Rental Yield Calculator
Calculate gross and net rental yields for buy-to-let properties
What is a good rental yield?
A gross yield of 5-8% is typically considered good for residential property in the UK. In London and the South East, yields tend to be lower (3-5%) due to high property prices, while the North often sees 6-10%+ yields. Net yield should ideally be at least 4% after costs.
What's the difference between gross and net yield?
Gross yield is the annual rent divided by property value, ignoring costs. Net yield subtracts running costs (mortgage interest, management fees, maintenance, insurance, void periods) giving a more realistic picture of actual returns.
What costs should I include in net yield?
Include: mortgage interest, letting agent fees (typically 8-12%), maintenance and repairs, insurance (landlord and buildings), ground rent/service charges, void periods, safety certificates (gas, electrical), and any furnishing costs.
How do I improve rental yield?
Options include: increasing rent to market rate, reducing void periods, managing the property yourself, refinancing to lower mortgage rates, making cost-effective improvements that justify higher rent, or converting to HMO (multiple tenants).