A flat’s headline yield - a year’s rent divided by the price - flatters it. Empty months, fees and tax take a large share. This shows what is left.
Rental yield calculator
Gross and net rental yield on a Nairobi property after voids, fees, repairs and rental income tax.
Reading the result
- Gross yield is a year’s rent over the price, with no costs.
- Net yield is what is left after costs and tax, over the price. It is the figure to compare with a savings product.
- Neither includes mortgage interest, or any change in the property’s value.
Rental income tax is charged at 7.5% of gross rent, with no deductions. See Being a landlord in Kenya and Buying property in Kenya.