Understanding Rental Yields: A Complete Guide

What is Rental Yield?

Rental yield measures the annual rental income of a property as a percentage of its purchase price. It is one of the most important metrics for property investors.

Gross vs Net Yield

Gross yield is calculated before expenses. Net yield deducts operating costs like maintenance, insurance, and management fees. Net yield gives you a more accurate picture of actual returns.

What Makes a Good Yield?

In most markets, a net yield of 5-8% is considered strong. Premium locations may yield less but offer better capital appreciation. Our properties average 7-9% net yield.