Calculated as: (annual rent − annual costs) ÷ property price × 100. Costs include service charge, ground rent, insurance, management fees, maintenance allowance and void allowance. Mortgage interest and tax are modelled separately.
Investment term
Net yield
Yield after voids and running costs, before mortgage and tax.
Related investment terms
More from this category
BTL
Buying residential property to rent to tenants.
Cash-on-cash return
Annual net cashflow as a percentage of the total cash you invested.
Gross yield
Annual rent as a percentage of property price, ignores costs.
HMO
A single house let to 3+ unrelated tenants sharing facilities.
NHBC
The UK's leading new-home 10-year warranty provider.
Off-plan
Buying a property before it's built.
Next Step
Need this concept applied to a specific deal?
Book a 20-minute call. We'll work through the term as it applies to your situation and the live opportunities it affects.
Book a Free Consultation