The "rental yield" or “yield” of a property tells you how much money you are likely to earn on your investment each year. It is calculated by expressing the annual rental income earned from a property as a divided by how much the property cost.
Example:
| Property purchase price: | R2 000 000 |
| Annual rental income: | R140 000 |
| Rental Yield: | 7,0% per annum |