Managing finances for a rental business involves tracking rent payments, handling maintenance expenses, managing multiple properties, and keeping tenant records organized. The right bookkeeping software will streamline these processes, allowing you to focus on growing your business instead of wrestling with financial details. Below are some of the best bookkeeping software for rental businesses, starting with FreshBooks.
1. FreshBooks
FreshBooks is an easy-to-use, cloud-based accounting software that works perfectly for small and medium-sized rental businesses. It allows you to track rent payments, manage expenses, and handle invoicing, all while keeping your books in order.
Key Features:
- Invoicing: Easily create and send invoices for rent payments and additional fees (like utilities or maintenance charges).
- Expense Tracking: Track property-related expenses such as maintenance, repairs, and property management fees.
- Payment Tracking: Monitor rent payments and set automatic reminders for overdue payments.
- Reporting: Generate financial reports, including profit and loss statements, cash flow reports, and expense summaries.
- Mobile App: Manage your rental finances on the go, whether you’re at a property or in the office.
Why It Works:
FreshBooks is ideal for smaller rental businesses that need simple and straightforward bookkeeping without a steep learning curve. The ability to track rent payments, send invoices, and manage expenses all in one platform makes it a solid choice for landlords who want to keep their finances organized without getting too technical.
2. QuickBooks Online
QuickBooks Online is a versatile and widely used accounting software, perfect for larger rental businesses or landlords managing multiple properties. It offers a robust set of features that can be customized to fit the needs of a rental business.
Key Features:
- Expense Tracking: Track property-related expenses such as repairs, utilities, and property taxes.
- Rent Tracking & Invoicing: Set up recurring invoices for tenants and automatically track rent payments.
- Tenant Management: Keep records of tenants, including rent payment history and lease details.
- Integration with Property Management Tools: Sync with property management software like Rentec Direct, making it easy to manage both accounting and tenant information in one system.
- Custom Reporting: Generate detailed reports for cash flow, profit and loss, and tax preparation, tailored for each property or the entire portfolio.
Why It Works:
QuickBooks Online is perfect for property managers or landlords with a larger portfolio of rental properties. Its ability to handle multiple properties, track income and expenses for each one, and generate customized reports makes it a powerful tool for rental businesses that are scaling or have complex financial needs.
3. Buildium
Buildium is property management software designed specifically for landlords and property managers. It’s great for rental businesses that need more than just bookkeeping—Buildium provides full property management services, including tenant screening, maintenance requests, and leasing management.
Key Features:
- Property Accounting: Track rent payments, late fees, and other property-related income and expenses.
- Automated Rent Collection: Automatically collect rent from tenants via ACH or credit card, and track payment statuses.
- Tenant Management: Keep a record of tenants, lease agreements, and payment histories.
- Maintenance Tracking: Manage maintenance requests from tenants and track associated costs.
- Financial Reporting: Generate reports tailored for landlords, including cash flow statements, profit and loss summaries, and tax reports.
Why It Works:
Buildium is the best choice if you’re managing multiple properties or large rental portfolios. It provides full-service property management alongside accounting, making it a one-stop-shop for landlords who need both financial tracking and property management features in one platform.
4. TenantCloud
TenantCloud is a cloud-based property management tool with built-in accounting features specifically designed for landlords. It’s a great choice for small to mid-sized landlords who need to keep track of both tenant information and finances in one place.
Key Features:
- Rent Payment Tracking: Set up automatic rent payments for tenants and track rent collection.
- Expense Management: Record expenses related to each property, such as repairs, utilities, and mortgage payments.
- Invoicing & Online Payments: Send invoices to tenants and accept online payments via credit card or bank transfer.
- Tenant Management: Store tenant information, leases, and payment histories in one place.
- Reporting: Generate financial reports to analyze income and expenses for tax purposes or to evaluate profitability.
Why It Works:
TenantCloud is ideal for small to mid-sized landlords who need to manage a few properties and want a simple, affordable solution. The ability to manage tenants, track rent payments, and organize expenses makes it a convenient option for landlords looking for an all-in-one solution.
5. Propertyware
Propertyware is an advanced property management and accounting tool designed for landlords managing single-family home rentals. It’s particularly strong in providing detailed financial tracking and operational tools for larger property portfolios.
Key Features:
- Property Accounting: Handle accounting tasks such as rent collection, vendor payments, and tracking property-related expenses.
- Automated Rent Payments: Set up automatic payments from tenants and track overdue rents.
- Maintenance Management: Track maintenance requests and manage associated expenses.
- Owner and Tenant Portals: Offer tenants and property owners their own login portals to view payment information, request maintenance, or access reports.
- Customizable Reports: Create custom financial reports for properties, including cash flow, profit and loss, and owner statements.
Why It Works:
Propertyware is perfect for professional property managers or landlords with large single-family rental portfolios. Its robust property management tools, coupled with advanced financial tracking, make it an excellent choice for managing both day-to-day operations and accounting tasks.
6. Stessa
Stessa is a free accounting and property management platform designed for real estate investors and landlords. It’s great for property owners who want to manage their finances without paying for expensive software.
Key Features:
- Automated Income & Expense Tracking: Sync bank accounts, credit cards, and property management tools to automatically track income and expenses.
- Financial Reporting: Generate profit and loss statements, net operating income, and tax-ready reports.
- Tenant Management: Keep tenant records and track rent payments.
- Real-Time Performance Tracking: Get real-time insights into the financial performance of your rental properties.
- Tax Preparation: Stessa helps you organize your financials and generate tax-ready reports, simplifying tax time.
Why It Works:
Stessa is an ideal option for real estate investors and landlords looking for a free, easy-to-use tool that offers both property management and accounting features. The real-time financial tracking and automated expense management make it a standout choice for landlords on a budget.
7. AppFolio
AppFolio is a cloud-based property management software with advanced accounting features, making it perfect for landlords or property managers handling a large number of units. It’s designed for multi-family, single-family, commercial, and community association properties.
Key Features:
- Automated Accounting: Track rent, late fees, maintenance expenses, and property management fees.
- Online Rent Payments: Set up automatic payments for tenants and track rent collection.
- Tenant Screening: Built-in tools for tenant screening, including background checks and credit reports.
- Maintenance Management: Track maintenance requests and related expenses.
- Comprehensive Reporting: Generate detailed reports for financial performance, property management, and tax preparation.
Why It Works:
AppFolio is the best solution for large-scale rental businesses with multiple properties or units. Its all-in-one property management platform, paired with powerful accounting features, makes it ideal for professional property managers or landlords handling complex portfolios.
What to Consider When Choosing Bookkeeping Software for a Rental Business
1. Rent Collection and Payment Tracking
Your bookkeeping software should make it easy to track rent payments, send invoices, and automatically handle overdue rent reminders. Look for platforms that integrate with online payment systems for ease of use.
2. Expense Tracking
Tracking expenses like repairs, property taxes, mortgage payments, and maintenance is crucial for understanding the profitability of each property. Choose software that lets you categorize expenses by property and provides real-time tracking.
3. Property Management Integration
Some accounting software integrates with property management tools, allowing you to manage tenants, leases, and maintenance requests alongside your financials. If you need these features, go for an all-in-one solution.
4. Reporting Features
Ensure your software offers customizable financial reports, such as profit and loss, cash flow statements, and tax-ready reports, so you can easily evaluate the performance of each property.
5. Scalability
If you’re planning to grow your rental portfolio, choose software that can scale with your business. Some tools are better suited for small landlords, while others are built to handle large portfolios with multiple units.
Comparison Table for Quick Review
| Software | Best For | Key Features | Price Range |
|---|---|---|---|
| FreshBooks | Small to medium rental businesses | Invoicing, expense tracking, payment tracking | Starts at $15/month |
| QuickBooks | Large portfolios, scaling business | Expense tracking, tenant management, custom reporting | $30+/month |
| Buildium | Full-service property management | Automated rent collection, tenant & lease management | Starts at $50/month |
| TenantCloud | Small to mid-sized landlords | Rent payment tracking, expense management, online payments | Free & Paid plans |
| Propertyware | Single-family home portfolios | Property accounting, maintenance management, custom reports | Starts at $250/month |
| Stessa | Real estate investors, budget | Automated tracking, financial reporting, tenant management | Free |
| AppFolio | Large-scale rental businesses | Automated accounting, tenant screening, maintenance tracking | Starts at $250/month |
My Top Recommendation
For small to medium-sized rental businesses, FreshBooks offers simplicity with powerful invoicing and expense tracking features. If you have a larger portfolio or are scaling your rental business, QuickBooks Online or Buildium will provide the robust accounting and management tools you need.
For those with a limited budget, Stessa offers excellent free accounting features that include real-time performance tracking and automated income/expense management.
If you’re managing a large-scale portfolio or need advanced property management alongside bookkeeping, AppFolio or Propertyware are excellent choices, providing full-service management and comprehensive accounting features.