Real estate accounting software is a key tool for effectively running a rental property business. But many bookkeeping platforms are available, and we know you have questions.
What makes an accounting platform so important? What factors should you think about when evaluating the options? Does it matter whether you choose a general bookkeeping software or one specifically for landlords? And which is the best real estate accounting software for you?
Never fear, friends. Today, we’re discussing the key points of software for rental property accounting. Ready? Let’s dive in.
Key Insights
- Rental property accounting software is an essential element for your business.
- Using an accounting platform designed for real estate eliminates problems during setup, saving you time and costly accounting errors.
- Consider four factors when choosing real estate accounting software: your needs, price to value, user friendliness, and customer support.
- The best real estate accounting software integrates with property management features or platforms.
The Importance of Accounting Software for Real Estate
Your account books are essential for running a successful rental property business. You need to track your income and expenses so you can file accurate tax returns, make informed decisions, and maximize your profits.
Sure, you could use a spreadsheet and save receipts in a shoebox. But that manual approach can cost you more time and money in the long run. Errors in formulas, incomplete data, and missing paperwork lead to inaccurate reports, over- or underpayment for your taxes, and late fees, fines, or penalties.
But with the best real estate accounting software, you benefit in multiple ways:
- Save time: Automatic imports or integrations update your books at the click of a button.
- Increase accuracy: Reduced manual entry means fewer errors and more peace of mind when making informed decisions about your portfolio.
- Improve organization: Reduce paper storage and use digital documentation linked to specific transactions—all easily accessible in the cloud.
That’s why accounting software should be a foundational element of your real estate investment business.
Factors to Consider When Choosing Real Estate Accounting Software
To find the best real estate accounting software for you, consider four factors:
Your Needs
What do you need help with to strengthen your business or run it more effectively? Having complete, orderly account books is crucial for your business. That means accounting software should focus on doing one thing well: accounting. If you only need help with bookkeeping, then you can eliminate the all-in-one solutions and avoid paying for features you don’t need.
Be mindful, though. You could pay for multiple specialized systems, like property management, rent collection, and accounting, which could cost you more time and money.
Using one platform or connected services helps you operate efficiently. Make sure the accounting software you choose either integrates with a tenant management platform or includes those features.
Price to Value
Generalized accounting software subscriptions may start with a lower price point because they’re geared toward the mass market. Yes, you may pay less. But you’re also likely to receive less value. You’ll work harder to customize the generic software so it applies to real estate. And remember, the general accounting platforms don’t offer all the features and reports landlords need to gauge the health of their rental businesses.
Real estate–specific software may have a higher price point. However, you’ll use your time more efficiently and may not need as many programs to get the job done. In short, bookkeeping software designed specifically for rental property provides a higher value.
User Friendliness
If a system is hard to set up or use, you’re more likely to fall behind on your books or make accounting errors. And that costs you both time and money later on. Late fees, missed deductions, and accuracy-related penalties add up, cutting into your profits and peace of mind.
Avoid these pitfalls and use the software before you pay for it. In other words, check for free trials. Ask yourself: Is it easy to navigate through the menus, upload or input information, or find answers to questions? The free trial is your honeymoon period. If it doesn’t go well, that subscription level or the software itself might not fit you best.
Customer Support
We all need a little help sometimes, so the software support options are important. Check on these questions:
- What support resources come with your subscription, such as a knowledge base, email support, live reps, onboarding guides, etc.?
- Do the support options depend on which tier level you sign up for?
- How easy is it to connect with a customer support representative?
- Do you have to pay a fee to speak with a live person?
- Is their availability compatible with your time zone?
- Are the reps actually helpful?
Read reviews for the software you’re considering, looking specifically for comments related to customer service.
REI Hub: The Best Real Estate Accounting Software
REI Hub is accounting software designed specifically for rental property owners and real estate investors. We’ve kept our focus on making accounting easier and more efficient for landlords. And we include every feature and report with your subscription—no tiers or plans to choose between here.
With our software, you get everything you need to keep your account books up to date and organized:
- 1099 vendor tracking
- Asset basis and depreciation tracking
- Bank reconciliations
- Comprehensive reports for the unit, property, and portfolio levels
- Standard financial reports, including balance sheets, cash flow, and profit and loss
- Real estate metric reports, like cash-on-cash and net operating income
- Customizable chart of accounts preconfigured for real estate
- Double-entry accounting, approved by your CPA
- Income and expense tracking
- Secure linked accounts for transaction feeds
And we never sell your personal or financial information.
REI Features and Support
At REI Hub, we understand that accounting for real estate includes more than just numbers. So, we designed our software to include organizational features and support resources:
- A comprehensive knowledge base
- Automated mortgage accounting
- Document storage
- FAQ guide
- Free email and phone support from live, US-based reps
- Free onboarding support
- Integrated lease tracking
- Mileage logs
- Mobile app
- Rental-specific templates
- Resource articles
- Schedule E reports
We’ve also teamed up with TurboTenant, the one-stop shop for property management trusted by over 650,000 landlords. Our hassle-free integrations make it easy for you to manage your tenants and your books efficiently.
Our accounting software has everything you need for your rental property books. So, it’s no surprise that REI Hub is the best real estate accounting software this year. That’s why we have five-star reviews and happy clients like Emmelyn.
“REI Hub has been amazing for my short-term rental properties. I have tried QuickBooks, and Wave, and the price of REI Hub and other reviews I had seen led me to the free trial. It works so wonderfully. … Because it is made for rental properties, it just makes sense!!! The customer service has been top notch—very detailed and helpful responses. … It is accountant approved.”
—Emmelyn Stieb
See how REI Hub can simplify and streamline your account books. Sign up for a 14-day free trial today!
Top Real Estate Accounting Software in 2024
2024’s accounting software options cover every budget and portfolio size. We’ve sorted through the field and identified the three top all-purpose accounting platforms that can work for real estate investors.
QuickBooks
QuickBooks has 28 years of experience supporting small businesses, and there’s a reason why 6.5 million people rely on it as their accounting software.
All foundational bookkeeping elements are included, but one key selling point is that every plan allows unlimited invoicing and payment acceptance. As your business grows, you can upgrade your plan if you need access to additional features, like multiuser access, enhanced reporting, or fixed asset tracking.
The platform’s features include:
- 1099 vendor tracking
- A 30-day free trial
- Automated transaction categorization
- Bank reconciliations
- Connected bank accounts for transaction imports
- Income and expense tracking
- Linked receipts for easy online storage
- Mileage tracking
- Mobile app
- Unlimited invoicing and payment processing
QuickBooks’s base-level plan is budget friendly, but beware: The accounting and reporting features are limited without the higher-level subscriptions. You’ll need the advanced plan to access the full reporting suite, fixed asset tracking, and additional automated accounting features.
Zoho Books
Although Zoho only offers a few tools specific to real estate, it offers enough integrations to make this accounting platform a strong contender for rental property owners. Zoho Sign, Expense, and CRM integrations allow you to sign documents electronically, manage expenses, and track tenant records.
Zoho’s features include:
- 1099 vendor tracking
- 50+ reports, including balance sheet and profit and loss
- A 14-day free trial
- Bank and credit card statement imports
- Bank reconciliations
- Customer portal
- Document storage
- Income and expense tracking
- Mileage tracking
- Mobile app
- Online payment processing
- Property-specific subaccounts
- Receipt scanning
- Recurring invoicing
Take note: Zoho limits the number of expenses, invoices, and users you can have based on your subscription level. Going over the limits can result in additional fees; if you need some integrations, those can also cost extra.
FreshBooks
FreshBooks has very affordable monthly subscriptions—and, as of August 2024, a compelling 70% discount for the first three months. This platform is popular with Airbnb hosts since you can customize your invoices, even with the most basic plan. That allows you to send branded invoices for multiple properties at a low cost. And the online payment processing feature makes it easy for tenants to submit deposits and rent.
FreshBooks’s features include:
- A 30-day free trial
- Automated bank imports
- Automated recurring invoicing
- Client portal
- Customizable estimates
- Late payment fees and reminders
- Mileage tracking
- Mobile app
- Online payment processing
- Sales tax tracking
- Time tracking
- Unlimited invoices and expenses
Be mindful, though; your subscription level determines what options are available for your units. Key accounting features—like bank reconciliations, accountant access, and double-entry accounting reports—are available with the second-tier plan. The two most affordable plans limit the number of clients you can bill, so if you have high turnover, the premium level is the best starting point for you.
Understanding Real Estate Accounting Software
General accounting platforms like QuickBooks, Zoho, or FreshBooks are versatile and highly functional, making them popular for many real estate investors. But these software options aren’t designed for rental property owners, so the setup is often trickier or more time consuming because the platforms are so generalized. You have to make significant updates to the chart of accounts, expense categories, or report templates.
These mass-market options also lack many of the reports landlords rely on, like net operating income or cash-on-cash reports. You either have to go without them or track the data and build the reports in another system, which takes up more time and potentially introduces errors.
Rental property accounting software is designed specifically for real estate investors. It includes features that make your job as a property manager or landlord easier and more efficient. These platforms come with a chart of accounts, templates, and reports that require minimal customization for your industry.
Accounting vs. Property Management Software
Real estate accounting software is not the same as property management software. Accounting platforms are built around the financial elements of your business: income and expense tracking, invoicing and bill payment, and reporting.
Property management software focuses on tenant lifecycles, although it may include some accounting functions.
Property management accounting combo platforms act as all-in-one solutions. They cover the entire tenant journey and your accounting needs, from the initial applications to deposit refunds to Schedule E reporting.
Takeaways
The best rental property accounting software includes all the essential accounting features and integrates with landlord software like TurboTenant. Using accounting software designed specifically for real estate helps you save time, improve your bookkeeping accuracy, and stay organized.
That’s why REI Hub is the top real estate accounting software option. We provide all the accounting features and property management integrations you need—with every subscription, no matter how many properties you have.
Get started with your free trial today!
