01 Cash flow & returns Reviewed 30 August 2026
Property investing term
Net rental yield
Annual rent minus ongoing property expenses, divided by property value.
What Net rental yield means
Net yield adjusts rent for recurring property costs before comparing the result with the property value.
02 / Worked example
How it is calculated
((Annual rent − annual property expenses) ÷ property value) × 100
Rent less costs $22,800 Property value $600,000 Net yield 3.8%
(($30,000 − $7,200) ÷ $600,000) × 100 = 3.8% net rental yield
Why it matters
It gives a more useful property-level return measure than gross yield because it includes operating costs.
Take the next step
Ask Heyward A definition cannot see your position. Heyward can.
Start with: “Calculate the net yield using this property’s actual recurring costs.”
04
Sources
Primary & official where availableGeneral educational information only. It does not account for your objectives, financial situation, legal position or tax circumstances.