Understanding the tax benefits available to you as a landlord can make a huge difference to your bottom line—especially here in Baltimore. Whether you’re renting out one property or building a portfolio, knowing what deductions and strategies are available could help you hold onto more of your hard-earned rental income.
In this guide, we’ll walk you through key tax benefits for landlords, from depreciation to deductible expenses, tax filing tips, and how working with a professional property manager can make tax time way less stressful.
Important Deadlines and Filing Reminders for Baltimore Landlords
Here are a few key tax dates to keep in mind:
- January 15: Final estimated tax payment for the previous year
- January 31: Deadline to send 1099s if you paid contractors
- April 15: Tax filing deadline for most individuals and landlords
- June 15, September 15, and January 15: Remaining estimated tax deadlines for the current year
It’s a good idea to put these on your calendar. Remember: The earlier you file, the less stressful tax season will be.
Depreciation and Tax Deductions: How to Maximize Your Tax Savings
As a rental property owner, you get access to a wide range of deductions—and one of the biggest is depreciation. But that’s just the start. Understanding how to track and claim these deductions can result in major tax savings year after year.
What Is Depreciation, and How Does It Benefit Landlords?
Depreciation is a tax benefit that lets you recover the cost of your rental property over time. According to the IRS, residential rental properties can be depreciated over 27.5 years. That means each year, you can deduct a portion of the property’s value from your taxable income—even if the property’s value is going up.
Here’s a simplified example: If your rental property (excluding the land) is worth $275,000, you could deduct $10,000 per year in depreciation.
This deduction can be a game-changer. It helps offset your rental income and reduce what you owe in taxes. Depreciation is a non-cash expense, which means you’re getting a deduction without actually spending money in that year.
Just make sure you’re following IRS guidelines and working with a tax professional if needed. Depreciation rules can get tricky when you sell or if you stop using the property as a rental.
Potential Tax Deductions for Baltimore Landlords
In addition to depreciation, landlords in Baltimore can deduct many of the day-to-day costs of managing a rental. Here are some common deductible expenses:
- Repairs and maintenance (e.g., fixing a leaky roof or replacing a broken appliance)
- Property management fees
- Insurance premiums
- Mortgage interest
- Utilities (if paid by the landlord)
- Legal and professional services
- Advertising and leasing expenses
- Travel costs related to property management
- Property taxes
All of these reduce your taxable income, which means more money stays in your pocket.
For example, if your property brings in $24,000 in rental income, and you have $10,000 in deductible expenses (plus $10,000 in depreciation), your taxable income drops to just $4,000.
How to Track Depreciation and Expenses Effectively
Tracking these deductions isn’t difficult—but it does require consistency. Here are a few easy tips to stay organized:
- Use a dedicated bank account for all rental income and expenses.
- Keep receipts and documentation for everything you deduct.
- Use accounting software or property management tools to categorize expenses.
- Create a depreciation schedule when you place a property in service.
When tax season rolls around, having everything in one place will save you time—and it could save you money by making sure you don’t miss a single deduction.
Tax Filing Tips for Property Owners in Baltimore
Now that you know what you can deduct, let’s talk about how to file your taxes as a landlord in Baltimore.
How to Navigate Tax Forms for Rental Properties
The main form you’ll need is Schedule E, which is part of your tax return. Schedule E is where you report your rental income and deductible expenses.
You'll list each rental property separately and fill in the income, expenses, and depreciation for each one.
Here are a few tips for filing Schedule E:
- Double-check your expense categories—some are fully deductible, while others (like capital improvements) may need to be depreciated.
- Don’t forget to include depreciation—missing this can lead to overpaying.
- If you manage multiple properties, keep separate records and tally them accurately.
It’s a good idea to consult a tax professional who understands rental real estate.
Estimating Your Taxes and Avoiding Overpayment
If you’re earning rental income, you may need to make estimated tax payments throughout the year. These are quarterly payments that cover your federal income tax, state taxes, and self-employment tax (if applicable).
To avoid overpaying or underpaying:
- Estimate your income and expenses as accurately as possible.
- Revisit your estimates mid-year if your income changes.
- Use IRS Form 1040-ES for making payments.
You don’t want to be hit with a big tax bill—or worse, a penalty—come April. That’s why many landlords work with tax professionals or property managers who understand local market conditions.
Our team at Renters Warehouse Maryland can help you stay ahead of your finances with reliable monthly reporting and documentation that makes tax season easier.
How Professional Management Can Simplify Tax Season for Baltimore Landlords
Taxes are just one part of being a landlord. When you have the right support, the process becomes a lot easier—and more profitable.
The Benefits of Hiring a Property Manager for Tax Filing Support
A good property manager doesn’t just collect rent—they help you handle the financial side of your investment, too. At Renters Warehouse Maryland, we make tax season simpler by tracking your rental income and expenses throughout the year. We also provide you with detailed monthly and year-end financial reports so you always know where your money is going.
When it comes time to file, we make sure your deductible costs are categorized correctly and nothing gets overlooked. Our system is designed to keep your records organized and up-to-date, which means you’ll have everything you need when tax season rolls around.
And if your CPA or tax preparer has questions? We’re here with answers, ready to support you every step of the way.
Leveraging Property Management for More Efficient Tax Planning
We also help landlords plan for the future—not just file taxes for the past. That includes estimating future income and expenses, helping you identify which costs may be deductible, and offering guidance on when to schedule larger repairs or upgrades to maximize tax benefits. We’ll also help you understand how changes in ownership or tenant occupancy might affect your tax situation.
It’s all part of how we make owning rental property in Baltimore simpler, smarter, and more profitable.
Leverage Tax Benefits with the Help of Renters Warehouse Maryland
Taxes might not be the most exciting part of owning rental property—but they’re one of the most important. When you understand what deductions are available and keep good records, you can significantly increase your return on investment.
From depreciation to deductible expenses, and from smart filing strategies to the benefits of professional management, there are a lot of landlords in Baltimore can do to keep more of their rental income.
At Renters Warehouse Maryland, we’re here to help. We make rental property ownership easier, less stressful, and more profitable—especially when it comes to tax time.
Want to take the next step toward maximizing your rental property ROI? Download our free guide: Guide to Maximizing Your Rental Property ROI.
