Tracking rental property income and expenses in Quebec for duplex, triplex, and plex owners

Landlords who track rent and expenses monthly avoid missed deductions and audit stress. Here is a practical system for duplex, triplex, and plex owners in Montreal and across Quebec.

Set up a clean bookkeeping structure

• Separate bank and card for the building.
• One ledger per building with tabs for income, expenses, capital improvements, and mileage.
• Categories aligned to T776/TP-128-V lines (advertising, insurance, interest, office, legal/accounting, maintenance, management, taxes, utilities, vehicle, travel, CCA).

Record rental income accurately

• Rent per unit with date, method, and any late fees.
• Other income: parking, storage, reimbursements, laundry.
• Vacancies/credits noted so your P&L matches reality.
• Reconcile rent roll to bank deposits monthly.

Capture deductible expenses

• Taxes (municipal, school), insurance.
• Utilities paid by landlord.
• Repairs and maintenance.
• Advertising and leasing costs.
• Professional fees (accounting, legal, property management).
• Interest on loans tied to the building.

Separate repairs from capital work

• Repairs: small fixes, touch-up paint, minor plumbing/electrical.
• Capital: roof, windows, full kitchen/bath, heat pumps; add to CCA classes.
• Keep invoices and photos to justify the classification.

Handle mixed-use buildings

• If owner-occupied, allocate shared costs by square footage or reasonable method.
• Document the allocation basis (for RQ/CRA support).

Monthly process (30–45 minutes)

1. Reconcile bank/credit to ledger.
2. Reconcile rent roll to deposits.
3. Attach receipts (PDF/photos) to each expense line.
4. Flag items that might be capital.
5. Update mileage log (date, purpose, km).

Audit-ready records

• Foldering: YYYY-MM/building/ with leases, notices, invoices, bank statements.
• Keep lease renewals and rent increase notices.
• Condo/HOA breakdowns if applicable.
• Photos for major work.

When to get help

• You added units, did major renovations, or changed use (short-term vs long-term).
• You need bilingual notices, rent increases, and monthly reporting. See our property management services.
• You want bookkeeping plus tax prep to align with RQ/CRA.

FAQ

Do I need GST/QST on long-term residential rent?

No. Long-term residential rent is exempt from GST/QST.

Can I expense mortgage principal?

No, only interest; principal is not deductible.

How do I track a new roof?

Treat it as capital; add to CCA schedule with invoice and date.

What if I miss a receipt?

Request a copy from the vendor and annotate the ledger; keep consistent documentation going forward.

How often should I reconcile?

Monthly is best to avoid year-end cleanups and missed deductions.

Getting help with your file

If you own a rental building in Greater Montreal and want a turnkey system for rent tracking, expenses, and tax filing, contact TaxCove. We combine property management and rental-focused bookkeeping to keep you compliant and profitable.

Important notice: This article provides general information only and does not constitute personalized tax advice. Rules can change and include exceptions; validate your situation with a professional or the tax authorities.