Rental Yield
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Rental yield is the amount of money that a landlord receives through letting out an investment property in a year expressed as a percentage of the amount of money invested in the property.
For example, if a buy-to-let investor buys a house worth £200,000 and the tenant pays £10,000 a year in rent, the rental yield would be five per cent. i.e. yield (£10,000) divided by investment (£200,000) multiplied by 100 (to turn it into a percentage).
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