September 18, 2025
Learn how to calculate and understand rental yields, a crucial aspect of property investment that affects profitability.
Rental yield is a key metric for property investors. It measures the income generated from a property relative to its value. Understanding this concept can help you make better investment decisions.
To calculate rental yield, divide the annual rental income by the property’s purchase price and multiply by 100. This gives you a percentage that indicates the return on investment.
High rental yields can indicate a profitable investment. However, it’s essential to consider other factors such as property appreciation and market conditions.
