Reading rental yield honestly

Almost every investment listing quotes gross yield. Almost no investor ever receives it.

What gets left out

Gross yield is annual rental income divided by purchase price. It ignores management fees (typically 15–25% for short-stay), platform commission, cleaning and laundry, utilities, maintenance and repairs, pool and garden staff, insurance, income tax, and — the big one — vacancy.

A villa advertised at 12% gross with 70% occupancy, 20% management and normal running costs lands closer to 6–7% net. That is still a reasonable return. It is simply not 12%.

Occupancy is seasonal

Bali's high season carries the year. A property averaging 71% annually is often near 90% in July and August and under 50% in the wet season. Ask for month-by-month figures, not an annual average — the average hides whether the shoulder months actually cover their own costs.

Ask for the right evidence

For an operating property, request three years of booking data, the platform account exports, and the management agreement. For a new build, treat every projection as a hypothesis. Comparable properties with real trading history are worth more than any spreadsheet a developer hands you.

The leasehold adjustment

On a leasehold asset, part of your return is simply the lease running down. A 25-year lease loses roughly 4% of its remaining term every year. Any honest yield calculation nets that off.