: rental income tax (on 70% of gross rent) and the Land & Building Tax take about $4,400. And the purchase itself cost not $500,000 but ~$535,000 — transfer fee, sinking fund and lawyer. The result in this scenario is $38,743 a year, 7.2% on invested capital.

Every property lands on its own number: entry price, location, occupancy and the management model move it both ways — noticeably higher as well as lower. That is why we run the calculation per property and show it before the deal, not after. Capital growth in prime zones — another 5–9% a year — comes on top, and we never mix it into the rental yield: the calculator has a separate “Total return over the holding period” module for that.