What can you claim as Landlord expenses?

Wexford Rentals & Property Management are pleased to offer our Landlords some extra information on their Rental Investments!

If you are a landlord – especially if you are an ‘accidental’ one – you might be surprised at the variety of expenses you can claim back, if you are not doing so already.

– Maintenance of the property – in other words. repairs, cleaning, decorating and painting
– Insurance of the premises
– Letting & Management fees
– Accounting fees
– Advertising costs
– Legal fees for drafting up leases, &
– mortgage interest (only 75pc allowable for residential properties)
– PRTB Registration Fees

You can also claim a deduction for wear and tear as a capital allowance, as well as for investment in contents like washing machines or furniture. All landlords must be registered with the PRTB, but the registration fee can be deducted against tax, as well as an environmental audit fee.

Barry Flanagan, tax expert at taxback.com has said that “Capital allowances are one of the most valuable deductions which are commonly overlooked by landlords,” said Flanagan. “Wear and tear allowances are available for the capital cost of fixtures and fittings (for example, furniture, kitchen appliances, etc) provided to furnish rented residential accommodation.” The rate of wear and tear allowances for capital items is 12.5pc over eight years, so if you bought a suite of furniture for €1,000, a capital allowance of €125 per year can be off-set against the rental income for tax purposes for the next eight years. You can’t claim back any expenses incurred before you started letting out a property, with the exception of auctioneer letting fees, advertising costs, and legal costs, according to Mr Flanagan.