Rental yield can give landlords an indication as to whether a buy-to-let property is a worthwhile investment. Essentially, it’s the rental income that you receive in a year from a property expressed as a percentage of the value of that property. So if you receive an annual rental income of £10,000 and the property is worth £200,000, the rental yield is 5% – calculated by dividing £10,000 by £200,000, and then multiplying by 100 to find the percentage.
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