What accounting a realtor or landlord needs
Real estate brokerage and renting out your own property have different tax logic, although these two kinds of income are often confused with each other or not declared at all.
Which format fits a realtor
A realtor who works for themselves and earns commission from deals usually registers as self-employed or a sole proprietor — depending on the monthly volume of deals. An agency with several realtors on staff is already a sole proprietorship or LLC with HR accounting.
What a landlord should keep in mind
Income from renting out an apartment or commercial premises is a separate type of income that must be declared regardless of whether you have another business. Many owners mistakenly consider renting out property "a private matter" and do not pay tax on this income, which creates risks during audits.
Common mistakes
- They don't declare income from renting out one or several apartments
- They mix a realtor's commission with personal income without keeping records
- They don't put rental agreements in writing, which complicates both legalization and the protection of rights in disputes with tenants
Conclusion
Both realtor commission and rental income are easier to legalize than they seem — and legal income provides grounds for a mortgage, a loan or official registration of transactions in the future. We'll help you work out which format fits your particular situation.