In Belgium

Rental cash flow is the specific application of cash flow to rental property. It measures the actual cash surplus (or deficit) generated by a rental investment after all expenses, including debt service.

The key difference from net yield is the inclusion of the mortgage repayment and the vacancy impact.

Formula: Annual rental cash flow = Annual rent collected - (Mortgage repayments + Property tax + Insurance + Maintenance + Management fees + Income tax on rental income)

How it works

Positive rental cash flow is the goal for most Belgian investors. To achieve it with current interest rates, the investor typically needs:

  • A significant initial equity contribution (reducing the mortgage)
  • A property with above-average yield
  • Efficient management (self-managed, no agency fees)
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Good to know
In Belgium, the favourable taxation of rental income via cadastral income (for private lettings) significantly improves rental cash flow compared to countries that tax actual rent received.

Practical example

An apartment in Namur: rent 750 EUR/month, mortgage 480 EUR/month, property tax 70 EUR/month, insurance 25 EUR/month, maintenance provision 50 EUR/month. Monthly rental cash flow: 750 - 625 = +125 EUR. Annual: +1,500 EUR. This is a self-financing property.