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Real Estate vocabulary · Investment & the Market

Rental yield

Meaning in real estate, with examples

nounCommon term

In real estate, rental yield means: The yearly rent from a property shown as a percentage of its price or value. A home worth 200,000 that earns 10,000 a year has a 5% gross yield.

In Turkish: kira getirisi, kira verimi

How it is used

Investors compare areas and properties by rental yield. Gross yield uses the rent before costs; net yield subtracts costs such as maintenance, management, insurance and empty periods.

Example sentences

  1. Student flats near the campus offer a rental yield of around 6%.

  2. The net rental yield is much lower once you include fees and repairs.

Common collocations

  • gross rental yield
  • net rental yield
  • high rental yield
  • calculate the rental yield
  • return on investmentThe profit from an investment compared with the money put into it, usually shown as a percentage.
  • buy-to-letBuying a property in order to rent it out to tenants, or a property bought for this purpose.
  • cap rateShort for capitalisation rate: a property's net operating income divided by its value or price, used to compare returns on income-producing buildings.
  • vacancy rateThe share of units in a building, portfolio or market that are empty and not rented at a given time, shown as a percentage.
  • rentThe money a tenant pays regularly, usually every month, to live in or use a property that belongs to someone else.

More terms: Investment & the Market

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