Are property management fees tax deductable? Yes, the Australian Tax Office deems property management a professional service. Therefore the fees you pay your property manager can be claimed as a tax deduction on your income tax return. The tax man considers property management a necessary expense landlords incur to maintain and manage rental property. Property investors can claim these expenses as a deduction on their income tax return under the category of “Managing agents’ fees”. These fees include the cost of advertising for tenants, tenant screening, rent collection, and property maintenance. It is important to note that property investors can only claim a tax deduction for property management fees related to their rental income. The expenses cannot be claimed as a tax deduction if the property is used for personal purposes or not rented out. As always, you should consult your accountant for specific advice on tax deductions related to property management fees. Do you need efficient administration and rent control? Your Raine & Horne property manager can take responsibility for all aspects of property administration, including the timely collection of rent, as well as the payment of rates, insurance and service charges. Additionally, we provide regular, easy-tounderstand statements of income and expenditure which will make tax reporting a simpler task. Your Raine & Horne property manager will also regularly advise you on your property’s current rental value and make recommendations regarding rent variations. 12
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