Market and investment

Rental yield (výnos z pronájmu)

In Czech: 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.

Also called: rental return, yield, výnos z pronájmu, výnosnost pronájmu

What it means

Rental yield, in Czech výnos z pronájmu, is the basic measure of a buy-to-let flat or house. It expresses the annual rental income as a percentage of what the property cost. That lets you compare flats with different prices and rents, and compare renting out with other ways of investing money.

Two versions are used in practice. Gross yield works with the rent and the purchase price only. Net yield subtracts the costs the owner bears from the rent and adds the transaction costs to the price. When someone quotes a yield without saying which, ask.

How it works in the Czech Republic

The basic calculation is simple: annual rent divided by the property price, times one hundred. Service charge advances (zálohy na služby) that the tenant pays for heating, water or cleaning do not count as rent, because the owner only passes them on and they are balanced in the annual settlement.

Rental yield says nothing about how the property price will change or how a mortgage affects the investment. That is why it is complemented by return on investment (ROI), which also covers price growth, interest and the money you put in yourself.

How the rent can develop also affects yield. Landlord and tenant can agree an annual rent increase in the lease. If the lease neither provides for nor excludes increases, the Czech Civil Code (občanský zákoník) lets the landlord propose in writing an increase up to the comparable usual rent in the area, provided that together with increases over the last three years it does not exceed 20 %.

Practical example

For example, flat A costs CZK 4,000,000 and rents for CZK 15,000 a month; flat B costs CZK 3,000,000 and rents for CZK 12,500. Flat A's gross yield is 180,000 / 4,000,000 = 4.5 %, flat B's is 150,000 / 3,000,000 = 5 %. But if flat B has a higher repair fund contribution and tenants change more often, its net yield after costs may end up similar or lower. The figures are illustrative only.

What to watch out for

  • Always clarify whether a quoted yield is gross or net.
  • Check the expected rent against comparable rental listings, not the seller's estimate.
  • Do not count service charge advances as rent.
  • Recalculate any yield stated in an advert or by a developer yourself.

Frequently asked questions

How is rental yield calculated?

Divide the annual rent by the property price and multiply by 100. For net yield, first subtract the owner's costs from the rent and add the purchase costs to the price.

What is a good rental yield?

There is no universal threshold. Compare the yield with the risks of the specific flat, the cost of financing and what your money could earn elsewhere.

Do service charge advances count towards the yield?

No. The tenant pays them for energy and building services, and the landlord settles them after the annual statement, so they are not the landlord's income.

  • 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.
  • 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.
  • 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.
  • 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.
  • Buy-to-let flat (investiční byt)A buy-to-let flat (investiční byt) is a flat bought mainly to rent out or to preserve the value of money, not to live in. Its return depends on the price, rent, running costs, taxes and financing.

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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