Working out rental yield

[jtufty]

Thanks guys, all very useful comments.

I think Ill leave her rent static for the next 6 months and then increase it if she chooses to stay on. At that point she would have been here 1.5 years. (Although it is very tempting to raise the rent becuase there are simply no other rental properties...

[jtufty]

Hi all,

Im trying to work out the rental yield. I bought the property many years ago for £150k (although done £15k of modifications to it over the years). Its now worth £220k.

In my calculation, do I give it the property purchase price + modifications, or the current property...