How to Calculate Rental Yield

Rental Yield = (Annual Rent ÷ Actual Property Value) × 100
Annual Rent = 300,000
Property Value = 9,000,000
Rental 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%

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