Tax and SARS knowledge base

What rental expenses can I claim when I rent out only part of my home?

Last reviewed: 28 August 2026

Direct answer

When you rent out only part of your home, you cannot claim the whole household cost simply because some rental income is earned. SARS's ITR12 guide says that only allowable expenses relating to the part rented out may be claimed, and the private part must be excluded. Keep a clear record of the rented area, the rental period, direct costs and the basis used for shared costs.

SARS also distinguishes repairs from improvements. A repair directly relating to the area let may be treated differently from an upgrade or addition, so preserve invoices and descriptions instead of relying on a bank-statement label.

What this means in practice

Start by describing the arrangement accurately. Is it a room, a garden flat, a section of the house, occasional holiday accommodation or a longer-term tenancy? Record the period it was available and let, the space used by the tenant, areas shared with the household and any services included in rent.

Direct costs are the easiest to identify. If a repair applies only to the rented room, keep the invoice and evidence that it relates to that area. Shared costs require a reasonable method that fits the facts. For example, floor area and period of rental may be relevant, but do not use a percentage merely because it was used in a previous year or appears in an online example. Write down the method and keep the measurements or other support.

SARS's rental-income page says improvements are not deductible against rental income, though they may be relevant to base cost on a later disposal. A new kitchen, extension or substantial upgrade should therefore be flagged for review rather than automatically placed in the rental-expense column.

Step-by-step

Define the rented space and dates.

Save the lease, listing, floor plan or room measurements and a calendar showing when the area was rented, vacant or privately used.

Separate direct and shared costs.

Create categories for costs that relate only to the tenant's area, only to private use and to the whole property. Keep supplier invoices and payment proof.

Classify repairs and improvements.

Read the invoice description and preserve photographs, quotes and correspondence where helpful. Do not treat a capital improvement as a repair without a review.

Choose and record a reasonable allocation basis.

Apply a method that reflects the rented area and time available. Document the numbers, assumptions and calculation beside the invoice totals.

Exclude private amounts.

Ensure the schedule removes the household portion from shared expenses. Do not claim personal groceries, family entertainment or unrelated household spending.

Complete and retain the return file.

Reconcile rental income and allowable expenditure to the current ITR12 guide, then save the schedule, return and assessment.

Documents and records to keep

Lease or booking record, floor plan and measurement notes.
Rental-income ledger, bank statements and tenant correspondence.
Invoices, receipts, proof of payment and repair descriptions.
A written apportionment schedule for every shared expense category.
ITR12, ITA34 and supporting-document responses.

Important limits and exceptions

There is no universal percentage that is safe for every home. The method must reflect the actual space and facts. A home with shared kitchen and bathroom access, periods of vacancy, short-term guests, a home office, joint ownership or a substantial renovation needs a more careful review.

This article concerns rental-income expenses, not the primary-residence CGT consequences of selling a home with part used to earn income. Keep those questions separate and obtain advice before a disposal.

When to get tailored advice

Get advice if the letting is short term, the property is partly a home office, expenses are material, renovations are significant, there are joint owners or the home may be sold. TaxProof can produce the evidence schedule, while a practitioner can review allocation and CGT implications.