Question 1

Why is net yield more important than gross yield?

Accepted Answer

Gross yield ignores expenses like taxes and maintenance, which can drastically impact your bottom line. Net yield shows your true profit after these costs are paid.

Question 2

What is considered a 'good' net rental yield?

Accepted Answer

While it depends on the market, a net rental yield between 5% and 8% is generally considered strong for residential properties in many major markets.

Question 3

Should I include mortgage payments in the calculation?

Accepted Answer

Typically, net rental yield focuses on the property's performance regardless of how it is financed. Mortgage payments are usually excluded to keep the yield metric focused on the asset itself rather than your personal leverage.

Net Rental Yield Calculator