Gross and net rental yield in Marrakech

Calculate gross yield

Gross yield compares annual rent with acquisition cost. It is an initial filter, not final income or a performance guarantee.

• Realistic annual rent
• Price and acquisition costs
• Clearly documented assumptions

Move to net yield

Deduct condominium charges, management, maintenance, insurance, vacancy and costs specific to the chosen model. Tax treatment depends on the owner’s circumstances and requires separate validation.

Compare scenarios

Build cautious, central and favourable scenarios. Vary rent, occupancy, charges and furnishing budget instead of relying on one number.

Connect yield and liquidity

A high theoretical yield does not always compensate for a weak location, difficult reletting or poor resale liquidity. Assess income and long-term value together.

A worked example, not a promised return

Illustrative example: a total investment of MAD 1,200,000 and MAD 72,000 in rent collected produce a gross yield on total cost of 6%. After MAD 24,000 in annual expenses, income is MAD 48,000, or 4% before tax and financing. These figures explain the formula, not the market. Replace them with the full property budget and documented income assumptions.

Separate revenue, expenses and cash flow

Rent actually collected already reflects vacant periods, so do not deduct vacancy a second time from that base. Separate fixed expenses from costs linked to the number of stays and set aside a replacement reserve. With an off-plan purchase, spending starts before the first rent: check that cash resources cover instalments without relying on hypothetical future rental income.