RENTAL PROPERTY: WHAT RECORDS DO YOU NEED TO KEEP?

Rental property records: what do you need to keep for tax? Here’s a general guide for landlords. This list assumes you’re using a property manager — if you self-manage, see the extra section below. All costs are for the 12 months preceding 31 March. If you’re looking for a guide geared towards business expenses instead, see this article.

Key Points (30 Second Read)

• Keep records for the 12 months to 31 March each year: rent received, insurance, rates, maintenance, legal fees and any property improvements.
• Get a proper chattels valuation done, not just a general property valuation — it’s the single biggest factor in what you can claim.
• Download your bank statements in CSV format and include every loan and transactional account tied to the property.
• Home office claims are allowed but should stay conservative unless you’re self-managing the property.
• If you self-manage — or run another non-rental business — you can also claim a percentage of costs on your own residence.

Rental Property

For the rental property itself, keep these records:

• Copy of the Sale & Purchase Agreement (first year only)
• Total rent received
• Insurance, e.g. landlord protection, mortgage protection, house
• Legal fees
• Property management fees (if applicable)
• Rates — water and council
• Maintenance, including any purchases, e.g. heat pump
• Rubbish collection (if you’re paying for it)
• Property improvements (detailed invoices, please)
• Any other fees or charges
• Sale and purchase agreement, if selling during the year
• Valuations — both a chattels valuation and a general property valuation

Home Office Costs

We take the view that home office expenses can be claimed if you have a rental property. Because rental income is generally passive — unless you’re managing the property yourself — we recommend a conservative claim:

• Telephone — please separate out the costs of line rental, internet and tolls
• Mobile phone costs
• Stationery, e.g. printer ink, pens, paper
• Visits to the rental property — record the date of each trip you make to check on it
• A percentage of any existing (if not already claimed) or new business-related equipment, e.g. computer, cell phone, iPad — include make, model, date and cost
• Any “home office” improvements — if in doubt, keep the records and we’ll verify these at year end

If you’re self-managing at least one property — or you’re self-employed or run a separate non-rental business — you can also claim a percentage of:

• Insurance
• Mortgage interest or rent on your own residence
• Utilities
• Some repairs

Loan Information

For your rental property or properties, we need:

• Full bank statements for the 12 months ending 31 March, ideally in CSV format
• Statements for every loan tied to the property, plus the transactional account if there is one
• Balance remaining on all accounts as at 31 March
• Any fees charged

Summary

So, what rental property records do you need to keep? We hope this list helps. Why does it matter? The better your records, the more expenses you can legitimately claim, and the better your tax result. And if you’re wondering whether you can claim your holiday as a rental expense, the answer is: maybe. See this article for the detail.

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For general info on the deductibility of business expenses, see this page. Other FAQs you might have:

• Tax questionnaire
• How do I download transactions from my bank’s online internet banking?
• What is Xero.com?
• What’s the process for my tax returns?

Inland Revenue also has a guide here under “Deductions You Can and Can’t Claim.” Please remember, all advice given is to be taken in light of our disclaimer.