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Property Rental Yield Calculator

If you own a Property or Intend to buy one, it is always good to know the Property Rental Yield and the Net Rental Yield.

We developed this Property Rental Yield Calculator, which allows you to calculate the Net Rental Yields after you own a property that will be rented out.

Property Rental Yield Calculator

Property Rental Yield Calculator

Down Payment: $0
Mortgage Amount: $0
Monthly Principal+Interest: $0
Monthly Cashflow: $0
Annual Cashflow: $0
Nett Rental Yield: 0%

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Hotline: +65 94507545 Email: [email protected] or by filling in the form below.

    How to Calculate Rental Yield – Property Rental Yield Calculator

    There are two forms of rental yield: gross rental yield and net rental yield. Gross rental yield is a simpler metric that doesn’t consider the property’s expenses, while net rental yield does. Net rental yield is usually a better metric because expenses don’t always scale linearly with income, meaning that as you earn one dollar in income, the expenses associated with that income are not always the same for different properties.

    After you calculate the Net Rental Yield, you may be deciding whether to keep and rent out your property or sell it.

    Do use the Property Profit Sales Proceeds Calculator.

    If you need Further Help on getting the numbers, please refer to below.

    Property Management Cost

    In Singapore, the market Practice Standard Agency Fees are one month of rent for every two years of lease signed.

    Presuming a Rental of $5,000 / 24 Months, it means your Property Management cost should be $208.

    While some agents will relinquish their duties upon the handover, it is not the same case for the BUY CONDO Team.

    We cultivate a pleasant culture to provide value-added service to Property Landlords. We do not charge extra Property Management Services fees as long as an exclusive agreement is signed with us.

    Property tax

    Non-owner-occupier residential tax rates

    Annual Value ($)Effective 1 Jan 2024Property Tax Payable
    First 30,000
    Next $15,000    		12%
    20%    		$3,600
    $3,000
    First $45,000
    Next $15,000    		–
    28%    		$6,600
    $4,200
    First $60,000
    Above$60,000    		–
    36%    		$10,800

    Residential properties on the exclusion list are taxed at 10%.

    Commercial and industrial properties (Non-Residential)

    Non-residential properties such as commercial and industrial buildings and land are taxed at 10% of the Annual Value. Owner-occupier tax rates do not apply to non-residential properties even if you have bought the properties for your own use/occupation.

    Example 3: AV of Commercial Property is $54,000
    Annual Value ($)Tax rateProperty tax payable
    54,000X 10%= $5,400
    Property tax payable= $5,400

    Please Note for vacant properties:

    Vacant residential property will be taxed at the non-owner-occupier residential tax rates while vacant non-residential property will be taxed at 10% of the Annual Value. There is no tax relief/concession for vacant properties.

    Maintenance and Repair Cost

    The below table as a guide you should sum the total and divide by 12 to get the monthly additional cost.

    Type of expenseAllowable expensesNon-allowable expenses
    Housing loansInterest (including late payment interest^) paid on the loan or mortgage taken to purchase the property that is rented out.

     

    		Repayments of the principal loan or mortgage amount (monthly instalments).

    Late default charges or finance fees^ imposed by banks for late repayment of loans.

    Property taxIncurred during the rental period (e.g. property tax paid for year 2023, on property rented out in 2023).*Penalty imposed for late payment or non-payment of property tax.

    Balance brought forward from previous year’s property tax.

    Fire insurancePremiums paid on fire insurance.*Capital sum assured on property.
    RepairsRepairs done during the rental period to restore the property to its original state.*Cost of initial repairs.

    Repairs done which result in improvement/additions and alterations.

    MaintenanceCost of maintaining the property (e.g. painting, pest control, monthly maintenance charges [including late payment charges^] to management corporations).*Cost of renovation, additions, alterations to the property (e.g. extension of car porch, construction of drains, cementing of walls and floors, installation of window grilles).
    Costs of securing tenant

    From Year of Assessment 2022:

    Agent’s commission, advertising, legal expenses and stamp duties incurred to obtain, grant, renew or extend a lease for first and subsequent tenants are allowed.

    Note: No deduction may be allowed to a person in respect of:

    a) any lease, or any renewal or extension of a lease, for a term that (excluding any option for the renewal or extension of the lease) exceeds 3 years;

    b) any acquisition, grant, novation, transfer or assignment of a lease because of any acquisition, sale, transfer or restructuring of any business; or

    c) a lease under an arrangement where the property is sold by, and leased back to the seller of the property.

     

    Prior to Year of Assessment 2022, only the following are allowable:

    Agent’s commission, advertising, legal expenses and stamp duties for getting subsequent tenants.

    Agent’s commission, advertising, legal expenses and stamp duties for getting the first tenant of an additional property is deductible against the rental income of that property.

    		Prior to YA 2022, the costs for getting the first tenant is not allowed.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Costs of supervision or management feesCosts in engaging a third party (e.g. property agent / company) to carry out activities such as ensuring rentals are paid promptly, maintenance and upkeep of the properties and attending to tenants queries and complaints.*

    Where the management fees is paid to a related party (e.g. relatives or own company), owners need to justify that the amount paid is at market rate and commensurate with the services rendered.

    		 
    Furniture and fittingsReplacements of furnishings (e.g. furniture, fixtures, electrical appliances) to its original state.

     

    Hiring of furniture.

    		Depreciation of furnishings (e.g. furniture, fixtures, electrical appliances).

    New improvements/additions made to furnishings (e.g. furniture, fixtures, electrical appliances).

    Internet charges/expensesPaid on behalf of tenant (i.e. not reimbursed by tenant).Paid on behalf of tenant and reimbursed by tenant subsequently.
    Utility expensesPaid on behalf of tenant (i.e. not reimbursed by tenant).Paid on behalf of tenant and reimbursed by tenant subsequently.
    Expenses incurred on properties that are not generating rental incomeN.A.The relevant expenses incurred on such properties (e.g. rent, utilities, maintenance paid for own accommodation/a vacant property) cannot be claimed against the rental income generated from other properties as the expenses are capital and private in nature.

    (See Note 2 below)