Glossary · Investment Strategy
Rental Yield
18 August 2026 · 1 min read
Written for Buyer's Agent, Consumer/Investor
Rental yield is the annual rental income a property generates, expressed as a percentage of its purchase price or current value, used to measure the income return of a property investment.
Rental yield is typically calculated in two ways: gross yield, which divides annual rent by property value before expenses, and net yield, which subtracts costs like rates, insurance, and management fees first. Investors and buyers agents use rental yield alongside capital growth potential to assess the overall performance profile of a property, with higher-yield properties often (though not always) trading off against lower long-term capital growth.