As a landlord, there are many rental property expenses that you can claim upon, as well as others you cannot. As Wellington based property managers, we can assist you in identifying key expenses and where to go to find the most up to date information on what expenses you can claim.
Key Rental Property Expenses
As property managers, it is our responsibility to care for your Wellington apartment or townhouse as the valuable asset that we know it to be. Part of our job is also to ensure that you are aware of and know where to seek additional information about the predicted expenses and which of these you can claim back against your income tax.
The IRD’s website is the first port of call we recommend visiting because it will contain the most updated information. However, we can help grow your understandings about claims and expenses by listing some of the most common ones to get you started:
- Property insurance
- Property management fees
- Rates
- Accountancy and bookkeeping fees
- Repair and maintenance costs
- Legal fees to purchase a rental property
- Eviction and court costs
- Depreciation on capital expenses
- Travel for property inspections and repairs
- Legal action to recover unpaid rent
- Valuation costs for mortgage approval
Recently the government has announced a return for landlords on claiming mortgage interest as an expense for residential rental properties. This will be phased back in and the best source of information available will be through the IRD’s website.
We do know that there are also rental property expenses that you cannot claim upon, including:
- The cost of purchasing the rental property
- Any depreciation on the land or buildings
- Real estate fees in buying or selling the rental
- Replacing or repairing damaged property if the work will increase the property value
- Capital expenses
- Costs of any improvements or additions to the property
- Rental property purchase price
As a landlord, we can also make life easier for you, giving you back your time and taking away the headaches that come from managing a rental property. Here at HiAtlas, we offer our property owners affordable pricing, customised service offerings, effective systems and processes, professional property promotion and the knowledge that comes with being Wellington born and bred. Give us a call or complete our website enquiry form and let’s arrange a time for a chat.