Reply To: Developer costs and profit


A developer has to factor in the yield on investment when working out the rent that they charge. This will be the case for any landlord for them to determine if they can make a profit from the return on investment.
I can understand that by using the phrase “hypothetical” this will cause confusion. This is just the expected amount they will have to make to make the scheme feasible. I think what they mean is that when they try to sell the property they have to show a prospective buyer how much of a return they will receive if they purchase it.