Understand the income performance of your property
Use realistic rent and annual operating costs to compare UK property income. Yield is one part of the investment picture and should be considered alongside demand, finance, tax and property condition.
Gross yield
Annual rental income divided by the purchase price, expressed as a percentage. It excludes costs and finance.
Net yield
Annual rent less the operating costs entered, divided by the purchase price. Mortgage payments and tax are excluded.
Running costs
Allow for service charges, insurance, maintenance, management and periods without rent. Unexpected costs can reduce the return.