Rental yield is broadly the annual rental income expressed as a percentage of the property's purchase price or current value. It gives investors a way to compare the income potential of different properties on a like-for-like basis, independent of their absolute price.
A higher yield does not automatically make a property the better investment — it should be weighed alongside location quality, tenant demand stability, and the property's potential for value appreciation over time.
Since actual rental income can vary with market conditions and vacancy periods, it is sensible to use yield as one input among several rather than a standalone decision criterion.
