How does edgeprop calculate rental yield

To calculate rental yield on EdgeProp Singapore, you need to follow these steps, which are based on the principles of determining the profitability of a rental property:

Determine the Annual Rental Income

Calculate the total rental income the property generates in a year. This can be done by multiplying the average monthly rent by 12.

Determine the Property's Value

Identify the purchase price or current market value of the property.

Calculate the Rental Yield

Divide the annual rental income by the property's value, and then multiply by 100 to get the percentage. For example, if a property generates $48,000 in annual rental income and its value is $800,000, the rental yield would be 6%.

Consider Net Rental Income

For a more accurate assessment, you may also need to account for expenses such as property taxes, maintenance fees, and agent fees. The net rental income is the annual rental income minus these expenses.

EdgeProp Singapore provides tools and data to help with these calculations, including historical price and transaction records, and advanced filter options such as rental yield and Edge Fair Value, which can assist in finding properties that offer good rental yields.