Rental Yield

Rental yield is a measurement used by property investors to evaluate rental income relative to the property's value or purchase price. A simple rental-yield calculation generally compares annual rental income with the property's purchase price and expresses the result as a percentage. More detailed calculations may account for vacancies, maintenance, taxes, management costs, and other expenses. Rental yield is useful when comparing income-generating properties. Investors should consider both rental income and potential capital appreciation rather than relying on yield alone.

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