How do I calculate my local yield for a HMO?

Calculating a local yield for a HMO can be tricky. Often, it is best to use a professional, such as a surveyor to calculate this for you. To put yourself in the right direction, look for sold HMOs or HMOs for sale in the local area. Many of them will list their income within the description. Use the annual gross rental income and divide it by the purchase price to obtain a yield. This is strictly an estimate.