How We Help Owners with Their Tax and Fee Obligations
DenCO Property Management (DenCO) believes the relationship between owners and property management companies requires trust, transparency, and accountability. Owners entrust us to handle rental income, reserve funds, security deposits, and write checks on the owners’ behalf. We help owners meet their tax obligations by providing monthly income reports and a list of annual property expenses, which enables them to file their taxes on time.
Owners should work with their tax service or CPA to determine the tax benefits and write-offs for each property they own. Typically, owners can reduce their rental income by subtracting qualified deductible expenses. DenCO collects and files all necessary repairs and maintenance receipts to ensure each property remains in good working condition. We send all the receipts for work done at each owner’s property at the end of the year.
Property managers spend owners’ money on upkeep and repairs. Some of the most common property expenses include:
- Advertising
- Cleaning and maintenance
- Depreciation
- Homeowner association dues and condo fees
- Insurance premiums
- Interest expenses
- Local property taxes
- Management fees
- Pest control
- Equipment rentals
- Repairs
- Trash removal fees
- Yard maintenance
What Are Important Property Management Deliverables at Tax Time?
DenCO’s document management process provides a clear audit trail for all income and expenses associated with each property we manage. At tax time, we provide our owners with a 1099-MISC form and a detailed summary of all expenditures for each property, accompanied by original receipts. Our deliverables are:
- Monthly Income Statement: Each month, we deposit net rent minus management fees and any expenses.
- Payment: We pay owners on the 10th of each month.
- Tax Forms: We provide owners with a 1099 MISC form for each property.
- Project Management: We meet contractors on-site to supervise any repair work.
- Significant Repairs: DenCO reaches out to the owner to arrange payment for any repairs or appliance replacements that exceed a month’s rent.
- Original Receipts: We send our owners original receipts for work done at their property at the end of the year.
Repair and Replacement Analysis
Sometimes, replacing an appliance, mechanical system, or fixture is more cost-effective than repairing it. Repair receipts over time can uncover repair patterns. DenCO recommends replacing items that need constant repairs. We work with some of the best service companies in Denver that offer reliable replacement/repair services.
New Regulation And Fees
DenCO keeps our rental owners informed about new taxes and fees, which increase the cost of doing business. Below is a partial list of new fees enacted over the last two years. For more information about new fees, click here.
Denver Sidewalk Fee: A flat fee of $150 will be added to the stormwater bill and split over two payments. The fee went into effect in 2025.
Trash Fees: Last year, Denver started charging households an average $50 per quarter for trash pickup. The city promoted the fee as a “pay as you throw” program, and promised weekly recycling pickup. After collecting millions of dollars over the last two years, they are cutting the recycling to every other week.
Property Management License: Property managers who rent and manage residential rental properties in Denver are required to hold a valid Colorado Real Estate Broker’s license. A rental is any building, structure, or accessory dwelling unit that is leased as a residence for 30 days or more at a time.
Rental Inspections Are Required: As of 2025, all rental properties in Denver, Colorado—including single-family homes, accessory dwelling units, duplexes, and apartment complexes—are required to undergo inspections by certified professionals as part of the city’s residential rental licensing program. Once inspected, the property manager must obtain a rental license valid for four years. Any failed items must be corrected and reinspected within one year; those who operate without a license risk escalating fines. Renters can verify a property’s license status through Denver’s website and report unaddressed safety concerns to the city.
Warranty of Habitability Law: Experts estimate that compliance with the updated law will increase unit rent $2,040 annually, or about $170 per month. The complex law will increase rents across Colorado as landlords pass compliance costs to their tenants.
The right property management firm can add value to the property, ensure efficient operations, and provide timely income and expense information to owners, enabling them to file their taxes on time. Owners who are too busy to keep up with all the new tenant rights laws should consider putting their rentals under professional management by DenCO. We have been in business since 1999 and manage 175 rentals in the DU, Washington Park, and other Denver neighborhoods. Please call 303-722-9688 or fill out this form on the contact page.
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