Free Rental Property Balance Sheet Template

A rental property balance sheet template gives you an on-demand snapshot of what your portfolio is actually worth — assets, liabilities, and equity across every property and entity. This guide provides a downloadable balance sheet rental property template, walks through how to fill it out, and covers why automating this process is critical as your portfolio grows.

Key takeaways

• A balance sheet provides a point-in-time view of what your rental business owns (assets) versus what it owes (liabilities), distinct from cash flow or profitability.
• Lenders require accurate balance sheets to approve financing for portfolio expansion — they are calculating loan-to-value ratios and debt service coverage ratios from your data.
• It helps you differentiate between “book value” for taxes and “market value” for net worth calculations, which matters at sale time and for depreciation recapture.
• Security deposits must be recorded as liabilities, not income, to avoid costly accounting errors that compound across multiple properties.
• Integrated banking and bookkeeping platforms eliminate manual data entry errors and generate CPA-ready balance sheets across properties and entities.

What is a rental property balance sheet?

A rental property balance sheet is a financial statement that captures your real estate business’s financial standing at a specific moment in time.

Unlike an income statement, which tracks performance over a period (a month or year), the balance sheet shows accumulated wealth. It is the primary tool for calculating your business’s net worth and liquidity, and the first document lenders request when you apply for financing.

Balance sheet equation

Balance sheets are built on one fundamental accounting equation: The components on both columns should be equal at all times. If the numbers do not align, there is an error in your bookkeeping.

Assets = Liabilities + Owner’s Equity

This equation means that everything your business owns (Assets) is funded either by borrowing money (Liabilities) or by your own investment and retained profits (Equity).

Balance Sheet vs. income statement vs. cash flow

Core components of the rental property balance sheet

A robust balance sheet template vacation rental owners or long-term landlords use is always divided into three key sections: Assets, Liabilities, and Equity.

Assets

Assets are resources controlled by the business as a result of past events and from which future economic benefits are expected. There are two types of assets: Current and Fixed

Current assets

These are assets that can be converted into cash within one year.

• Cash: Money held in your operating accounts and reserve funds across all properties and entities.
• Accounts receivable: Rent owed by tenants but not yet collected — tracking this by property prevents revenue from slipping through the cracks.
• Prepaid expenses: Payments made in advance, such as insurance premiums paid for the full year in January.

Proper rental income management ensures that your cash and receivables figures are always up to date. Furthermore, understanding that prepaid rent is an asset helps you avoid understating your business's value on paper.

Fixed assets

These are long-term assets used to generate income.

• Land: The value of the property’s land (which is never depreciated).
• Buildings: The cost of the structure itself.
• Capital improvements: Major renovations like a new roof or HVAC system (distinct from repairs).
• Accumulated depreciation: A negative asset account that reduces the book value of your properties over time.

Book value vs. market value

A common confusion point for investors is the difference between book value and market value.

• Book value: The purchase price plus improvements minus accumulated depreciation on the rental property. This is used for taxes.
• Market value: What the property would sell for today.

On the balance sheet, you typically record the book value to comply with tax standards, even if the market value is much higher. Mixing these up can lead to incorrect tax filings. Always distinguish capital expense vs operating expense correctly, as capital expenses increase your asset value, while rental property operating expenses reduce your taxable income immediately.

Liabilities

Liabilities represent the financial obligations your rental business owes to outside parties.

Current liabilities

These are debts due within one year.

• Accounts payable: Unpaid bills to contractors or utility companies.
• Security deposits: Money held on behalf of tenants across all properties.
• Current portion of mortgage: The principal amount of your loan due within the next 12 months.

Security deposit accounting across multiple properties

Many property owners mistakenly treat security deposits as income. However, security deposit accounting dictates that these funds are a liability because you owe them back to the tenant at the end of the lease.

You should know how to open an escrow account for rent specifically for these funds to prevent commingling. Depending on your state, you may also need to track the escrow account interest rate and pay that interest to the tenant.

Long-term liabilities

These obligations are due more than one year from now, primarily the remaining principal balance on your mortgages.

• Mortgages payable: The bulk of your property loans across all entities.
• Other long-term loans: Private money loans or renovation financing.

Using a dedicated landlord bank account for each property or entity keeps liability tracking clean. It is essential to use a business bank account for landlords rather than a personal one. The distinction between a business vs personal bank account is critical for asset protection and maintaining your LLC’s liability shield. You should also separate money in bank account structures to ensure operating funds don’t get mixed with security deposits.

Owner's equity (Your stake)

Equity represents the owner's residual interest in the assets of the entity after deducting liabilities.

• Capital contributions: Personal money you invested to buy the property or cover cash flow gaps.
• Retained earnings: Profits from previous years that were reinvested into the business rather than taken out.
• Owner’s draw: Money you have taken out of the business for personal use (reduces equity).

How to create a rental property balance sheet

Follow these steps to build a sample balance sheet for a rental property. The process is the same whether you are reporting on a single entity or consolidating across your entire portfolio.

1. Gather your financial records

Collect your most recent mortgage statements, bank statements, and tax returns (specifically your depreciation schedule). You need accurate balances for all loans and accounts as of the specific reporting date — usually month-end or year-end. For investors with multiple LLCs, gather these records for each entity separately.

2. Add your assets

List current assets first, starting with cash across all accounts. Then list fixed assets. For property value, use the original purchase price plus closing costs. Create a separate line for “Accumulated Depreciation” as a negative number. This requires knowing your depreciation schedule; if you sell, you will need to understand the depreciation recapture tax.

3. List your liabilities

Record all outstanding debts. Split each mortgage into the “current portion” (12 months of principal) and “long-term portion” for strict accounting accuracy. Ensure security deposits are listed here, not in assets — this is one of the most common errors across portfolios with multiple units.

4. Calculate owner’s equity

This is often a calculated field. Total assets minus total liabilities equals total equity. If you are building this manually, verify that “Retained Earnings” matches your previous year’s ending equity plus this year’s net income (from your P&L).

5. Review and verify

Confirm that Total Assets equals Total Liabilities + Total Equity. If they don’t match, check for typos, missing transactions, or misallocated loan payments. Using a rental property analysis spreadsheet alongside your balance sheet can help you cross-reference figures

Rental property balance sheet example

Below is a rental property balance sheet sample for a portfolio with two properties held under one LLC, purchased for a combined $625,000. This balance sheet for a rental property example for tax purposes uses book values.

Free rental property balance sheet template

If you need a free rental property balance sheet Excel file to get started, you can easily create one using the example balance sheet for rental property above, or download our free fillable balance sheet template.

Whether you use a fillable balance sheet pdf, a printable blank fillable balance sheet template, or a dynamic spreadsheet, the key is consistent monthly updates. A fillable personal balance sheet can work for properties held in your name, while entity-level investors often need templates configured for LLC reporting.

How to cusomize balance sheet rental property template

• Add rows for multiple accounts (e.g., operating, reserves, escrow) for each property or entity.
• Create a separate column for each property so you can evaluate individual asset performance alongside the consolidated view.
• Rename equity accounts to match your LLC structure (e.g., “Member Capital” for multi-member LLCs).
• Include a reconciliation row that flags any imbalance between assets and liabilities + equity.

Whether you choose a printable blank fillable balance sheet template or a dynamic spreadsheet, consistent tracking is more valuable than a complex layout.

Automating your rental property balance sheet with Baselane

Building the habit of monthly balance sheet reviews puts you in control of your financial position and keeps you ready to act on the next opportunity. Baselane’s integrated banking and bookkeeping platform generates balance sheets across all your properties and entities, so you spend your time analyzing the numbers instead of entering them — get started with Baselane and see your portfolio’s financial position in one view.