Gross and net rental yield in Casablanca how to calculate realistically
Many investors start with gross yield and forget costs, vacancy and management. As a result, a property can look stronger on paper than it performs in reality.
For real estate in Casablanca, it is smarter to calculate both gross and net yield and work with multiple scenarios. This gives a more realistic view of risk and margin.
Gross yield
Gross yield is a quick first indicator:
gross yield = (annual rent / total investment) x 100
Useful for comparing properties, but not enough for a final investment decision.
Net yield
Net yield includes annual costs:
net yield = ((annual rent - annual costs) / total investment) x 100
This gives a more realistic picture of what you actually keep.
Costs investors often forget
- purchase costs and admin fees
- renovation and refresh works
- furnishing and furniture
- building fees / syndic
- maintenance and repairs
- vacancy between tenants
- remote property management
- insurance and reserve buffer
Calculate total investment correctly
Do not use purchase price only. Include transaction costs, renovation, furnishing and setup budget. Only then can you compare opportunities fairly.
Impact of rental strategy
- Long-term rental: more stable and less operational work.
- Short/mid-term rental: potentially higher income, but higher costs and more intensive management.
Use scenarios
- conservative
- expected
- optimistic
This prevents decisions based only on a best-case example.
What to evaluate in an apartment
- location and micro-location
- building quality and common areas
- elevator and parking
- tenant profile for that zone
- finishing level and immediate capex needs
- ease of remote management
Conclusion
Gross yield is a starting point, net yield is the real test. Investors in Casablanca who include costs, scenarios and management realities make stronger and safer decisions.
