What Tax Expenses Can You Claim as Landlord?

Whether you’re considering property investment, or already own a portfolio, to gain the best return from your investment, you need to know what expenses you can claim as tax deductible.


Insurance, Rates and Interest


As an owner, you can claim the cost of insuring your rental properties, the rates for the properties, as well as the interest charged on the money you borrowed to buy your Wellington rental properties.


Property Management Fees


Property Management fees are a business expense, meaning you can claim the fees or commissions paid to Property Managers for managing and maintaining your property, looking after tenant enquiries, collecting rent, advertising, and finding tenants for you. For example, if your property achieves $500 per week ($26,000 annually), the Property Management fee of 8.5%, after tax, is only $1,480 annually (or $2,210 before tax).


Accountant Fees


When hiring a professional accountant for your rental properties, you can claim the fees for your accounts being managed, the preparation of tax returns, and advice received.


Repair and Maintenance Costs


You can claim the costs for any repairs to the property or general maintenance, this includes the materials and trades-person's fee. Keep in mind that if you prefer doing repairs yourself, you can only claim for the materials, not your time. If the work is more of an improvement than a repair then you can't claim the cost as an expense.


Furniture


By furnishing your Wellington rental property you are investing in a consumable product necessary to your business, and so these purchases can to be deducted as a business cost. To understand what you can claim, take a look at the IRD Depreciation Rate Calculator and the IRD Rental Income Report for more information about depreciation in rental properties. Your accountant will be able to advise on depreciation of each item, but you will need to provide them with either an original purchase price or their individual valuations when you purchased the property, if they came as part of the purchase.


Bottom Line


A benefit of property investing is you can claim many of your rental property expenses as tax deductible, you just need to be aware of it. Property Management fees in particular is an expense people often don’t realise can be claimed as tax deductible.


If you're considering Property Management get in touch with us today. Locally owned and managed, we offer residential property management services across the entire Wellington & Hutt Valley region.


We take care of investments, offering peace of mind and a personal service to investors and tenants alike. Our solutions are backed by industry-leading technology and proven systems that promote both excellent property care and strong investment returns. Taking on all aspects of the landlord’s role, we guide our clients with professional, tailored advice using our extensive experience and insight in the rental market that can only be built over time.


If you would like to chat about the possibility of working together, or to receive a no-obligation, FREE Rental Appraisal get in touch with our team today.

Quinovic Johnsonville | Wellington

Call Jordan Atkinson - 027 297 0873


Quinovic Hutt Valley | Wellington

Call Helen Vance - 027 487 8103

Quinovic Kent Terrace | Wellington

Call Jordan Atkinson - 027 297 0873



Quinovic Wellington Property Managers

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