Expense Tracking for Landlords: Rent, Repairs and Taxes Made Simple

Rent received isn't profit. Track what the flat costs to see what it really earns.

Rent received is not what you earn

Owning a rental flat comes with costs: society maintenance, property tax, repairs between tenants, painting, brokerage for each new tenant, and months it sits empty. Without tracking, it’s easy to overestimate what the property earns — and to scramble at tax time.

What to track

--Rent received — monthly, with the date and any late payments.
--Security deposit — what you hold and its terms; it’s the tenant’s money, not income.
--Maintenance and society charges — and who pays them, per the agreement.
--Repairs and upkeep — plumbing, painting, appliances, with bills.
--Property tax and any home loan interest.
--Brokerage and agreement costs — rent agreement registration, stamp duty.
--Vacancy — months without rent.

At tax time

Rental income is taxed as income from house property. Municipal taxes paid are deductible, a standard deduction (30% of the net annual value) applies for repairs and upkeep, and home loan interest may be deductible within limits. Keep property tax receipts and loan certificates (which receipts to keep for tax). Not tax advice — check with a CA.

A simple system

--One ledger per property, with categories for each cost type.
--Photograph every bill the day you pay it.
--A repair fund — set aside a share of rent every month so a broken geyser isn’t a crisis (sinking funds).
--A yearly review — net income after costs, compared with what the flat could earn elsewhere.

Frequently asked questions

What expenses should a landlord track?

Rent received, the security deposit held, maintenance and society charges, repairs and upkeep, property tax, home loan interest, brokerage and agreement costs, and vacancy periods.

How is rental income taxed in India?

It is taxed as income from house property. Municipal taxes paid are deductible, a 30% standard deduction on the net annual value covers repairs, and home loan interest may be deductible within limits. Check the details with a CA.

Is the security deposit income for a landlord?

No. A refundable security deposit belongs to the tenant and is returned at the end of the tenancy, less any agreed deductions.

How do I know if my rental property is profitable?

Track a full year of rent and every cost, including vacancies, and compare net income with the property’s value and other uses of the money.

How Snugtab helps

One ledger per property

Track each rental flat in its own Snugtab ledger — rent in, costs out, receipts attached — and see its real yearly return at a glance.

Try Snugtab free