Working out what a flat earns you in a year takes a couple of minutes. The hard part is knowing which costs belong in the sum. Below is how to calculate the yield, and how the choice of district in Antalya changes it.
Gross yield
Gross yield is annual rent as a share of the purchase price: multiply the monthly rent by twelve, divide by the price, multiply by a hundred. It is a quick way to compare, but misleading on its own because it contains no costs at all.
Net yield: take the costs out
To see the real yield, subtract these from the annual rent:
- Service charge — if the tenant does not pay it
- Property tax
- DASK and home insurance
- Months standing empty
- An annual allowance for maintenance and repairs
- Tax on rental income
- Management commission, if you use an agent
The most common mistake
Treating the vacancy allowance as zero. Even on a yearly let, the gap between one tenant and the next can run to months; on a seasonal let, the empty period is the largest line in the sum. Build your calculation on realistic occupancy, not on twelve full months.
Payback period
To see how many years the investment takes to pay for itself, divide the price by the annual net rent. When comparing two properties in different districts this figure is more intuitive than a percentage.
Yearly let or seasonal?
Antalya has two rental models and they behave differently. A yearly let earns less but is predictable. A seasonal let earns far more per night, and carries much higher costs for vacancy, cleaning, management and wear.
If you are considering seasonal letting, ask whether the site management permits it — before you buy, not after.
How the district changes the sum
Antalya is not one market. Each district serves a different tenant, and that tenant sets both the rent level and the vacancy risk.
- Konyaaltı — the seafront strip and newer stock; demand both yearly and seasonal.
- Muratpaşa — the city centre; workers, students and commercial tenants, demand all year.
- Lara — gated complexes and villas; higher rents, a narrower pool of tenants.
- Alanya — investment stock and a high share of foreign tenants; strong for seasonal letting.
- Belek — golf and holiday demand; a pronounced season.
- Kaş — boutique and mostly seasonal; demand drops clearly in winter.
Yields district by district
We compile the average rent multiples and payback periods for each district from our own portfolio and from rents actually agreed in the area.
The figures for this section will be published once we have verified them against official sources and our own portfolio.
This post is general information; it does not replace legal or financial advice. Talk to our advisers about the specifics of your own purchase.
