Media type · Annual rent over price
Rental yield
Annual rent as a percentage of the property price, before or after costs.
Key facts
| Gross | Annual rent over price |
|---|---|
| Net | After vacancy and costs |
| Excludes | Income tax, usually |
| Sensitive to | Price, rent, vacancy |
| Check | Local rent rules and costs |
Gross versus net
Gross yield is a screening number. It allows a quick comparison between listings but says nothing about what the owner keeps after a tenancy.
Net yield subtracts the costs of holding and letting. The difference between the two is the part of the return that depends on management rather than on the market.
Frequently asked questions
Should you use gross or net yield?
Use gross to shortlist and net to decide. The net figure is closer to the cash the property produces.
Do yields include capital growth?
No. Yield measures income against price. Capital growth is a separate return and a separate risk.