Renting out a property: yields that survive reality
Gross yield flatters a rental. Net yield subtracts maintenance, sinking fund, assessment tax, quit rent and insurance; cash-on-cash subtracts the mortgage instalment as well. A vacancy allowance matters more than most owners expect. In Penang and Kuala Lumpur condominiums, 3.5-5% is average, 5-7% is good, and anything above 7% usually means the rent is optimistic or outgoings are missing. Stamp the tenancy: since January 2025 duty runs from the first ringgit.