Rental yield is a financial metric that measures the return on investment generated by a real estate property through rental income. It is usually expressed as a percentage of the property's value.

Rental yield is calculated by taking the annual rental income of a property and dividing it by the property's market value. The formula is: 

\[ \text{Rental Yield (\%)} = \left( \frac{\text{Annual Rental Income}}{\text{Property Value}} \right) \times 100 \]
 

There are two main types of rental yield: gross rental yield and net rental yield. Gross rental yield considers only the rental income, while net rental yield takes into account additional property-related expenses such as property management fees, maintenance costs, and property taxes.

A "good" rental yield can vary depending on factors such as location, property type, and market conditions. Generally, a rental yield above 5% is considered decent, but investors should consider other factors like property appreciation and potential for capital growth.

Several factors can influence rental yield, including property location, demand for rental properties in the area, property management efficiency, property condition, and prevailing market rental rates.

Yes, rental yield can change over time due to fluctuations in rental income, changes in property values, and variations in operating expenses. Economic conditions, market trends, and property improvements can also impact rental yields.

No, while rental yield is an important factor, it should not be the sole consideration for property investment. Investors should also assess potential for property appreciation, market trends, the overall economic climate, and their own investment goals.

Investors can improve rental yield by increasing rental income through strategic property upgrades, adjusting rental rates based on market conditions, and minimizing operating expenses through efficient property management.

Yes, rental yield can provide insights into the potential risk and return of a real estate investment. A higher yield may indicate a potentially higher return but could also signal higher risk or lower property appreciation.

Tax implications vary by jurisdiction. In some cases, rental income may be subject to income tax, and certain expenses related to property management and maintenance may be deductible. It's important to consult with a tax professional for advice specific to your situation.