Wouldn't touch anything under 10% - and even then it would have to be in very good condition with little chance of repairs/refurbishment for several years.
10% looks greedy but, based on most lettings, the owner will use letting agents who also "manage" the property (basically deal with the tenant and collect rent) -that could mean 10% goes down to 9%.
I don't mean the company that manages the building which could mean another 1% reduction -but that may include building insurance, rubbish removal etc.
Then furniture inc. oven.fridge ,freezer. Spread over years the cost could be €1.000 p.a.- that may be nearly another reduction of 1% yield..
If one is lucky enough to have 100% occupancy then no need to reduce the percentage yield estimate. But it would be wise to cost in another 1/2 percent in lost rentals-basically one month empty every two years.
Again one may be lucky enough not to paint, redecorate and ,again, one should estimate another half percent.
If that's too high then throw in the property charge and other fees.
Basically, I think 10% gross could mean 6% pre-tax-it depends on one's luck to some degree. I'm considering 4% total costs and contingencies within a "normal" range, but one could be very unlucky......
.. a bad tenant, big damge, months of no rent, hassle, court cases. I haven't had these.But reading many posts over the years a lot of owners have.
Anyway, getting back to the 6% pre-tax yield. On the higher tax rate that means one is earning 3 % nett post tax profit. Ain't great is it ?
That's still better than the 1% nett post tax that will soon be the interest from banks.
But if interest rates increase in a few years then 3% post tax nett rental income looks bad..
SO, 10% GROSS RENTAL YIELD IS VERY VERY MINIMUM.
P.S. Just seen in Allsops a two bedroom apt nr Stephens Green. rent of 15.600 p.a. guide price of 190.000. To me ,that's far too dear unless there's a good chance of increasing what looks like a low rent for the area .