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What Is Rental Yield?

25 March , 2019 118

Rental yield is a very important factor to consider when seeking to invest in the real estate market as it can help determine the potential value and return of an investment property. For our purpose, rental yields are calculated as:

 Net rental yield = [(Annual rental income – Annual expenses) / Total property cost] x 100.

It is important to note however that the rental yield only serves as an indicator and not necessarily the exact percentage of return that can be expected.