Richmond Harvey (Oswestry) Ltd, 27 Cross Street, Oswestry, SY11 2NF View us on Google Maps


Search for properties in Shropshire, North and Mid Wales

Calculating The Rental Yield To Find The Best Investment

As a landlord, or more specifically, perhaps a new/upcoming landlord, have you ever been torn between multiple properties? A landlord’s main concern should be buying the property which will offers the best ROI (Return On Investment). Perhaps an important aspect many landlords don’t pay enough attention to, as they’re too busy focusing on the superficials. While that’s not a terrible thing, it’s important to remember why you’re buying the property in the first place- for an investment; to make money! So you want a property that will make you the most income! Richmond Harvey can help you work that out?

 Example scenario
John wants to be a landlord, so he’s on the hunt to buy a property. John has seen a property which costs £180,000 with a potential rental return of £775pcm.

What is rental yield?

Yield is a way of calculating the ROI on your BTL; it uses the rental income over the initial cost of buying the property, and is usually expressed as a percentage.

The higher the yield, the better.

Calculating rental yield

Monthly rental return = £775
Investment = £180,000

£775 * 12 = £9,300
£9,300 / £180,000 = 0.0516
0.0516 * 100 = 5.16 % yield

What is a good return yield percentage?

We personally think any property which has a return yield of 5 – 7%+ is extremely good. To make life easier Richmond Harvey have included the calculator below to help calculate your yield…


Top of Form

Rental Yield Calculator
Rent per month (e.g £750)
House price (e.g £150000)
Rental Yield

Bottom of Form


“Thank you so much for everything and may we extend our thanks to the team also. Great service from day one and we are very happy.”

Sean & Tracey

“All of the staff at Richmond Harvey were very helpful and friendly. Nothing was too much trouble.”

Mr G & Mrs F

“Your service was far above my expectations in relation to other experiences I have had with other agents when buying and selling property. Richmond Harvey kept me informed throughout the process and were always fast to answer any questions I had about the sale.”

Mr & Mrs S

“As the buyer we have been pleasantly surprised by the services we received from the staff at Richmond Harvey. Nothing has been too much trouble. We were kept updated by the process and had a pleasant experience. ”

Mr & Mrs N

“Thank you again for all of your help selling Mum & Dad's bungalow”

Mrs W, St Martins

“Mum is delighted everything has gone through smoothly especially as the sale price was in excess of suggested asking price given by other agents.”

Mr T, Llanymynech

“Excellent service when purchasing my property. My only criticism was not having biscuits with the coffee in the office ”

Mr T, Gobowen