Net Rental Yield After Expenses for an Ensenada Condo in 2025: Realistic Numbers

When evaluating an Ensenada condo as a rental investment, the number that matters is not the gross yield—it is the net yield after every realistic expense is accounted for. Many real estate presentations lead with gross rental projections that look compelling until you subtract management fees, platform commissions, occupancy gaps, taxes, and carrying costs. Here is the honest 2025 calculation.

The Starting Point: Gross Rental Revenue

For a 2-bedroom oceanfront condo at Km 104 in El Sauzal, Ensenada, realistic 2025 rental benchmarks:

Short-term rental (Airbnb/VRBO):

• Average nightly rate: $200–$260 USD
• Realistic annual occupancy on available nights: 55–70%
• Weeks available for rent (full rental strategy): 40–45 weeks/year

Gross annual revenue estimate: 300 nights × $230 average = $69,000 gross (full rental, no personal use)

More commonly, owners reserve 8–15 weeks of personal use. A 37-week rental calendar at the same rates:

Adjusted gross revenue: ~$48,000–$60,000 USD/year (260 rentable nights at 65% occupancy × $220 average)

We will use $52,000 as our working baseline for a hybrid personal-use/rental model.

Expense Deductions: Category by Category

1. Property management fee (20–25% of gross): Full-service short-term rental management in Ensenada runs 20–25% of gross revenue. At 22%: $52,000 × 22% = $11,440

2. Platform fees (Airbnb/VRBO host fees): Airbnb charges hosts approximately 3%; VRBO charges up to 8%. Using a 5% blended rate: $52,000 × 5% = $2,600

3. Cleaning and turnover costs: In a managed property, cleaning fees are often charged directly to guests. If not, or if turnover costs exceed the cleaning fee collected: Estimate: $1,500–$3,000/year (we use $2,000)

4. HOA/maintenance fee: $400/month × 12 = $4,800/year

5. Property tax (predial): $800/year (typical for this asset class in Ensenada)

6. Fideicomiso bank fee: $700/year

7. Insurance: $1,800/year (comprehensive property policy)

8. Utilities (common area + owner-period): $200/month for owner-period utilities and costs not covered by HOA: $2,400/year

9. Repairs and reserves: $150/month average: $1,800/year

10. Mexican income tax on rental income: Mexico taxes rental income. On a net income basis (gross revenue minus allowable deductions), assuming ~60% deductibility and a 30% effective rate on net: $52,000 gross − $31,200 deductions = $20,800 taxable × 30% = $6,240/year

(This is illustrative. A Mexican accountant will optimize your actual filing. U.S. foreign tax credits generally offset this against your U.S. tax liability.)

Net Yield Calculation

On a purchase price of around half a million USD (or all-in acquisition cost of ~$420,000):

• Net yield on purchase price: 4.5%
• Net yield on all-in cost: 4.1%

What This Looks Like at the High End

If the unit achieves premium nightly rates ($260 average), 70% occupancy, and 44 weeks of rental availability—a realistic top-quartile performance for an oceanfront unit in El Sauzal:

Gross revenue: 308 nights × $260 = $80,000

Running the same expense ratios (but with management at 20% and higher revenue base to spread fixed costs):

Net yield on all-in cost: 8.3%

How Ensenada Compares to Other Markets

For context on these yields:

• San Diego coastal rental properties: gross yields of 3–5%, net yields of 1.5–3% after California income taxes and higher operating costs.
• Palm Springs / Coachella Valley: gross yields of 6–9%, net yields of 4–6% before California state tax.
• Los Cabos: similar gross yield potential but higher purchase prices compress net yields to 3–5%.

Ensenada's combination of lower purchase prices (starting at around half a million USD vs. $700,000+ for comparable Los Cabos units), lower property taxes, and strong demand from the San Diego market creates a net yield profile that is genuinely competitive at the 4–8% range.

The Total Return Picture

Net rental yield is only one component of the return. The total investment return includes capital appreciation—which at 5–7% annual appreciation on a around half a million USD unit represents $19,500–$27,300 per year in unrealized equity gain. Combined with a $17,000–$35,000 net rental income, the blended annual return on this asset is 9–16%—before U.S. tax optimization.

Take the Next Step

If you want to model your specific scenario—based on your personal use calendar, rental strategy, and financing structure—our team can walk you through the numbers using actual 2025 data from the Alisio tower operation at the same address. Schedule a private presentation at Km 104, El Sauzal, 90 minutes from San Diego. Contact us via WhatsApp or our contact page.