Rental accounting/bookkeeping - QuickBooks or something else?

Question

Looking for suggestions for a good accounting/bookkeeping software for rental properties.  I currently own and self-manage 9 units.  I've heard many folks use quickbooks, but it isn't particularly tailored for investment properties.  I have been using my own excel spreadsheets for the last 4 years.  However, after jumping from 4 units to 9 this year, and throwing in a flip as well, I'm hoping to find something simpler and easier than 9 different spreadsheets.  Any recommendations or tips are appreciated.

Luke Naylor · Answer

@Daniel Hyman That is kind of what I noticed.  Was hoping someone might recommend a scaled down version of something similar.

Looks like QuickBooks it is!  I appreciate the responses.

Joe Hines · Answer

I second @Cathie Kovacs response.  QuickBooks works great for real estate property investing and accounting - and the classes are the key to success.  With the class properly assigned to each expense and income transaction, you get a solid bookkeeping package.  I also use the QB mobile app, especially when traveling.  Using that, I can quickly record an expense, assign classes, amounts, expense type and even snap a picture of the receipt.  In fact, I copy all of my receipts and invoices and store them in QB with the transaction.  Very helpful when you need original receipt, like for an audit.  :-(

The bonus that doesn't get a lot of talk time, however, is the really good reporting that can be generated when you leverage the classes along with standard bookkeeping practices.  These reports will let you summarize all types of expenses for each property and total them for all properties.  It is great in helping you keep a handle on your expenses and see where you need to pay attention.  For example, my rentals are in Florida and lawn maintenance is a costly endeavor.  Seeing the percentage of income I'm paying for lawn care overall and for each property lets me focus on what I can do to lower that expense.  Great leverage for negotiation and, at some point, maybe a vertical business.

One final word of advice:  If you use QB,  get your accountant's help in setting it up (unless you are an experienced bookkeeper, which I am not).  I'm tracking depreciation for all of my buildings along with expenses and income centers.  QB offers a way for accountants to access your stuff and it is fantastic at tax time.

Dan V. · Answer

@Luke Naylor I still recommend Quickbooks Online Plus. Most of the free tutorials you can find online are for general use (no specific industry) so you may not see it fit, however, QB can be customized to tailor special industries like REI. To name few features, you can connect your bank & credit card account(s) to QBO to automatically download the transactions daily, set up rules for any recurring charges, setup recurring transactions (ie invoices to tenants), sent out reminder (individual or batch), accept online payments (cc & bank) which can be tenant or landlord initiated, track multiple income sources (ie. flip, rental, wholesale), track individual properties, charge tenants for reimbursable expenses, track 1099 contractors (and e-file tax forms), and create a budget. Most of the features need to be activated and set up manually and procedures need to be in place in order for it to work properly.

There are also other software available but I can only speak of what I have experience with. And if you may decide to seek guidance, make sure to look for someone who both know the software and the industry.

Cathie Kovacs · Answer

Sorry...QuickBooks gets my vote. Use classes to track your properties and units. Works great.

Luke Naylor · Answer

@Cathie Kovacs Thank you.

Cathie Kovacs · Answer

Projects is more about job costing. You turn the Class feature on using the gear icon, the Account & Settings. Have it prompt you to add a class so you don’t forget. Make a class for General or Overhead too if you have non-property-specific transactions for your business (like a laptop or telephone expense ).

Josh Kredit-Phelps · Answer

I just fired up a Stessa Account as I am trying to figure out what software we are going to use.

Based on the comments above, I am going to try out QB. The big thing with stessa is it wants me to connect my bank account to a specific property when it is actually used for 3 different properties at the moment.

Excited to try out QB and the classes feature.

Matthew Talamini · Answer

There seem to be a few sites out there that are designed to help landlords in your situation.  One that I'm familiar with is called NowRenting.  It keeps track of lease details and payments (and integrates with QuickBooks Online, if you end up going with that!) as well as things like syndicating listings, screening surveys, applications and background checks.  They all have different features; if you click around some, you're likely to find something that will work for you.

Rental accounting/bookkeeping - QuickBooks or something else?

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