A rental yield is the potential return a property investor would be likely to achieve on a property through rent from its tenants.
A rental yield is a percentage figure that is calculated by taking the yearly rental income of a property and dividing it by the total amount that has been invested in that property. A rental business can be a tough choice and when it comes to investing in residential or commercial property, achieving a good rental return is of paramount importance.
If your income falls short of your expenditure then you will likely lose money. If you are just breaking even then you are not making any money and if your income doesn’t cover unexpected contingencies such as a broken boiler or a problem with a roof can have a major impact.
For more information about rental yields please contact a member of the team.