Rental yield shows how much return your property makes compared to its value. It’s expressed as a percentage and helps landlords quickly understand whether a property is performing well or could be doing better.
In short, rental yield answers one key question:
The basic calculation is simple:
Annual Rental Income ÷ Property Value × 100 = Rental Yield (%)
Example:
£12,000 ÷ £200,000 × 100 = 6% rental yield
For a quicker and easier option, you can use our online Rental Yield Calculator to instantly work out your yield without doing the maths.
This makes it easy to compare different properties, even in different locations.
Gross yield is useful for quick comparisons, while net yield gives a more realistic picture of profitability.
Understanding your rental yield helps you:
Many landlords are surprised to find their rent is below current market levels – which directly impacts yield.
In many cases, yes.
Rental yield can often be improved by:
Even small increases across multiple properties can significantly boost overall portfolio performance.
If you’re already a landlord, you may be missing out on rental income without realising it.
Get in touch today for a professional rent review.
We’ll assess whether your property – or your wider portfolio – could achieve a higher rental yield and help you maximise your returns with clear, market-backed advice.
