What Is Gross Yield on a Rental Property?
Gross rental yield is a simple way of comparing annual rental income with a property's value, but it does not show the full profitability or risk of an investment.
Simple yield calculation
There is rarely one figure that tells the whole story. Consider the property, market evidence, income, condition, finance and your wider objective when assessing the position.
Why gross yield is only a starting point
There is rarely one figure that tells the whole story. Consider the property, market evidence, income, condition, finance and your wider objective when assessing the position.
Costs and net yield
There is rarely one figure that tells the whole story. Consider the property, market evidence, income, condition, finance and your wider objective when assessing the position.
Comparing properties
This is one part of the wider portfolio picture. Look at the issue alongside your properties, finances, tenancies and objectives rather than treating it in isolation.
Yield within a portfolio
There is rarely one figure that tells the whole story. Consider the property, market evidence, income, condition, finance and your wider objective when assessing the position.
Why landlords should look beyond one number
This is one part of the wider portfolio picture. Look at the issue alongside your properties, finances, tenancies and objectives rather than treating it in isolation.
Practical takeaway
Yield can help compare properties, but decisions should also consider capital growth, condition, borrowing, management burden, tenants and your objectives.
What should you do next?
You do not have to decide before you understand your position. If a portfolio review would help, request a confidential portfolio valuation with no obligation to sell.