Should Landlords Use QuickBooks for Rental Property Accounting?

Successfully managing rental properties requires careful financial tracking, and for landlords, QuickBooks seems like a smart choice for rental property accounting. But QuickBooks may not be your best option for bookkeeping — especially if you have multiple properties. Many DIY landlords prefer specialized property management software, like TurboTenant, for their accounting and bookkeeping needs.

In this article, we’ll compare QuickBooks and TurboTenant to determine which option is best for landlords. Because the average number of units owned by this group is 1.89 units, according to iPropertyManagement, we’ll dive into which option works best for those managing between 1 and 5 units.

Understanding QuickBooks for Landlords

QuickBooks has long been known for its powerful suite of financial tools, and as the software has evolved, it’s split into two main versions: Desktop and Online.

Both versions have tools to help landlords manage rental properties. Tracking rental income and property expenses, managing mortgage accounts for multiple properties, and generating detailed financial reports are all possible with QuickBooks.

So, when does using QuickBooks make sense for property management? The platform works well for these scenarios:

• A real estate investor with complex business structures.
• An investment group needs advanced multi-entity accounting.
• A rental property owner already has QuickBooks ecosystems in place.
• A longtime CPA or bookkeeper who refuses to work in another system.

But does using QuickBooks for landlords make sense, especially for those with 1 to 5 properties?

Let’s take a closer look.

Challenges of Using QuickBooks for Property Management

Using QuickBooks for landlords may make sense in certain situations, but when you consider QuickBooks as property management software, significant challenges arise.

Complex Setup Process

Using QuickBooks for property management can present a tricky setup process for small landlords. Property management isn’t integrated into QuickBooks’ functionality, so landlords must create individual property profiles to track each property’s finances and cash flow separately.

Tenants would also be classified as “customers” in the system, and users must handle tenant setup. The process could lead to confusion when running financial reports, especially if a landlord has more than one rental property.

Finally, setting up QuickBooks for a property management system can become even more complicated when aligning a chart of accounts with IRS Form Schedule E.

Have two or three properties?

Trying to record expenses for each one correctly can lead to confusion and time-consuming problem-solving.

Lack of Industry-Specific Features

As property management software, QuickBooks lacks essential features that landlords rely on. Furthermore, it doesn’t include built-in tools for rental contract management or tenant screening. The new Intuit Assist (Beta) feature can send tenants invoice reminders as the due date approaches, but it isn’t available for all subscription tiers yet.

Limited Scalability

For real estate investors, adding rental properties to their portfolios is essential to maximizing profits. As business grows and opportunities arise, incorporating new properties into your workflow should be seamless.

However, adding additional properties in QuickBooks Desktop or Online can be cumbersome and often requires multiple steps to connect all of a landlord’s units.

Generating custom reports for a diverse property portfolio can also be tricky, typically requiring extensive customization to get the software to perform as needed.

Unless the chart of accounts for each subscription is identical, the financial reports won’t line up across the portfolio. That means exporting data, manipulating formatting, and rebuilding reports outside the system — a major time drain that can introduce errors.

An Alternative to QuickBooks for Landlords

Because of the challenges of using QuickBooks as property management software, some landlords decide to run two systems: QuickBooks and a property management platform.

Running multiple platforms takes more time and increases the chances of errors. Adapting a general accounting tool isn’t the answer either. For landlords focused on simplifying day-to-day operations, there’s a better path.

Enter TurboTenant.

What is TurboTenant?

TurboTenant is a suite of property management and accounting tools designed to address every aspect of managing rental properties. Unlike QuickBooks, our software is specifically designed for real estate management, making life easier for landlords and real estate investors like you.

TurboTenant offers a free account option that gives landlords access to essential tools for running a streamlined property management business with minimal setup time and no coding skills required.

Need more advanced features, like income verification, unlimited lease agreements, or a robust accounting system? Our modestly priced premium tier provides these additional tools and more to help you keep your rental business running smoothly.

Key Features Beneficial to Landlords

So what sets TurboTenant apart from QuickBooks for landlords? Let’s review some of TurboTenant’s key features for rental property owners:

Rental Property Listing

Making sure quality applicants see your listings where they’re already browsing is imperative to minimizing vacancies and keeping quality tenants. TurboTenant syndicates property listings to dozens of top-tier listing sites for free with just one click.

Tenant Screening

Once you’ve received an online rental application, you’ll need to conduct a tenant screening by reviewing an applicant’s credit, criminal, rental, and eviction history. TurboTenant provides landlords with a comprehensive review of a potential tenant’s background and directly passes the service cost to the applicant.

Online Rent Collection

One of the core, industry-specific features of property management software is the ability for landlords to collect rent online. TurboTenant allows tenants to pay rent through the platform via ACH, debit, and credit cards. It automatically sends rent reminders and assesses late fees when rent is past due, all while seamlessly integrating with business bank accounts.

Accounting and Reporting

Thanks to its integrated REI Hub software, TurboTenant makes tracking rental income and expenses easier than ever across all your properties. Landlords can:

• generate custom reports for tax season,
• monitor daily, monthly, and yearly cash flow for individual units or an entire portfolio, and
• manage everything from a single, easy-to-access platform.

Tenant and Lease Management

Unlike QuickBooks, TurboTenant recognizes tenants are more than just “customers.” They’re residents with whom landlords build long-term relationships, and keeping residents satisfied contributes to the stability every landlord values when filling units.

TurboTenant also allows users to access online lease agreement templates that comply with landlord-tenant laws and to sign documents electronically, streamlining the rental process.

Comparing QuickBooks and TurboTenant

How do QuickBooks and TurboTenant features compare for landlords?

Comparison of QuickBooks and TurboTenant Features

When choosing between specialized property management software and QuickBooks, landlords should consider key factors such as ease of use, essential features, and cost-effectiveness.

Ease of Use

QuickBooks

While QuickBooks has long been an industry leader for business accounting, it has a steep learning curve for landlords. The platform requires advanced knowledge to customize its built-in features to use it for property management.

Since QuickBooks is meant purely for business accounting, landlords must find creative ways to bend it into a property management tool.

TurboTenant

We built TurboTenant from the ground up to cater directly to landlords and property managers, with an easy-to-use suite of user-friendly, intuitive tools tailored specifically for rental property. Plus, you can access it via your preferred web browser or mobile app.

It features include prebuilt templates, communication tools, powerful tracking and maintenance options, and a weekly podcasts that will help you make sense of the complex world of real estate. Unlike QuickBooks, TurboTenant requires no advanced setup or customization, making it a comprehensive solution regardless of portfolio size.

Features

QuickBooks

At first glance, using QuickBooks for landlords might seem to make sense. After all, it offers valuable accounting and financial tracking tools:

• Linked accounts and automations for income and expense tracking save users time.
• Bill management, receipt capture, and mileage tracking help make sure all expenses are recorded.
• AI-supported chat options mean you can get contextual answers quickly.
• Basic tax support and reporting is included in each subscription level.
• Integrations with 1099 reporting and filing options are helpful during tax season.
• Each subscription level includes at least two accountant seats.

However, it lacks rental-specific features that landlords need to manage properties effectively, especially for those with multiple properties.

Pro tip: For each business entity, keep a separate set of books. So if you have two rental properties and they’re each registered under different LLCs, then you need one set of books for each LLC.

TurboTenant

Beyond a robust set of rental property accounting features, TurboTenant boasts plentiful tools that provide landlords like you with everything they need to streamline their day-to-day operations, including:

• tenant screening,
• lease tracking,
• maintenance management,
• tenant communication,
• bookkeeping features specific to rental property,
• comprehensive accounting reports and real estate metrics, and
• tax-prep tools.

By creating software specifically designed for property management, TurboTenant provides a streamlined solution that helps rental property owners succeed.

Cost Considerations

QuickBooks

QuickBooks uses a subscription-based pricing model and offers monthly or discounted annual plans that start at around $38 per month but can reach $275 per month.

Additionally, some landlord-friendly add-ons cost extra, potentially making the software unaffordable for many users.

Let’s say you’re a landlord who has three properties. In QuickBooks, to effectively track more than one property, you’d need one of these options:

• One subscription per property. The base plan starts at $38; for three properties, you’re looking at $114 in subscription fees per month.
• A higher-tier subscription that includes class tracking and that costs starts at $115 per month.

TurboTenant

TurboTenant offers users a free tier with many core features that landlords need to level up their property management game. You can list your properties on dozens of syndicated listing sites, collect rent online, screen tenants, collect rental applications, and more — for free.

The platform offers additional services, such as landlord insurance, coordinated maintenance, or eviction assistance, for an additional fee, but the core tools needed to manage property effectively are included at no charge.

For rental property-specific accounting, our Pro plan offers one of the best deals in the industry. At an affordable $16.58 you get everything TurbotTenant has to offer, including accounting and bookkeeping functionality. To learn more click the core tools link.

When you break it all down, it’s easy to see why TurboTenant is the go-to property management software for over a million landlords in the U.S.

The Final Word

QuickBooks is a widely used accounting software that excels across many aspects of business finance. Although it’s rightfully an industry leader for pure accounting needs, QuickBooks isn’t the ideal solution for small landlords managing one to 50 rental properties.

TurboTenant, however, streamlines property management tasks with state-specific lease agreements, online rent collection, rental applications, comprehensive tenant screenings, and one-click rental advertising. And it does all this alongside a robust, real estate–specific accounting integration.

Don’t let another day pass without seeing what true property management software can bring to the table.

Sign up for a free TurboTenant account today and level up your rental game right away.

FAQs

Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.