Why you should (almost) always get chattels valued… it might seem like a waste of money. After all – you might say – I have a property valuation. True. That likely shows the land and building value and may even show the value of the chattels. However, if you rely on that you could potentially miss out on tens of thousands of claimable expenses. How so? First, a brief overview:
Key points – 30 second read
Every rental property comes with depreciable chattels — stove, carpet, heat pump, hot water cylinder, fences, driveway, and more.
A standard registered valuation usually lumps chattels into one rough figure, often just $10,000–$15,000, regardless of what’s actually there.
A dedicated chattels valuation itemises everything and typically finds $25,000–$50,000+ depending on the property’s age — often worth around $10,000 back at tax time on a conservative valuation.
It reduces audit risk, is a one-off cost, and makes future disposals easier to account for.
The main exceptions: very old, un-renovated properties with a reliable existing inventory, or properties about to be sold (where a fresh valuation can trigger depreciation clawback).
Why is a chattels valuation necessary?
When you buy a rental property, you’re not just buying land and a building — you’re buying a whole collection of chattels too: the stove, carpet, curtains, heat pump, hot water cylinder, driveway, fences, decks, letterbox, garage door motor, and more. Every one of those is depreciable. The trouble is, most people never find out what they’re actually worth.
A standard registered valuation
A standard registered valuation (the kind you get for finance purposes) typically assigns chattels a modest, rounded figure — often somewhere between $10,000 and $15,000 — regardless of the property. It’s not designed to itemise or maximise that figure; it’s designed to value the land and building. As a result, it routinely overlooks or undervalues items that a specialist chattels valuer would pick up individually.
A dedicated chattels valuation
A dedicated chattels valuation, by contrast, itemises everything and assigns a defensible market value to each piece. On a new home, that might come to $45,000–$50,000. On a property built in the 1980s, more like $25,000–$30,000. Even a conservative $30,000 valuation can translate into a tax refund in the order of $10,000. The gap between a standard valuation’s guess and a proper chattels valuation is, in most cases, the difference between money left on the table and money in your pocket.
8 reasons to get your chattels valued
Here’s the fuller case for getting one done:
Maximise your depreciation. A specialist valuer will find and value everything the law allows you to claim. Do it yourself — or rely on a generic figure — and you’ll almost certainly miss items, claim less, and pay more tax than you need to.
Minimise depreciation recovery. Many chattels don’t hold their value over the term of ownership, so a well-supported valuation helps ensure depreciation claimed reflects genuine wear and reduces what you might have to pay back later.
Reduce the risk of penalties. Inland Revenue does audit chattels apportionments. A reputable valuation company has every incentive to use methodologies that hold up under IRD scrutiny — their business depends on it — which lowers your risk of a disputed claim and any resulting penalties.
Consistent, defensible methodology. A commercial valuer applies the same rigorous approach every time, rather than a rough, ad hoc estimate that’s hard to justify if questioned.
Alignment with IRD requirements. Specialist valuation firms track IRD’s reporting standards and rulings closely, so you get peace of mind that the report will hold up.
Better cash flow. More legitimate depreciation claimed means more cash in your pocket each year, rather than sitting in an under-claimed asset.
Easier disposals down the track. A properly itemised valuation gives you a value for each specific chattel, which makes it far simpler to account for an item when you dispose of or replace it individually.
A one-off cost. The valuation report becomes the basis of your depreciation schedule for as long as you own the property — there’s no need to repeat the exercise or commission further reports each year.
Are there any exceptions?
A chattels valuation isn’t automatically the right call for every property or every situation:
If the property is old and hasn’t been renovated, and you already hold a detailed inventory of chattels with reliable purchase prices, a fresh valuation may add little.
If you’re about to sell, it can actually be inadvisable to get chattels valued at that point, given the risk of triggering depreciation clawback.
These are the exceptions rather than the rule. For most rental property owners, the potential deductions from a proper valuation comfortably outweigh the cost.
What will it cost, and who does this?
We know of one firm we’re happy to recommend: ValuIt. Visit www.valuit.co.nz(opens in new tab) or call 0508 482 583 to book a valuation — we receive no financial incentive for the referral. We’d encourage you not to leave it too long before booking, as they’re often booked out 2–3 weeks (or more) in advance.
What does it cost? See this page(opens in new tab) for their fee schedule. And keep in mind that the cost of the valuation is itself a tax-deductible expense.
Do we get some sort of incentive or kickback? No. That’s not how we do business. But, if you enter Epsomtax.com Limited as the referring accountant, you will get a small discount.
Final thoughts
For the vast majority of rental property owners, a specialist chattels valuation pays for itself many times over. A standard valuation was never designed to itemise chattels properly, so relying on it alone almost guarantees you’re under-claiming depreciation and overpaying tax. A dedicated report, on the other hand, is a one-off cost that maximises your legitimate deductions, holds up under IRD scrutiny, and keeps paying off every year you own the property — right up until the point of sale.
The exceptions are genuinely rare: an old, un-renovated property with a solid existing inventory, or a property you’re about to sell. Outside of those situations, the question isn’t really “should I get this done?” — it’s “why haven’t I already?”
More Info
For more information on chattels, see the rest of our four-article series:
If you own a rental property and haven’t had a dedicated chattels valuation done, you’re very likely paying more tax than you need to — every single year you leave it. It takes one phone call to book, and the report pays for itself. Contact us today and we’ll point you in the right direction, or call ValuIt directly on 0508 482 583 to get booked in before their calendar fills up.
