Rent to value ratio,
Definition of Rent to value ratio:
The ratio of rental income to the price of the property. This ratio takes the annual amount of rent received divided by the price paid for the property. As an example, if a property is purchased for $100,000 and the monthly rent is $500 ($6,000 annually), then the rent to value ratio is 6%.
Meaning of Rent to value ratio & Rent to value ratio Definition