Tax records for rental properties and holiday homes
Find out about what records to keep and for how long for rental properties and holiday homes.
How long to keep rental records
You need to keep records for 5 years. Depending on your situation, that is 5 years from the date:
you lodge your tax return
of your last claim for the decline in value of an asset
it is certain that no capital gains tax event can occur after you acquire, sell or otherwise dispose of property
you resolve any disputes you have with us.
You will need these records to work out how much:
rental income you need to declare
you can claim as a deduction for your expenses
capital gain or loss you make when you dispose of your rental property.
In some circumstances, you may need to provide these records as proof that you were the one to incur the expense.
Format of your rental records
Rental records must be in English or be readily translatable into English.
You can keep your records in either paper or digital format. If you make copies, they must be a true and clear copy of the original.
We recommend you keep a back-up of all your digital records.
You can use the myDeductions tool in the ATO app to keep track of your records digitally. When you are ready to complete your tax return, you can:
email your data to yourself or to your tax agent
upload your data to pre-fill your tax return.
Types of rental records to keep
You should keep a record of the following for your rental property or holiday home:
Rental income
Records of the payments you receive, such as:
a statement from your property or managing agent
a rent book or bank statements that shows the rental payments going into your account
documents that show a record of any bond money you retain in place of rent.
For more information on rental income, see Rental income you must declare.
Rental expenses
Records for expenses you incur, such as:
bank statements showing the interest charged on money you borrowed for the rental property
loan documents
land tax assessments
documents or receipts that show amounts you pay for
advertising (including efforts to rent out the property)
bank charges
council rates
gardening
property agent fees
repairs or maintenance
documents showing details of expenses related to
the decline in value of depreciating assets
any capital work expenses, such as structural improvements
before and after photos for any capital works
travel expense documents, if you are eligible to claim travel and car expenses such as
travel diary or similar that shows nature of the activities, dates, places, times and duration of your activities and travel (you must have this if you travel away from home for 6 nights or more)
receipts for flights, fuel, accommodation, meals and other expenses while travelling
receipts for items you use for repairs and maintenance that you bought when you travel to, or stayed near, the rental property.
When you buy a rental property
Records when you buy (invest) in rental property, such as:
contract of purchase
conveyancing documents
loan documents
costs to buy the property
borrowing expenses.
While you own a rental property
Records for while you own a rental property, such as:
documents that show periods of personal use by you or your friends
document that show periods the property is used as your main residence
loan documents if you refinance your property
documents, receipts and before and after photos for capital improvements
tenant leases
documents for rental expenses.
When you sell your rental property
Records for when you sell or otherwise dispose of your rental property, such as:
contract of sale
conveyancing documents
sale of property fees
calculation of capital gain or loss.
Records for multiple properties
Keep separate records for each property, if you have:
more than one property (including a block of apartments or similar)
a duplex
property that has been sub-divided.
This will ensure that you declare the correct rental income and claim the correct rental expenses for each property. It will also ensure that if you later sell or otherwise dispose of one or part of a property, you will have records to work out your capital gain or loss.
Last modified: 30 Jun 2023
QC 66379
https://www.ato.gov.au/Individuals/Investments-and-assets/Residential-rental-properties/Records-for-rental-properties-and-holiday-homes/