PRACTICAL GUIDE · UTILIA WORK
How to calculate the yield on a rental property
Gross rental yield compares annual rent with acquisition cost. Net yield includes expenses.
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The calculation
Gross yield = monthly rent × 12 ÷ total acquisition cost × 100. For net yield, subtract annual expenses such as building charges, insurance, maintenance and applicable taxes from income first.
Worked example
A property costing €200,000 and generating €900 monthly produces €10,800 annually: a gross yield of 5.4% before expenses.
Things to consider
Allow for vacant months, major repairs, financing and tax. Estimates are not a promise of returns.
General educational information. Examples are illustrative; check the conditions and rules applicable to your situation before making important decisions.
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