As the property owner, you want to know how much your unit is worth every month, what rent is collected from the tenant, and what goes out to expenses. You also want an easy system for tracking your properties and how they are all doing.
This article will cover a few key features of rental property accounting software that will help you run your business with less hassle, such as applications and tenant information, rent roll and payments, financial accounting, and reporting. Moreover, below you can find the list of best accounting software for rental properties on the market with their main advantages.
Our Top 5 Best Accounting Software For Rental Properties
Best Accounting Software For Rental Properties Reviews
1. Best Overall: AppFolio
AppFolio is a simple, yet powerful tool that homeowners and landlords can use to manage rental property accounting. It automatically tracks all expenses associated with running a rental property, is easily accessible through the web or mobile devices, and generates professional-looking documents such as statements, contracts, and tax filings.
This software comes with detailed instructions on how to best set it up for your business needs so you can keep your eyes on the ball while staying in control of your finances.
- Online services – One of the great advantages of AppFolio is that it is accessible from the web. If you’re in the middle of scheduling repairs or showing the property to a tenant, simply log onto your account from any computer and access all your records and business transactions.
- Multiple users – AppFolio can be used by an individual or an entire team of users. Simply create a new user and permit them to work within a certain area of the business. This model allows you to delegate jobs while still keeping everyone informed about what goes on with your rental property business operations.
2. Best for Large Property Portfolios: Buildium
Buildium is a cloud-based accounting software service for rental properties that lets you keep track of all your income and expenses. You can easily view a timeline of all your renter payments, rent collected, and expenses incurred.
The software would include automated alerts if you missed an important event, such as a tenant’s last payment or the billing cycle deadline. Buildium also allows you to upload documents such as monthly leases and tax return forms to automate the tax process for young property owners with little time on their hands to waste on taxes.
It is ideal for any individual or business dealing with rental properties that keep track of income and expenses. In addition, it is beneficial for new property owners who may not have an accounting background.
This software can be easily integrated with other accounting programs. Buildium is also simple and easy to use. Other options seem overwhelming and overly complicated. This was so easy to set up and use right off the bat! The dashboard is incredible; it allows you to quickly see your cash flow, account balances, recent activity, upcoming due dates, etc.
3. Best Value: Stessa
I have wanted to purchase and use rental property accounting software for years now, but the economics didn’t seem right. Then, I saw one company with an on-demand model that was too expensive for the returns.
Stessa has opened its doors to a new group of property managers with my current market conditions: myself. With their pay-as-you-go pricing model, I can finally start managing my portfolio without having to worry about being stuck in a lease agreement that would result in considerable debt. In addition, the software is simple enough for beginners like me to use without any troubles or frustration while meeting all of my needs and goals with it.
I recommend Stessa to my friends and property managers looking for an alternative to traditional, long-term, expensive software.
4. Best for Streamline Workflows: Yardi Breeze
Yardi Breeze is a property management software for rental properties. It offers all the tools you need to manage your property, including tenant screening, maintenance bookings, and easily tracking the rent roll. The owners will also find Yardi Breeze helpful as it allows them to track expenses and taxes.
Yardi Breeze turns your boring spreadsheet into an administration app for both you and your tenants so that you can take the hassle out of keeping track of everything yourself. This software works on a monthly plan with additional features that can be added or removed at any time. In addition, Yardi Breeze makes sure that tenants are always up to date on their bills, so they don’t have to worry about minor things such as late fees or missed payments.
Yardi Breeze offers a full suite of tools that help you run your property in an efficient and organized way. From password protection to notification emails, Yardi Breeze provides all the tools you need. You can even set rent management policies and make notes on renters, so they know what to expect when moving in or out. It’s probably best used as a tool by an experienced real estate manager, but it should be helpful to anyone who owns real estate.
Yardi Breeze is a good choice for tenants because it allows them to view their accounts and find out when/how much money they owe you for the month.
5. Best User-Friendly: Property Matrix
Property Matrix is a business management app that helps keep all rental properties in one central location. With Property Matrix, you can manage all your properties from one main dashboard and a seamlessly integrated accounting system. Find out how to make this app work for you today.
Property Matrix is a cloud-based property management app designed specifically for users managing their rental properties. It offers an integrated accounting system, advanced data reports, and an easy-to-use interface so you can stay on top of everything from a single location.
With Property Matrix, you can easily connect to the various social networks you use to interact with tenants and prospective clients. For example, send them messages or post new listings directly through your social networks. Not only does this help streamline your operations, but it also showcases your property management skills to potential clients in your area.
Some small business owners decide to manage their properties without any software and keep all records on spreadsheets. Don’t get us wrong; it is not the worst idea as long as you keep everything up to date and in order.
Having said that, using real estate accounting software will make your life a lot easier, especially if you have quite a few investments. You will be able to check each property’s financial condition quickly and in a matter of seconds. Moreover, you will not have to process every single piece of paper manually.
The software we cover in this article is not focused on investment properties only. We have tested and used accounting software for rental real estate properties as well.
What Is Accounting Software For Rental Properties?
This kind of software allows you to keep track of the money flowing in and out of your properties with a few clicks. This means that you can run reports based on various criteria such as income, expenses, assets, liabilities, etc. Moreover, you can access your property’s information from anywhere. All you need is a computer or an Internet connection.
When comparing accounting software for rental properties to real estate management software, the first one is more general-purpose and covers all aspects of your business, whereas the latter handles just one feature such as vacancies, tenant screening, and scheduling appointments.
Common Features Of Rental Properties Accounting Software
The software we are looking into today is designed for use by those people who own small properties. It can be used to track all expenses, income, and assets for your business and keep an overview of the entire financial picture in a non-intimidating manner.
Applications And Tenant Information
Most accounting software for rental properties has the real estate industry listed first as the main reason they were made and built to make it easy. Most tenant information is stored by default in the software. The landlord can download the reports on tenants’ accounts. The program will automatically generate a report for each property with income/expense details, net rental income, expense items, etc.
Rent Roll And Payments
The rent roll allows you to view the total amount of money paid during a period, whether it is paid in cash or not, and you can also print it as needed. This also includes any extra payments made to your tenants, if there are any of those. This includes both direct payments and additionals intended for repairs or improvements.
Financial Accounting And Reporting
This is one of the essential features of accounting software for rental properties, namely financial reporting. You will be able to keep track of your net revenue and expenses every month, get the profit and loss statement, balance sheet, cash flow report, as well as other reports such as depreciation or gains/losses.
Is Quickbooks Good For Rental Property?
Yes, QuickBooks can be a tool for rental property management. It is important to have the correct type of QuickBooks plan to track your income and expenses. If you use QuickBooks in your home or business, it will help streamline records and make the process easier for accounting. However, it is important to keep in mind that this program is just as complicated as any other accounting program is, and there are many mistakes you could make when using this software.
What Are The Main Features Of Property Management Software?
Property management software is a type of software that can manage properties. The various benefits of this type of software include:
– Increasing efficiency in administrative tasks.
– Standardizing operations among clients and vendors.
– Maintaining a detailed electronic records system to track transactions, inventory, and other data.
Does Rental Income Attract Service Tax?
Yes, rental income attracts service tax. Service tax is levied on any business or profession which have been declared as a service sector. The service provider is liable to pay the same. Service Tax is different from the usual income tax, and it does not enjoy any of the exemptions available to individuals. Service providers include renting out equipment, providing consultancy services, rendering business management services, etc.