The calcuation for rental yield is really very simple. It is the yearly rent that we receive divided by 12 months. For example:
Monthly rent for a property is $3800
Yearly rental is $45,600
Purchase price is $1,000,000
Rental yield = $45,600/1,000,000
Anothing above 4% is considered very healthy in today’s market as the rental yield of most condos is only 3-3.5%
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