Owner toolCashflowYield

Rental yield calculator

Get a simple estimate of annual rent, operating costs, cashflow, and gross yield, then send the result to AA Location for a more tailored opinion.

Quick read

Annual rent, NOI, and cashflow at a glance.

Costs included

Taxes, insurance, condo, maintenance, and mortgage.

AA Location follow-up

Then send the case for a more precise opinion.

Type

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City

To choose

Monthly rent

Maintenance

10% loyer auto

Property assumptions

Enter the key numbers to project revenue and costs.

Monthly rent (CAD)

Use your current rent or your target rent.

Property type

City

Approximate property value (optional)

Needed only for a simple gross yield estimate.

Annual property tax (CAD)

Annual condo fees (CAD)

Enter 0 if not applicable.

Annual insurance cost (CAD)

Monthly mortgage payment (optional)

Annual maintenance budget (optional)

Leave blank: we use 1.5% of property value if provided, else 10% of gross rent.

Vacancy + bad-debt reserve (%, optional)

Leave blank to apply the 4% industry-norm reserve on gross rent. Raise to 7-10% if you self-manage without a placement strategy.

See your estimated results

The calculation is indicative and does not replace a full analysis.

Investing in Quebec

Rental yield, explained

Rental yield measures the net income an investment property generates relative to its purchase price. Three definitions come up constantly — cap rate, gross yield, and net yield — and each answers a different question.

Gross, net, cap rate: three measures

Gross yield is the simplest calculation: annual rental income ÷ purchase price. Useful for quickly comparing properties, but it ignores all operating costs.

Net yield (cap rate) subtracts the real costs: municipal and school taxes, insurance, maintenance, property management, condo fees where applicable, and a prudent vacancy allowance. This is the measure investors and banks favour when evaluating a property.

Return on investment (ROI) layers in mortgage financing and expected appreciation. For a buyer financing 80% of the price, ROI can far exceed the cap rate — at the cost of higher risk.

Quebec-specific costs

Three line items weigh particularly in Quebec: the municipal tax (varies by municipality, calculated on roll value), the school tax (calculated on uniformized value at a single provincial rate) and home-insurance premiums for landlords, which are higher than for owner-occupants.

Add winter maintenance costs (mandatory snow clearing in front of the property, roof inspection after freeze-thaw cycles) and a budget for renovations required by the TAL if you ever want to justify an above-grid rent increase.

Rent increases: the TAL grid

Each year, the Tribunal administratif du logement publishes a calculation grid for rent increases. Since the 2026 methodology reform, the grid is built on a 3-year CPI average and bundles the operating-cost and heating-energy components into one flat rate per heating scenario. Above-grid increases can be contested by the tenant.

For an investor, that means rents don't automatically track inflation. Model your rent increases conservatively — especially in early years when the gap between grid and CPI can be wide.

How much vacancy should you budget for?

In Montreal, Laval and Longueuil, official vacancy has been below 2% since 2022 — well under CMHC's 3% balance threshold. But that snapshot misses the between-tenant window an owner actually faces: a turnover (often on July 1) typically triggers 1 to 4 weeks of vacancy to prep the unit and find a qualified tenant.

The tool now applies a 4% reserve by default. Raise it to 7–10% if you self-manage without a placement strategy — empty days during a turnover plus bad-debt risk usually push real operating vacancy higher than the official rate.

Going further

Combine this calculator with property assessment roll data for exact taxes, and with the Quebec real-estate market overview to validate your appreciation assumption.

General information provided for guidance. For an assessment tailored to your situation, contact us.

Go further

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Yield benchmarks, duplex strategy and the systematic placement that protects investor returns.

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Renting out a unit in your Montreal duplex or triplex — complete guide

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Laval rental market, top sectors (Chomedey, Sainte-Rose, Vimont, Pont-Viau), average prices, condo bylaws and tenant profile — the complete strategy for fast placement.

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Real-estate investor: systematizing tenant selection across multiple units

For an investor with multiple units in Montreal, Laval or Longueuil, tenant selection becomes an operational process. Here's how to systematize to reduce risk, accelerate placement, and protect yield.

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Next step

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Frequently asked questions

Practical answers for tenants and owners across Greater Montreal.

What is a good rental yield in Montreal?: In Montreal, a gross yield of 5%–7% is considered healthy for a residential building. Downtown and the Plateau often see lower gross yields (3.5%–5%) due to high purchase prices, but long-term appreciation compensates. In Laval and Longueuil, gross yields above 6% are more common.
Gross yield vs net yield — what's the difference?: Gross yield = (annual rents ÷ purchase price) × 100. It ignores all expenses. Net yield subtracts municipal and school taxes, insurance, maintenance, management, condo fees, and vacancy. Net is always lower but far more representative of real cash flow.
What expenses should I deduct to calculate net yield?: At minimum: property taxes (municipal + school), building insurance, ongoing maintenance (1.5% of property value matches the CMHC norm, which the tool applies automatically when value is provided), property management if delegated (5%–8% of rents), common-area electricity, snow removal, and a vacancy + bad-debt reserve (4% default for Greater Montreal, raise to 7–10% if you self-manage).
How does Montreal compare to Laval and Longueuil for yield?: Montreal has higher rents but also significantly higher purchase prices, which compresses current yield. Laval and Longueuil often offer a better rent-to-price ratio and therefore a more attractive gross yield, especially for multiplexes. The trade-off: Montreal's appreciation has historically been stronger over a 10-year horizon.
Does the calculator account for vacancy and maintenance?: Yes — the tool now applies a 4% vacancy + bad-debt reserve by default (raise it for a passive management scenario) and a maintenance budget set at 1.5% of property value when value is provided, otherwise 10% of gross rent. The output shows gross rent, effective gross income, NOI, monthly cashflow and gross yield. It's a directional view, not a substitute for in-depth analysis with an accountant.

Rental yield, explained

Gross, net, cap rate: three measures

Gross yield is the simplest calculation: annual rental income ÷ purchase price. Useful for quickly comparing properties, but it ignores all operating costs.

Return on investment (ROI) layers in mortgage financing and expected appreciation. For a buyer financing 80% of the price, ROI can far exceed the cap rate — at the cost of higher risk.

Quebec-specific costs

Rent increases: the TAL grid

For an investor, that means rents don't automatically track inflation. Model your rent increases conservatively — especially in early years when the gap between grid and CPI can be wide.

How much vacancy should you budget for?

Going further

Combine this calculator with property assessment roll data for exact taxes, and with the Quebec real-estate market overview to validate your appreciation assumption.

General information provided for guidance. For an assessment tailored to your situation, contact us.

Frequently asked questions

Practical answers for tenants and owners across Greater Montreal.

What is a good rental yield in Montreal?

In Montreal, a gross yield of 5%–7% is considered healthy for a residential building. Downtown and the Plateau often see lower gross yields (3.5%–5%) due to high purchase prices, but long-term appreciation compensates. In Laval and Longueuil, gross yields above 6% are more common.

Gross yield vs net yield — what's the difference?

Gross yield = (annual rents ÷ purchase price) × 100. It ignores all expenses. Net yield subtracts municipal and school taxes, insurance, maintenance, management, condo fees, and vacancy. Net is always lower but far more representative of real cash flow.

What expenses should I deduct to calculate net yield?

At minimum: property taxes (municipal + school), building insurance, ongoing maintenance (1.5% of property value matches the CMHC norm, which the tool applies automatically when value is provided), property management if delegated (5%–8% of rents), common-area electricity, snow removal, and a vacancy + bad-debt reserve (4% default for Greater Montreal, raise to 7–10% if you self-manage).

How does Montreal compare to Laval and Longueuil for yield?

Montreal has higher rents but also significantly higher purchase prices, which compresses current yield. Laval and Longueuil often offer a better rent-to-price ratio and therefore a more attractive gross yield, especially for multiplexes. The trade-off: Montreal's appreciation has historically been stronger over a 10-year horizon.

Does the calculator account for vacancy and maintenance?

Yes — the tool now applies a 4% vacancy + bad-debt reserve by default (raise it for a passive management scenario) and a maintenance budget set at 1.5% of property value when value is provided, otherwise 10% of gross rent. The output shows gross rent, effective gross income, NOI, monthly cashflow and gross yield. It's a directional view, not a substitute for in-depth analysis with an accountant.