**How to Calculate Rental Yield Before Buying an Apartment in Nairobi**

How to Calculate Rental Yield Before Buying an Apartment

Rental yield helps you determine how much income an apartment can generate compared to its purchase price. Formula: Rental Yield (%) = (Annual Rental Income ÷ Property Price) × 100. Example: If you buy an apartment for KSh 8 million and rent it out for KSh 50,000 per month, your annual rental income is KSh 600,000, giving you a gross rental yield of 7.5%. Before investing, consider the location, rental demand, maintenance costs, service charges, and vacancy rates. Calculating rental yield helps you compare properties and make smarter investment decisions.