The annual rental income from a property expressed as a percentage of its value.
Rental yield is a simple metric that shows how much rental income a property produces relative to its market value. It can be calculated as gross yield (using total rent) or net yield (after expenses). Rental yield helps investors quickly compare properties and is especially common in international markets like the UK and Australia.
Gross Rental Yield = (Annual Rent ÷ Property Value) × 100Gross rental yield equals annual rent divided by property value, expressed as a percentage. Net yield subtracts operating expenses first.
A property worth $250,000 generates $18,000 in annual rent. Gross rental yield = ($18,000 ÷ $250,000) × 100 = 7.2%. After deducting $4,000 in annual expenses, the net rental yield is ($14,000 ÷ $250,000) × 100 = 5.6%.
Richify automatically calculates rental yield and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
A property's annual net operating income as a percentage of its purchase price.
The ratio of property price to annual gross rental income.
The annual cash flow earned on the actual cash invested in a property.
Annual rental income minus operating expenses, before mortgage payments.
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