Making buy to let property investment

Calculate the net and gross rental yield of your buy to let property

Written by: Category: Landlords, News August 2, 2014

How to make a wise buy to let property investment

Rental yields are used to compare properties and to signify the rate of return from your capital investment. Often you will see rental yield figures and analysis performed by estate agents and investors looking to sell buy to let properties.

Urmston Estate Agents, VitalSpace have put some handy tips together on how to calculate the gross and net rental yields to help you make the correct rental property investment.

Calculate the gross rental yield

>

To calculate out the gross rental yield, you will take the amount of annual rent income collected and divide it by the total cost of the owning the property. The result should then by multiplied by 100% for a gross rental yield.

Calculate the net rental yield

The net rental yield will help you to determine whether or not your property is a wise investment. If calculations show you are paying too much into your property, you can re-evaluate your investment decision.

Calculate your annual expenses by adding up a year’s worth of property repair costs, tenant vacancy, property taxes, landlord insurance and estate agents fees.

To calculate and work out the net rental yield, subtract annual expenses from annual rent and divide this result by the total cost of the property. The result should then by multiplied by 100% for net rental yield.

Clarifying the net rental yield helps you forecast your income and provide insight on how much money to set aside for property maintenance and other expenses

VitalSpace Estate Agents – Are you looking to let your home?>

Do you want an agent who will market your property with enthusiasm and work hard to find a buyer or tenant for you?

If so…..

You need to talk to VitalSpace Estate Agents

Click the link below for a FREE no obligation appointment and our Director will visit your property to see how we can help get you moving.

Request your free property valuation

VitalSpace branch network

Explore all articles

Arrange your free valuation

Our property experts are flexible and can visit your property at a time that suits you. We also offer out of hours appointments.

Book my appointment

Careers@Vitalspace

Are you looking for a new and exciting job at an expanding and award winning estate agency? Apply Now!

Current Vacancies
VitalSpace Estate Agents - 5 out of 5 based on 612 allAgents reviews

VitalSpace Estate Agents (a trading name of VitalSpace Sales Limited) 22 flixton Road, Urmston, Manchester, M41 5AA | Registered in England 06595585 | VAT Number 980295690