{"id":13457,"date":"2017-12-22T16:58:56","date_gmt":"2017-12-22T16:58:56","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=13457"},"modified":"2018-06-19T13:06:59","modified_gmt":"2018-06-19T13:06:59","slug":"are-property-management-fees-tax-deductible","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/are-property-management-fees-tax-deductible\/","title":{"rendered":"Are Property Management Fees Tax Deductible?"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p>For <a class=\"wl-entity-page-link\" title=\"Landlord\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/landlord\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/landlord;http:\/\/rdf.freebase.com\/ns\/m.02mx_6;http:\/\/dbpedia.org\/resource\/Landlord\" >landlords<\/a> hiring a<a href=\"https:\/\/www.thehouseshop.com\/property-management\"> property management<\/a> firm or using a <a class=\"wl-entity-page-link\" title=\"Renting\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/renting\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/renting;http:\/\/rdf.freebase.com\/ns\/m.01y857;http:\/\/dbpedia.org\/resource\/Renting\" >letting<\/a> agent&#8217;s <a href=\"https:\/\/www.thehouseshop.com\/property-management\">property management<\/a> service, unfortunately, the fees are not <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/tax;http:\/\/rdf.freebase.com\/ns\/m.07g82;http:\/\/dbpedia.org\/resource\/Tax\" >tax<\/a> deductible.\u00a0By hiring a <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/letting-agent\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/letting_agent;http:\/\/rdf.freebase.com\/ns\/m.02qpgdf;http:\/\/yago-knowledge.org\/resource\/Letting_agent;http:\/\/dbpedia.org\/resource\/Letting_agent\" >letting agent<\/a>&#8216;s <a href=\"https:\/\/www.thehouseshop.com\/property-management\" title=\"Property Management\">property management<\/a> service, landlords can expect to pay between 10-15% of their rent for their service and this figure could even climb as high as 20% for some <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/private-property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/private_property;http:\/\/rdf.freebase.com\/ns\/m.06ztrz2;http:\/\/dbpedia.org\/resource\/Private_property\" >private property<\/a> management companies.<\/p>\n<p>One way that landlords can avoid paying these fees is to opt to self-manage their properties, which is why many are turning to websites such as <a href=\"https:\/\/www.thehouseshop.com\/\" target=\"_blank\" rel=\"noopener\">TheHouseShop.com<\/a>, as they offer many D.I.Y services such as <a class=\"wl-entity-page-link\" title=\"Leasehold estate\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >tenant<\/a> referencing, rent collection, end of tenancy cleaning and much more.<\/p>\n<h2>Items that are tax deductible when letting residential property:<\/h2>\n<h2>Council Tax and Utility Bills During Void Periods<\/h2>\n<p>Any expenses that are incurred on behalf of their tenants during a void period can be claimed back on a tax return. This is also the case if landlords pay any bills on behalf of their tenants.<\/p>\n<h2>Ground Rent<\/h2>\n<p>If the landlord owns a leasehold <a class=\"wl-entity-page-link\" title=\"Residential area\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/residential-area\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/residential_area;http:\/\/rdf.freebase.com\/ns\/m.02nfxt;http:\/\/dbpedia.org\/resource\/Residential_area\" >residential property<\/a> which is subject to ground rent fees to the freeholder, then these can be claimed back as well as any extras such as security guards, and on-site visits. The <a href=\"https:\/\/www.gov.uk\/leasehold-property\/service-charges-and-other-expenses\" target=\"_blank\" rel=\"noopener\">ground rent charges <\/a>are usually to cover general maintenance works within the common or communal areas of a <a class=\"wl-entity-page-link\" title=\"Freehold (law)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/freehold-law\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/freehold_law;http:\/\/rdf.freebase.com\/ns\/m.03w9s7h;http:\/\/dbpedia.org\/resource\/Freehold_(law)\" >freehold<\/a> property.<\/p>\n<h2>Wear and Tear Allowance<\/h2>\n<p>Landlords are able to deduct any costs from their tax for wear and tear that has occurred\u00a0at their property during the course of a tenancy. However, due to recent government changes, this is only for properties which are fully-furnished <a class=\"wl-entity-page-link\" title=\"Home\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >homes<\/a> as part-furnished or unfurnished properties are not included for wear and tear tax deductions. The amounts used to be up to 10% but the recent changes mean that now landlords are only able to <a href=\"https:\/\/www.gov.uk\/government\/publications\/reform-of-the-wear-and-tear-allowance\/reform-of-the-wear-and-tear-allowance\" target=\"_blank\" rel=\"noopener\">deduct actual charges that they incur <\/a>and must replace like with like in order to be eligible.<\/p>\n<h2>Letting Agents Fees<\/h2>\n<p>Should a landlord pay a letting agent to <a class=\"wl-entity-page-link\" title=\"Market (economics)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/market-economics\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/market_economics;http:\/\/dbpedia.org\/resource\/Market_(economics)\" >market<\/a> their property then their charges are tax deductible. Both bricks and mortar and online <a href=\"https:\/\/www.thehouseshop.com\/let-for-free\" title=\"letting agents\">letting agents<\/a> fees are allowed to be deducted from a tax return.<\/p>\n<h2>Tenant Finding Costs<\/h2>\n<p>The same goes for landlords paying for a tenant find service, these fees will also be eligible for tax deduction. This will include any costs incurred by the landlord when finding new tenants such as advertising, <a href=\"https:\/\/www.thehouseshop.com\/tenant-referencing  \" title=\"tenant referencing\">tenant referencing<\/a>, credit checking, protecting the tenant&#8217;s deposit as well as any inventory costs.<\/p>\n<h2>Maintenence Costs<\/h2>\n<p>Any costs incurred by the landlord such as repairs or maintenance will be allowed to be deducted from a tax return. Such as exterior and interior painting and re-decorating, mending broken windows etc.<\/p>\n<h2>Other Costs<\/h2>\n<p>There is a whole host of other, smaller expenses that can be claimed back from the tax man such as travelling between properties, phone calls, stationery, paperwork etc.<\/p>\n<p>&nbsp;<\/p>\n<p>If landlords are unsure as to which costs they can claim on when filing their self-<a class=\"wl-entity-page-link\" title=\"Property tax\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/property-tax\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property_tax;http:\/\/rdf.freebase.com\/ns\/m.020shm;http:\/\/dbpedia.org\/resource\/Property_tax\" >assessment tax<\/a> return, then they could hire an accountant who will be able to advise them further. Accountants costs are also tax deductible too which makes a big difference not only to landlords financially but also it is less hassle than processing their tax return themselves.<\/p>\n<p>&nbsp;<\/p>\n<h2 style=\"text-align: center;\">Hire a <a href=\"https:\/\/www.thehouseshop.com\/property-management\">Property Manager<\/a> now at <a href=\"https:\/\/www.thehouseshop.com\">TheHouseShop.com<\/a><\/h2>\n<p><a href=\"https:\/\/www.thehouseshop.com\/property-management\"><img loading=\"lazy\" class=\"aligncenter wp-image-16179 size-full\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2018\/02\/property-management.jpg\" alt=\"\" width=\"452\" height=\"320\" \/><\/a><\/p>\n<h4><em>Property Management FAQs<\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/15310-2\/15310\/\">What are the pros and cons of property management companies?<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/how-to-choose-a-property-management-company\/13378\/\" target=\"_blank\" rel=\"noopener\">How to choose a property management company?<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/what-does-property-management-involve\/13365\/\" target=\"_blank\" rel=\"noopener\">What does property management involve?<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/are-property-management-companies-regulated\/13436\/\" target=\"_blank\" rel=\"noopener\">Are property management companies regulated?<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/what-are-property-management-fees-and-how-much-do-they-cost\/13398\/\" target=\"_blank\" rel=\"noopener\">What are property management fees and how much do they cost?<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/our-guide-for-private-landlords-going-it-alone\/11002\/\" target=\"_blank\" rel=\"noopener\">Guide for Landlords Going it Alone: Self-Management Explained<\/a><\/em><\/h4>\n<h4><em><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/should-you-self-manage-or-hire-a-letting-agent\/5907\/\" target=\"_blank\" rel=\"noopener\">Should you self-manage or hire a letting agent?<\/a><\/em><\/h4>\n","protected":false},"excerpt":{"rendered":"<p>For landlords hiring a property management firm or using a letting agent&#8217;s property management service, unfortunately, the fees are not tax deductible.\u00a0By hiring a letting agent&#8216;s property management service, landlords can expect to pay between 10-15% of their rent for<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/are-property-management-fees-tax-deductible\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":13465,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[1,581,13,10,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/12\/Tax-deductions.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/are_property_management_fees_tax_deductible_","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/13457"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=13457"}],"version-history":[{"count":17,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/13457\/revisions"}],"predecessor-version":[{"id":17216,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/13457\/revisions\/17216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/13465"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=13457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=13457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=13457"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=13457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}