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What Does Rental Yield Mean?

Rental yield is a measure of how much cash [or rent] your property produces each year, as a percentage of the property value. Uwe Jacobs explains how to calculate rental yield and why it is important when deciding where to purchase.

What Does Rental Yield Mean?

Rental Yield is a measure of how much cash [or rent] your property produces each year, as a percentage of the property value.

The property investor dream is to secure a high rental yield property, in a location that delivers large capital gains, combined with low management and maintenance costs.

This means, rental yields are not the only consideration when purchasing an investment property – but a very important one.

By calculating rent…