How to Calculate Rental Yield in Abbotsford and Chilliwack

Calculate gross rental yield from annual rent and purchase price. Deduct operating expenses for a more realistic net yield.

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How do you calculate rental yield, and what does it tell you about a property's profitability? Divide annual rental income by the purchase price to find gross yield. Deduct annual operating expenses before dividing to find net yield. Both help compare investments, but net yield gives the more realistic picture because it accounts for the costs of owning and managing the property. Rental yield expresses your rental return as a percentage of the property's value. The distinction between gross and net matters: rent coming in and income left after operating costs are different measures. Calculating Gross Rental Yield Gross yield = (Annual rental income ÷ Property purchase price) × 100 Take a property with a purchase price of $600,000 and monthly rent of $3,000. Over 12 months, that produces annual rent of $36,000. (36,000 ÷ 600,000) × 100 = 6% That 6% measures rental income relative to the purchase price. It gives you a simple comparison, but it has not yet accounted for operating expenses. Calculating Net Rental Yield Net yield = ((Annual rental income − Annual expenses) ÷ Property purchase price) × 100 Now give that same property annual expenses of $8,000. These include taxes, insura