How much does a downtown rental apartment yield? Yield calculation step-by-step

The gross rental yield is only the starting point — to calculate the real return, you must also take into account utility bills, taxes, and maintenance costs. In this article, we will guide you step-by-step through how to calculate the true, net yield of your own rental apartment in Budapest.

Gross vs. net yield

The gross yield is simply the ratio of the rental fee to the purchase price: if someone rents out a 50 million HUF apartment for 250,000 HUF per month, the annual gross yield is 6%. However, this number can be misleading if we do not deduct the expenses borne by the owner — for a real investment decision, the net yield is the decisive metric.

Steps of the calculation

To calculate the net yield, four factors should be taken into account: rental income and vacancy rate, utility and common costs, tax, as well as maintenance and renovation reserves.

Vacancy periods must always be factored into the expected annual income. If the owner bears the utility and common costs, these reduce the net income. Rental income is subject to personal income tax (SZJA), while it is advisable to set aside a portion of the rental income annually for expected repairs and depreciation.

A concrete example: a 60 m² apartment in the 6th district

For a typical 60 m² apartment in the 6th district, there is typically a 1–2 percentage point difference between the gross and net yield if all costs are calculated correctly. A 6% gross yield, therefore, often corresponds to a 4–5% net yield in reality, once utilities, common costs, taxes, and the maintenance reserve have been deducted. This difference clearly shows why relying solely on gross figures is not enough when making an investment decision.

Downloadable guide

It is worth attaching a simple, downloadable spreadsheet template to the article, allowing readers to run the calculation for their own property — this is also an excellent lead-magnet tool for collecting visitors' email addresses.

Why you should leave the calculation to an expert

Accurate yield calculation takes into account many small factors that are easy to miscalculate. Request a customized yield calculation for your apartment from the Midas Management team: we will assess the property's characteristics, market rental rates, and expected expenses so that you get an accurate, well-founded picture of your investment's real return.