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Rental Yield Calculator

Calculate gross and net rental yield including property management fees.

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Results

Gross Yield

5.41%

Net Yield

3.91%

Annual rental income$40,560
Property management fee− $3,245
Other annual expenses− $8,000
Total expenses$11,245
Net annual income$29,315
Net weekly income$564

Net yield excludes mortgage interest, depreciation and capital works. Consult a property accountant for full analysis.

Frequently asked questions — rental yield

What is a good rental yield in Australia?

A gross rental yield of 4–6% is generally considered acceptable in Australia's capital cities. Yields in Sydney and Melbourne tend to be lower (2.5–4%) due to high property values. Regional areas and smaller capitals (Brisbane, Adelaide, Perth) often offer yields of 4–7%. Net yields after expenses are typically 1–2 percentage points lower than gross yields.

What is the difference between gross yield and net yield?

Gross yield = (annual rent ÷ property value) × 100. It ignores all expenses. Net yield = ((annual rent − all expenses) ÷ property value) × 100. Expenses include council rates, strata/body corporate, insurance, repairs, property management fees and vacancy periods. Net yield is the more meaningful measure of actual return.

How much do property managers charge in Australia?

Property management fees in Australia typically range from 7% to 12% of weekly rent, depending on the state and level of service. In addition to the ongoing management fee, expect a letting fee (usually 1–2 weeks rent) when a new tenant is placed, plus lease renewal fees and maintenance coordination fees. Enter the management fee percentage in the calculator to see the exact impact on your net yield.

Is rental income taxable in Australia?

Yes — rental income is assessed income and taxed at your marginal rate. However, legitimate investment property expenses (management fees, council rates, insurance, interest on the investment loan, repairs and maintenance, depreciation) are deductible against rental income. If expenses exceed rental income, the resulting rental loss can be offset against your other income (negative gearing).

What expenses can I deduct from rental property income?

Deductible rental property expenses include: interest on investment mortgage, property management fees, council rates, water rates, strata/body corporate fees, insurance, repairs and maintenance, cleaning, gardening, pest control, advertising for tenants, legal fees, depreciation on fixtures and fittings, and travel to inspect the property (subject to ATO rules). Capital improvements are not immediately deductible but may be depreciated over time.

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