Collecting rent in cash might seem old-school, but for many, it’s still a common reality, especially in smaller portfolios or with long-term tenants. The key is knowing how to accurately record cash paid for rent to stay protected at tax time and keep your rent rolls organized.
Without a clear paper trail, losing track of payments or missing deductions is easy. Whether you’re using a landlord rent receipt or the best rent collection apps, this guide covers easy, effective ways to track rent and stay financially organized.
Key takeaways
- Manual methods are risky and outdated: Paper tools like carbon copy receipts and handwritten ledgers are easy to lose, prone to errors, and hard to scale.
- Spreadsheets help but don’t scale: A rent payment tracking spreadsheet can work for smaller portfolios, but manual entry leaves room for mistakes and lacks automation for things like rent reminders or financial reporting.
- Rent collection apps are convenient, but limited: Tools like Zelle or Cash App offer quick transfers but don’t support full rent tracking or integrated cash payment logging, and they often lack compliance features you need.
- Property management software varies widely: Many platforms include automation and reporting, but can be costly or complex. Baselane, by contrast, is free to use and purpose-built for landlords like you.
- Baselane is the all-in-one solution: Baselane simplifies collecting rent monthly, offering free tools for rent collection, cash tracking, and tax-ready reporting.
10 methods of recording cash rent payments
Choosing the right way to record cash paid for rent depends on how many units you manage, your comfort level with tech, and how streamlined you want your process to be. Below are 10 common methods, with pros and cons of each.
1. Receipt books with carbon copies
Receipt books with carbon copies are traditional tools you use to document rent payments, especially when dealing with cash transactions. These books provide a physical record, offering a duplicate receipt for you and the tenant.
Pros:
- Easy to use, no tech skills needed
- Immediate proof for both parties
- Inexpensive and widely available
Cons:
- Manual process can be time-consuming
- Easy to lose or damage
- Not ideal for preparing financial reports
Ideal for:
Landlords overseeing a small portfolio (1-4 units) where the volume of transactions is manageable without digital tools.
Limitations for financial statements:
Relying on manual receipts or paper records can make tax season harder than it needs to be. Without a digital rent record template or rent payment tracking spreadsheet, it’s easy to miss entries or introduce errors. Transferring everything from paper to digital later is not only time-consuming, but it’s also prone to inaccuracies. This method simply doesn’t offer the detailed tracking needed for clean, accurate rent statements, especially as your portfolio grows.
And with 69% of property managers reporting satisfaction with the technology their teams use, it’s clear that digital tools have become the new standard for staying organized and reducing reporting errors.
2. Manual rent ledger
A manual fillable rent ledger is a physical record-keeping system, such as a notebook or bound ledger, where you document rent payments, dates, tenant names, and related financial transactions by hand.
Pros:
- Personalized tracking: Allows you to customize records to fit specific needs without relying on predefined digital formats.
- No technology required: Ideal for individuals who prefer traditional methods or lack access to digital tools.
- Cost-effective: Requires minimal investment, typically just the cost of a notebook or ledger book.
Cons:
- Time-consuming: Manual entry of data can be labor-intensive, especially as the number of tenants increases.
- Prone to errors: Handwritten records are susceptible to mistakes, such as miscalculations or illegible handwriting.
- Storage and security issues: Physical ledgers can be lost, damaged, or accessed by unauthorized individuals.
Ideal for:
Landlords overseeing a small portfolio (1-4 units) where the volume of transactions is manageable without digital assistance.
Limitations for financial statements:
Compiling annual financial statements from manual ledgers is often tedious and time-consuming. Manual entry increases the likelihood of errors and omissions, making it tough to ensure your records are accurate. As your portfolio grows, tracking multiple units without automation can lead to inconsistencies and reporting delays.
According to the 2024 NAA Voice of the Property Manager report, 44% of property managers said increased efficiency is their top reason for adopting new tech, underscoring the importance of digital tools for reliable financial reporting. Transitioning to automated systems helps reduce manual work while improving accuracy and compliance.
3. Excel or Google Sheets Spreadsheets
Using Excel or Google Sheets for tracking cash rent payments offers you a customizable and accessible solution.
Pros:
- Customization: You can tailor spreadsheets to your specific needs, creating personalized templates for tracking payments and expenses.
- Accessibility: Google Sheets allows real-time collaboration and access from any device with internet connectivity.
- Cost-effective: Both platforms are either free or included in existing software packages, minimizing additional expenses.
Cons:
- Manual data entry: Regular updates require time-consuming manual input, increasing the potential for errors.
- Learning curve: Advanced features and formulas may be challenging for users without prior spreadsheet experience.
- Limited integration: Spreadsheets often lack seamless integration with other property management tools, leading to isolated data silos.
Ideal for:
Landlords overseeing a small to moderate number of units (1-10) who prefer a hands-on approach and have basic proficiency with spreadsheet software.
Limitations for financial statements:
Manual data entry increases the risk of errors, which can complicate the preparation of accurate annual financial statements. Spreadsheets lack double-entry bookkeeping and automation, making accurate, compliant reporting more difficult.
4. Accounting software and app
Using accounting software or an app to keep track of rent payments gives you a more organized and efficient way to manage your rental finances.
Pros:
- Comprehensive financial oversight: These tools provide detailed tracking of income and expenses, facilitating accurate financial reporting.
- Automation features: Automated data entry and integration with bank accounts reduce manual workload and potential errors.
- Scalability: Suitable if you’re managing multiple properties, as you can handle complex portfolios with ease.
Cons:
- Complexity: The setup and operation can be challenging, especially for those without accounting backgrounds.
- Cost: Subscription fees can be significant, particularly for advanced features tailored to property management.
- Generic design: Some platforms are not specifically designed for property management, lacking features like automated rent collection and tenant communication.
Ideal for:
Landlords managing multiple properties who require detailed financial tracking and reporting capabilities.
Limitations for financial statements:
These tools offer solid tracking but may require customization for rentals, making year-end reporting more complex.
5. Mobile expense tracking apps
Mobile expense tracking apps offer you a convenient way to monitor cash rent payments and manage property-related finances directly from your smartphones.
Pros:
- On-the-go accessibility: You can record transactions immediately, reducing the risk of forgotten entries.
- User-friendly interfaces: Many apps are designed for ease of use, requiring minimal technical expertise.
- Integration capabilities: Some apps sync with bank accounts and other financial tools, providing a comprehensive financial overview.
Cons:
- Security concerns: Storing sensitive financial data on mobile devices can pose security risks if not properly managed.
- Subscription costs: Premium features often require paid subscriptions, which may not be cost-effective if you’re a landlord with a smaller portfolio.
- Limited customization: Generic expense tracking apps may lack property-specific features, necessitating additional tools for comprehensive management.
Ideal for:
Landlords managing a small number of units (1-5) who are looking for a straightforward method to track income and expenses without investing in complex property management software.
Limitations for financial statements:
While these apps help with daily expense tracking, they may lack advanced accounting features required for comprehensive annual financial reporting. You may need to export data or consult a pro to stay accurate and compliant at tax time.
6. Signed monthly rent payment acknowledgment forms
Using signed monthly rent payment acknowledgment forms provides a formalized method for you and your tenants to document cash rent transactions.
Pros:
- Legal documentation: Offers concrete evidence of payment, safeguarding both parties in potential disputes.
- Transparency: Ensures clarity regarding payment amounts and dates, fostering trust.
- Simplicity: Requires minimal resources; a basic form and signatures suffice.
Cons:
- Manual process: Involves physical paperwork, which can be time-consuming to manage.
- Storage issues: Accumulating signed forms necessitates secure and organized storage solutions.
- Limited scalability: It can get overwhelming if you’re managing several properties or units.
Ideal for:
Landlords managing 1-5 properties, where personal interaction with tenants is feasible, and the volume of transactions is low.
Limitations for financial statements:
Relying on physical acknowledgment forms can make it harder to compile accurate financial records. Manually entering data increases the risk of errors and inconsistencies, especially during tax season. Without digital backups, there’s also a higher chance of lost information, something that could complicate claims related to rent loss insurance coverage.
7. Bank deposit slips as documentation
Using bank deposit slips as documentation for cash rent payments involves tenants depositing rent directly into your bank account and providing the deposit slip as proof. Approximately 78% of landlords accept personal checks, with a smaller percentage using direct bank deposits.
Pros:
- Immediate fund availability: Deposits are instantly reflected in your account, enhancing cash flow.
- Reduced handling risks: Minimizes the need for you to handle physical cash, decreasing security concerns.
- Clear paper trail: Deposit slips serve as tangible records for both parties, aiding in dispute resolution.
Cons:
- Privacy concerns: Sharing bank account details with tenants may raise security issues.
- Inconvenience for tenants: Requires tenants to visit the bank in person, which can be time-consuming.
- Account management complexity: If you have multiple properties, you might need separate accounts, complicating financial management.
Ideal for:
Landlords managing a modest number of units (1-5) who prefer direct bank transactions and have established trust with tenants.
Limitations for financial statements:
Using only deposit slips can leave you with incomplete records, as they often miss details like expenses or partial payments. This approach requires careful manual tracking to ensure everything is accurate for year-end reporting.
8. Digital notes with photo records
Using digital notes with photo records involves documenting cash rent payments by creating digital entries supplemented with photographs of receipts or cash transactions.
Pros:
- Enhanced documentation: Combining written records with photographic evidence provides a comprehensive audit trail, reducing disputes.
- Accessibility: Digital records can be stored in the cloud, allowing you to access payment histories from anywhere.
- Environmental considerations: Reducing reliance on paper contributes to eco-friendly practices.
Cons:
- Security risks: When storing sensitive financial data digitally, it’s important to have strong security in place to keep that information protected from unauthorized access.
- Technical challenges: If you’re less familiar with digital tools, you may face a learning curve in implementing this method effectively.
- Data management: Without proper organization, digital records can become cluttered, making retrieval difficult.
Ideal for:
Landlords managing a moderate number of units (5-15) who are comfortable with technology and seek to streamline their documentation processes.
Limitations for financial statements:
While digital notes with photo records offer detailed documentation, they may lack integration with accounting software, necessitating manual data transfer during financial statement preparation. This can increase the risk of errors and require additional time to ensure accuracy and compliance with financial reporting standards.
9. Rent collection apps
Apps like Zelle and Cash App are common go-tos for digital payments, and some landlords use them to log cash rent manually. However, platforms like Baselane offer rent payment automation.
Pros:
- Quick and familiar for tenants
- Basic payment history available
- Minimal setup required
Cons:
- Fees: Some platforms charge transaction or subscription fees, impacting profitability.
- Technical issues: Potential for glitches or downtime, which can disrupt payment processing.
- Learning curve: You and your tenants may require time to adapt to new systems.
Ideal for:
Landlords managing multiple units who are looking to reduce manual workload and improve payment tracking.
Limitations for financial statements:
Rent collection apps can log payments, but they fall short, lacking lease tracking, expense management, and accurate rent statements. Manual entry for cash rent receipts increases error risk. To combat this, Baselane offers a smarter solution with automated tracking, detailed reports, and features designed for rental properties.
In fact, 10.4% of property managers have adopted tenant mobile apps in the past 18 months, according to the National Apartment Association (NAA). Yet many still struggle with tools that don’t connect rent tracking, cash flow, or reporting. If you want to let tenants pay rent with a credit card, Baselane makes it easy.
10. Property management software
Property Management Software (PMS) offers you a comprehensive platform to manage various aspects of rental properties, including tracking cash rent payments. Over 80% of property managers now utilize property management software to streamline operations and reduce costs.
Pros:
- Centralized management: Integrates rent collection, maintenance requests, and tenant communications into a single system, enhancing efficiency.
- Automation: Features like automated reminders and payment tracking reduce manual tasks, minimizing errors.
- Scalability: Suitable for portfolios of varying sizes, from a few units to hundreds, adapting to growth seamlessly.
Cons:
- Cost variability: Many platforms charge subscription fees, especially for advanced features like automated reports or tenant portals, costs that can add up if you’re a smaller landlord. Baselane, by contrast, is free to use, with no hidden fees.
- Setup time: Some tools require a learning curve and initial setup, which may be a hurdle for you if you’re unfamiliar with property tech.
- Data security: All digital platforms require strong cybersecurity measures to protect sensitive tenant and financial information. Baselane is built with bank-level encryption and secure data practices from day one.
Ideal for:
Landlords managing multiple properties, particularly those with portfolios exceeding 10 units, benefit from the automation and organizational capabilities of PMS.
Limitations for financial statements:
While PMS provides detailed financial tracking, discrepancies can arise if cash payments are not accurately recorded. Ensuring all transactions are logged correctly is important for generating precise annual financial statements.
Integrating data from some property management systems into external accounting tools often requires extra setup to meet financial reporting standards. Baselane eliminates this step with built-in accounting and reporting features designed specifically for landlords.
Compare rent payment tracker options
| Method | Pros | Cons | Best for |
|---|---|---|---|
| Baselane | Free for cash tracking, integrated rent tracking, automated financial reports, scalable, reduces manual errors | None for cash tracking; designed specifically for landlords | Fully integrated financial reporting with automatic cash entry tracking |
| Receipt books with carbon copies | Immediate documentation, simple to use, cost-effective | Manual, storage issues, not scalable | Manual errors, time-consuming, and difficult data transfer |
| Manual rent ledger | Personalized tracking, no tech needed, low cost | Time-consuming, error-prone, storage/security issues | Error-prone, manual data compilation, no automation |
| Excel or Google Sheets | Customizable, accessible, free, or low-cost | Manual data entry, learning curve, limited integration | Error risks, manual entry, and a lack of advanced accounting |
| Accounting Software (QuickBooks, Xero, Wave) | Comprehensive financial tracking, automation, and scalability | Complex, costly, generic design | Requires customization, complex integration |
| Rent collection apps (Zelle, Cash App) | Quick and minimal setup required | Basic payment history available, occasional glitches or downtime | Landlords with multiple units seeking simple digital payment options |
Why Baselane is the best option for recording rent paid in cash
Baselane lets you manually record cash rent payments directly in the platform at no cost, making it easy to keep every transaction, digital or not, fully documented.
- Integrated cash tracking: You can log cash payments just like online ones, so your records stay complete and up to date.
- Automated rent ledgers & reports: Baselane updates your rent ledgers in real time and generates detailed financial reports, helping you stay tax-ready and avoid manual errors.
- Smart categorization & insights: Cash payments are auto-tagged, making it simple to track income, expenses, and profitability across properties.
- Cloud-based access: Your data is safely stored in the cloud, so you never lose a cash rent receipt—whether you’re at home or on the go.
- All-in-one platform: From rent collection and expense tracking to tenant management and reporting, Baselane handles it all.
How to record cash paid for rent using Baselane
Baselane makes rent collection easy by automating invoices, late fee tracking, and payment reminders. If your tenant pays rent in cash instead of online, it’s just as easy to record the payment and keep your bookkeeping organized. Here’s how:
- Deposit the cash into your Baselane Banking account by using one of 55,000+ supported ATMs.
- Mark the tenant’s invoice as paid through the Rent Collection dashboard.
- Manually add a transaction if needed, categorizing it as “Rent Income” linked to the correct property and tenant.
Automate rent collection and tracking with Baselane
Looking for an easy way to record cash paid for rent? Baselane simplifies it with automated rent collection, bookkeeping, and smart banking, all in one platform. Schedule recurring invoices, automate late fees and reminders, and accept payments via ACH or credit card. ACH is free when deposited into a Baselane account, and every transaction, cash or digital, is recorded in real time.
With Baselane’s banking, you can open unlimited accounts by property, earn up to 3.35% APY². It’s perfect for organizing rent income, security deposits, and savings. All transactions are auto-tagged, receipts can be uploaded, and reports like cash flow and Schedule E are just a click away.
Want a better way to track rent payments and cash receipts? Get started with Baselane.
FAQs
Advance rent is typically recorded as a liability until it's earned, usually applied to the final month of a lease. If you're tracking manually or using software like Rent Manager, be sure it’s marked to avoid mixing it with regular income. This helps maintain a clean rental track and prevents confusion during accounting or a lease renewal with a rent increase.
Not sure how to record prepaid rent? Like advance rent, it should be logged as unearned income until the rental period begins. Using a tenant rent tracking spreadsheet or property management software can help you track this accurately and apply it month by month. Prepaid amounts shouldn’t be treated as earned income until the service (i.e., the rental period) is delivered.
Once the rental period tied to prepaid rent has passed, transfer that amount from a liability account to rental income. Whether you use a rent tracking app or a cash rent receipt system, update your books monthly to reflect income accurately. This ensures your reports are clean and tax-ready.
The best way to show proof is with a signed cash rent receipt or a bank transaction record. You can also use rent collection techniques like automated tools or apps that generate receipts and rent history on demand. These records are especially important if questions arise about missed payments.
A tenant rent tracking spreadsheet is a solid start, especially if you’re a new landlord or managing a small number of units. It helps organize rent collection dates, amounts, and tenant info. But as your portfolio grows, spreadsheets can become harder to manage. That’s when tools like Baselane shine, offering automated tracking, reporting, and more advanced rent collection techniques.
Stress-free rent collection
- Easy setup for landlords and tenants
- Fast payments
- Automated reminders and late fees
Don't miss these
Free Rent Receipt Template For Landlords
When tenants pay rent by check, cash, or online, they may ask for a rent receipt. As a landlord, rent receipts are good business practice and may even be r...
7 October 2024
Free Fillable Rent Ledger Template for Landlords
Keeping track of rent collection can take time and effort, especially if you own multiple properties. It’s challenging to manage a sea of rent receip...
31 August 2023
Lease Renewal: How to Apply Rent Increase to a New Lease?
If you feel like everything related to your rental properties is getting more expensive, you’re not alone. According to the Bureau of Labor Statistic...
20 May 2022