Property managers and property management agencies charge all sorts of fees and itemise them on your annual rental statement (which they will probably charge another fee for printing for you). On the positive side, all of those fees are indeed rental property deductions, and for the purposes of your Income Tax Return, you can simply group them all together to a single item.
That said, there are of course other items paid for in the course of managing the property which need to be included as a separate item in your Income Tax Return. Repairs and maintenance, advertising, and water charges, to name a few.
GST on management fees is often misunderstood – it can simply be included with the property management fees for the purposes of your rental property deductions. Most private investors holding residential real estate can not claim this GST as an INP credit even if they are registered for GST.
Some of the different expense categories itemised on your rental property statement are:
- letting fees
- property inspection fees
- property condition report fees
- sundry expenses
- postage fees
- cheque issuance fees
- GST on fees
The expenses listed on your rental property statement which need to be claimed as other items are:
- advertising fees
- repairs and maintenance
- council rates
- water rates & charges