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Not only tax deductible, but more attractive to future tenants. If the first tenant does not connect, you will have this issue each time you rent and it will make your property less attractive to prospective tenants who will be comparing available properties. I would second your PM's...

To be on the safe side, ensure this is written on the lease and signed off by the tenant. Marg

Just make sure your future tenant is aware that there is no phone landline connection to the property to avoid arguments later. Check with the appropriate authority. We had an issue with a tenant who complained that one of the phone extensions wasn't working. PM checked and in Qld we are...