Achieving the right rental yield for your properties is going to be the cornerstone of building a robust portfolio.
We briefly looked at the rental yields in the tenant profile matrix a few lessons ago but fundamentally the ‘perfect’ rental yield (whether its 5% or 10%) is going to be dependent on your strategy, your tenants and on how much money and time you have to put into a project.
Rental yield should also be a number you use to help you narrow down any list of potential properties that you are looking to buy.
Because whilst rental yield will be dependent on the property type in the area, once you are comparing like-with-like, naturally, you then want to choose a property based on the biggest potential for profit and cash flow.
At Property Investments UK, we usually do not consider any property with a yield under 6% but as mentioned above, this is a number which is personal and based on our preferred investment strategy.