Rental Yield
Rental yield is annual rent as a percentage of a property's price, quoted gross before costs or net after them.
Why It Matters
It is the quick comparison investors use between buildings and against bonds, and the gross figure flatters properties with high running costs.
Related Terms
- YieldYield is the income an investment pays, expressed as a percentage of its price.
- Cap RateA capitalisation rate is a property's net operating income divided by its value, expressed as a percentage: the unlevered yield the building produces.
- NOINet operating income is the rental income of a property after operating costs, before financing and tax.
- Property ValuationProperty valuation is the estimation of what a building is worth, from comparable sales, from the income it produces, or from the cost to replace it.
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