My accountant mentioned net rental yield is more important for tax purposes. How do I calculate net yield for a HMO in Birmingham, specifically detailing which ongoing costs (e.g., mortgage interest, letting agent fees, repairs) should be included in the calculation?
Quick Answer
Net rental yield for an HMO factors in all operating expenses, including agent fees, repairs, and utilities, but excludes mortgage interest for individual landlords due to Section 24, giving a truer profit picture.
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Learn how to calculate net rental yield for your UK HMO, including essential ongoing costs and key exclusions like mortgage interest for tax purposes.
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