Rental yield
See what the rent returns each year, after the costs people tend to forget.
Figures follow Japanese law and Tokyo's rules, with every source cited and dated.
Results
Net rental yield
1.02%
per year, on price plus buyer costs
Japan · Tokyo (23 wards) · JPY
- Gross rental yield
- 3.60%
- Net income per year
- ¥525,640
The same ¥51,726,000 in a deposit at 0.3% earns ¥155,178 a year.
BreakdownNet income: ¥525,640
- Rent collected
- ¥1,656,000
- Property management fee
- ¥82,800
- Upkeep reserve
- ¥500,000
- Tax on rental income
- ¥547,560
- VAT
- ¥0
- Personal income tax
- ¥547,560
- Net income
- ¥525,640
- Buyer costs
- ¥1,726,000
- Price plus buyer costs
- ¥51,726,000
Net yield is the year's rent collected, minus the property management fee, upkeep and tax, divided by price plus buyer costs. Gross yield is the year's rent divided by price.
Note
Every figure on this page is an estimate based on the values you entered and on defaults from Japanese national law, Tokyo's rules and common market practice, each as of the date shown next to it. This is not financial, legal or tax advice. The real amounts come from the tax notices, the judicial scrivener's (司法書士) bill and your lender's offer when you buy; check them before you sign. The site does not store the numbers you enter; they stay in the page address.
Assumptions you can change
Vacancy rate
8%
Assumption
The share of the year the home has no tenant.
Property management fee
5%
Assumption
The share of collected rent you pay someone to manage the home.
Upkeep reserve
1%
Assumption
The share of the price set aside each year for repairs and replacements.
Deposit rate
0.3%
Assumption
What the same cash would earn each year in a deposit.
Buyer costs
¥1,726,000
From the home-buying costs tool
The taxes and fees the buyer pays on the purchase, from the home-buying costs tool.
Tax assumptionsTax on rental income¥547,560
VAT on rent
0%
Source: 消費税法
The share of the whole year's rent, counted only when the rent passes the threshold.
Personal income tax on rent
30.42%
Source: market convention
The share of the rent above the threshold.
Tax threshold
¥0
Source: market convention
If the year's rent does not pass this amount, neither tax is due.
Tax counted: the year's rent passes the threshold.
Tax = 0% of the whole year's rent + 30.42% of the part above ¥0. If the year's rent does not pass ¥0, there is no tax.
This tool assumes the owner is a resident individual. A non-resident owner is taxed differently and is not modelled here.
The link carries only the numbers you entered. The site keeps no copy of them.