What is rental yield on an investment property?

Yield measures the profit you generate from your rental property annually as a percentage of its value. It is useful to measure one investment property against another, or, to compare the returns from other investment options.

You can calculate rental yield using the 3 simple steps below:

Step 1

Multiply your weekly tenant rent by 52 (to get your yearly income)

Step 2

Divide your yearly rental income by your property’s purchase price.

Step 3

Multiply your rental yield amount by 100 to get a percentage.  

‍