01 Cash flow & returns Reviewed 30 August 2026
Property investing term
Gross rental yield
Annual rent divided by property value, before property expenses.
What Gross rental yield means
Gross yield is a quick rent-to-value comparison. It shows the rent produced before rates, insurance, management, maintenance, vacancy and finance costs.
02 / Worked example
How it is calculated
(Annual rent ÷ property value) × 100
Annual rent $30,000 Property value $600,000 Gross yield 5.0%
$30,000 ÷ $600,000 × 100 = 5.0% gross rental yield
Why it matters
It is useful for an initial comparison, but it can make an expensive property look healthier than its actual cash result.
Take the next step
Ask Heyward A definition cannot see your position. Heyward can.
Start with: “Compare this property’s gross and net yield using realistic expenses.”
04
Sources
Primary & official where availableGeneral educational information only. It does not account for your objectives, financial situation, legal position or tax circumstances.