Question 1

What is considered a good short-term rental yield?

Accepted Answer

A good yield depends on your local market, but generally, investors look for an annual yield between 8% and 12% to account for the extra effort involved in managing short-term guests.

Question 2

How often should I recalculate my yield?

Accepted Answer

Because short-term rental income is volatile, it is best to recalculate your yield quarterly to account for seasonal fluctuations and changing market conditions.

Question 3

Does the yield calculation include mortgage payments?

Accepted Answer

No, standard rental yield calculations generally look at the property's performance before financing costs (Cap Rate). If you want to know your personal cash flow, you should calculate Cash-on-Cash Return instead.

Short-Term Rental Yield