What is rental yield and how is it calculated
Rental yield is typically calculated using this formula:Rental Yield (%) = (Annual Rental Income ÷ Property Value) × 100For example, if a property costs Rs.50,00,000 and generates Rs.3,00,000 per year in rent:Rental Yield = (3,00,000 ÷ 50,00,000) × 100 = 6%There are two types of rental yield: Gross Rental Yield – Based only on rental…