Asking Rental Price – Reserve Rent or Gross Rent?

Asking Rental Price – Reserve Rent or Gross Rent?

Asking rental price on rental property is the amount stated on advertising for a rental property. This amount may or may not include other costs like utility bills, taxes, etc. By now, most tenants and property owners already know about tax obligations on rental property or at least about the withholding tax. If not, read this article, click “Your Tax Obligations on Rental Property”.

So, what exactly is included in the asking rent? Is withholding tax inclusive? Well, this may sometimes be ignored when property owners state their asking rent so it is always a good idea to ask and get clarity on the matter. Luckily, if you are using BCA Properties as your go-to brokers, we got you covered and will always guide you fully. If you check through our website for rent section, all our properties will state the asking rent as the “reserve rent” unless otherwise stated in the description. Reserve rent means the net amount payable to the property owner as rent from tenant. This does not include your withholding or other tax obligations to the tax authority (the Zambia Revenue Authority).

If the stated asking rent is the “gross rent”, meaning it is inclusive of withholding tax obligations, this will be stated in the description. To get a clear idea on rental amounts, it is always a good idea to simply ask directly to avoid confusions commonly arising when it comes to rental amounts payable and due. It is also worth noting that most rental asking prices may be negotiable depending on market conditions. Hence, always best practice to ask us directly if interested in a property.

Want to learn what tax obligation you have on Zambian rental property? Get in touch today. Click that contact icon…

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