From gross rent to net cash flow

A full calendar does not mean full collection, and a developer forecast is not a guarantee. Start from a blank page.

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.

Rental cash-flow worksheet — leave blank until supported
LineAnnual 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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