• Erin Reynolds

Tracking Rental Property Expenses the Easy Way


If tracking your rental property expenses has become a thorn on your side, you'll love this article from Realtor Jen Bedard! Read on for how you can track your rental property expenses the easy way.


Suggestion #1 for Easy Expense Tracking: Consider using a cloud-based expense management software program to track your rental property expenses.


A cloud-based expense management software program will change the manner your employees view and treat their expenses. This is because it makes the whole process streamlined, removes the threat of mistakes, and, as a result, saves your business a ton of cash. Account managers and employees can use the software from anywhere because it's a cloud-based service and it’s device agnostic.


A cloud-based expense management software program makes expense reporting a cinch. Claims and charges can be documented right away, while duplicates are detected at once. Plus, it'll give you the peace of mind that your business's sensitive and financial data are safe from security breaches.


When tracking your rental property expenses in Canada, the expense type matters. The CRA classifies expenses in one of two ways:


Capital — The CRA defines a capital expense as "renovations and expenses that extend the useful life of your property or improve it beyond its original condition." For example, you might add vinyl siding to the exterior of your rental property or waterproof your basement — that is a capital expense. These expenses are deductible for many years.

Current — Typically, a current expense is recurring and can only be claimed in the year the expense occurred. An example of a current expense is painting the exterior of your rental property.

Thankfully, there are expense tracking software products that pre-sort your expenses into the proper tax categories.