Gross vs net rental yield
Gross yield is the headline number in listings. Net yield is what you actually earn: it allows for months without a tenant, property tax, maintenance and insurance, and counts stamp duty, registration and brokerage as part of what you invested.
Example
A ₹2 crore office let at ₹1,20,000 a month has a gross yield of 7.2%. With ₹14 lakh of purchase costs, one vacant month a year and ₹1.5 lakh of yearly outgoings, the net yield is about 5.5%.
Improving the yield
- Reduce vacancy: renew early, and track lease expiries well in advance.
- Make sure every escalation is billed on time — a missed escalation lowers yield for years.
- Recover CAM and outgoings the lease allows you to pass on.
Frequently asked questions
What is a good rental yield for commercial property in India?
Commercial property usually yields more than residential. Yields vary widely by city, location, tenant quality and lease length, so compare against similar properties in the same micro-market.
Does rental yield include income tax?
No. This calculator shows yield before income tax and loan interest; your actual return depends on how the income is taxed and financed.
Why add purchase costs?
Stamp duty, registration and brokerage are part of what you paid to own the property, so net yield divides by the total amount invested, not only the price.
Keep your yield on track
LeaseHub360 bills escalations on time, tracks dues and warns you before leases expire.