How Rental Yield is Calculated for Real Estate in Serbia (Formula + Examples)

Rental yield (also called rental return or ROI) measures the annual return on investment for a rental property.

Formula

Rental Yield = (Annual Rental Income / Purchase Price) × 100

Where:

• Annual Rental Income = Monthly rent × 12
• Purchase Price = Property purchase price

Example 1: Apartment in Belgrade

• Purchase price: €100,000
• Monthly rent: €500
• Annual rental income: €500 × 12 = €6,000
• Yield: (€6,000 / €100,000) × 100 = 6%

Example 2: House in Novi Sad

• Purchase price: €150,000
• Monthly rent: €800
• Annual rental income: €800 × 12 = €9,600
• Yield: (€9,600 / €150,000) × 100 = 6.4%

What is a Good Yield in Serbia?

• Excellent: 8% and above
• Good: 5-8%
• Average: 3-5%
• Low: Below 3%

Factors Affecting Yield

1. Location: Central areas typically have lower yields but higher capital growth
2. Property Type: Apartments usually have higher yields than houses
3. Property Condition: Renovated properties command higher rents
4. Market Conditions: Supply and demand affect rental rates

Why Yield Matters

Yield helps investors:

• Compare different investment opportunities
• Assess rental property profitability
• Make informed purchase decisions
• Plan long-term investment strategy

Dometr automatically calculates yield for all rental listings, making it easy to find the most profitable investments in Serbia.