Step 1: Calculate yearly rent
Imagine an apartment costs ₹1 crore in total to acquire and earns ₹30,000 a month. If rent is received for all 12 months, the yearly amount is ₹3.60 lakh.
Step 2: Calculate gross rental yield
Gross yield = yearly rent ÷ total acquisition cost × 100.
In this example, ₹3.60 lakh divided by ₹1 crore gives a gross yield of 3.6%. “Gross” means we have not yet deducted ownership expenses or allowed for empty months.
Step 3: Make the example more realistic
| Illustrative item | Amount |
|---|---|
| Rent for 11 occupied months | ₹3,30,000 |
| Assumed annual owner expenses | ₹60,000 |
| Income after those expenses | ₹2,70,000 |
| Yield after these assumptions | 2.7% |
This simplified 2.7% is before financing and income tax. The ₹60,000 is an assumed allowance, not an estimate for a particular community. Your actual expenses, tax treatment and borrowing arrangement will differ.
What should you include in your own calculation?
Use the full acquisition cost, not just the base apartment price. Check applicable purchase charges and setup costs. For the rent, use comparable evidence and make clear whether maintenance is paid separately by the tenant or included.
A refundable tenant deposit is not yearly rental income. A future increase in the property's value is also separate from rental yield, and it is not assured.
Use yield as one part of the decision
A percentage alone does not capture resale difficulty, time spent managing the home or changes in rent. Review those alongside your budget and holding period, with professional advice for personal financial and tax decisions.
For a proposed launch such as Sobha Hennur, first obtain confirmed prices and delivery information. Do not fill this example with guessed project rents and treat the result as a prediction.
Keep reading
- Buying in Hennur for Rental Income: What to Check
- Buying an Apartment in Hennur: Plan the Full Budget
Looking for a home in Hennur?
Tell our team your preferred BHK, budget and when you need the home. Ask for the latest available details of the proposed Sobha Hennur project.
Ask for project details ↗