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How to work out % yield on a rental property

Sammy_Dee
Sammy_Dee Posts: 87 Forumite
Part of the Furniture Combo Breaker
in House buying, renting & selling
Anyone know how to do this?

The house, all in, inc fees etc etc etc was £82k

The rental charged is £540 per month


no mortgage.


thanks!

Comments

  • kinglewis
    kinglewis Posts: 194 Forumite
    7.9% gross???
  • herewegoagain2010
    herewegoagain2010 Posts: 284 Forumite
    £540 x 12 =£6480 / £82000 = 7.9%
    Starting again and working towards our new df life!
    A very proud forces wife
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Do you take off gas check, landlord insurance, cost of tenancy agreement, credit checks on tenant etc?
  • GDB2222
    GDB2222 Posts: 25,417 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    And maintenance, insurance, voids, bad debts, cost of management, agents' fees for finding tenants .... Say 4-5% net before mortgage payments.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No mortgage. Then the net profit will be added to your other gross income and you will be subject to income tax at the appropriate rate.
This discussion has been closed.
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