So you finally took the leap and invested in a rental property. Now you just have to sit back and wait for the cash to start rolling in. If only it were that simple.
Whether you're a new investor or an experienced landlord, chances are you can use some help with rental property accounting. Sure you can keep track of everything with spreadsheets, but you might miss out on income streams or tax deductions that can earn you more money.
No matter the size of your portfolio, every real estate investor should use rental property accounting software. Keep reading to discover our top five picks.
1. Appfolio
Appfolio features accounting software that is customizable based on your needs. This makes it great for both beginner real estate investors and those with more experience in accounting. Features of the software include automated accounts payable and online payments.
Appfolio charges a monthly fee of $1.40 per unit with a minimum fee of $280 for small and mid-size portfolios. For portfolios of 1,000+ units, the monthly fee is $3 per unit with a minimum fee of $1,500.
2. Buildium
Buildium's accounting software has many useful features. Landlords can manage accounts payable and receivable, view deposits, and collect rent payments. It also reconciles bank statements and generates financial reports and tax forms.
Buildium's Essential plan costs $50 per month and is best for portfolios of up to 150 units. The Growth and Premium plans have features for portfolios of up to 5,000 units. The Growth plan costs $160 per month and the Premium plan costs $460 per month.
3. Property Matrix
Property Matrix offers a wide range of customizable accounting tools. It allows users to manage rental income and analyze the performance of individual rental properties.
The Standard plan costs $400 per month for up to 250 units. The Property Matrix Pro plan costs $475 per month for up to 250 units. The Enterprise plan costs $1,200 per month for up to 800 units.
4. Rentec Direct
Rentec Direct allows you to view reports for each property in your portfolio. Landlords can also collect rent and make vendor payments online. Rentec Direct also offers unlimited user accounts, which is great if you have several team members that need access to the software.
The Rentec Pro plan starts at $45 per month and is best for landlords and investors. The Rentec PM plan starts at $55 per month and has more features intended for property managers. The cost of both plans increases based on the number of units and is discounted with annual billing.
5. Stessa
Stessa offers automated income and expense tracking, robust record keeping, and personalized reports. It allows you to view your portfolio's performance with reports that update in real time.
Stessa is free and easy to use, making it perfect for new real estate investors.
Rental Property Accounting Made Easy
Rental property accounting is an essential part of real estate investing, no matter the size of your portfolio. Having the right software for your needs will help ensure the success of your portfolio in the long term.
If you're still not sure which software is best for you, we can help. Our team has over 20 years of experience in all facets of rental property management. Get in touch today and let us know how we can assist you!
