RENTAL PROPERTY: WHAT RECORDS DO YOU NEED TO KEEP?

Rental Property: What records do you need to keep for tax? Here is a general guide for rental* property. Note that this list assumes you are using a property manager.  All costs are for the 12 months preceding 31 March:

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RENTAL PROPERTY

• Copy of Sale & Purchase Agreement (if 1st year)
• Total Rent Received
• Insurances, 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 are paying for it)
• Property improvements (detailed invoices please)
• Any other fees or charges
• Sale and purchase agreement
• Valuation/s

HOME OFFICE

In our view, Home Office expenses can be claimed if you have rental property; however, as it is generally passive income (unless you are managing the properties yourself) we recommend a conservative claim, as follows:

• Telephone – please separate out the costs of line rental, internet and tolls
• Mobile phone costs
• Stationery, e.g., printer ink, pens, paper etc
• Visits to the rental property – please record the date of each trip you make to your rental property to check on it.
• Any existing (if not claimed before) or new business related expenses e.g., computer, cell phone, iPad etc. Include make, model, date and cost
• Any “home office” improvements (if in doubt, please keep records and we can verify these at year end)

MORTGAGE/S INFORMATION

For the rental property:

• Full bank statements for the 12 months ending 31 March
• Applicable interest rate
• Balance remaining on mortgages as at 31 March
• Any fees charged

If you’d like a downloadable copy, click here.

CONCLUSION

Why keep good records? The better your records, the more expenses can be legitimately claimed, and the better the tax result is for you.  Oh, and if you are wondering if you can claim your holiday, the answer is maybe. See this article

* For guidelines on Business Expenses (non-rental property) please 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?

The IRD provides a guide here under the heading “Deductions You Can and Can’t Claim.”

Please remember, all advice given is to be taken in the light of our  disclaimer. Image courtesy of patpitchaya at FreeDigitalPhotos.net