Calculate a property's gross and net rental yield — annual rental income measured against its value.
Gross rental yield is simply annual rent divided by property value — a quick, rough way to compare properties before digging into expenses, but it ignores costs entirely, so it tends to overstate real returns.
Net rental yield subtracts annual operating expenses (property tax, insurance, maintenance, management — everything except the mortgage) from rent first, giving a more realistic picture of what the property actually returns relative to its value.
Yield vs. cap rate are closely related concepts — net yield calculated this way is very similar to cap rate, since both measure income against value while excluding financing costs. The terminology just varies by region and by whether you're looking at a single property or a portfolio.
LeasePilot HQ tracks real rent, expenses, and P&L per property — not just estimates.
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