Bengaluru 5-bed country home at ₹91,020,000: does ₹549,800/month work?

I’m assessing a 5-bed country home in Bengaluru at ₹91,020,000, with expected rent of ₹549,800/month. Twelve fully occupied months produce a headline gross yield near 7.2%, but I’ve modelled only eleven months of rent, plus management, routine maintenance and a reserve for one larger repair.

The building appears sound, although the ongoing costs could materially change the deal. Which local or property-specific expense am I most likely to be underestimating? I’m also unsure whether one month of vacancy and my repair reserve are conservative enough. What net yield would compensate you for the risk here?

Eleven months brings annual rent down to ₹6,047,800, or roughly 6.64% before any operating costs. For a large country home, I’d scrutinise recurring services that may sit outside ordinary building maintenance: grounds, water systems, backup power, security and access upkeep, depending on what the property actually has. Separate predictable servicing from major replacements; one blended maintenance percentage can conceal both.

Is the ₹549,800 supported by comparable signed rents, or is it an asking estimate? Also, is the home furnished, and would the landlord pay for any gardening, utilities or on-site staff? Those answers matter more than choosing a slightly higher generic reserve. I’d want the actual property-tax amount, an insurance quote and a clear list of landlord-paid services before discussing net yield.

I wouldn’t automatically call eleven months conservative. A five-bed home may have fewer suitable tenants than a standard apartment, so a changeover can combine vacancy with cleaning, repainting, repairs and leasing costs. Rather than assuming exactly one empty month every year, model a tenancy ending after different holding periods and charge all the turnover costs in that year.

Financing also needs its own stress test. First calculate the unlevered net yield, then layer in the proposed loan payment and possible rate changes rather than letting leverage disappear inside “cash flow.” A simple table with full rent, reduced rent and one significant repair will show whether the purchase survives a bad year. Do you have the loan amount and terms, or is this intended as a cash purchase?

The next step is to replace estimates with property-specific evidence. Ask for past maintenance and utility bills if available, property-tax receipts, an insurance quote, an inspection focused on expensive systems, and itemised management proposals. Then divide spending into routine annual work, tenant-turnover work and irregular capital replacements. I’d also verify who maintains any garden, water equipment, generator, boundary works or private approach rather than assuming the tenant covers them.

There isn’t a universal net yield that makes this safe, but you can turn your preferred return into an expense ceiling. At a 5% unlevered net yield, the property must produce ₹4,551,000 annually after operating costs. Against your eleven-month rent of ₹6,047,800, that leaves ₹1,496,800 for vacancy already assumed, management, maintenance, tax, insurance and other landlord costs before financing. If credible estimates exceed that, either the price, rent or target return has to change.