What is rental property yield?

 

Rental yields are the rate of return from a property investment.

How do you work out the net rental yield?

To calculate the approximate net rental yield, and workout how viable an investment decision is, subtract annual expenses from the annual rental income, and divide this result by the total cost of the property. Multiple the result by 100 for the net rental yield percentage.

For example

netyield

N.B. Annual expenses include repair costs, property taxes, landlord insurance, and agent fees

 

How do you work out the gross rental yield?

The gross rental yield is the annual rental income divided by the total cost of the property, multiplied by 100.

For examplegrossyield

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