Real Estate Investing

Net Rental Yield

Definition

What is Net Rental Yield?

Annual rental income after operating expenses divided by the property's cost or value.

Example in practice

After ₦500,000 expenses, ₦1.5 million net income on ₦40 million gives 3.75%.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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