If you own a rental property, tax time doesn’t have to be stressful. With the right approach and knowledge, you can claim legitimate deductions and reduce your expenses for the 2024/2025 tax year. From property maintenance to rental property insurance, every claimable cost helps protect your income and investment.
1. Claiming Rental Property Insurance
Rental property insurance is one of the most straightforward deductions. Whether you’ve chosen a standard policy or a specialised real landlord insurance plan, the premiums you pay can be claimed as an expense.
Insurance not only covers damages caused by tenants or natural disasters but also gives you peace of mind against potential financial loss.
2. Property Management Fees
If you are working with a professional team like Ray White Property Management, the management fees you pay are fully tax-deductible. These fees can include tenant screening, rent collection, inspection reports, and maintenance coordination. Paying for expert help not only saves time but also becomes a tax advantage.
3. Repairs vs Improvements – Know the Difference
● Repairs (fixing a leaking tap, broken door handle, or repainting a damaged wall) are immediately deductible.
● Improvements (renovations, adding a deck, or upgrading to a luxury kitchen) are capital expenses and cannot be claimed instantly. They are depreciated over time instead.
Understanding this difference helps you claim correctly and avoid IRD issues.
4. Mortgage Interest Deductions
Depending on current tax regulations for your region, a portion or full amount of mortgage interest may still be deductible. Keep records of your interest payments to ensure compliance with tax rules for the 2024/2025 year.
5. Depreciation on Chattels
Items inside your rental like appliances, curtains, carpets, heat pumps, or furniture can be claimed through depreciation. Each asset has a specific depreciation rate determined by the IRD. A property manager or accountant can help set this up correctly.
6. Travel and Administration Costs
If you travel to your rental property for inspections, tenant meetings, or repairs, you may be able to claim mileage or vehicle expenses.
You can also claim costs for:
● Phone and internet used for tenant communication
● Accounting software or property management tools
● Stationery, printing, lease agreements, and advertising costs
7. Don’t Forget Insurance Extras
Some real landlord insurance policies cover loss of rent, tenant damage, or legal liability. These additional costs are also tax-deductible and help you stay financially protected.
Quick Tips for Landlords
✔ Keep receipts, invoices, and insurance documents organised
✔ Use a property managers like Ray White Property Management to simplify record-keeping
✔ Claim only genuine expenses to avoid audits
✔ Get professional tax advice if you’re unsure
Final Thought
Maximising your rental property tax deductions isn’t about complicated accounting as it’s about being organised and informed. With proper insurance, reliable property management support, and accurate records, you can protect your income and improve your return on investment this tax year.
