Rental Yields & Tenancy Agreement Stamp Duty Calculation



 I just added 2 new online calculators which I think will be useful, especially for property investors out there. These calculators made specifically for property investors who rent out their property.

First, Property Rental Yields Calculator use to determine whether a property worth to be invested as rental income. Second, Tenancy Agreement Stamp Duty Calculator to find our the cost to stamp the rental agreement.


Property Rental Yields

Rental yields can be divided into 2 categories namely gross and net rental yields. Gross rental yield is calculated by dividing the yearly rental and the property purchase price. Meanwhile, net rental yield is calculated by dividing net yearly rental and the property cost.

Net yearly rental, is the net rental you received after deducting all the expenses such as maintenance charges, sinking fund, quit rent, assessments, fire insurance, property agent fees and repairs. The calculation is rather simple as below. You may also use Property Rental Yields Calculator.

Net Rental Yields = (Monthly Rental x 12) – Expenses / Purchase Price

As a general guide, we want rental yields in property must be higher than Fixed Deposit rates preferably double as property require longer time to cash out because properties are not liquid assets.

Tenancy Agreement Stamp Duty

Some landlord may prefer not to have tenancy agreement due to tax & stamp duty issue. However, I prefer to have it to ensure the tenant prudent and discipline to pay rent and taking care of the property, especially if the tenants are student.

On top of that, when you have an agreement, rental income can be proven as an additional income and can be used to assist on getting approval for next property purchase. To make things better, instruct the tenant to pay the rent by depositing into your bank account  so that it is easier for bank to identify the rental income.

As for the tenancy agreement stamp duty, the amount you have to pay is depending on yearly rental and duration of the agreement. In summary, the stamp duty is tabulated in the table below.

Rental Tenancy Period
1 year or less above 1 year to 3 years above 3 years
First RM 2,400 Exempted Exempted Exempted
Above RM2,400, every RM 250 or part of RM1.00 RM2.00 RM4.00



You may also use Tenancy Agreement Stamp Duty Calculator.


Leave a Comment

  • Oscar 26th February, 2015, 3:15 pm

    Do I need to get agreement and stamped it if I rent out my room?

    Reply