Tanzania Rental Yield Calculator

Buy-to-let in Tanzania — what's a healthy yield?

Rental yield is the most useful single metric for assessing an investment property. Tanzania's market generally offers gross yields of 6–11%, but the net yield (after vacancy, expenses and the 10% withholding tax on rent) is what actually pays your bills.

What's a good yield in Tanzania?

• Premium Dar (Masaki, Oyster Bay): 5–7% gross — capital growth dominates.
• Mid-Dar (Mikocheni, Kinondoni): 7–9% gross — best balance.
• Suburb / outer ring (Kigamboni, Kinondoni Mkwajuni): 9–11% gross — highest yield, lower capital growth.
• Upcountry (Arusha, Mwanza, Dodoma): 6–10% gross.
• Holiday / short-let (Zanzibar): 12–18% gross but high seasonality.

Things that eat into your yield

• Vacancy — budget 1–2 months/year (8–17%).
• Annual land rent — see Land Rent.
• Property maintenance — 1–2% of property value annually.
• Property management — 8–10% of rent if hands-off.
• Withholding tax 10% on rent paid by commercial tenants.
• Capital improvements — flooring, plumbing, fence — happen periodically.

Tax position for landlords

Rental income is taxable. Resident individuals pay a final 10% withholding if the tenant is corporate. Companies that own rental property add it to corporate income. Keep all repair receipts — they reduce your taxable income.

Pair with Mortgage Calculator if leveraged, Property Transfer Cost at acquisition, and Withholding Tax for tenant-deduction details.

Take this further

Yield calculated on gross rent flatters every property. Tawala Real Estate tracks actual collections, arrears, maintenance and withholding tax per unit, and Tawala Finance reports the net return.

Not sure which module fits? Compare every option under Tawala solutions, or find the setup for your sector under Tawala by industry.