A Guide to UK Residential Rental Yield Calculation

What is rental yield? Rental yield is the amount of money a landlord receives in rent over one year, shown as a percentage of the amount of money invested in the property. A property investor needs to consider costs above and below the ‘plimsoll’ line as well as void periods i.e. the period during any one year that the property stands vacant during tenant change over, latest ARLA data states void period are running at UK average of 17 days per annum.

Cost considerations are but not limited to:

1) costs of finance setup - booking fee, arrangement fee, valuation, brokers fees
2) legal fees, searches
3) costs of any refurbishment (including your own time)

From the monthly rental return, you should remove

1) costs of finance - repayments/interest
2) costs of compliance - safety checks, repairs, insurances
3) allowance for void periods between lettings
4) service costs (if applicable)
5) management fees/finders fees if using an agency
6) Advertising costs

A basic formula for rental yield is:

mrr = monthly rental return

i = investment

yield = mrr*12/i*100

If you want to factor in loan costs a calculator can be found at http://bit.ly/lvMuB9

Living Property’s ‘Smart’ Move!

As one of the leading residential lettings and property management businesses, Living Property, operating throughout South Norfolk, North Suffolk and the Waveney Valley has been keen to reduce their carbon footprint and operate in an environmentally sustainable way.

Paula Cunningham, founder and director of Living Property Lettings & Management comments, “As a mother and shortly to be grandmother I think it is vital that as adults we lead by example to our sibling generations in minimising wherever possible our carbon footprint. From the launch of Living Property we choose to recycle our waste, use recycled paper, communicate electronically and run the most efficient printers possible.”

Paula comments further, “ I happened to spot our local car mechanic, Wiggs Motor Company, had a cute second hand Smart car for sale which I bought and in order to give it a new lease of life had it treated to a Living Property branded body wrap which was done by Norfolk based Unique Signs & Graphics. I am absolutely delighted with the result and the fact that it’s another positive move to improving our operating carbon efficiency.”

Living Property Supports Annual Duck Race.

Paula Cunningham & Quackers

On your marks...get set.....go

Living Property was delighted to support the annual Beccles Duck race held on Sunday 5th September by entering their corporate duck apply named ‘Quackers’ by Director Kim Davies. The annual event held in aid of the Beccles Sea Cadets, Beccles Mini Rugby, Hook em Junior Fishing Trophy, Beccles Army Cadets and Kuk Sool Martial Arts offered a fine spectacle as on lookers cheered in the sunshine at Beccles Quay.


Paula Cunningham, Co Founder and Director said “Kim and I are only too pleased to support this worthwhile fundraiser as both of us live and work within our community and the organisations that stand to benefit do such a great job for our local youth its only right that we play our small part to help. We had such fun getting Quackers ready for her trip down the Waveney and she did us proud.....we cannot wait for next year’s outing!”

.....in the mean time look out for Quackers on her travels!

Our new home @ 34 Blyburgate, Beccles

The Living Property signs are up at our new home....and we move in on the 1st March 2010, drinks and nibbles 16:00 until 19:00 all welcome and we look forward to seeing you.

Paula Cunningham showing she’s happy to get her hands dirty!

Paula Cunningham tackles the Loddon, Norfolk countryside whilst undertaking this cross country board change following yet another successful let.

Living Property – Make Some Move’s of Their Own!

Living Property Waveney is to celebrate their first year of trading some move’s of their own as on March 1st they head into a high street base in Beccles. Blythburgate House formally occupied by The Trove and located opposite the entrance to the Co Op Rainbow superstore is a beautiful listed property located within the town’s conservation area. Additionally they expand their operation to include the sale of residential property.

The familiar experienced local faces of Paula Cunningham and Kim Davies who make up the all girl team are truly delighted with the progress of their business which sees them handling and ever increasing portfolio of managed housing.

Kim Davies, Director comments, “Offering property sales absolutely compliments our existing lettings and management activities and we are no strangers to home sales as our associated Living Property businesses are well established and successfully operating in both Diss and Attleborough. We embrace all the modern methods of marketing and offer sellers either a traditional no sale no fee commission of .95% plus vat or a highly competitive low cost upfront fixed fee alternative. We also have an option available to provide vendors Home Information Pack on a no move no fee basis”.

Commenting on their successes Paula Cunningham, Director stated “In the current economic cycle success can only be achieved by the efficient application of consistently focused energy and enthusiasm, day in day out, ensuring that a first rate service is delivered. Get this right and your business grows rapidly as reputation through recommendation grows awareness amongst landlords and tenants alike”.

Kim Davies concurs and additionally comments “we are professional but not robotic, we believe in operating in a friendly, honest and transparent business manor and treat our landlords and tenants fairly and with respect. Clear communication through each point of engagement sets us apart from the competition as landlords feel supported and well informed as do our growing band of satisfied tenants”.

Living Property offer a ‘rent guarantee’ scheme, subject to satisfactory tenant referencing, this has been particularly well received amongst its landlord clients as they minimise financial risk in the case of tenant default. All properties are promoted via leading portals rightmove, globrix, homes24 and their own excellent website livingproperty.net.

Living Property specialize in residential sale, rental and management of property operating throughout the Waveney Valley, North Suffolk and South Norfolk geographic area and have waiting list pre-qualified tenants and buyers, if you are a landlord or owner looking to move Paula and Kim would welcome your contact paula@livingproperty.net kim@livingproperty.net or phone 0845 459 4095 (calls charged at local rate)