Looking for the best accounting software for rental property to manage your rental property’s finances? This article reviews the top options in 2024, whether you need free financial tracking or comprehensive property management solutions. We cover key features, benefits, and drawbacks of each accounting software for rental property choice, helping you select the best tool for your needs.
Overview of Top Accounting Software for Rental Properties
Best for Free Financial Tracking: Stessa
Best for Professional Property Managers: AppFolio
Best for Comprehensive Property Management: Buildium
Best for All-In-One Rental Management: Hemlane
Best for General Business Accounting: QuickBooks
Stessa - Best for Free Financial Tracking
Price: Free with premium features at $5 per unit per month
Pros:
Free basic plan
Automated expense tracking
Personalized reporting
Cons:
Lacks property management features
Limited financial tracking on the free plan
Landlords and real estate investors seeking a cost-effective solution to manage their rental properties will find Stessa to be an excellent choice. With its free Essentials plan, Stessa offers automatic income and expense tracking, comprehensive performance metrics, and real-time visibility into financial and operational data. The platform simplifies bookkeeping by using single-entry books, which can be a significant time-saver for landlords.
Yet, Stessa is not without its limitations. The free plan does not include ACH payments or rent tracking, and certain financial tracking features are minimal unless you opt for the premium plan. Additionally, Stessa lacks time-saving property management features such as tenant screening and maintenance requests.
Rating:
Price: 5/5
Design: 4/5
Features: 3/5
Usability: 4/5
AppFolio - Best for Professional Property Managers
The price for our services starts at $250, with an additional charge of $1.25 per unit for residential properties and $1.50 per unit for commercial properties.
Pros:
Seamless rental applications
Online maintenance requests
Robust leasing CRM
Cons:
Sub-par user interface
Weaker accounting functionality
Professional property managers handling larger rental portfolios will find AppFolio tailored to their needs. It features:
A leasing CRM
Virtual showings
An AI leasing assistant to enhance marketing and leasing efforts
Tools for online maintenance requests
Mobile inspections
Robust training resources to support staffing and training
Even with its robust features, some users consider AppFolio’s user interface sub-par due to:
the numerous steps required for simple tasks, adding complexity
the accounting functionality being weaker compared to dedicated accounting software
additional costs for key features.
Rating:
Price: 3/5
Design: 3/5
Features: 4/5
Usability: 3/5
Buildium - Best for Comprehensive Property Management
Price: $50 per month after a 14-day free trial
Pros:
Efficient payment collection
Extensive management tools
Flexible and transparent pricing
Cons:
Expensive for smaller portfolios
Buildium, with its wide range of features from budget tracking to vendor payments, is ideal for landlords with larger portfolios. It supports managing single-family, multi-family, association, and commercial properties. Key features include tenant screening, rent collection, and accounting, making it a comprehensive solution for property management.
Yet, for smaller companies and landlords managing fewer units, Buildium may prove cost-prohibitive. Despite its higher cost, Buildium’s extensive management tools and efficient payment collection system make it a valuable investment for those managing multiple properties.
Rating:
Price: 3/5
Design: 4/5
Features: 5/5
Usability: 4/5
Hemlane - Best for All-In-One Rental Management
Price: Starts at $2 per unit per month plus a $28 base fee
Pros of using this property management software for your property management business include:
Integration of property management with financial oversight
Comprehensive features for advertising, tenant screening, and maintenance coordination
14-day free trial with annual billing discounts
Cons:
Weak income and expense tracking
No native mobile app
Integrating property management with financial oversight, Hemlane offers an all-in-one rental management solution. It provides comprehensive features such as:
Advertising vacancies
Tracking applicants
Screening tenants
Managing leases
Maintenance coordination
Accounting
Hemlane’s Leasing+ service covers advertising across 30+ rental websites and offers a robust tenant screening process.
However, Hemlane’s all-encompassing approach does have some drawbacks. These include:
Weak income and expense tracking and reporting
Absence of a native mobile app, limiting accessibility
Basic and difficult-to-reconcile financial features, especially when compared to other accounting software like QuickBooks.
Rating:
Price: 4/5
Design: 4/5
Features: 4/5
Usability: 3/5
QuickBooks - Best for General Business Accounting
Price: Varies by plan
Pros:
Powerful accounting tools
Extensive integrations
Robust financial tracking
Cons:
Not specialized for property management
Steeper learning curve
Offering powerful financial reports including profit & loss, expenses, and balance sheets, QuickBooks is a versatile accounting software adaptable for rental property management. It provides extensive integrations and is widely used across various industries. For landlords already familiar with general business accounting software, QuickBooks can be a robust tool for financial tracking and reporting.
Yet, for some landlords, the lack of specialization for property management in QuickBooks may limit its effectiveness. Additionally, the software has a steeper learning curve, making it potentially more challenging for new users.
Rating:
Price: 4/5
Design: 3/5
Features: 4/5
Usability: 3/5
How to Choose the Right Accounting Software for Your Rental Properties
The selection of the right accounting software for your rental properties hinges on several factors. First, consider the size of your portfolio. If you have a small number of rental units, a simple and cost-effective solution like Stessa might be sufficient. For larger portfolios, more comprehensive tools like Buildium or AppFolio might be necessary.
Start by assessing your cash flow tracking needs. Income and expense tracking is crucial for tax preparation and financial oversight. Look for software that offers detailed financial reports, such as profit and loss statements and budget tracking. Additionally, consider whether you need features like tenant screening, lease management, and maintenance request handling.
Lastly, consider the software’s user-friendliness. A complicated interface can hinder your ability to efficiently manage your properties. Ensure the software integrates well with other tools you use, such as for tenant screening or customer relationship management. Ultimately, the right software will streamline your operations and provide peace of mind.
Pros and Cons of Stessa
Price: Free with premium features at $5 per unit per month
Pros:
Free basic plan
Automated expense tracking
Personalized reporting
Cons:
Lacks property management features
Limited financial tracking on the free plan
For budget-conscious landlords, Stessa simplifies financial management for rental properties and stands as a great choice. The free plan offers essential features like automated expense tracking and personalized reporting. However, it lacks more advanced property management features, and the financial tracking capabilities are limited unless you upgrade to the premium plan.
Rating:
Price: 5/5
Design: 4/5
Features: 3/5
Usability: 4/5
Pros and Cons of AppFolio
The price for our services starts at $250, with an additional charge of $1.25 per unit for residential properties and $1.50 per unit for commercial properties.
Pros:
Seamless rental applications
Online maintenance requests
Robust leasing CRM
Cons:
Sub-par user interface
Weaker accounting functionality
For professional property managers seeking to streamline their operations, AppFolio is an apt choice. It simplifies rental applications, including background checks and online payments. However, some users find the user interface sub-par and the accounting functionality weaker compared to dedicated accounting software.
Rating:
Price: 3/5
Design: 3/5
Features: 4/5
Usability: 3/5
Pros and Cons of Buildium
Price: $50 per month after a 14-day free trial
Pros:
Efficient payment collection
Extensive management tools
Flexible and transparent pricing
Cons:
Expensive for smaller portfolios
Offering extensive management tools, Buildium is an all-encompassing solution that scales with your portfolio. Its tenant portal allows setting up auto-pay and sending payment reminders, enhancing payment collection efficiency. However, it can be expensive for landlords with smaller portfolios.
Rating:
Price: 3/5
Design: 4/5
Features: 5/5
Usability: 4/5
Pros and Cons of Hemlane
Price: Starts at $2 per unit per month plus a $28 base fee
Pros:
Comprehensive features for advertising, tenant screening, and maintenance coordination
Integrates property management with financial oversight
Cons:
Weak income and expense tracking
No native mobile app
For landlords requiring both management and financial oversight, Hemlane’s all-in-one approach is perfect. It offers unique local features that allow users to match with local real estate agents for property showings and inspections. However, its income and expense tracking and reporting are considered weak, and the absence of a native mobile app can limit accessibility.
Rating:
Price: 4/5
Design: 4/5
Features: 4/5
Usability: 3/5
Pros and Cons of QuickBooks
Price: Varies by plan
Pros:
Powerful accounting tools
Extensive integrations
Robust financial tracking
Cons:
Not specialized for property management
Steeper learning curve
QuickBooks, with its powerful accounting tools suitable for general business needs, is a versatile choice for many landlords. Its extensive integrations and robust financial tracking capabilities stand out. However, it lacks industry-specific features for property management, and the learning curve can be steep for new users.
Rating:
Price: 4/5
Design: 3/5
Features: 4/5
Usability: 3/5
Key Features to Look For in Rental Property Accounting Software
To ensure the rental property accounting software meets your needs, there are several key features to look for when evaluating. Firstly, income and expense tracking is fundamental. This feature allows you to have real-time visibility of financial details like rent collection, deposits, and maintenance costs. Software that integrates seamlessly with your bank accounts can automate transaction data entry and streamline your bookkeeping process.
Another crucial feature is the ability to generate customized financial reports. Look for software that can produce profit and loss statements, budget tracking, and other important financial documents. Tax preparation assistance is also vital; the best software will help you prepare necessary forms like Schedule E, Form 4562, and 1099-MISC.
Maintenance request handling is another feature to consider in lease and document management. A system that allows tenants to submit requests directly and facilitates tracking and communication regarding repairs can significantly streamline property management tasks. Additionally, features like tenant screening, rent reminders, and online rent collection can further enhance your efficiency.
Evaluating Costs and Pricing Plans
To make an informed decision, it is essential to evaluate the costs and pricing plans of rental property accounting software. Pricing can vary significantly based on factors like integrations, add-ons, and the number of units managed. For example, AppFolio offers a free tier for up to 75 units and different paid plans based on the number of units and features required. Similarly, Stessa has a free tier with premium features available for a small fee per unit per month.
Consider the overall subscription cost, which may increase with additional integrations and add-ons such as accounting, maintenance scheduling, and payment processing. Customization fees can also add up if you need custom reports, integrations, or interface changes. Additionally, data storage needs can drive up costs depending on the volume of documents, photos, and tenant data you need to manage.
It’s also worth noting that some software providers offer discounts for annual billing, which can save you around 10% to 15% compared to monthly billing. Evaluate the features and pricing plans carefully to choose the software that offers the best value for your specific needs.
Understanding Scalability and Flexibility
When choosing accounting software for rental properties, scalability and flexibility are crucial factors to consider. As your rental portfolio grows, you need software that can handle the increasing complexities and automate processes to ensure efficient management. Scalable accounting software can adapt to the growth of your portfolio, reducing bottlenecks and inefficiencies.
Automated workflows are another aspect of scalable software. They streamline administrative processes, allowing property managers to focus on strategic portfolio management. This automation not only improves accuracy but also simplifies tax preparation, supporting your growth. Choosing scalable and flexible software ensures that your investment in the tool will remain valuable as your business expands.
User Experience and Support
Any accounting software must have vital aspects of user experience and support. A user-friendly interface can significantly impact your efficiency and satisfaction with the software. Stessa, for example, is praised for its intuitive design and visually appealing reports, making it highly rated for ease of use and setup. On the other hand, some users find QuickBooks less intuitive due to its primary design for general business accounting, which can make setting it up for rental properties challenging.
Customer support is equally important. Here are some examples of the customer support offered by different platforms:
Buildium is recognized for its award-winning customer support and onboarding teams, which can be a huge plus for new users.
Hemlane also offers responsive and professional customer support, with options for emergency priority support.
Conversely, some users have reported a decline in customer service quality over time with AppFolio.
When selecting software, consider the availability and quality of customer support, as well as the overall user experience. These factors can make a significant difference in how smoothly you can integrate and use the software in your daily operations.
Trial Periods and Demos
To assess whether a specific accounting software fits your needs, it is excellent to take advantage of trial periods and demos. Many property management software providers offer free trials ranging from 7 to 30 days, allowing you to test core features before committing to a subscription. Hemlane, for instance, offers a 30-day free trial, providing ample time to explore its features.
Buildium provides a 14-day free trial before billing at $50 per month, giving users the opportunity to evaluate its extensive management tools. QuickBooks also offers a 30-day free trial with a 50% discount for the first three months, making it easier for new users to get started. Utilizing these trial periods can help you determine the best software for your rental property business without any financial commitment upfront.
Summary
In summary, choosing the right accounting software for your rental properties is crucial for efficient management and financial oversight. Stessa stands out for its free financial tracking, making it an excellent choice for budget-conscious landlords. AppFolio is ideal for professional property managers with larger portfolios, while Buildium offers comprehensive property management features. Hemlane provides an all-in-one solution, and QuickBooks is versatile for general business accounting.
Consider your portfolio size, tracking needs, and budget when selecting the software. Evaluate key features like income and expense tracking, maintenance request handling, and tax preparation assistance. Don’t forget to take advantage of trial periods to ensure the software meets your specific needs. By making an informed decision, you can streamline your operations and maximize your rental property investments.
Frequently Asked Questions
What is the best free accounting software for rental properties?
Stessa is the best free accounting software for rental properties, offering automated expense tracking and personalized reporting.
Which accounting software is best for professional property managers?
AppFolio is the best accounting software for professional property managers due to its robust features, including leasing CRM, virtual showings, and AI leasing assistant.
What makes Buildium a good choice for property management?
Buildium is a good choice for property management because it offers comprehensive features like tenant screening, rent collection, and accounting, which are ideal for landlords with larger portfolios.
How can trial periods help in choosing the right accounting software?
Trial periods are useful for testing core features and determining if the software is a good fit for your specific accounting needs before making a subscription commitment.
What should I look for in rental property accounting software?
When choosing rental property accounting software, prioritize features like income and expense tracking, customized financial reports, maintenance request handling, and tax preparation assistance. These are essential for efficient property management.
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