Rental Yield

Definition

Annual rental income divided by property cost, an investment metric that helps you understand if you're actually making money.

Example Usage

The rental yield on this property is 5.5%, which exceeds our target threshold.

Origin

Financial investment terminology adapted for real estate

Fun Fact

Typical rental yields range from 2-8% depending on market and property type.

Source: Real Estate Investment Analysis

Related Terms

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notice to quit

A formal eviction warning telling tenants to pay up, shape up, or get out. The landlord-tenant relationship's breakup letter, now with legal consequences.

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Advanced

net rentable area

The actual square footage tenants can occupy and must pay for, excluding common areas, mechanical rooms, and structural elements. It's why your 'thousand square foot' office feels like eight hundred.

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straw buyer

Someone who purchases property on behalf of another party who can't or won't reveal their identity, ranging from perfectly legal privacy plays to outright mortgage fraud. The real estate equivalent of a burner phone.

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highest and best

A seller's request for all interested buyers to submit their absolute top offer by a deadline, usually because multiple lowballers are circling. It's the real estate version of 'final answer' from Who Wants to Be a Millionaire.

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Intermediate

Assessed Value

The government's opinion of what your property is worth, used exclusively to calculate how much tax you owe. It's magically always high enough to maximize your tax bill but too low to impress your neighbors.

🏠 Real Estate

Intermediate

triple net lease

A commercial lease where the tenant pays all property expenses including taxes, insurance, and maintenance in addition to base rent. Abbreviated NNN, it's the landlord's dream where they collect rent while you pay for literally everything else.

🏠 Real Estate

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