24.10.26
What Expenses Should Property Investors Track?
Author:Himak
What Expenses Should Property Investors Track?
Knowing your rent is easy. Knowing what a property really costs to own is harder. Tracking every expense helps you understand true returns, plan cash flow and give your accountant accurate information at tax time.
Ongoing Holding Costs
- Loan interest
- Council rates
- Water and sewerage charges
- Strata or body corporate levies
- Landlord and building insurance
- Land tax, where it applies
Management and Letting Costs
- Property management fees
- Letting and re-letting fees
- Advertising for tenants
- Lease preparation costs
Repairs and Maintenance
- General repairs
- Gardening and cleaning
- Pest inspections
- Smoke alarm and safety compliance checks
- Pool maintenance, where relevant
Other Costs to Record
- Borrowing costs such as loan establishment fees
- Accounting and tax agent fees
- Depreciation schedule fees
- Bank fees on investment loan accounts
- Travel or other costs, subject to current ATO rules
Repairs vs Improvements
Tax rules treat repairs and capital improvements differently. Fixing a broken window is usually a repair, while adding a new deck is usually an improvement. Keep receipts and notes so your accountant can classify each cost correctly.
Why Tracking Matters
- See the real net yield and cash flow of each property
- Spot properties with unusually high costs
- Avoid missing deductions at tax time
- Make better-informed decisions about holding or selling
Track this automatically with Property Folio AI
Log expenses against each property and store the receipts alongside them. Property Folio AI shows which properties cost the most to run.
Start your 30-day free trialFrequently Asked Questions
Which expenses are tax deductible?
Many holding costs of a rental property may be deductible, but eligibility depends on ATO rules and your circumstances. Check with a registered tax agent.
Do I need to keep receipts?
Yes. Keeping receipts and statements makes tax time easier and helps support any claims.
How do I see which property costs the most?
Track expenses by property. Property Folio AI lets you compare expenses across your portfolio.
This article is general information only and is not financial, tax or legal advice. Consider speaking with a licensed professional about your circumstances.
