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I am planning to buy a property to be let out, how will I know it’s rental yield?

Before buying a property you need to ask an estate agent on what estimated value the property yields when rented every month. The Rental Income will then be deducted by the following expenses:

 

  • Insurance Premiums
  • Replacing fixtures and fittings
  • Maintenance
  • Ground Rent and service charges if the property is leasehold
  • Void periods
  • Letting Agency Fees
  • Mortgage costs

 

Once everything mentioned above is deducted from your gross rental income then you can have your net income.