Date Published 21 March 2022
When researching the best areas in Milton Keynes to invest in a property to let, you will be keen to find out the sort of rental yield you can expect to enjoy in return.
A high rental yield ensures that your rental income covers the property's running costs, from mortgage repayments to wear and tear.
What is rental yield, and how is it calculated?
A rental yield refers to the value of rent you can expect to receive from your property in a year.
To cover all necessary expenses while allowing you to make a reasonable return on your investment, anywhere between 4-8% is considered a good rental yield.
The rental yield is calculated by dividing your annual rental income by your total investment, then multiplying this by 100. For example, if you buy a house for £250,000 and rent it for £950 per month, your rental yield is 4.5%.
