Paying your rentals expenses

Discussion in 'Property Management' started by Darwin55, 15th Feb, 2020.

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  1. Darwin55

    Darwin55 Well-Known Member

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    Quick question. Whenever you have general everyday expenses for your rentals do you pay them yourself or do you have the real estate take it out of your rental income?

    Does it make any difference?
     
    Darwin55, 15th Feb, 2020
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes it can make a difference but it depends on your strategy. @Terry_w has written in debt recycling previously.

    If you have substantial non-deductible debt you might use borrowings eg line of credit to pay the bills and put the income directly towards the non-deductible debt.
     
    Scott No Mates, 15th Feb, 2020
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  3. Jarrad Mahon

    Jarrad Mahon Active Member

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    Perth WA
    Most of our landlords prefer us to just handle all the payments for them so they don’t need to worry about it and they can all be recorded in an annual summary that assists their accountant in preparing their taxes.
     
    Jarrad Mahon, 15th Feb, 2020
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 15th Feb, 2020
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    Michael Mitchell likes this.
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