As a small landlord, managing your finances can be a daunting task. You need to keep track of rent payments, expenses, and taxes, while also ensuring that your properties are well-maintained and your tenants are happy. Fortunately, there are several accounting software options available that can help you manage your finances more efficiently. In this article, we will discuss the top accounting software options for small landlords.
PortfolioBay
PortfolioBay the operating system for self-managing rental properties. Unlike other software solutions, which either tries to do it for both property manager and self-managing landlord, PortfolioBay only focuses on serving self-managing landlord through all its features, and does it better than others. It offers a range of features that can help you manage your finances more effectively. Some of its key features include:
Invoicing
With PortfolioBay, you can easily generate invoices based on lease terms for recurring payments. You can also easily add one-time invoice for things like security deposits or key replacement charge. PortfolioBay will send out automatic reminders for overdue payments and enforce late fee based on the terms of the lease entered.
Rent Collection
With complete online rent collection and accounting integration, monthly rent cycle can be set up autopilot. It also allows you to set up automatic late fees and reminders.
Lease Tracking
Because the accounting solution is delivered as part of the overall self-managing landlord software package, it also offers lease tracking capability, which allows new invoice and charges to be generated automatically based on lease terms.
Expense Tracking
PortfoliloBay allows you to track your expenses for easy tax filing. You can also download raw data that can be imported into a tax accountant preferred software for more complex tax scenario. It is the only solution that offers unlimited receipt storage for bookkeeping compliance.
Receipt Scanner
To make expense tracking easy, PortfolioBay offers a built-in receipt scanner that can turn a paper receipt into a digital documents in seconds. Also, PortfolioBay leverages artificial intelligence to extract information from receipt images automatically, so, even without any manual annotation, everything on the receipt images is made searchable.
Financial Reports
PortfolioBay features interactive sunburst chart that helps the landlord to visualize their spending pattern. Also, PortfolioBay tracks the property cap rate and remaining basis, so the landlord can make well-informed investment decision.
QuickBooks
QuickBooks is a widely used accounting software that is popular among small business owners, including small landlords. It offers a range of features that can help you manage your finances more effectively. Some of its key features include:
Invoicing
With QuickBooks, you can easily create and send invoices to your tenants. You can customize your invoices with your company logo, and set up automatic reminders for overdue payments.
Expense Tracking
QuickBooks allows you to track your expenses, including rent, maintenance costs, and property taxes. You can also categorize your expenses for tax purposes and generate reports to help you with tax filing.
Financial Reports
QuickBooks provides you with a range of financial reports, including profit and loss statements, balance sheets, and cash flow statements. These reports can help you understand your financial position and make informed decisions.
Bank Reconciliation
QuickBooks can automatically import your bank transactions and help you reconcile your accounts. This can save you time and reduce errors.
One of the advantages of QuickBooks is that it is widely used and supported. This means that you can easily find tutorials and resources online to help you use the software effectively. QuickBooks also offers a range of pricing plans to suit different needs and budgets. However, unlike other small landlord specific accounting solution, you there is a steeper learning curve and you will be paying for features that you won’t need as a small landlord.
Wave
Wave is a free accounting software that is ideal for small landlords who are just starting out. It offers a range of features that can help you manage your finances more efficiently. Some of its key features include:
Invoicing
With Wave, you can create and send invoices to your tenants. You can also set up automatic reminders for overdue payments.
Expense Tracking
Wave allows you to track your expenses, including rent, maintenance costs, and property taxes. You can also categorize your expenses for tax purposes and generate reports to help you with tax filing.
Financial Reports
Wave provides you with a range of financial reports, including profit and loss statements and balance sheets. These reports can help you understand your financial position and make informed decisions.
Bank Reconciliation
Wave can automatically import your bank transactions and help you reconcile your accounts. This can save you time and reduce errors.
One of the advantages of Wave is that it is free to use. This can be a major advantage for small landlords who are just starting out and have limited budgets. Wave also offers a range of add-on services, such as payroll and credit card processing, for an additional fee.
Rentec Direct
Rentec Direct is a cloud-based software that is specifically designed for property managers and landlords. It offers a range of features that can help you manage your properties more efficiently. Some of its key features include:
Rent Collection
Rentec Direct allows you to collect rent payments online, which can save you time and reduce errors. It also allows you to set up automatic rent payments and late fees.
Lease Tracking
Rentec Direct allows you to track your lease agreements, including lease terms, rent amounts, and security deposits. You can also generate lease agreements and renewal notices.
Expense Tracking
Rentec Direct allows you to track your expenses, including maintenance costs, repairs, and property taxes. You can also generate reports to help you with tax filing.
Financial Reports
Rentec Direct provides you with a range of financial reports, including profit and loss statements and balance sheets. These reports can help you understand your financial position and make informed decisions.
One of the advantages of Rentec Direct is that it is specifically designed for landlords and property managers. This means that it includes features that are tailored to the needs of landlords, such as rent collection and lease tracking. Rentec Direct also offers a range of pricing plans to suit different needs and budgets. As a small landlord, the price starts at $45 per month.
Buildium
Buildium is a property management software that can help landlords streamline their accounting processes. It offers a range of features that can help you manage your properties more efficiently. Some of its key features include:
Rent Collection
Buildium allows you to collect rent payments online, which can save you time and reduce errors. It also allows you to set up automatic rent payments and late fees.
Lease Tracking
Buildium allows you to track your lease agreements, including lease terms, rent amounts, and security deposits. You can also generate lease agreements and renewal notices.
Expense Tracking
Buildium allows you to track your expenses, including maintenance costs, repairs, and property taxes. You can also generate reports to help you with tax filing.
Financial Reports
Buildium provides you with a range of financial reports, including profit and loss statements and balance sheets. These reports can help you understand your financial position and make informed decisions.
One of the advantages of Buildium is that it includes a range of features that are specifically designed for property managers and landlords. This includes features such as tenant screening and maintenance requests. Buildium also offers a range of pricing plans to suit different needs and budgets. As a small landlord, it maybe unnecessary, but if you are looking to scale quickly or manage properties for others at the same time, it can be a good option to consider.
Conclusion
As a small landlord, managing your finances can be a time-consuming and complex task. Fortunately, there are several accounting software options available that can help you manage your finances more efficiently. Whether you choose PortfolioBay, QuickBooks, Wave, Rentec Direct, or Buildium, it is important to choose a software that suits your needs and budget. By using accounting software, you can save time, reduce errors, and make informed financial decisions, which can ultimately help you grow your business.
