Top 5 Claimable Expenses For Rental Property
Updated: Feb 25
The last 5 years have been costly for landlords due to the increased regulations we have had to bear. There was insulation, then the letting fees. The Healthy Homes Bill will add more costs which come with upgrading parts of homes, and I expect rents to continue to increase faster over the next 10 years, then they have in the last 10 years.
As a landlord it is important to know what expenses are claimable, because every little bit helps! Here is a list of the top 5 claimable expenses for residential rental property as at 2019.
1. Insurance and Rates.
This is another reason to get good insurance - it’s a claimable expense. You can claim back the full cost of insurance on your rental property, as well as the council rates associated with your rental property.
2. Property Management Fees. You can claim 100% of the fees paid to property management for collecting rent, finding tenants and maintaining the rental property for you.
3. Interest. You can claim the interest charged on the money borrowed to buy your rental property.
4. Accountant Fees. You can claim the fees charged by an account for managing your accounts, doing tax returns and advice regarding your rental property.
5. Repairs and maintenance costs. You can claim back the cost for any repairs and maintenance to the property. Improvements to the property are different and can not be claimed. Adding insulation might be able to be claimed if it is a top-up to existing insulation and not replacement with a better product, which will become an improvement and not repairs and maintenance.
The list above should be easy to account for in your monthly and end of year financial statements provided by your property manager, which you can pass onto your accountant.