From the blog
Rental Yield: How to Calculate It Before You Buy
What is rental yield?
Rental yield is the annual rental income as a share of the purchase price, and it is a quick measure of how attractive an investment is.
The formula
Gross yield = (annual rent ÷ purchase price) × 100. For example: a property bought for SAR 800,000 and let for SAR 48,000 a year yields 6%.
Net yield
Subtract the costs — maintenance, fees and void periods — to reach the net yield, which is closer to reality.
What counts as good?
In the Saudi market a yield of 6–8% is considered good. Thibrh calculates the estimated yield automatically for every property listed for sale.
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