best software for landlords?

Question

Hey guys,

Ive always struggled with separating all my rental expenses from my own, digging through receipts etc. Is there some software that you guys recommend that will help with this? I heard about one on a bp podcast but I don't remember the name. One linked to your bank account and filed it when you spent it, anyways any ideas?

Shane Hale · Answer

The original question here is "best software" but the thread seems to be focused primarily on expenses / bookkeeping. For Expenses I do currently use Expensify. On the bookkeeping side I use Xero which works fine, however most bookkeepers and accountants I've spoken to seem to prefer QuickBooks (I lean towards the online version). I'm always on the hunt for better apps and solution so hope to migrate to QBO eventually for existing corps.

Broadening the original question a bit to "Software" in general I recently attended a very good presentation in which a Real Estate Investor went over their favourite software applications. Following are the notes I took. I intend to look into many of these over the coming weeks.Presenter's Tech ListBuildium (PMS)RentSync (listing)RentCheck (credit check). Has database of landlord reportsZipSure (Insurance)QBO, ReceiptBank, HubDocMileIQAdobe SignHappy Inspector (Buildium) - iAuditor is a cheaper alternativeUbiquiti CamerasLeviton WiFi or Lutron Smart SwitchesLeviton Smart PlugsSchlage Encode WiFi Smart LocksButterfly Mx (cloud) or AIPhone - Entry IntercomHoneywell or Mysa electric thermostats, Sensibo for mini-splitsSensors - Flowie, Floodie, Shuttie, Sumpie

Todd Lennig · Answer

As a bookkeeper, I recommend a separate account for your rentals.  If you set up a business for each rental property then you will need a separate account for each business, and also for quickbooks.  It is easier to keep track of expenses with each property has its own account, but that can get confusing on which debit card or credit card to use for each.  I would recommend quickbooks and then up your subscription to the level where you can track expense by "class". This gives you the opportunity to classify a utility bill as that, then put it towards a specific property.  If you have one or two properties, it might not be worth the cost and there are other ways to work quickbooks to give you the results you are looking for.  Happy to answer specific questions if you dm me.

Chris Baxter · Answer

@Nelson Ellingham  first, each property should have its own bank account and every transaction needs to go through it. That way, there is no need to 'seperate' expenses; its already done for you.  From there, use the accounting software of your choice (or just give your property statements and bank downloads to your accountant).

Tyler Stiller · Answer

I use STESSA. It is pretty good, you can scan receipts with your phone, have pretty reports, hold tenant documents, mortgage documents etc. in it. AND IT IS FREE.

It was built for landlors and property management.

Lee Ripma · Answer

@Nelson Ellingham

I have a bank account for each property and use Quickbooks to categorize everything. I looked at Stessa and didn’t like it but that’s what a lot of smaller landlords use. I love keeping things organized in QB. I have a bookkeeper who goes through and puts expenses in and asks me questions. I also do my own categorization if I think she’ll get confused. I asked this question as a new investor and everyone said QB. Learning curve for sure but it’s great.

Nelson Ellingham · Answer

Account Closed Gotcha! Thanks for the input!

Account Closed · Answer

@Nelson Ellingham

No. I have one cc that gets used for deductible expenses only and one that gets used for personal expenses only. They get paid off monthly by property bank accounts or personal accounts respectively. Make sure it’s a “free” points card of some kind.

Account Closed · Answer

@Nelson Ellingham

Each property its own account, one cc specifically and ONLY for property expenses. Pay the cc from appropriate property account. Never mix personal and deductible in same account, you’ll just be making more work for yourself or your accountant. Doing this properly means you’re monthly statement is your book keeping.

Nelson Ellingham · Answer

I do have a separate account for both rental properties, I'm thinking about having a credit card per rental. Is that what people do as they climb the multiple property ladder?

Simon W. · Answer

@Nelson Ellingham I personally don't like how some of the software such as QB and Xero pulls bank transactions and then you just simply add them. This isn't the best method. My client wanted to use QBO so I just gave her a discount for it and worked on her books. I have to say that 70% of the transaction I had to manually adjust because some times it isn't just a simple add.

I do have to say QBO is a great at keeping track of receipts.

best software for landlords?

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