“It yields 12% a year” is the most repeated and least proven phrase in the Tulum market. It almost never comes with the math underneath. This article is the math: a formula you can run on a calculator, the expenses brochures leave out, and what to ask for in writing from whoever is selling to you.
First, what we know and what we don’t
Today, October 24, 2026, we read the listings in our inventory. Of the 79 properties in Spanish, 47 are in Tulum, and 46 of them list a price: they range from about $89,400 to $990,000, with a median of about $162,000 (we converted peso prices at 17.897 per dollar). Among apartments and studios, the 22 that list both price and floor area have a median of about $152,700 and about 63 square meters, with the price per square meter running from about $1,160 to $3,550.
And what we don’t know, plainly: no Tulum listing includes a measured monthly rent, and only one states an annual income, a figure from a developer with no track record. That’s why this article doesn’t hand you a percentage: it gives you the method to calculate one with your own assumptions.
Step 1: the total entry price, not the list price
Yield is measured against what you actually put in, not against the listing price. Add closing costs to the price: acquisition tax, notary, registration, appraisal and, for a foreign buyer, opening the trust (fideicomiso). As a rule of thumb, budget 5% to 8% of the value on top of the price. If you buy a $150,000 unit, your base is between $157,500 and $162,000, not $150,000. If you also furnish it, add the furniture.
Step 2: gross income, with an honest occupancy rate
The formula is simple:
annual gross income = nightly rate × 365 × occupancy
The trap is in the occupancy. Brochures use 80% or 90% year-round; the reality of a tourist destination includes high season, low season and empty months. Always run three scenarios: a pessimistic one, a mid-range one and an optimistic one, and make your decision on the pessimistic one. If the numbers only work in the optimistic case, they don’t work.
If you’re considering a long-term rental to a resident instead of a vacation rental, the formula is even simpler: monthly rent × 12 × (1 − expected vacant months / 12). A tenant who leaves and keeps the unit empty for two months has already cost you a sixth of the year.
Step 3: the expenses almost nobody counts
This is where gross yield turns into net yield. Subtract, year by year:
- Condominium maintenance fee (HOA). Get it in writing, with the current monthly amount and what it covers.
- Property tax (predial). It’s annual and depends on the cadastral value.
- Annual trust fee, if you buy as a foreigner in the restricted zone.
- Utilities: electricity, water, internet and, for vacation rentals, cleaning between guests.
- Platform or property manager commission, if you don’t manage it yourself. Ask for the exact percentage and what it’s charged on.
- Maintenance and replacement: air conditioning, paint, furniture. On the Caribbean coast, humidity and salt age everything faster.
- Income tax on what you earn. Consult a Mexican accountant: it varies with your tax situation.
Step 4: net yield
net yield = (annual gross income − annual expenses) ÷ total entry price
An example with deliberately made-up numbers, so you can see the mechanics and not mistake it for market data: total entry price 160,000; gross income 18,000; expenses 6,000. Net income is 12,000 ÷ 160,000, or 7.5%. The same apartment with gross income of 14,000 and the same expenses gives 5%. That four-thousand-dollar difference in income is the one brochures leave out, and it completely changes the decision.
Run the same math across all three occupancy scenarios and write down the three results. The gap between the pessimistic and the optimistic case tells you how much risk you’re buying: if the gap is two points, the investment is stable; if it’s six, it depends too heavily on the season, and you should ask for more data before putting down a deposit.
Step 4 bis: how many years to pay it back
A useful way to read the result is the payback period: total entry price ÷ annual net income. With the example above, 160,000 ÷ 12,000 is a little over 13 years; with the weak scenario of 8,000 net, it would be 20. That number almost never appears in a brochure, and it’s the one that best tells you whether you’re buying a rental income or buying a waiting period. Always compare it against how long you plan to hold the property.
Step 5: don’t forget appreciation, but don’t count on it in advance
Part of the return may come from the property rising in value, but it shouldn’t be added to the math as if it were guaranteed. Treat it as a bonus, not as part of the base calculation. An apartment that can only be justified by promised appreciation is a bet, not a rental investment.
Vacation rental or long-term rental: the math changes
A vacation rental usually earns a higher gross income per night, but it comes with more expenses —cleaning, commissions, replacing linens, guest turnover— and more variation from month to month. A long-term rental pays less per month, but it’s steady and involves less wear. There’s no single right answer: run the formula above for each option and compare the net yield, not the gross. And if the condominium rules don’t allow short-term rentals, the comparison is over before it starts.
What to ask for in writing before putting down a deposit
- The actual rent or nightly rate of comparable units already operating, not the projected one.
- The occupancy history for at least twelve months, if the building is already operating.
- The current maintenance fee and its history of increases.
- Who manages the unit, how much they charge and what it includes.
- Whether the condominium rules allow vacation rentals.
- The four property documents: recorded deed, lien-free certificate, property tax paid up to date and condominium regime.
A red flag
If the seller offers you a guaranteed yield without giving you the assumptions, without comparables and without a contract backing it up, treat it as advertising, not data. A serious yield can be rebuilt with a calculator, and if it can’t, it isn’t a yield: it’s a promise.
If you’d like to run the numbers on a real listing
If you already have an apartment in mind, or you’d like to see real listings in your budget range with floor area and price per square meter, get in touch and we’ll run the numbers together, with your assumptions and not the brochure’s.
Inventory data from inversionesdemexico.com read on October 24, 2026; converted at 17.897 pesos per dollar. Prices are list prices and may change. The numerical examples and the closing costs (5% to 8%) are illustrative and indicative, not a promise of returns; consult an accountant and a notary before deciding.
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Versión en español: Calcular el rendimiento real de un departamento de Tulum, sin trampas · Versão em português: Rendimento real de um apartamento em Tulum: o cálculo sem pegadinhas · Version française: Calculer le vrai rendement d’un appart à Tulum, sans fausses promesses
