Property Matrix serves accountants, investors, and property managers through its numerous affiliates, such as the National Apartment Association and the American Apartment Owners Association. Users can customize the features they use, making it suitable for any experience level. However, enterprise-level landlords and their accountants will benefit more than small and medium-sized landlords due to the robust accounting software. Packages cost $35 to $40 per month, with the pricing based on the number of units you’re managing. Additional features are available as add-ons, ranging from $7 to $15 per service. The information presented is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor.

If you have invested in rentals and are finding the financial aspects of being a landlord burdensome, let us help. Our financial management services are tailored to your needs to streamline your workflow and make sure your bookkeeping, accounting, and taxes are all in order so you can focus on making the most of your investment. As a landlord, you need to be flexible and respond to the needs of tenants at a moment’s notice.

  • Therefore, investors should find the most efficient ways to automate their accounting needs.
  • It also saves you the trouble of offering bookkeeping training to employees, as anyone can use FreshBooks.
  • This includes things like repairs and maintenance, insurance premiums, and advertising costs.
  • Owning and operating a profitable rental property portfolio requires many things, not the least of which are systems.

It handles general business accounting needs, from invoicing and expense tracking to tax preparation and financial reporting. FreshBooks accounting software allows you to set up billing schedules so your tenants can pay rent automatically and securely by credit card every month, without having to think about it. Your tenants save time and you get the financial security of knowing exactly when you’ll be paid. You pride yourself on offering professional property management services to keep tenants comfortable and happy in their homes.

Do You Need an Accountant to Help With Rental Property Accounting?

The full-featured rental accounting software from Rent Manager is fully customizable and ideal for properties of every size. Modules include a complete accounting system, 450 vital business and financial reporting options, marketing and leasing, business operations, and property management and maintenance. Late rent payments can create cash flow woes for your business and cause you undue stress. You’ve got enough to worry about running a rental property company, so FreshBooks lets you build in late fees to encourage tenants to pay every last dollar you’re owed on time.

It doesn’t mean you’ll discover some tax shelter or loopholes that will allow you to stop paying taxes. Features include online rent collection, billing and invoicing, accounting management, and integration options with QuickBooks and other accounting software. Yardi Breeze can be used for single-family and multifamily rentals, is cash book both a journal and ledger commercial properties, and mixed-use buildings. Yardi Breeze is another cloud-based rental property accounting software solution used by landlords with beginner or advanced accounting experience. Property owners can sync bank accounts to track revenues and expenses, as well as mortgage payments and property taxes.

Buildium, our review’s best property management accounting software for large property portfolios, has expansive accounting features supporting up to 5,000 units in their Growth and Premium plans. Alternatively, you can use the cash method if you prefer to log income and expenses as they hit your account. Larger organizations use accrual accounting to provide a better picture of income and expenses over periods of time. However, if you’re a small business with restricted cash flow, you may prefer to use the cash method so that you can see exactly how much cash you have at any given moment.

Best Accounting Software for Rental Properties of 2024

A property management business will record each transaction twice as debits and credits. It’s a list of all the company’s accounts in one place, just like a tax deductions cheat sheet for property management. On site, property managers tend to rely on the cash-based accounting system as it keeps everything simple. Cash basis accounting allows you to record earnings on the income statement when the money arrives.

FreshBooks Integrates with All Your Favorite Apps

Learning it from the get-go will help you streamline the process and make sure you avoid hiccups later on. In short, bookkeeping is keeping a track record of all financial records and transactions related to your business. When these records are compiled, you get a clear picture of your business’s financial health. And if you run several properties, you will be able to see where your losses and gains come from, as well as what expenditures you need to cut back on or maximize to increase your profit. Installing an accounting system is the first step toward a successful real estate enterprise and will help you to make sure you get the maximum out of your investment.

Tax Deductions

With good bookkeeping, an investor can better identify opportunities to increase rental income, reduce expenses without affecting property value, and better track owner’s equity. This can be as simple as keeping a separate bank account for your rental property or using accounting software. The rental dashboard shows property status at a glance, where investors can track tenant rent payments, monitor bank accounts and property value, and keep tenant information and lease documents all in one place. In this article, we’ll take a look at nine of the best single-family rental accounting software systems for real estate investors to consider. However, the software’s focus on professional property management may make it more complex than necessary for individual landlords and real estate investors self-managing their properties.

But the best single-family rental accounting software does much more, helping landlords and property managers to maximize potential returns by monitoring property performance and streamlining workflows. TenantCloud is a full-service rental property accounting and management solution for real estate investors. Features include online rent payments and full accounting, online tenant screening and rental applications, and on-demand printable reports. Quicken is an accounting software solution designed for personal and business use.

It comes with an online version, standalone versions, and a mobile app to help users manage their business wherever they are. Premium also allows you to have up to 5,000 units and offers features like Business Analytics and Insights and Buildium Rewards. Buildium also offers a 15% discount for anyone who signs up for annual billing. Buildium’s Growth and Premium plans support up to 5,000 properties, earning the top spot for users with large property portfolios. Best for multiple users, Rentec Direct allows the primary account holder to create and control multi-user accounts that others can access with a unique username, password, and permission level at no additional cost.

According to FreshBooks’ website, utilizing the software saves an average of 16 hours every month. However, one of the biggest drawbacks to using Wave for real estate is that the investors can not track profit and loss by individual property. Pricing plans are straightforward and come with a 30-day money back guarantee. The Standard plan includes 250 units and costs $400 per month, Property Matrix Pro includes 250 units with a fee of $475 per month, while the Enterprise plan includes 800 units and is priced at $1,200 per month. You should keep receipts or other records of expenses you’re deducting in order to ensure that you are able to substantiate the claim should you face an IRS audit. Most of these top software picks have the essential features outlined above but differ in pricing.