Top Tax Deductions Every Landlord Should Know

When it comes to owning rental property, most investors focus on rent — but the real financial advantage is often in the tax deductions.

The IRS gives property owners a wide range of ways to offset income and reduce taxable profit — if you know where to look.

In this article, I’ll share the Top Tax Deductions Every Landlord Should Know — so you can keep more of what you earn while staying compliant.

MORTGAGE INTEREST 

First up — Mortgage Interest.

This is typically the largest deduction for most property owners.
You can deduct the interest portion of your monthly loan payments on your rental property mortgage.

For most owners, this adds up to thousands of dollars per year in legitimate, trackable deductions.

REPAIRS AND MAINTENANCE 

Next, Repairs and Maintenance.

Everyday upkeep — like fixing a leaky faucet, replacing carpet, or repainting between tenants — is fully deductible in the year the cost occurs.

Remember, though: repairs maintain value, but improvements increase value and are depreciated over time.

PROPERTY MANAGEMENT FEES 

If you use a professional management company like Centurion, your management fees are 100% tax-deductible.

That includes leasing fees, administrative fees, and even online portal costs — because they’re ordinary and necessary expenses for managing your rental business.

DEPRECIATION 

One of the most powerful — and misunderstood — deductions is Depreciation.

The IRS allows you to depreciate the value of your rental property (excluding land) over 27.5 years.

That means even though your property may be appreciating in market value, you can still take a paper loss each year — lowering your taxable income.

It’s one of the biggest tax benefits of real estate ownership.

TRAVEL AND MILEAGE 

If you drive to check on your property, meet tenants, or visit the hardware store for supplies —
Those miles are deductible when used for business purposes.

Keep a simple mileage log or use an app to track your trips — small deductions like these add up quickly.

Pro Tip: This is one of the commonly missed or forgotten tax deductions.  Get a simple mileage ledger and put it in your glove box or get an app to track your mileage.

INSURANCE AND PROFESSIONAL SERVICES 

Don’t forget insurance and professional services.

Landlord insurance, liability coverage, and umbrella policies are all deductible.

So are professional services — like legal advice, bookkeeping, tax preparation, or accounting fees related to your rental.

UTILITIES, HOA FEES, AND SUPPLIES 

You can also deduct any utilities or HOA fees you pay as the property owner, along with supplies like keys, locks, smoke detectors, or cleaning materials.

These are all ordinary operating expenses directly related to maintaining your property.

WORKING WITH PROFESSIONALS 

Tax law changes frequently, and the best deductions depend on your specific situation.

That’s why we always recommend working with a qualified CPA who understands real estate investments — ideally one familiar with Oregon’s rental laws and depreciation rules.

At Centurion, we partner with tax professionals who help our clients structure their portfolios for maximum efficiency and compliance.

Smart tax planning is just as important as smart property management.

By tracking your expenses and leveraging the right deductions, you can significantly increase your return on investment — year after year.  That keeps things compounding in your favor and over time it produces HUGE results.