Rental Yield

Rental yield is a metric that measures how much income your property generates relative to its value. It’s usually expressed as a percentage. To calculate it, divide the yearly rental income by the property's purchase price or current value, then multiply by 100. For example, if a property worth $200,000 rents for $10,000 a year, the rental yield is 5%. A higher yield indicates a better return on investment. It helps investors compare potential rental properties and assess whether a property is financially worthwhile based on the income it can generate.