Claimable Expenses Every Landlord Should Know About

Office update, 15 October 2026. The byline records the original article; this guidance has been revised for Ray White Silverdale.

Keep the records before deciding what is deductible

Owning a rental in Silverdale brings costs throughout the year. Useful records help your accountant distinguish an allowable rental expense from private spending, a loan repayment or a capital improvement. A receipt is important evidence, but paying a bill does not by itself make the whole amount deductible.

Separate running costs from capital spending

IRD lists rental-related costs such as rates, insurance, property management and qualifying repairs among expenses that may be deductible. The purpose and circumstances matter. Keep invoices describing the actual work and identify any private-use portion rather than treating every property-related fee as an automatic claim.

Repairs and maintenance are different from additions and improvements. Work involving replacement, renovation or several tasks can need careful assessment. Do not assume every upgrade can be claimed immediately or depreciated over time; residential land and buildings do not qualify for depreciation deductions. Some separate depreciable items may be treated differently.

Know what the mortgage payment contains

Principal repayments are not a rental expense deduction. Interest has its own requirements, including the use of the borrowed funds. From 1 April 2025, the residential interest limitation rules permit 100% of qualifying interest, but private interest and other general restrictions still matter. Our interest deduction article explains the distinction.

Read IRD’s rental expense guidance before deciding how to classify costs. Purchase, sale, legal and financing expenses can have different treatment; ask your accountant about the actual invoice instead of relying on a broad list.

Check how deductions can be used

Residential rental deductions are generally limited to residential income under the ring-fencing rules. Excess deductions may be carried forward rather than used against salary or wages. Check IRD’s residential rental deduction guidance for the rules and exceptions that apply to your situation.

Keep income statements, invoices, loan records and details of private use together. Budget for the cash you need to pay costs even where a deduction is available. Ray White Silverdale can discuss the management of your rental and the records supplied through the service; your accountant advises on claims. Use the form below or contact the office.