Calculating Rental Yield like a Pro

Rental yield measures how much income your property generates relative to its value. It is the primary tool for comparing property performance.

Key Concepts

• Gross Rental Yield: Total annual rent divided by property value.
• Net Rental Yield: Annual rent minus all holding costs (rates, insurance, etc.) divided by property value.
• Yield vs. Growth: High-yield regional areas often have lower capital growth than blue-chip city properties.

How it works in PropKeeper

PropKeeper calculates these automatically using your lease settings and logged expenses:

$$Gross\ Yield = \left( \frac{\text{Annual Rent}}{\text{Property Value}} \right) \times 100$$

$$Net\ Yield = \left( \frac{\text{Annual Rent} - \text{Annual Expenses}}{\text{Property Value}} \right) \times 100$$

What is a "Good" Yield?

• 2% – 4%: Common for capital city houses (Sydney/Melbourne).
• 4% – 6%: Balanced return for regional hubs or suburban units.
• 6% + : High yield territory, common in specific regional pockets.

Pro Tip

Don't confuse Yield with Cash Flow. Yield doesn't account for your mortgage interest. A property can have a great 5% yield but still be "negatively geared" if interest rates are high.