The rental price advertised for a rental property is known as the asking rental price. This amount may or may not include additional costs such as utility bills and taxes. Both tenants and property owners need to be aware of the tax obligations associated with rental properties, including withholding tax. If you are unfamiliar with these obligations, we recommend reading the article titled “Your Tax Obligations on Rental Property.”
Now, let’s clarify what is included in the asking rent. Does it cover withholding tax as well? Sometimes, property owners overlook this aspect when stating the asking rent, so it’s always a good idea to inquire and seek clarification. Fortunately, if you choose to work with BCA Properties as your broker, we have you covered and will provide comprehensive guidance. When you browse through our website’s rental section, you will find that all our properties list the asking rent as the “reserve rent,” unless otherwise specified in the description. Reserve rent refers to the net amount payable to the property owner as rent from the tenant. It does not include withholding tax or any other tax obligations to the tax authority (the Zambia Revenue Authority).
If the stated asking rent is the “gross rent,” meaning it includes withholding tax obligations, this will be mentioned in the property description. To clearly understand rental amounts, it is always advisable to ask directly and avoid any confusion regarding the payable and due rental amounts. Additionally, it is important to note that most rental asking prices are negotiable depending on market conditions. Therefore, it is always best to contact us directly if you are interested in a particular property.
If you would like to learn more about your tax obligations on Zambian rental property, please get in touch with us today. Simply click on the contact icon for further assistance.
