Rental Property Accounting Software for Small Landlords

Rental property accounting software for small landlords is a crucial part of your real estate business. Although some bookkeeping platforms offer free plans, for most small landlords, accounting software is an investment. Choosing the right accounting platform matters, even if you have only one unit.

To help you find the best option for your business, we’ll answer some key questions for you: Why is accounting software important for landlords? What factors should you consider when choosing a bookkeeping platform? Plus, we’ll evaluate the pros and cons of popular accounting solutions for small landlords.

Why Accounting Software Matters for Landlords

Rental property accounting software for small landlords is about more than just keeping track of your cash flow. It’s a foundational element of your business. Your books record your income and expenses and help you make informed decisions so that you can maximize your tax deductions and profits. Without clear, organized books, you’ll struggle to file accurate tax returns and may miss opportunities to lower your tax liability.

Manual approaches like spreadsheets and boxes of receipts end up costing you time, stress, and money. Even with CSV downloads and templates, it’s easy to introduce an error into your data or break a formula. Missing or damaged paperwork can undermine your books, too. That’s why keeping your books manually can lead to inaccurate reporting, incorrect tax calculations and payments, late fees, fines, and penalties.

Benefits of Accounting Software for Small Landlords

With rental property accounting software, though, you eliminate many of those risks. Since you aren’t keying in information manually, you’re less likely to introduce errors, such as transposing digits or skipping a transaction. Automatic imports and integrated bank feeds make sure all your activity is recorded and save you time.

Plus, many bookkeeping platforms include digital document storage, so you can upload receipts and paperwork. That reduces the space needed for physical storage and ensures your books have the documentation to support your tax return.

Your books are the foundation of your rental business—so your real estate accounting software is crucial.

What to Look for in Accounting Software for Landlords

Ready to shop for rental property accounting software for small landlords? When considering options, ask yourself four questions:

• What do you need help with? Think about what would help improve your business or run it more efficiently. Look for a platform that includes features to help with those tasks so you can consolidate your records.

• Is the software user-friendly? If the platform is difficult to use, you’re more likely to procrastinate on your accounting or make errors, which will cost you time and money to fix later. Test the free trials and demo accounts. If the software is frustrating, it might not be the right fit for you.

• What customer support comes with the subscription? Knowledge bases and tutorials are helpful resources available 24/7. Check on help desk hours and time zones to make sure they’re compatible with yours. Live support options may also depend on the subscription level.

• How does the price of the software compare to its value? Generic accounting software comes at a lower price because these platforms rarely include all the features landlords need. When you spend more time on workarounds, the low price isn’t worth it. Specialized software may cost more upfront, but the platforms deliver greater value by helping you run your business more effectively.

Pro tip: All-in-one solutions are helpful, but you could end up paying for features you don’t need. The goal is to find software with the accounting features and support you need without paying for more than you’ll use.

Pros and Cons of Rental Property Accounting Software for Small Landlords

Ready to shop for accounting software for your rental property? Let’s review the benefits and drawbacks of these popular choices.

TurboTenant: The All-in-One Solution for Landlords

TurboTenant started as property management software, but since its acquisition of REI Hub, it’s now a comprehensive solution for rental property owners. The simplified rental workflows allow landlords to manage tenants, finances, and tax prep easily. Landlord accounts are free, no matter how many doors users have, and users can move to higher subscription levels to access advanced features, like income verification, lower screening fees, and unlimited lease agreements.

Pros

• Apps for both landlords and tenants
• Automated mortgage accounting
• Comprehensive financial reports at the unit, property, and portfolio levels, including profit and loss statements and balance sheets.
• Digital receipt storage
• Extensive education and support resources
• Fixed-asset tracking and depreciation calculations
• Mileage tracking
• Property management features, like advertising, tenant screening, and lease compliance with state laws
• Rent collection with auto-reminders and custom late fees
• Robust real estate-specific reporting
• Transaction imports and rule-based expense categorization

Cons

• Fewer subscription levels may mean users with small portfolios end up paying for property management features they don’t need. However, it’s among the most inexpensive solutions on the market.
• The live chat and email support aren’t 24/7, and phone support isn’t available.

REI Hub: The Best Accounting Software for Short-Term Rentals

Unlike popular generic bookkeeping platforms, REI Hub is designed specifically for rental property accounting. REI Hub offers a fast, easy setup with minimal customizations needed since it comes preconfigured for real estate. With rental-specific reports, templates, and tax-preparation support, this platform consistently receives high reviews from real estate investors. With four subscription levels to choose from, starting at $9 per month, users receive high value for their investment.

Pros

• 1099 vendor tracking
• 14-day free trial
• Bank reconciliations
• Document storage
• Financial and performance reports at the unit, property, and portfolio levels
• Fixed-asset and depreciation tracking
• Free onboarding support
• Free support from live, US-based representatives
• Integrations with property management platforms
• Lease and mileage tracking
• Secure imports and transaction feeds
• Tax-prep reports, like the Schedule E and Form 8825

Cons

• The platform currently connects to only two property management platforms: TurboTenant and RentRedi.
• Some users report disruptions with the bank feeds.
• The pricing structure varies depending on how users sign up.

QuickBooks Online: Generalized Accounting for All

QuickBooks Online has millions of users. It’s a well-respected generic accounting platform that works for many industries and business types. Capterra gives it 4.3 of 5 stars, and QuickBooks offers several plan levels, giving users plenty of room to grow with a starting price of $38 per month.

Pros

• 1099 management and filing
• 50% off for the first three months
• Bill management and receipt capture
• Budgeting feature
• Depreciation calculations and fixed-asset tracking
• Expense categories and organization task automation with Intuit Assist
• Free guided setup
• Free mobile app
• Integrations with property management apps
• Mileage tracking
• Options for full-service bookkeeping with live experts
• Unlimited and recurring invoices

Cons

• Some automations, like recurring invoices and transaction posting, require the higher plan levels.
• The budgeting feature is only available at the higher subscription levels.
• Fixed-asset tracking, depreciation calculations, forecasting, and revenue recognition are part of the highest tier.
• 1099 filing is an additional cost.
• Report options depend on the subscription level, and the custom report builder is only available at the highest level.
• Class and location tracking are features in the top two levels, so multi-unit accounting will be more costly.
• The subscription prices go up regularly.

FreshBooks: Easier Accounting, Exceptional Service

FreshBooks is marketed as an easier way to handle accounting with exceptional customer support — and the reviews back up these claims. With 4.8-star reviews for customer service from 120,000+ reviewers, FreshBooks has won 11 Stevie Awards.

It may be no surprise that over 30 million small-business users rely on FreshBooks, and it has a higher Capterra rating than QuickBooks Online. Subscribers like the platform’s accessibility and report that it’s an intuitive experience. The different plan levels give users flexibility.

Pros

• 100+ integrations and automations, like bank reconciliation, recurring invoices, and payment reminders
• 30-day free trial
• Advanced accounting options for tracking multiple income sources
• Expense tracking with mobile receipt scanning, bank imports, and automated expense categorization
• Good ratings from PCMag.com and SoftwareAdvice.com
• Mileage tracking

Cons

• The free trial doesn’t include invoicing, time tracking, or expensing.
• Accountant access isn’t available for all plans, and each additional user costs extra.
• The platform doesn’t include specific tax-time accounting reports, like the Schedule E.
• Fixed-asset tracking and depreciation calculations aren’t included.
• To bill more than five tenants per month, users must have the second-tier level or higher.
• There’s no easy way to assign expenses to a specific property.
• Some users report limited banking integration features and frequent technical disruptions.

Wave: A Simple Money Management Solution

Used by over 350,000 small businesses, Wave is designed for small-business owners, not accountants. The free starter plan includes basic bookkeeping features and a clean interface. Wave may be a good fit for people who need straightforward invoicing without the price tag for complex accounting systems.

Pros

• 1099 contractor management
• Account reconciliation
• Ask an expert feature
• Crucial reports, like balance sheets and profit and loss statements
• Customized branding for templates
• Discounted rates for online payments
• Multiuser access
• Receipt capture and storage
• Recurring invoices
• Secure online payments
• Unlimited invoicing and clients for every plan level

Cons

• The free plan doesn’t include any of the automated features, like bank transaction imports or expense categorization.
• Bookkeeping support or accounting coaches start at $149 per month or a $229 flat fee.
• No fixed-asset tracking features or depreciation calculations are available.
• Integrations are needed for mileage and time tracking.
• The online payment option is an add-on cost for the free plan.
• Wave doesn’t have class tracking to tag income or expenses by property or unit.
• Users report slow response times from customer service and limitations with reporting.

Xero: Practical Small-Business Accounting

Xero is accounting software for everyday businesses that want to automate core accounting tasks. Users give Xero positive ratings for its reporting and invoicing tools, with an overall 4.4-star rating on Capterra. The intuitive layout, simple setup, and easy navigation make this a practical choice for small landlords.

Pros

• 90% off for four months
• Access to onboarding specialists for 90 days
• Automations for invoice reminders and bank reconciliations
• Fixed-asset tracking and depreciation calculations
• Integrations for accepting rent payments and automatically adding bills, receipts, and account transactions
• Mobile app
• Reports and analytics, like forecasts and KPI metrics
• W-9 and Form 1099 management plus filing options
  

Cons

• Users must give a month’s notice to cancel.
• Analytics and reporting options depend on the plan.
• The base plan allows only five bills per month and 20 invoices, likely pushing users to the second tier at $55 per month.
• No discounts are available on annual plans.
• Third-party integrations are needed to accept online payments and file 1099s, so users will have additional subscription costs.

The Bottom Line

The best rental property accounting software for small landlords is the one that fits your workflow, budget, and support needs — without weighing you down with unnecessary features. By focusing on ease of use, customer support, and real estate-specific tools, you’ll set up a system that makes your financial management simpler, faster, and far more accurate.

As you compare platforms, weigh the value each one delivers against what you actually need. With the right software in place, you’ll streamline your accounting, reduce costly errors, and put yourself in a strong position to confidently grow your rental business.

Sign up for your free-to-start TurboTenant account today to get to know the platform and how it can work for you.

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.

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