Landlord Expenses: Maximising Deductions for Your Property Rental Business

Hey there, property landlords!

Let's talk about getting the most bang for your buck when it comes to tax deductions on your rental business.

First thing's first, only expenses solely for your rental business can make the cut. So, if you've bought a vacuum for personal use that occasionally sucks up dust from your rental property, it's a no-go for a deduction. But, say you purchase cleaning products just for your rentals - bingo! That’s a claimable expense.

Remember, if an item has a smidgen of personal use, it can't make it into your deductions. So always keep your personal buys separate from your rental ones.

Part business and something else?

But what if you've got an expense that's partly for your rental business and partly for something else? Good news - you can claim a part of it! Picture this: you've bought a batch of tiles, some end up on your rental property's floor, others at your own place. You can only claim the cost of the tiles that landed at your rental property.

Let's say you bought 12 square meters of tiles for £240, but only used 8 square meters at your rental. You can claim two-thirds (£160) of the cost. Simple, right?

Not just tiles, there's a whole bunch of other expenses that you can offset against your rental income. Think repair works like leaky pipes, electrical faults, broken windows, even repainting and redecorating to get the property back to its original state.

Swapping an old domestic item for a new one? You're covered, as long as you don't go for a massive upgrade. Let’s take your old cooker - if you replace it with a fancy double oven for £1,000, when you could've got a similar cooker for £500, you can only claim the £500. Tack on the £30 installation cost and subtract the £150 from selling the old one, you're left with £380 to claim.

What you can claim

Increased your mortgage loan on your rental property? You could be in luck. The interest on the extra loan might be claimable, as long as the loan is solely for your rental property. There's some additional rules around mortgage interest, so please check out our other pages for more information.

There's a bunch of other expenses you can claim - from maintenance, utility bills, insurance, and service costs to letting agent fees, accountant's fees, advertising costs and even certain vehicle running costs.

But don't get too excited. There are expenses you can't claim - your mortgage payment, personal phone calls, clothing (even that sharp suit you wore to a property meeting), and any personal expenses.

Remember, knowing your allowable landlord expenses is your golden ticket to maximising your rental income and keeping that tax liability in check. So, make sure your expenses are solely for your property rental business and stick to those guidelines. Happy tax saving!

Make Every Deduction Work for You

Managing a rental business comes with plenty of tax-planning opportunities — and we’re here to ensure you don’t leave any unused. Fill in the form below to get expert support from Chadwick Accountants in maximising your allowable expenses, improving cash flow, and staying confidently compliant.