Owning a rental property in Denver is a great way to build wealth, but many landlords overlook tax deductions that can increase their cash flow. At Walters & Company Property Management, we help Denver property owners maximize their rental income while handling all aspects of property management.
Understanding rental property tax deductions can help you keep more money in your pocket and improve your return on investment (ROI). Let’s break down the top tax write-offs every Denver rental property owner should know. (We are not tax professionals and this is not meant as tax advice).
1. Mortgage Interest – A Major Deduction for Denver Landlords
If you have a mortgage on your rental property, **the interest is fully deductible**—often the largest tax break for property owners.
Example: If your mortgage interest for the year is $8,000, you can deduct the full amount from your taxable income.
Walters & Company Tip: If you’re considering refinancing for a lower interest rate, keep in mind that loan origination fees and points may also be deductible over time.
2. Property Taxes – Save on Denver’s Local Rates
Denver property owners must pay local and state property taxes, but the good news is these taxes are fully deductible on rental properties.
Example: If your annual property tax bill is $3,500, you can claim this as a deduction.
Walters & Company Tip: If you own multiple rental properties in Denver, check if you qualify for property tax appeals to reduce your tax burden.
3. Landlord Insurance – A Must-Have Deduction
Landlord insurance protects your rental property from damage, liability claims, and lost rental income—and the entire premium is deductible.
Example: If your insurance premium costs $1,200 per year, you can write off the full amount.
Walters & Company Tip: Some insurance policies offer discounts for property managers—another reason to partner with Walters & Company Property Management!
4. Repairs & Maintenance – Keeping Your Rental in Top Shape
All necessary repairs and maintenance costs are deductible. This includes:
Fixing plumbing or electrical issues
Painting and drywall repairs
Replacing broken appliances
Example: If you spent $730 on various repairs, you can deduct these expenses.
What’s NOT Deductible? Large improvements like adding a new roof or remodeling a kitchen must be depreciated over time instead of deducted in full.
5. Utilities – Deduct Costs You Cover for Tenants
If you pay for water, electricity, gas, or trash removal on behalf of your tenants, these costs are fully deductible.
Example: If your rental property’s water and sewage costs are $800 per year, if you pay for it you can write off the full amount.
Walters & Company Tip: If your property includes energy-efficient upgrades, you may also qualify for additional Colorado state tax credits.
6. Property Management Fees – Stress-Free and Tax-Deductible
Many Denver landlords choose to work with a professional property management company to handle tenant relations, maintenance, and rent collection. The good news? These fees are 100% tax-deductible!
Example: If you pay $2,400 annually for property management services, you can deduct the full amount.
Why Choose Walters & Company? Our team maximizes your ROI while ensuring your rental is well-maintained and fully compliant with Denver Area rental laws.
7. Depreciation – A Powerful Deduction for Long-Term Savings
Unlike other expenses, rental properties lose value over time, which allows owners to claim depreciation deductions each year.
Example: If your rental home (excluding land) is valued at $200,000, your annual depreciation deduction is $7,273.
Walters & Company Tip: Even if your property appreciates in market value, you can still claim depreciation as a tax deduction.
8. Travel Expenses – Deduct Trips to Your Rental
If you drive to your rental property for maintenance, inspections, or tenant meetings, you can deduct mileage and related expenses.
Example: If you log 300 miles annually for property visits, using the IRS mileage rate of $0.70 (2025) per mile, you can deduct $210.
Walters & Company Tip: Property owners with multiple rentals may benefit from tracking mileage automatically using mobile apps.
9. Advertising & Marketing – Find Tenants for Less
Expenses related to finding tenants—including rental listings, signage, and digital marketing—are tax-deductible.
Example: If you spend $300 on online listings and photography, you can deduct the full amount.
Need help marketing your Denver rental? Our team at Walters & Company offers tenant placement services that fill vacancies faster.
10. Professional Services – Legal & Accounting Fees Count
If you hire an attorney, accountant, or tax professional for rental-related matters, their fees are deductible.
Example: A $400 legal consultation for lease agreements is fully deductible.
Walters & Company Tip: A tax professional can help you ensure compliance with Colorado and Federal rental tax laws and maximize deductions.
11. HOA Fees – Deduct Your Homeowners Association Costs
If your rental is part of an HOA, your annual HOA fees are tax-deductible—as long as the property is rented.
Example: If your HOA fees are $600 per year, you can claim the full amount.
Walters & Company Tip: Some HOAs require landlord approval—be sure your rental complies with HOA regulations.
By leveraging these tax breaks, Denver rental property owners can lower their taxable income and increase their cash flow. Let Walters & Company handle your Denver area rental property.
Looking for expert property management in Denver? Let’s talk about how we can help! At Walters & Company Property Management, we help landlords reduce stress, maximize profits, and take full advantage of tax benefits.
Call us today: (720) 357-6655
Email us: rent@rentgowalters.com
Visit us: www.rentgowalters.com
The information provided in this article is for informational purposes only and should not be considered tax, legal, or financial advice. Every investor’s situation is unique, and tax laws may change. Before making any financial decisions regarding your rental property, we strongly recommend consulting a qualified tax professional, accountant, or attorney to ensure compliance with federal, state, and local tax laws. Walters & Company Property Management is not a CPA firm or tax advisory service.
