Gross yield, net yield, cash-on-cash return — understand the numbers before you invest.
Return on investment (ROI) is the single most important metric for a rental property investor. But there are several ways to calculate it, and each tells a different story.
Gross rental yield is the annual rent divided by the property price. Net yield accounts for expenses like maintenance, management fees, taxes and vacancy. Cash-on-cash return measures the annual cash flow against the actual cash invested. This article walks through each formula with real examples from the Tanzanian market.
