Do I Tithe on the Rent, or on What’s Left After the Roof Repairs?

A reader writes:

I have been tithing on my salary since I was a teenager. It’s automatic. The money comes in, ten per cent goes to the church, no discussion.

Three years ago my wife and I bought a small building with two flats downstairs, and we rent them out. We live upstairs. There is a mortgage on the whole property. The tenants are good people, mostly. One pays on time; the other is sometimes a month behind but always catches up.

Here is my problem. I don’t know what to tithe on. If I tithe on the full rent that comes in, then in some months I am paying tithe on money that goes straight back out for the mortgage, insurance, property tax and repairs. Last year we replaced a water pump and re-did one bathroom and I think we made almost nothing on the flats once everything was paid. But if I only tithe on the “profit,” it feels like I’m doing accounting tricks to give God less. My wife thinks we should tithe on the full rent. My brother, who is a deacon, says it’s between me and God. Our pastor preached on the tithe last month but didn’t say anything about this kind of situation.

I want to be faithful. I also don’t want to put us in a hole. What do other Christian landlords do?

— Trevor, Mandeville

Our response

Trevor, thank you for asking a question many believers with rental property wrestle with quietly. The fact that you are worried about giving God less says a great deal about your heart.

Scripture does not give a formula for rental income, and faithful Christians reach different conclusions. What it does give is principles. Paul told the Corinthians to set something aside “as he may prosper” (1 Corinthians 16:2, NKJV), and that each should give “as he purposes in his heart, not grudgingly or of necessity; for God loves a cheerful giver” (2 Corinthians 9:7, NKJV). Proverbs urges us to honour the Lord with our possessions and the firstfruits of all our increase (Proverbs 3:9). The question, then, is what your “increase” really is.

Three common approaches

• On the gross rent. Some give a tenth of every dollar of rent received, seeing it as the firstfruits before any costs. It is simple and generous. The difficulty, as you’ve found, is that in lean years it can mean giving more than the property actually earns.
• On the net income. Others treat the property like a small business. A shopkeeper doesn’t normally tithe on the price of stock he buys to resell; he gives from what the business earns. On this view, you subtract genuine running costs (mortgage interest, insurance, property tax, repairs, fees) and tithe on what’s left. This isn’t a trick if it is done honestly and consistently.
• A middle way. Some give on the rent after only the unavoidable fixed costs, or give a regular amount each month and then a further gift at year-end once they know the true figure.

One point worth considering: the part of your mortgage payment that repays the loan (rather than the interest) is building your ownership of the property. Some believers see that as a form of increase too, even though you don’t see it in cash.

Questions to pray through together

• Which approach can we both hold with a clear conscience and a cheerful heart?
• Are we keeping honest records, so we know what the property really earns?
• If we tithe on net income, are we tempted to inflate “costs”?
• Are there other ways the property can honour God, such as fair rents, prompt repairs and patience with a struggling tenant?

Practical steps

Keep separate records for the flats. Your accountant or tax adviser can help you see what the property truly earns after costs, which you will need for tax purposes anyway. Sit down with your wife and agree an approach you both believe in. Then talk to your pastor privately; many pastors are glad to help members think this through even if it doesn’t make it into a sermon.

Whatever you decide, make it a settled decision rather than a monthly argument. God is not waiting to catch you out on the arithmetic. He is looking for a faithful, willing heart, and it sounds like that is already there.

This article is general information only and is not financial, legal, tax or other professional advice. Please speak to a qualified professional about your own circumstances.

Reader letters may be edited for length and clarity, and names and identifying details are changed.

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