How do I arrange a depreciation report for my rental property?

A depreciation report, usually called a depreciation schedule, sets out the building costs and the fixtures and fittings of an investment property, and how they may be depreciated over time for tax purposes. It is prepared by an appropriately qualified professional, such as a quantity surveyor, and your accountant or registered tax agent advises on how to use it.

Arranging one is mostly a matter of order: the right conversation first, then the records, then access, then the schedule itself. This guide walks through that order and shows where our depreciation reports service fits. For what a schedule is and whether your property needs one, start with our guide to depreciation schedules for investment properties.

Who prepares a depreciation report?

Depreciation on an investment property is a tax matter. The schedule is prepared by an appropriately qualified person, commonly a quantity surveyor, who estimates construction costs and identifies the items in the property that may be depreciable. Your accountant or registered tax agent then uses the schedule when preparing your return.

We do not prepare the schedule and we do not give tax advice. What we do is help you arrange it: explain the steps in plain language, help you gather what the preparer asks for, coordinate access to the property, and help you file the schedule with your other property records. No tax outcome is promised, because what a schedule means for you depends on your circumstances.

Step one: talk to your accountant or registered tax agent

Before anything is arranged, ask the person who prepares your tax return whether a schedule suits your situation. They know your position, the property's history and how a schedule would be used. They may also tell you what format they prefer and when in the year it is most useful to have it.

This conversation matters more than any other step. A schedule is only useful if it is used, and only your accountant or registered tax agent can say how it will be. If they suggest one, the rest of the process is straightforward.

Step two: gather the records the preparer asks for

Preparers typically ask for information about when and how the property was bought, built or changed. Useful items include:

• The contract of sale and the settlement date.
• Construction details if you built the property, such as the building contract and the handover date.
• Records of renovations or improvements, with approximate dates and what was done.
• Plans, permits or certificates you hold for the property.
• Details of fixtures and fittings that were new when you bought or installed them, such as appliances, floor coverings, blinds and air conditioning.
• Whether the property is tenanted, and the property manager's contact details.

You do not need a complete file. Preparers are used to gaps, and an inspection can fill some of them. If your paperwork is scattered across emails, folders and a previous owner, our property paperwork service can help you work out what you have and what is missing before the preparer asks.

Step three: arrange the site inspection and access

Some preparers inspect the property to record the construction and the fixtures; others work from documents, plans and photos. The preparer decides what they need for your property, and we help make it happen.

If the property is rented out, access has to be arranged with proper notice. In Victoria, entering a rented home generally requires notice to the renter (often called a tenant), and your property manager will know the current requirements and the usual process. Tell us early that the property is tenanted and who manages it, and we coordinate the timing so the renter is given notice and the preparer gets the access they need.

For a vacant property or one between tenancies, access is simpler and the visit can usually be arranged around your diary. Let us know about keys, alarms and any areas, such as a locked garage or a storage room, that the preparer should see.

Step four: receive the schedule and file it with your records

Once prepared, the schedule is yours to keep and to give to your accountant or registered tax agent. We walk you through how it is set out, in plain language, so that you recognise the parts of the property it describes and know what to ask your accountant about. We also help you file it alongside the property's other records, such as the contract, permits, condition reports and insurance.

Keep the schedule with the property's file rather than with one year's tax papers. It is referred to across years, and it may need updating after a renovation or a change in how the property is used, which is again something to raise with your accountant.

Where does VicWide fit, and where does it stop?

It helps to be clear about the edges before you enquire.

We help you arrange the schedule, explain the process and what the schedule contains, gather the information the preparer asks for, coordinate access, and help you keep the records together. The schedule itself is prepared by an appropriately qualified professional.

We do not prepare the schedule, estimate what you can claim, give tax or financial advice, or promise any tax outcome. Those questions belong with your accountant or registered tax agent, and the preparer answers questions about how the schedule was built.

What else is worth doing for a rental at the same time?

Arranging a schedule is often the moment an owner takes stock of the property's records. Two things sit naturally beside it.

A dated, photo-supported independent condition report records the property room by room at a point in time, which is useful at the start and end of a tenancy and as a baseline for the fixtures the schedule describes. Routine rental property checks document how the property is being kept during a tenancy, clearly for both the rental provider (often called the landlord) and the renter.

If the property is older or you have not looked at its condition for some time, an independent look at the building is a separate question; our guide to whether you need a building and pest inspection for a home you already own covers when that makes sense for an owner.

How to get started

Send us the property address, roughly when it was bought or built, whether it is tenanted and who manages it, and whether your accountant or registered tax agent has suggested a schedule. We will explain the process, confirm what is involved and provide a quote before anything is arranged. Bookings are requests until we confirm them with you.

Tell us about your property. Send an enquiry or call 0406 194 163 and we will help with the next step.

Sources and authorities

These public sources set out the requirements this guide refers to. They are the places to confirm what applies to your property; we help you understand and prepare for them.

• Consumer Affairs Victoria: when a rental provider can enter or inspect a rental property.
• Consumer Affairs Victoria: condition reports at the start and end of a rental agreement.
• Australian Taxation Office: guidance on depreciation for rental and investment property.