Rental Yield Calculator

Estimate your rental property yields

This calculator helps you estimate the yield for a buy-to-let investment. Buy-to-let yield means the annual rental income expressed as a percentage of the property value. The reason yield is used is so that you can compare different properties and investment scenarios.

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POINTS TO REMEMBER

Insurance premiums
The premium amount will vary depending on the size of the property, the property type and its location. Typically, however, it’ll probably take up between 2 and 3% of the rent, although this may also be higher if the property is furnished.

Replacing Broken Fixtures and Fittings
At the end of each tenancy, it’s likely there will be worn out fixtures and fittings. You’ll also need to factor in the need to re-paint every few years, too.

Maintenance
You’ll also need to factor in maintenance costs. The type, age and condition of the property will all affect the level of maintenance required, so keep this in mind when selecting your property

Ground Rent
If the property is leasehold then you’ll also have to factor in ground rent and service charges.

Empty Periods
There’s a good chance that your property won’t always be occupied. Periods without tenants are known as ‘void periods’ as there’s no rent coming in. Factor in this possibility, and even account for as much as a month’s rent just in case. If you buy well and set the rent appropriately, hopefully, this won’t be a problem for long.

Agent Fees
If you use a letting agent or a managing agent, you’ll have to pay a fee. This could include marketing, advertising, property management, referencing and inventories. It depends on how much you’re asking the agent to do, but it can range from just 4% to almost 20% in some areas of the country.