Key factors when investing in rental properties

Gross yield is a headline; net yield is the truth. Subtract management, maintenance, insurance and realistic vacancy before you compare two properties.

Location still dominates. A slightly lower yield in an area with strong tenant demand usually outperforms a high-yield property that sits empty for two months a year.

Budget one to two percent of the property value each year for maintenance. Owners who plan for it keep their tenants — and their returns.