KURA Chihota looks at the areas that are likely to give property investors the best rental yields, in this week’s episode of Ask the Property Experts.A yield of a property is calculated as the rental value over a 12-month period combined with the market-related value of the property.Michelle Dickens, MD of TPN credit bureau, says rental yields are performing well nationally, with data showing that 85% of tenants are still in good standing and 69% of tenants are paying their rent on time and in full.However, calculating a rental yield is not simply a numbers game."Finding a quality tenant to pay off the rent is part of the real solution. It’s not just about the yield, but supply and demand in the area — vacancy rates in the area, how much maintenance and costs are going to be involved in going into that area," says Dickens. While the national yield for rental yields is 6.8%, Dickens says this does not mean that this will be the yield in every area and buyers need to look into areas t...
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