Dividend yield is an annual measure of the net income expressed as a percentage of the total cost of investing in a property
Example: The advertised property price is £90,000 and the transaction costs are a further £10,000, meaning the total cost of purchase is £100,000. This particular property will generate £15,000 in rent per year, with £7,000 in costs associated with management and other costs. This results in a dividend yield of 8% i.e. £8,000 net income (£15,000 rent less costs of £7,000) divided by £100,000 expressed as a percentage.