What is Rental Yield?
Rental yield is important data to consider, as it indicates how much profit real estate investors will make on a property prior to investing. Rental yield measures profit from a property each year as a percentage of it's value and it helps buyers evaluate income from different investments and compare properties. A higher rental yield equates to greater cash flow. The two types of rental yield to consider are gross rental yield and net rental yield.
Gross yield is calculated through annual rental income and property value.
Net yield is calculated by including all expenses involved.