Key takeaways
What this article covers, in order:
- The net deposit trap
- Record the agent's statement, line by line
- Bond: not your money
- Repairs versus improvements
- Loan repayments: split them
- Keeping properties separate
Good bookkeeping for landlords means recording rent and costs gross from your property manager's statement, not just the net amount that hits your bank, keeping the tenant's bond out of your income, and splitting loan repayments into interest and principal. Do that monthly and your accountant gets a clean picture of each property at 30 Jun 2027 instead of a folder of PDFs.
The net deposit trap
Helen owns two rental units in Hobart (she's a made-up example) and uses a property manager. Every month, one deposit lands in her account: $3,483.80. For years she wrote "rent" next to it in a spreadsheet and moved on.
The problem is that $3,483.80 isn't her rent. It's her rent minus the agent's fees and minus a plumber the agent paid on her behalf. If she records the net figure:
- her rental income is understated,
- the management fee and repairs vanish from her expenses, and
- at tax time her accountant has to rebuild the year from twelve agent statements anyway.
Record the agent's statement, line by line
Here's Helen's agent statement for Sep 2026:
| Line | Amount |
|---|---|
| Rent collected, Unit 1 | $2,080.00 |
| Rent collected, Unit 2 | $2,080.00 |
| Management fees (incl. GST) | −$291.20 |
| Plumber, Unit 2 (blocked drain) | −$385.00 |
| Net paid to owner | $3,483.80 |
Check: $2,080.00 + $2,080.00 − $291.20 − $385.00 = $3,483.80.
In her books that becomes:
- Rental income, Unit 1: $2,080.00
- Rental income, Unit 2: $2,080.00
- Property management fees: $291.20 (split across the units, or by unit if the statement shows it)
- Repairs and maintenance, Unit 2: $385.00
- Bank deposit: $3,483.80
The simplest way to make the bank match is an "Agent clearing" account. Income and expenses go through it, the deposit comes out of it, and it ends at zero. If the agent is holding money back (say for an upcoming water bill), the clearing account shows exactly how much.
Bond: not your money
When a tenant pays a bond, it's generally lodged with your state or territory's bond authority, not kept by you. While it's lodged, it doesn't belong in your income or your bank account at all.
At the end of a lease, if part of the bond is paid to you to cover damage or unpaid rent, that amount does come into your books. Record it against what it's covering: rent arrears as rent, damage repairs against the repair cost. If you're not sure how a particular bond claim should be treated, it's a quick question for your accountant.
If you manage the property yourself and are holding money that should be lodged, sort that out with your state's bond authority first. That's a compliance matter, not a bookkeeping one.
Repairs versus improvements
This is the distinction that matters most at the end of the year, and it's not always obvious.
- Repairs fix something back to how it was: a leaking tap, a broken window, a blocked drain.
- Improvements make the property better than it was: a new kitchen, an extra bathroom, ducted air where there was none.
- Initial repairs to fix problems that existed when you bought the place often get treated differently again.
Your bookkeeping job is to record each one clearly, with a good description and the invoice attached, in separate accounts. Deciding how each is treated for tax is your accountant's call. A note like "Replaced 2 broken window panes, Unit 1, tenant damage" makes their job far easier than "Glazier $640".
Loan repayments: split them
A loan repayment from your bank account isn't one expense. Part is interest, part is principal (paying down the loan).
Helen's monthly repayment on Unit 1 is $2,150.00. Her loan statement for Sep 2026 shows $1,610.00 of interest and $540.00 of principal. Check: $1,610.00 + $540.00 = $2,150.00.
- Interest of $1,610.00 goes to an expense account.
- Principal of $540.00 reduces the loan liability on the balance sheet.
Reconcile the loan account against the lender's statement each month or quarter, the same way you'd reconcile a bank account. If the balance in your books and the lender's balance drift apart, it's usually an interest-only month, a redraw or a fee you missed.
Keeping properties separate
If you own more than one rental, you'll want to see each property on its own. Options that work well:
- Separate income and expense accounts per property in your chart of accounts (Rent: Unit 1, Rent: Unit 2, Repairs: Unit 1 and so on). Easy to read and works anywhere.
- A separate bank account per property, if the volume justifies it.
- Separate books (entities) if the properties are owned by different people or structures, such as one in your name and one in a trust. Your accountant should advise on the structure; your bookkeeping just needs to mirror it.
Self-managing landlords
If you collect rent directly, rent arrives in your bank account and you're the property manager. Extra habits:
- Keep a rent ledger per tenant showing what was due and what was paid, so you spot arrears early.
- Record rent on the date it's received, and note which period it covers.
- Keep tradesperson invoices addressed to you, with the property address on them.
A monthly landlord checklist
- [ ] Agent statement recorded line by line (income, fees, repairs)
- [ ] Agent clearing account back to zero or explained
- [ ] Bank account reconciled
- [ ] Loan repayments split into interest and principal
- [ ] Repairs and improvements recorded in separate accounts with notes
- [ ] Council rates, water, insurance and strata recorded by property
- [ ] Bond movements, if any, recorded against what they cover
- [ ] Invoices and statements saved for your accountant
How HelloBooks helps
Connect your bank account (most Australian banks and cards are supported), or import a CSV statement if your bank or loan account isn't connected. Agent deposits and loan repayments land in a review list where you confirm or change the category.
On the reconcile screen, each statement line gets an AI match suggestion with a confidence score and the reason for it. You only work through the exceptions, and you can unmatch in one click. Once a month is reconciled and signed off, you can lock it, so your year-end numbers don't shift later. The P&L, Balance Sheet and Cash Flow reports are included on the Free plan, which is A$0 with no card and no expiry.
If properties are held in different names, the Business plan (A$120 a month) supports multiple entities. You can also invite your accountant into the same books, so they're looking at the same figures you are. Read about cash flow management or explore HelloBooks Australia.
FAQs
Should I record rent gross or net of agent fees?
Gross. Record the full rent as income and the agent's fees and any repairs as expenses. The net deposit then matches through a clearing account.
Is the rental bond income?
No. A lodged bond is held by your state or territory's bond authority. Only amounts paid to you at the end of a lease come into your books, recorded against what they cover.
How do I split a loan repayment?
Use your loan statement. Interest goes to an expense account and principal reduces the loan balance on your balance sheet.
Do I need a separate bank account for my rental?
It's not required, but it makes reconciliation much easier, especially if you self-manage.
What does my accountant need at the end of the year?
Usually: the agent's annual summary, loan statements, your categorised income and expenses per property, and invoices for repairs and anything that might be an improvement. Ask them for their own list early.
Twenty minutes with each month's agent statement saves a very long afternoon in the middle of 2027.
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