Many rental property owners are not aware of deductions of rental expenses that they can claim. If your property is available for rent or you rent out your property, you are eligible to claim deductions for rental expenses. However, keep one thing in your mind, you are allowed to claim only those expenses that are related to income-producing use of the property. You are not allowed to claim a deduction for expenditures for your personal use of the property.

When can you Claim a Deduction for Rental Expenses on Your Rental Property?

If you have a rental property, you’ll have expenses from the time you purchase it to the time you sell it, however, not all these expenses will be deductible. The expenses can’t be claimed that relate to purchasing and selling a rental property, but you need to maintain a record of these because you may need those records for the calculation of your capital gains tax when you sell the property. Moreover, for other expenses, as long as the expense was for producing rental income and you have a proper record of those expenses to prove it, you will be able to claim a deduction.

Don’t Forget to Apportion Expenses When:

  • You co-own the property
  • Only part of the property is being in use to earn rent
  • For part of the year, you use the property for private use
  • For part of the year, the property was available to rent
  • You rent your rental property at non-commercial rates

There is another situation where you can claim expenses in limit. This is where you can own a holiday home that is not generally available for rent. Basically, the meaning of available for rent is that you are required to make efforts to rent the property. You need to:

  • Review your rental strategy, including considering the length of tenancy again.
  • Advertise your rental property in such a manner that gives it broad exposure to tenants, such as you can opt for listing it on the right platform for the length of stay.
  • Ensure the property can be accessed and in a condition and location where tenants can be easily get attracted toward the property.

Avoid doing the following things:

  • Avoid placing unreasonable conditions when renting out the property.
  • Don’t set the rent cost above the cost of similar properties in the area.
  • Don’t only advertise it outside of peak holiday time or weekends when there are low chances of the property being rented.
  • Avoid booking out peak periods in advance for personal use.
  • Don’t refuse to rent the property to those who are interested in it.

Tips on Claiming Expenses

When you want to claim expenses, then make sure to follow the tips given below:

  • Keep records of income received, expenses incurred, and steps you follow to rent the property.
  • Only claim correct expenses incurred in producing rental income and there shouldn’t be your private expenses.
  • Apportion your expenses accordingly.


The blog shares information on when rental property owners can claim rental expenses along with tips on claiming expenses. Moreover, you can speak to Reliable Melbourne Accountants to know more about deductions on rental expenses.

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