Market and investment

Gross rental yield (hrubý výnos)

In Czech: Hrubý výnos z pronájmu

Gross rental yield (hrubý výnos) is the annual rent divided by the purchase price, expressed as a percentage. It ignores all costs, so it is mainly a quick first filter for comparing listings.

Also called: gross yield, gross rental return, hrubý výnos, hrubá výnosnost

What it means

Gross rental yield, in Czech hrubý výnos z pronájmu, is the simplest way to express how much a rented property earns. It is the annual rent divided by the purchase price, times one hundred: gross yield = (monthly rent × 12) / purchase price × 100.

Gross means nothing is deducted from the rent. The formula leaves out the repair fund (fond oprav), insurance, property tax, income tax, repairs and months without a tenant, so the result is always higher than the real net yield.

How it works in the Czech Republic

Only the bare rent goes on top, without advances for services and energy. If a flat is advertised with rent 'including charges', subtract the advances first, otherwise the yield comes out artificially high. The purchase price goes on the bottom; some investors add the agent's commission, fees and furnishing straight away to get a more cautious figure.

You can also estimate gross yield from the price per m² that Lovec-Realit.cz shows in listings. All you need is the typical monthly rent per m² for similar flats in the area: monthly rent per m² × 12 / price per m² × 100. It is a rough filter that helps you drop listings where renting out clearly does not pay and then calculate the rest in detail.

Gross yield is not enough to decide on a purchase. Two flats with the same gross yield can have very different costs, for example an older building facing a roof renovation and a new building with a low repair fund contribution.

Practical example

For example, a 58 m² 2+kk flat is offered for CZK 5,200,000 and similar flats nearby rent for CZK 19,500 a month without services. Annual rent is CZK 234,000 and gross yield is 234,000 / 5,200,000 × 100 = 4.5 %. The per-metre shortcut gives a similar result: about CZK 89,700 per m² to buy, about CZK 336 per m² a month in rent, and 336 × 12 / 89,700 × 100 ≈ 4.5 %. All figures are illustrative only.

What to watch out for

  • Deduct service and energy advances from the rent.
  • Check the rent against current rental listings in the same area.
  • Use gross yield only to sort listings, not to make the final decision.
  • Make sure the price per m² and the rent per m² are based on the same type of area.

Frequently asked questions

What is the formula for gross rental yield?

Gross yield = (monthly rent × 12) / purchase price × 100. The result is an annual percentage and includes no costs.

Why is gross yield higher than net yield?

Because none of the owner's costs, such as the repair fund, insurance, taxes, repairs or empty months, are deducted from the rent.

Can I work out gross yield from the price per m²?

Yes, if you know the typical rent per m² in the area: multiply the monthly rent per m² by 12, divide by the price per m² and multiply by 100.

  • Net rental yield (čistý výnos)Net rental yield (čistý výnos) is the annual rent minus the owner's costs, divided by the total purchase cost including transaction costs. It shows a more realistic return than gross yield.
  • Rental yield (výnos z pronájmu)Rental yield (výnos z pronájmu) shows what percentage of a property's price the rent returns each year. Gross yield uses the rent only; net yield first subtracts the owner's costs.
  • Price per square metre (cena za m²)Price per square metre (cena za m²) is a property's asking or sale price divided by its area. It helps compare flats of different sizes, but only if the same type of area is used for each listing.
  • Rent (nájemné)Rent (nájemné) is the regular payment a tenant makes to the landlord for the use of a flat or house. Charges for services such as heating or water are usually added separately as monthly advances.
  • Service charge advances (zálohy na služby)Service charge advances (zálohy na služby) are monthly payments a tenant makes on top of rent for heating, water, the lift, cleaning of common areas and similar services. They are settled after each billing period.

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

All terms in the glossary