How much does a rental property earn?

Gross yield is a year of rent divided by the price. Net yield subtracts vacancy, property tax, maintenance and fees, and divides by the price plus purchase costs. Example: a COP 300,000,000 apartment renting for COP 1,500,000 has a gross yield of 6% and a net yield of 4.6% with one vacant month a year.

For housing, the monthly rent cannot exceed 1% of the property’s commercial value, and for this purpose that value cannot exceed twice the current cadastral appraisal (Ley 820 de 2003, art. 18). The calculator warns you when the rent is above 1% of the price you entered.

At most the previous year's IPC, once every 12 months. Renewals in 2026 can rise up to 5.1% (DANE IPC 2025).

Property tax (predial), the building fee (administración) during vacant months — or every month if your lease has you paying it —, repairs, and, if an agency manages the rental, its commission on each rent collected. Many landlords also buy a rental insurance policy that guarantees payment.

Only if the net yield is higher than the mortgage rate after costs. Otherwise the rent does not cover the payment and you add money every month, betting on appreciation. Switch on "financed" in the calculator to see the monthly cash flow and the return on the cash you actually put in.

Yes. Rent is capital income in the general schedule of the income tax return, and it counts toward the thresholds that oblige you to file. Commercial leases may also carry VAT if you are responsible for it. This calculator shows returns before income tax.