How Property Management Fees Figure Into Your Business Taxes

Whether you are an experienced landlord or just getting started, thinking about your taxes can be a huge hassle. It is important that you are ready when the time comes so that you can quickly and easily get your taxes completed.

Are property management fees deductible on your taxes?

Any property management fees are deductible when it comes to your taxes. They are classified as business expenses and should be treated as such.

What do you need to keep track of for your taxes?

If you don’t have a property manager, you are going to need to save all of your receipts for everything that you do for your rental building. This may include:

  • Office equipment. This includes your computer, printer, and phone. If you buy some furniture, that is also deductible.
  • Maintenance work. You can deduct your lawn mower, plow (for the snow), light bulbs that you replace, and the filters for any air conditioning and heating units. If you hire someone to do outside maintenance or plow the parking lot, that is deductible too!
  • Repair work. You can write off all of the tools and equipment that you need to repair any plumbing or other work that needs to be done around the building. Any appliances that need to be fixed or repaired can also be included in this.

Why is it easier to hire a property manager than trying to do it yourself (when it comes to your paperwork)?

For most people, it is much easier to keep track of their monthly (or yearly) property management fees than it is to keep track of every little thing that they use to do the job. Even if you get a bill for each project that they do, it is still a whole lot easier than keeping all of your receipts and keeping track of it that way!

If you are serious about being a landlord and want to make money doing so, you might want to consider hiring a property manager. He or she will do all of the work (or whatever is agreed upon). It is also easier when it comes to your taxes. You just keep those receipts, instead of the hundreds that you have if you try to do it all yourself! Make your life a little easier by hiring someone to help. You will be glad that you did!