Free Tool
Rental Yield Calculator
Gross yield is the number agents quote. Net yield on total cost, including 2026 stamp duty, is the number your bank account experiences.
- Annual rental income
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- Gross yield
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- Net yield (after running costs)
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- Buying costs (stamp duty + legal + loan)
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- Net yield on total cost
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Why net-on-cost matters
Since 1 January 2026, foreign buyers pay a flat 8% stamp duty on top of legal and loan fees, often six figures on a KL city-centre unit. Measuring net rent against price alone overstates the real return. Net yield on total cost divides the same net rent by everything you actually paid to acquire the unit.
Buying-cost maths here matches our stamp duty calculator, so the two tools always agree.
What counts as a good yield
| Benchmark | Typical gross yield |
|---|---|
| Kuala Lumpur average, all condominiums | ~4.5–5.5% |
| City-centre luxury stock | 4–5% |
| KLCC / TRX trophy towers | 3–4% |
| Typical gap from gross to net | 1.5–2.5 pts |
Treat these as working bands to test a specific unit against, not a promise. Yield varies by building, floor, view, and how actively a unit is managed. Estimates for budgeting only; running costs vary by building, and rental income is taxable in Malaysia. Confirm the service charge, sinking fund, quit rent and assessment for the specific unit, and get tax advice before relying on a net figure.
Rental Yield FAQs
What is a good rental yield in Kuala Lumpur?
Kuala Lumpur as a whole averages roughly 4–5% gross for well-run city-centre condominiums, with the most sought-after trophy towers often nearer 3–4% because prices have run ahead of rents. Judge any deal on net yield after running costs, not the gross figure on the listing.
What is the difference between gross and net rental yield?
Gross yield is annual rent divided by purchase price. Net yield deducts running costs first: service charge, sinking fund, quit rent and assessment, letting fees, and vacancy. In Kuala Lumpur the gap is often 1.5–2.5 percentage points for a full-facility condominium.
Why does this calculator include stamp duty and legal fees?
Because your return is earned on everything you paid, not just the headline price. Since 1 January 2026, foreign buyers pay a flat 8% stamp duty, which adds six figures to most KL purchases. Measuring net rent against the full outlay (price plus duties and fees) gives the yield-on-cost figure that a listing portal's headline yield skips.
What running costs should I budget for a KL condo?
Service charges in well-specified city-centre towers commonly run about RM 0.90–1.50 per square foot per month, plus a sinking fund contribution (often around 10% of the service charge). Add quit rent and assessment, letting or management fees, and a vacancy allowance. 15–25% of gross rent is a realistic running-cost band for a full-facility building.
Is rental income taxed in Malaysia?
Yes. Rental income from Malaysian property is taxable for both residents and non-residents, with different rates and deductible expenses depending on your tax position. This calculator works pre-tax, speak to a Malaysian tax adviser before relying on a net number.
Does this work for Airbnb or short-term rental yields?
It is built for conventional long lets. Short-stay gross income can be higher but carries a different cost base (cleaning, platform fees, utilities, licensing, and higher vacancy risk), and not every building permits it. Model short-stay separately before assuming the uplift.
Does non-resident status change how my rental income is taxed?
Yes, and the difference is larger than most calculators let on. A Malaysian tax resident (broadly, present in Malaysia 182 days or more in the year) pays progressive rates of 0–30% on net rental income combined with other income. A non-resident individual pays a flat 30% on net rental income, with no personal reliefs or rebates. Owning property and holding an MM2H pass does not by itself make you a tax resident. Residency is a day-count test, not a visa category, so a non-resident landlord should model net rent after a flat 30%, not the lower blended rate a resident might pay.
Can I freely transfer my Malaysian rental income back home?
Yes. Malaysia has no exchange-control restriction on repatriating rental income, capital, or gains earned by foreign owners. Funds can generally be remitted abroad without Bank Negara approval. The practical constraint is tax compliance, not currency control: settle Malaysian tax on the rental income before remitting it, and keep the paperwork your bank will ask for when you move a meaningful sum offshore.
How much does a couple of months of vacancy actually cost my yield?
More than it feels like on a monthly spreadsheet. A unit let for 10 months instead of 12 loses a sixth of its annual rent. On a RM 1,650,000 unit renting at RM 6,000 a month (RM 72,000 a year), two vacant months cut gross yield from 4.36% to about 3.64% before you've touched running costs. Well-let KLCC and TRX stock typically runs low single-digit vacancy in a given year, but a unit that sits empty even briefly between tenants is usually the single biggest swing factor in whether a deal's real return matches the one pitched at purchase.
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