Is rental yield important?

Understanding rental yields is important for real estate investors as it helps determine what the ongoing yield of a potential investment is and whether it is in line with the overall investment objectives. Typically the driving force behind purchasing an investment property is to make more money. If you’re a property investor, rental yield can give you an idea of how much money you’re earning each year on your property. What's a good rental yield? Between 5-8% rental yield will provide a good return on your investment. Establish your rental yield by dividing your annual rental income by your total investment.