Rental property accountant for New Zealand landlords

Owning a rental property means a tax return every year - even if the property made a loss. We prepare your rental income schedule (IR3R) and your income tax return, and help you claim the expenses you are entitled to under Inland Revenue's rules.

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What we do for landlords

  • Prepare an IR3R rental income schedule for each property
  • File your IR3 (or company, LTC, partnership or trust return)
  • Work out your share if you co-own the property
  • Claim interest, rates, insurance, property management fees and repairs
  • Depreciate chattels such as carpets, curtains, blinds and appliances
  • Track ring-fenced losses so they are used in future years
  • Check bright-line and other land-sale rules before you sell
  • Answer your questions during the year

What can I claim on my rental property?

Inland Revenue lists these as generally deductible: rates, insurance on the rental property, the interest part of mortgage repayments (100% from 1 April 2025), repairs and maintenance, agent fees for collecting rent, maintaining the property or finding tenants, accounting fees, travel to inspect or repair the property, and depreciation on capital items such as chattels. Not deductible: the principal part of mortgage repayments, additions and improvements, depreciation on the land or building, and agent fees for buying or selling the property.

Repairs or improvements?

A repair brings something back to how it was - fixing a leaking tap or replacing some broken weatherboards - and is usually deductible straight away. An improvement makes the property better than before, such as a new extension or a full renovation, and is capital. The line is not always clear, so we look at each invoice.

Rental losses and ring-fencing

If your rental costs are more than your rent, the loss (called excess deductions) cannot reduce tax on your salary or business income. It is carried forward and used against future residential rental income, including some income from taxable property sales. By default your rentals are treated as one portfolio, but you can choose to treat a property on its own. We keep the record for you each year.

Rental property tax return deadlines

If you do not have a tax agent, your IR3 is due on 7 July after the 31 March year end. When we are your tax agent, your return can usually be filed as late as 31 March the following year under Inland Revenue's extension of time arrangement. Any tax to pay still has its own due date.

How it works

  1. Short call by phone or video
  2. We link as your tax agent with Inland Revenue
  3. You send your statements or fill in our rental property questionnaire
  4. We prepare and file, and explain the result

Common questions

Do I have to file a tax return if my rental made a loss?

Yes. You still report the income and expenses on an IR3R for each property, and the loss is carried forward.

Can I claim my mortgage repayments?

Only the interest part, not the principal.

Should my rental have its own bank account?

It is not required, but a separate account makes your records much easier to keep.

What about Airbnb or short-stay rentals?

Different rules can apply. Short-stay accommodation is a taxable activity for GST (registration is required over $60,000 total turnover), and the mixed-use asset rules can apply if you also use the property yourself. We can check your situation.

Talk to a property accountant today. Call 021 0234 6659, email ysm@yugrajca.co.nz, or book a call. We work with property owners all over New Zealand by phone, email, WhatsApp, Microsoft Teams and Google Meet, in English, Punjabi and Hindi.

Disclaimer: This page is general information only, based on Inland Revenue guidance as at October 2026. It is not tax, legal or financial advice for your situation, and tax rules can change. Please talk to us, or another qualified adviser, before acting. Yugraj Singh Mahil Chartered Accountants Limited does not provide financial, investment or mortgage advice. Last reviewed: October 2026.