Rental Yield at a Glance.
Is the property worth it as an investment? Calculate gross and net rental yield in seconds.
Rental Yield: How to Evaluate Investment Property
The rental yield is the key metric for evaluating real estate as an investment. It shows the annual return on your invested capital. A higher yield generally means a better investment, but location and future value appreciation also matter.
Gross Rental Yield
The gross yield is a quick indicator: annual cold rent divided by purchase price. It does not include transaction costs or maintenance. Typical gross yields range from 3% to 7% depending on location.
Net Rental Yield
The net yield is the more meaningful figure. It accounts for transaction costs (notary, land transfer tax, broker), maintenance reserves, and management fees. A net yield above 4% is generally considered good.
When Is a Property Worth It?
Beyond rental yield, consider factors like value appreciation potential, financing costs (mortgage interest), tax benefits (depreciation), and vacancy risk. A property in a growing city with moderate yield can outperform a high-yield property in a shrinking area over time.
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Sources & References (2026)
All calculations are based on the official legal provisions for 2026. Despite careful research, no guarantee is given for correctness. This calculator does not replace professional tax advice.