Tax Obligation

Landlords -10 Rental Expenses that will Help Offset Rental Income

Ah, the pleasures of investing in rental properties….some years you’re scrambling for deductions and other years you wonder how you managed to live on such little rental income.  This article will focus on investors who’ve had a great year of Rental Income and are looking for ways to LEGALLY reduce Net Operating Income with capital improvements or rental expenses that are fully deductible.   We’ve got 2 weeks, time is ticking; so get spending!

Here are 10 Ways to Legitimately Reduce Your 2018 Rental Income by offsetting with these expenses/improvements:


#10 – Replace Drafty or Non-Operational Windows or Doors

Yes it’s winter in Buffalo, but Window and Door Installers are still working. If you know your tenants are wrapping up their windows with shrink wrap or plasticizing their front or side doors, why not spread some Christmas cheer and get those drafty heat suckers replaced!   I would also bet that you have at least one window, somewhere, that no longer opens or doesn’t stay open, you know… guillotine windows.   Think about all of your properties and their windows and doors and consider upgrading before 2019.

Rental Property Deductions

#9 – Reduce Risk for Emergency Repairs

Move forward on Inevitable Capital Improvements that usually result in Emergency Service Charges.  For example:  If you have a property with a furnace or hot water tank nearing 15 years old, you know that call is coming…on a Friday Night…at 10pm.

Why not be proactive and get these ancient units replaced?  Your tenants will appreciate a more efficient unit and you get to take deductions WHILE Improving Your Property.  It doesn’t get much better than that.

deduct furnace from rental income

#8 – Upgrade Equipment

If you are planning on upgrading any of your business equipment, now is the time.  Take advantage of Christmas Promotions, Holiday Cyber Savings Events etc.  Depending on how you classify the item, you can deduct the entire amount or you can start deducting the day you put it in use.  So why not purchase and start using a great computer or printer this year!

Upgrade Equipment for tax write off

#7 – Advertise

Do you have a rental property that’s available for lease in February or March 2019?  Now is the time to start Advertising!  In order to attract quality tenants (quality tenants need to give 30 days’ notice to their current Landlord) you should be advertising right now.  And we all know that advertising costs are completely deductible!

Advertising costs are deductible

#6 – Buy Legitimate Supplies

Snow shovels, rock salt/ice melt etc. are legitimate rental supplies and there is nothing wrong with buying enough to get you through the long Buffalo winter.  These types of supplies are deductible and the benefit of stocking up now is that they are readily available.  Ever try to buy a snow shovel after a snow storm?  You get to choose between a kiddie shovel and a 25 pound metal monster…Not Fun! And you won’t find rock salt anywhere after a storm, so stock up now.

Rental Supplies

#5 – Make Repairs

Hopefully you are not the type of Landlord who puts off repairs but if you’ve been waiting to fix a leaky faucet or toilet,  fix a hole in the wall, change locks, etc., get those  pesky items completed within the next 2 weeks.  You’ll have a happy tenant and you can deduct the repairs to help offset rental income.

Rental Expenses

#4 – Get Your Sewer Lines Cleared

Buffalo is notorious for slow moving sewer lines that get infiltrated with tree roots, causing sewage to back up.  Why not spare yourself the nightmare call of a sludge filled basement by indulging in a little preventative maintenance?  Now is the perfect time to clear out the sewers and opt for the added camera inspection so you can learn the real condition of your sewer line.  Once a basement floods with sewage, tenants get really ornery.  And emergency services are far more expensive and you’ll also have to content with hiring basement sanitizing services.

Rental Expense Sewer Cleaning

# 3 – Invest in Education

If you’ve been thinking about becoming a member of a paid “business related” site or purchasing relevant education that is deductible, now is the time to go for it.  As long as it’s directly related to your business, you can deduct the cost of education or memberships.  For instance, if you need to learn how to screen tenants so you always pick the cream of the crop, you can Purchase This training tutorial (click for more info):

learn to screen tenants

#2 – Close December Accounts

Pay all of Your December Obligations in Full.  If you’re like me, you’re receiving invoices from Contractors, Lawn & Snow Services, Attorneys, Membership Sites, Business Subscription Renewals, etc.  On Top of getting to deduct these expenses to offset rental income, it’s nice to start the year FRESH and the people you owe can close their books too!

pay rental property exenses


If you own Property in the City of Buffalo, Then you should know that the 2nd Half of Taxes are Due December 31st  Make sure you get those checks written and mailed by the due date and you’ll take a BIG chunk out of your Rental Income.

deduct property taxes on rental property


There you have it, 10 LEGITIMATE ways you can spend money over the next 2 weeks to help offset your awesome rental income.  If you’ve had a great year and have the funds to invest in preventative maintenance, make capital improvements, or invest in your future, you should absolutely go for it!  There is really nothing better than reducing tax obligations while improving yourself and your cash-flowing asset.

If you’re looking for Deductible Business Expenses in the form of education or office supplies, head to Our Resource Room for Education Products, Leases and 3-Day Notices.  All Legitimate Expenses.

To your success!

Investors Edge of Buffalo

Take Me to The Resource Room



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