Rental yield is the amount of money you make on an investment property by measuring the gap between your overall costs and the income you receive from renting it out.
Here’s how to calculate gross rental yield:
Sum up your total annual rent that you would charge a tenant
Divide your annual rent by the value of the property
Multiply that figure by 100 to get the percentage of your gross rental yield
To calculate net rental yield, follow these steps:
Add up all the fees and expenses of owning the property
Sum up the annual rent you will receive from the property
subtract the total expenses from the annual rent
Divide it by the value of the property
Multiply by 100
For additional information on Yield, realestate.com.au recently published this helpful article - What is yield and how do you calculate it.
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