Market and investment

Net rental yield (čistý výnos)

In Czech: Čistý výnos z pronájmu

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.

Also called: net yield, net rental return, čistý výnos, čistá výnosnost

What it means

Net rental yield, in Czech čistý výnos z pronájmu, answers the question of what a property really earns. You subtract the costs the tenant does not pay from the annual rent and divide the result by the total amount the owner put into the purchase: net yield = (annual rent - annual owner costs) / (purchase price + transaction costs) × 100.

The result is always lower than gross yield and is better for comparing a flat with other investments. It still leaves out mortgage payments and changes in the property price; those belong in a return on investment calculation.

How it works in the Czech Republic

Typical owner costs include the repair fund contribution (příspěvek do fondu oprav) and the building management fee paid to the owners' association (SVJ) or cooperative, which tenants usually do not cover, plus property insurance, property tax (daň z nemovitých věcí), small and large repairs, replacing furniture and appliances, agency fees for finding a tenant and a reserve for empty months. Commission, legal services, furnishing and other purchase costs are added to the price.

Income tax often goes into the calculation too. Rental income is taxed under § 9 of the Czech Income Tax Act, and the landlord can deduct either actual expenses or flat-rate expenses of 30 % of the income, up to CZK 600,000. The chosen method cannot be changed retroactively. This is how the Financial Administration (Finanční správa) describes the rules for the 2025 tax period.

Which costs you include is up to you, but count them the same way for every listing you compare. Real building costs can be found in the service charge settlement (vyúčtování služeb), in the SVJ or cooperative payment schedule (předpis plateb) and from the building manager.

Practical example

For example, a flat bought for CZK 4,000,000 with CZK 150,000 of transaction costs rents for CZK 15,000 a month, or CZK 180,000 a year. Over a year the owner pays, say, CZK 24,000 to the repair fund and for management, CZK 3,000 for insurance and CZK 1,000 in property tax, sets aside CZK 10,000 for repairs and allows for one empty month (CZK 15,000). Costs total CZK 53,000.

Net yield before tax is (180,000 - 53,000) / 4,150,000 × 100 ≈ 3.1 %, while gross yield would be 4.5 %. After income tax it will be lower still. All amounts are illustrative only.

What to watch out for

  • Ask the seller for the SVJ or cooperative payment schedule and the latest service charge settlement.
  • Find out whether a major repair is planned that could raise the repair fund contribution.
  • Allow for vacancies and tenant changeovers.
  • Decide between flat-rate and actual expenses and calculate the yield after tax as well.
  • Include the same cost items for every flat you compare.

Frequently asked questions

How do I calculate net rental yield?

Subtract the owner's annual costs from the annual rent and divide by the purchase price plus transaction costs. Multiply by 100 to get a percentage.

Which costs are deducted?

Mainly the repair fund and building management, insurance, property tax, repairs, agency fees and a reserve for empty months. Service charge advances paid by the tenant are neither added nor deducted.

Does net yield include mortgage payments?

No. Net yield assesses the property itself. The effect of a loan, interest and your own deposit is shown by a return on investment (ROI) or cash flow calculation.

  • Gross rental yield (hrubý výnos)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.
  • 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.
  • Return on investment (návratnost investice, ROI)Return on investment (ROI, návratnost investice) shows the percentage profit made on the money put into a property. In Czech, návratnost can also mean the number of years it takes rent to pay back the investment.
  • Service charge settlement (vyúčtování služeb)A service charge settlement (vyúčtování služeb) is the statement in which the provider compares the advances paid for a billing period with the actual costs of heating, water and other services. The result is a refund or a balance to pay.
  • Owners' association (SVJ)An owners' association (SVJ, společenství vlastníků jednotek) is a legal entity that flat owners set up to manage the building and its land. It must be formed in a building with at least five units, at least four of them owned by four different owners.

Sources

Laws and official pages this text is based on (in Czech).

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

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