As a landlord, keeping track of your rental income, expenses, and property maintenance can be overwhelming. From rent collection to banking and bookkeeping, you need a system that helps you stay on top of your finances effortlessly.
While QuickBooks has long been a go-to accounting solution for small businesses, it’s not designed for landlords. It’s focused on providing accounting solutions but is missing key rental property finance features, including rent tracking, automatic late fees, and real estate-specific reporting.
Learn how QuickBooks for landlords falls short on features and expectations, and discover alternatives — like Baselane’s all-in-one solution for landlords.
Key takeaways
- According to a Baselane survey, 72% of investors find ROI tracking challenging with QuickBooks.
- The same study found that 57% of investors struggled to track profitability on QuickBooks.
- Unlike QuickBooks, Baselane simplifies ROI tracking, bookkeeping, and accounting, including showing your take-home cash, and it is designed specifically for rental property investors.
Why QuickBooks isn’t the best choice for landlords
Successful landlords use the best tools for handling daily tasks. Managing rental properties requires features beyond accounting, like simplified rent tracking, real estate-specific categories, and automated late fees or rent reminders — services QuickBooks simply doesn’t offer.
Here are some reasons why you shouldn’t use QuickBooks for real estate investing, especially when it comes to rental property accounting:
- Hard to set up: Landlords without accounting experience can find QuickBooks overwhelming. The complex setup process isn’t user-friendly, especially for those managing only a few properties.
- Difficult to use for multiple properties: Managing multiple properties in QuickBooks is difficult since you need to manually set up each property separately. Routine tasks like recording rent payments are time-consuming, making it hard to scale efficiently as your real estate portfolio grows.
- Not designed for real estate: QuickBooks lacks essential property management features that make it easier to collect rent, including automated late fees and lease tracking.
- Tedious rent payments: QuickBooks doesn’t have built-in rent collection functionality. You have to manually assign each rent payment to the tenant, property, and bank account, which eats up valuable time.
- Minimal customization: QuickBooks doesn’t provide the level of customization or integrations landlords need, making it hard to create rental-specific reports. There are limited insights on real estate metrics, including occupancy and capitalization rates, and reporting on balance sheets and depreciation reports is lacking. This makes it less adaptable to the ever-changing demands of real estate management, especially with challenges like rent inflation and tenant turnover.
All-in-one property management, banking, and accounting platforms like Baselane are specifically designed for real estate investors and can help you avoid many of the issues QuickBooks presents.
Take this testimonial from a property investor, for example: “Baselane is awesome. SUPER helpful to get and keep your accounting organized; a lifesaver come tax time. Their product offering keeps getting better. If you are an owner of multiple properties and have been seeking a way to get organized, I strongly recommend that you try Baselane.”
Pros and cons of using QuickBooks for rental properties
Take a closer look at its pros and cons to see how it works for managing your rental property operating expenses.
Pros of QuickBooks for landlords
- Financial tracking: QuickBooks helps you track income, expenses, and your balance sheet.
- Tax preparation: QuickBooks helps you prepare for tax season by tracking deductible expenses and income.
- User permissions: With QuickBooks, you can set user permissions — which is beneficial if you have a team or an assistant.
Cons of QuickBooks for landlords
- Not designed for landlords: QuickBooks is a general accounting software that’s missing critical real estate-specific features such as banking and Schedule E categories tailored to rental properties. You have to code in real estate categories yourself.
- Cost: QuickBooks can get expensive. It starts at $19 per month for the base plan, but only the Advanced tier, which costs $76 per month, has the features real estate investors need. The cost may outweigh the benefits for landlords managing only a few properties.
- Manual data entry: You need to manually input most data, including rent payments and expenses, which takes time and increases the risk of data entry errors.
- Limited reporting: Since QuickBooks isn’t designed for landlords, it lacks reports on tenant payment histories and other metrics critical for property management. If you want such reports, you have to manually build them.
- Outdated user interface: The interface can feel outdated and clunky, especially compared to modern rental property bookkeeping software, which tends to be more intuitive for property managers.
- Lack of tenant communication: QuickBooks doesn’t offer tools for property management and tenant communication, like reminders for rent due dates or maintenance updates. This can lead to communication gaps that increase the likelihood of missed payments or tenant complaints.
QuickBooks alternatives for landlords
As we mentioned, QuickBooks provides essential accounting functions, but it often falls short if you need tailored tools for managing rental properties.
Luckily, there are QuickBooks alternatives like Baselane, which is designed with landlords and real estate investors in mind. With features like tenant screening and online leases, maintenance tracking, and automated rent collection, you can handle everything in one convenient platform.
Whether you’re a landlord looking for a streamlined way to manage finances or need a rental ROI calculator for better investment insights, Baselane offers what you’re missing with QuickBooks. With banking and real estate reporting, Baselane delivers more value for landlords. Here’s why Baselane is the better choice:
Free and easy set-up: All your transactions in one place and categorized
Unlike QuickBooks, it’s easy to manage multiple properties, and you don’t have to spend hours tediously entering each property, income, and expense. Create a free account, add your rental properties in the dashboard and link the relevant bank accounts to start generating financial reports—it’s that easy.
All of your transactions are synced in one place without any manual entry required. Plus, you can instantly capture receipts and add notes for easy real-time financial statements and tax deduction tracking.
Designed for all rental property types, you can use Baselane to manage single-family homes, multi-unit apartments, and vacation rentals all in one space.
Real estate-specific reporting: Cash flow insights in real-time and on-demand financial reports to analyze property performance
Instead of QuickBooks basic accounting reports, Baselane offers reporting tailored specifically to landlords and rental properties. Get on-demand financial reports at a property and portfolio level covering everything from income statements and net cash flow statements to profit and loss statements and capitalization rates. You can also create custom reports to drill down into the metrics that matter most.
With real estate-specific categories that align with Schedule E reports, you can track transactions and stay organized, especially when tax season rolls around.
Built-in banking: Manage and grow your money while keeping tabs on expenses and how much you’re spending
Baselane’s landlord banking provides additional value for landlords compared to QuickBooks accounting software, which doesn’t offer banking features. Open a Baselane Banking savings account to earn up to 3.35% APY2, including bonus interest when you automate rent collection through Baselane.
With no monthly fees or minimum balances, you can instantly open an account online and manage it from anywhere. Dedicated accounts by property allow you to keep finances separate without manual labor. Plus, Baselane Banking lets you create accounts for individuals and businesses, such as LLCs and partnerships, to meet all of your rental property banking needs.
Baselane’s virtual debit cards let you set weekly or monthly spend limits to easily manage expenses. You can auto-tag transactions using real estate-specific categories to simplify bookkeeping. Automated bills and payments for recurring expenses will save you even more time.
Less tax stress: Automated Schedule E reports and on-demand tax packages
Baselane helps you maximize returns and minimize busy work when it’s time to prepare your taxes. The customizable Tax Package includes an income statement, transaction ledger, and receipts to stay organized and ensure accurate reporting.
Automatically generate your Schedule E with one easy click. No more gathering individual records, manually entering information, and calculating depreciation — Baselane does it all for you.
Rent Collection and Lease Management: Automated rent collection, reminders, and late fees for reliable, on-time payments
Baselane makes it easier to collect rent, so you don’t have to chase down tenants or manually track payments — things QuickBooks doesn’t offer.
Tenants have multiple payment options, including ACH, debit card, and credit card, plus an auto-pay option to schedule on-time payments, which are deposited directly into your Baselane Banking or external account.
Automated invoicing, payment reminders, and late fees help reduce administration work. Real-time notifications let you track payment history, and rent payments are automatically categorized and recorded in your financial ledger.
Baselane’s platform also includes lease management features, which are non-existent in QuickBooks. Digital lease creation and e-signing speed up the rental process. Tenant screening and maintenance management round out the features that make Baselane a more comprehensive tool for landlord accounting and financial management.
Choosing the best tool for rental property accounting and finances
There are a few ways to manage your property finances — from basic spreadsheets to landlord accounting software built specifically for rental properties — each with unique pros and cons.
1. Manual spreadsheets
Many beginner real estate investors start with spreadsheets in Excel or Google Sheets to track rental income and expenses. While it’s a cost-effective option, it’s time-consuming, error-prone, and difficult to scale as your portfolio grows.
2. General accounting software
Some use standard tools like QuickBooks for real estate rental properties, which can simplify tracking compared to spreadsheets. But you’ll still need to enter each item manually, taking up valuable time and increasing the risk of errors.
QuickBooks isn’t designed specifically for property management. It’s difficult to set up, especially if you don’t have accounting experience, and entering data is just as time-consuming as using a spreadsheet. It also lacks key real estate-focused features like property management, rent collection, and lease tracking.
3. Landlord accounting software
To save time and effort, you can use platforms built for rental properties like Baselane, which offers an all-in-one solution tailored to the unique needs of property owners. Unlike QuickBooks, Baselane offers integrated bookkeeping, accounting, rent collection, and banking designed for real estate businesses.
For landlords with growing portfolios or specialized needs, a general accounting tool like QuickBooks for real estate investors or a basic landlord bookkeeping spreadsheet won’t cover everything. That’s where platforms like Baselane can make a big difference.
Built with real estate investors in mind, Baselane offers comprehensive accounting and banking features that cover expense tracking, taxes, and streamlined rent payments — all essential elements of landlord finances.
Unlike general tools or spreadsheets, which may require separate apps or tedious data entry, Baselane provides landlords with a single, all-in-one platform that simplifies complex tasks and supports portfolio growth. From Airbnb bookkeeping to long-term rental management, Baselane provides everything landlords need to manage rentals without adding extra work.
Whether you’re an experienced landlord or just starting out, Baselane helps streamline the items on your to-do list. Just ask this Baselane customer: “Setting up the rent collection on Baselane was so smooth! I’m a first-time landlord and didn’t know where to start, but I found Baselane, and the rest is history!”
Finding the right tool for your rental business
Is QuickBooks good for rental property accounting? The answer depends on what you want to get out of your tools. While QuickBooks is a popular choice for managing small business finances, it often falls short of meeting the specific needs of real estate investors. Instead, consider using Baselane as a better alternative.
With features tailored for landlords — automated expense tracking, online rent collection and one-click tax packages — Baselane provides an all-in-one solution that simplifies financial management for real estate investors.
Ready to take control of your rental property finances? Watch a free demo or sign up for a free Baselane account today!
FAQs
Can I track multiple rental properties in QuickBooks?
Yes, you can track multiple rental properties in QuickBooks, but it can be cumbersome. Each property must be set up separately, and you have to manage income and expenses individually. That’s why we don’t recommend QuickBooks for landlords. Instead, landlord-specific accounting tools like Baselane make tracking income and expenses for multiple rental properties easy.
This customer testimonial speaks more on this feature: “Baselane solves a major hurdle for most real estate investors in keeping finances separate for each property. I used to spend so much time individually creating Excel sheets for each of our properties.
Now, having them all organized within Baselane and the ability to click a button at the end of the year to get my Schedule E for each property is a GAMECHANGER. Baselane will eventually become the common practice among real estate investors.”
Is there a free version of QuickBooks?
QuickBooks does not offer a completely free version of its software. New users get a 30-day free trial to test out the features before committing to a subscription. In comparison, Baselane is free to use.
How much does QuickBooks cost for landlords?
The cost of QuickBooks for landlords varies depending on the plan you choose. Monthly fees can range from $17.50 to $235, depending on the plan you choose — Simple Start, Essentials, Plus or Advanced. Costs may arise if you want access to more advanced features or add-ons.
Is QuickBooks difficult to learn for someone new to accounting software?
QuickBooks’ complexity may overwhelm new users, particularly those unfamiliar with accounting concepts. You can use an all-in-one solution like Baselane, which offers bookkeeping, accounting, banking, and rent collection in a simple and intuitive interface. Baselane is great option for landlords who want a user-friendly experience tailored to their specific needs.
Can I use QuickBooks for both my personal finances and my rental properties?
Yes, you can use QuickBooks for landlord purposes like rental properties and personal finances, but it can be confusing. Managing different financial aspects within the same software might complicate tracking and reporting.
Many landlords prefer to keep their personal and business finances separate for better clarity and management. If you want to keep everything in one space, Baselane banking makes it easy to keep finances separate with unlimited checking accounts.
What is the best tax software for landlords?
Baselane is the best tax software for landlords. With accounting and tax features specifically designed for property management, it’s easier to track deductible expenses and prepare for tax season.
