Residential Rental Property

Accounting for Rental Properties

Residential | Commercial | Investment | Portfolio

Mt Albert Accountants have extensive experience in rental property accounting. Whether you own a single Residential Rental Property or have an extensive portfolio of Residential and Commercial Rental Properties across New Zealand, Mt Albert Accountants can save you time and money and provide you expert advice to help you reach your property goals. You can call us at any time through-out the year to ask questions about your Rental Property Accounts and Taxation and seek our expert advice regarding your future property investment plans.

What we do

Many of our Small Business and Medium Enterprise Clients have leveraged the wealth they have generated from their business to purchase their first home, start a new business, and invest in commercial and residential property. We support our clients in achieving their financial goals by preparing accurate and reliable financial reports required by banks for mortgage applications, business loans and when speaking to investors.

Starting from $600/annum plus GST, our affordable Rental Property accounting fees provide value for money and certainty of price.

What is included:

  • Preparation of end of year Rental Property Financial Report

  • Rental Property income tax return

  • Preparation and filing of individual IR3 Income Tax Returns for owners

  • IRD help and support

  • Advisory Service

Keys to Residential Rental Accounts

Rental Property Trading Structures

 In New Zealand residential rental properties are often privately owned, but can also be owned by Partnerships, Trusts, Limited Liability Companies and Look Through Companies. What trading structure is best for you depends on your situation and what your plans are. 

Paying tax on your rental income

Any income received from a residential rental property is liable for income tax and must be declared in your personal income tax return (IR3). The financial year generally starts 1st of April and ends 31st March. 

To calculate your taxable rental income we deduct all your allowable rental expenses from your gross rental.
 

To calculate your taxable rental income we deduct all your allowable rental expenses from your gross rental.

Expenses that can be deducted from your gross rental income include:

  • Accounting Fees

  • Rates

  • Insurance

  • Fixed Water Charges

  • Property Management Fees

  • Repairs and Maintenance (except work that increases the value of the property)

  • Depreciation of chattels (but not building depreciation)

  • Motor vehicle and travel expenses incurred to manage rental property

  • Mortgage Interest payments (this is being phased out over the next four years)

Expenses you can't deduct:

  • Costs of improvements and additions that increase the value of your property

  • Purchase price of the property

  • The capital portion of mortgage repayments (principle payments)

Rental Property Trading Structures

 In New Zealand residential rental properties are often privately owned, but can also be owned by Partnerships, Trusts, Limited Liability Companies and Look Through Companies. What trading structure is best for you depends on your situation and what your plans are.