Gross yield is the figure most often quoted in marketing because it is the largest. It is useful for comparing one property or area with another on the same basis, and for little else.

Before relying on a quoted figure, ask how it was built:

  • Is the rent achieved or projected? A projection rests on an assumed nightly rate and occupancy, and both should be supported by evidence from comparable property.
  • Does it allow for empty periods? Resort markets are seasonal, and a long-let unit is rarely occupied without gaps between tenants.
  • Is the price the full price, including any furniture package?
  • Is the letting it assumes lawful? Stays of under 30 days need a hotel licence, which most condominiums do not have.

Gross yield leaves out common-area fees, management charges, maintenance, tax and the costs of buying. Together those can take a large share of the rent in a managed resort property. The number to make decisions on is the net yield.

See rental yields in Thailand and the rental yield calculator.