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How to calculate gross rental yield for a Bangkok condo
A plain guide to gross yield: the formula, a worked example, what it leaves out, and how to compare two units before you buy.
Before you buy a condo to rent out, one number does most of the early filtering: gross rental yield. It tells you how much rent the property earns each year compared with what you pay for it.
The formula
Gross yield = (monthly rent × 12) ÷ purchase price
That is the whole calculation. It ignores costs on purpose, which is what makes it quick to use when you are comparing many listings.
A worked example
Say you are looking at a 35 sqm one-bedroom asking ฿3,200,000, and similar units in the building rent for about ฿15,000 a month.
| Step | Value |
|---|---|
| Monthly rent | ฿15,000 |
| Annual rent | ฿180,000 |
| Purchase price | ฿3,200,000 |
| Gross yield | 5.63% |
What gross yield leaves out
Gross yield is a first filter, not a decision. Before you commit, subtract the costs that turn it into net yield:
- common area (juristic) fees, charged per sqm each year
- vacancy between tenants, often one month a year or more
- furnishing and periodic replacement
- agent fees for finding tenants
- repairs and maintenance
- transfer fees and taxes at purchase
A unit with a slightly lower gross yield can win on net yield if its fees are lower or it rents faster.
Comparing two units
Put candidates side by side using the same assumptions. If one unit shows a much higher yield, check the rent estimate first: an optimistic rent is the most common reason a yield looks better than it is. Use what similar units in the same building have actually rented for, not asking rents.
Track it as you go
In MyKoti you can add a property while you are still watching it, enter the asking price and expected rent, and see the gross yield straight away. When you buy it, the same record carries on into leasing, billing, and maintenance, so the numbers you researched stay next to the numbers you collect.