The reason for calculating the rate of return on a property lease is due to a variety of factors and purposes. It is important because it helps you make decisions about real estate investments or evaluate rental properties. Now I'm going to explain in more detail why we're calculating the rate of return on real estate rent.

Investment Profitability Assessment: Real estate rental returns are an important indicator of the return on investment. Investors can measure and compare the return on their investment by comparing the amount of investment with the expected rental income. Calculating real estate rental returns can quantitatively assess the profitability of your investment to make more reasonable investment decisions.

Comparison and Choice: Property rental yields can be used to compare different property investment opportunities. You can calculate the rental return on multiple properties to determine which investment is the most profitable. Compare rental returns to select the most promising investment opportunities.

FINANCIAL PLANNING: Property rental yields play an important role in financial planning. It is possible to repay a portion of the return on investment, pay operating costs, and generate returns for investors, taking into account rental returns. By calculating the rental return, you can plan your investment from a financial perspective.

Risk Management: Real estate investments pose certain risks. By calculating the rental return, you can evaluate the investment risk against the expected return. Low rental yields may indicate that the risk of an investment may be high, which investors can take into account to manage the risk.

Property Operations and Optimization: Property rental yields help property operations and optimizations. By calculating rental returns, investors can set rents appropriately and effectively adjust administrative costs. This can maximize the profitability of your property and minimize costs.

In summary, the reason for calculating property rental returns is for a variety of reasons, including investment profitability assessment, comparison and selection, financial planning, risk management, property operation, and optimization. Calculating rental returns provides important information about investment decisions and property operations, and provides investors with tools to make reasonable decisions and maximize return on investment.