How to Calculate Rental Yield
Rental Yield = (Annual Rent ÷ Actual Property Value) × 100Annual Rent = 300,000Property Value = 9,000,000Rental Yield = (300,000 ÷ 9,000,000) × 100 = 3.33%So, the property has an annual rental yield of approximately 3.33%. Ideal Situation Greater Then 4%, Favourable Situation above 2.5%, Unfavorable Situation Less 2.5%