Top 10 Tax Deductions for Rental Property Owners

Owning rental property can be a profitable venture, but it also comes with its share of expenses. Fortunately, the IRS allows landlords to deduct many of these costs, helping reduce taxable income and increase overall returns. Whether you own a duplex, triplex, quadplex, condo, cabin, townhome, or vacation rental, understanding your eligible tax deductions is key to smart financial management.

Here are the top 10 tax deductions rental property owners should know in 2025—plus how Wexford Insurance can help protect your investment.

1. Mortgage Interest

Mortgage interest is often the largest deductible expense for landlords. You can deduct interest paid on loans used to purchase or improve your rental property, including points and origination fees.

2. Property Taxes

State and local property taxes are fully deductible. This includes taxes paid on all types of rental properties, from single-family homes to multi-unit dwellings.

3. Depreciation

The IRS allows you to depreciate the value of your rental property (excluding land) over 27.5 years. This non-cash deduction can significantly reduce your taxable income.

4. Repairs and Maintenance

Routine repairs—like fixing a leaky faucet or repainting a unit—are deductible in the year they’re incurred. Improvements, however, must be depreciated.

5. Insurance Premiums

Premiums for landlord insurance, including liability, fire, flood, and umbrella policies, are deductible. Wexford Insurance offers tailored coverage for all rental types.

6. Property Management Fees

If you hire a property manager, their fees—including leasing commissions and maintenance coordination—are fully deductible.

7. Utilities

If you pay for utilities like water, gas, or electricity for your rental property, those costs are deductible.

8. Advertising and Marketing

Costs for listing your property, running ads, or hiring a realtor to find tenants can be deducted as business expenses.

9. Travel Expenses

Travel related to managing your rental—such as driving to the property or meeting with contractors—is deductible. The standard mileage rate for 2024 is 67¢ per mile.

10. Professional Services

Legal, accounting, and tax preparation fees related to your rental business are deductible. This includes consultations for lease agreements or tax filings.

How Wexford Insurance Supports Rental Property Owners

At Wexford Insurance, we specialize in protecting rental property investments. Whether you own a short-term rental, long-term lease, or vacation home, our policies cover:

• Property damage

• Liability claims

• Loss of rental income

We insure Airbnbs, VRBOs, duplexes, condos, lake houses, cabins, and more—giving landlords peace of mind and financial security.

Final Thoughts

Understanding and leveraging tax deductions is one of the smartest ways to boost your rental property ROI. By tracking expenses and working with professionals, you can reduce your tax burden and grow your investment. And with Wexford Insurance, your property is protected every step of the way. Connect today!

FAQs

Q: Can I deduct home office expenses if I manage my rentals from home?

A: Yes, if the space is used exclusively for rental management.

Q: Are renovations deductible?

A: Major improvements must be depreciated over time, but repairs are deductible in the year incurred.

Q: What records should I keep for deductions?

A: Keep receipts, invoices, mileage logs, and documentation of rental activity.