Separate revenue assumptions
Keep asking rents, rent actually collected and any developer illustration in separate columns. Base the revenue assumption on independent evidence, and show it apart from costs.
Fill the costs line by line
Use the worksheet below before adding any figure. For each fee, confirm whether it is charged on gross revenue, collected revenue or another base, so nothing is omitted or counted twice.
Three different results
An unlevered property result, cash flow after debt service and after-tax cash flow answer different questions. Avoid calling all three “net yield”. Personal-use nights also reduce the nights available for rental and can change the operating model.
Tax treatment depends on the owner
Owners living abroad should ask a qualified tax adviser how rental income is reported and whether withholding or elections apply. This site does not give a single tax percentage for all buyers.
| Line | Annual amount (USD) | Basis or source |
|---|---|---|
| Rent collected | ||
| Less vacancy and concessions | ||
| Management and booking fees | ||
| Cleaning and utilities | ||
| Association fees | ||
| Insurance | ||
| Property taxes | ||
| Repairs and furnishing replacement | ||
| Debt service | ||
| Applicable tax costs | ||
| Result |
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