The net yield is the return after deducting all running costs such as service charge, management, maintenance and vacancy, and therefore the reliable comparison figure.
It sits noticeably below the Gross Yield, but reflects what actually remains. Higher Service Charges or frequent tenant turnover push the net figure down.
Only the net yield allows a fair comparison between properties and communities.
TAH perspective
We work with net yields as a matter of principle and disclose the assumptions. Honest figures matter more to us than impressive ones.
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