Mistake 1: Using one bank account for everything
When personal and rental transactions share the same account, it becomes almost impossible to separate deductible expenses from private spending. The fix is simple: open a dedicated bank account for your rental properties and run every property-related payment through it.
Mistake 2: Claiming expenses without proof
SARS can — and does — disallow deductions when a landlord cannot produce an invoice or receipt. Get into the habit of photographing or scanning every receipt the same day and filing it by property and month. Better yet, let your accounting software capture it automatically.
Mistake 3: Forgetting to claim legitimate deductions
Many landlords leave money on the table by overlooking deductible expenses, including:
- Home-office costs if you manage properties from home
- Travel between properties (logbook required)
- Wear-and-tear allowances on appliances and furniture
- Accounting and legal fees related to the rental business
A complete list of allowable deductions is available in our guide: Tax-Deductible Expenses for SA Landlords.
Mistake 4: Ignoring vacancies in your projections
Budgeting as though your property will be occupied 12 months a year sets you up for cash-flow surprises. A prudent approach is to assume at least one month of vacancy per year and set aside a reserve fund to cover bond repayments and fixed costs during empty periods.
Mistake 5: Reconciling only at tax time
Waiting until February to sort a year of bank statements guarantees errors and missed deductions. Monthly reconciliation takes minutes and keeps your numbers accurate. It also means your ITR12 figures are ready the moment SARS opens the filing season.
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