🧮 𝐑𝐞𝐧𝐭𝐚𝐥 𝐘𝐢𝐞𝐥𝐝 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐒𝐞𝐫𝐢𝐞𝐬 — 𝐏𝐚𝐫𝐭 𝟐 𝑵𝒆𝒕 𝑹𝒆𝒏𝒕𝒂𝒍 𝒀𝒊𝒆𝒍𝒅. 𝑻𝒉𝒆 𝑵𝒖𝒎𝒃𝒆𝒓 𝑺𝒆𝒓𝒊𝒐𝒖𝒔 𝑰𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 𝑨𝒄𝒕𝒖𝒂𝒍𝒍𝒚 𝑼𝒔𝒆.

Last time we covered Gross Rental Yield. But that number doesn't account for your real costs. Net Rental Yield is what actually lands in your pocket.

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🧮 𝐑𝐞𝐧𝐭𝐚𝐥 𝐘𝐢𝐞𝐥𝐝 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐒𝐞𝐫𝐢𝐞𝐬 — 𝐏𝐚𝐫𝐭 𝟐 𝑵𝒆𝒕 𝑹𝒆𝒏𝒕𝒂𝒍 𝒀𝒊𝒆𝒍𝒅. 𝑻𝒉𝒆 𝑵𝒖𝒎𝒃𝒆𝒓 𝑺𝒆𝒓𝒊𝒐𝒖𝒔 𝑰𝒏𝒗𝒆𝒔𝒕𝒐𝒓𝒔 𝑨𝒄𝒕𝒖𝒂𝒍𝒍𝒚 𝑼𝒔𝒆.

Net Rental Yield: The Figure Real Investors Use.
Calculating Rental Yield, Part 2 🧮

In the previous episode, we calculated the Gross Rental Yield, but that figure did not deduct actual expenses. Net Rental Yield is the figure that tells you how much money actually goes into your pocket each year, and it is the figure investors truly use to make decisions.

📐 Net Rental Yield Formula
((Annual Rent - Annual Expenses) ÷ Purchase Price) x 100 = % Net Yield

What expenses need to be deducted?

🏢 Annual Common Area Fee: Must be paid every year regardless of whether there is a tenant or not.
🛡️ Insurance Fees
🔧 Maintenance Costs: For looking after the room and the equipment inside.
👤 Agent Fees or Property Management: (if applicable)
📅 Vacant Periods: For example, if the room is vacant for 1 month per year, the rent lost is one full month.

🧮 Example
Condo purchase price: 3,500,000 THB
Annual rent: 240,000 THB
Total annual expenses: 40,000 THB (Hypothetical figure; actual expenses vary by unit)
Net Yield = ((240,000 - 40,000) ÷ 3,500,000) x 100 = 5.71% per year

📌 A clear comparison
Gross Yield 6.86% versus Net Yield 5.71% is a difference of 1.15%.
This margin represents 40,000 THB every year, accumulating to over 100,000 THB within 3 years and around 400,000 THB within 10 years. Generally, Net Yield is usually 1.5% to 2% lower than Gross Yield. The better you know the actual numbers, the better your investment decisions will be.

Things to know before applying this
The Net Yield here does not yet include income tax on rent, which depends on each individual's status; you should consult a tax expert for further advice. Before buying, you should ask for the exact annual common area fee per square meter, as well as the project's Property Management services, as these two factors directly impact the Net Yield.

At The Property 999, we provide consultations based on reliable data and offer straightforward advice. If you want to know what yield the project you are interested in offers, reach out to us, and we can help you calculate it. Stay tuned for our final formula, Cash on Cash Rental Yield, in our next article! 🤗


Reference: Global Property Guide (August 2026)

*Investment involves risks. Investors should study the information thoroughly before making any decisions.

*Simulated image for editorial purposes.

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