What Is Rental Yield and How Should Landlords Use It?
Rental yield compares rental income with property value, but yield alone cannot tell a landlord whether a property is right to keep or sell.
Gross 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.
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.
Costs
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.
Borrowing
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.
Capital value
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.
Management burden
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
Use yield as one measure alongside equity, condition, risk, income, future prospects and your personal investment 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.