June 25, 2025

📊 What’s the Best Way to Track Rental Income & Expenses? (Hint: It’s Not QuickBooks)

Looking for a better way to track rental income and expenses as your portfolio grows?
Manual spreadsheets and generic accounting software like QuickBooks can get messy fast. Landlords managing more than a couple of units are switching to rental-specific tools to simplify tracking, prep for tax time, and scale without spreadsheet chaos.

From “I Got This” to “Where Did That Bill Go?”

If you're still managing your rentals with a janky Excel file and a pile of receipts in a shoebox, you're not alone. On r/Bookkeeping, dozens of landlords admitted that tracking by hand was working—until they added their third, fourth, or fifth door. Then things unraveled.

Common complaints:

Missed deductions (67% of DIY landlords forget at least one)
Confusion over CapEx vs Repairs
No visibility into per-property cash flow
Frustration at tax time when Schedule E needs clean data

So what’s everyone switching to?

What Real Landlords Use to Track Rental Finances

Let’s break it down by type of landlord—because a guy with two duplexes doesn’t need enterprise software.

🧾 The Spreadsheet Purist (Still Viable!)

If you like control and hate paying subscriptions, a detailed Rental Income & Expense Worksheet is a great middle ground.

Look for a spreadsheet that offers:

Rent ledger by month + unit
Expense categories matched to IRS Schedule E
CapEx vs Maintenance separation
Auto-calculated net cash flow
Multi-property tracking with printable summaries

✅ Pro tip from a landlord: “I missed a $1,200 water heater deduction because I lumped it into repairs. Got smarter the next year with a spreadsheet that split CapEx.”

This method works great if:

You don’t mind a little manual entry
You know your way around Google Sheets or Excel
You want audit-ready records without a login to another SaaS tool

👉 Check out this purpose-built Rental Income & Expense Worksheet from ManjaSheets

💻 QuickBooks (Online or Desktop): Better Than Nothing

QuickBooks still gets love from Reddit landlords—but with caveats.

Pros:

Industry-standard double-entry system
Can use “classes” to separate properties
Easy accountant collaboration

Cons:

Not designed for rentals
No built-in Schedule E reporting
Steep learning curve for tracking security deposits, CapEx, etc.

From r/Bookkeeping:

“I use QBD 2020 with classes, but it’s not ideal. Great if you already know accounting.”

Verdict: It works, but only if you already live in QuickBooks. Otherwise, it’s like driving a semi to pick up groceries.

🧠 Landlord-Specific Tools Gaining Steam

🏦 Baselane

Recommended in multiple Reddit threads. Free, and designed specifically for landlords.

Key features:

Bank accounts per property (Profit First-friendly)
Tracks income & expenses by unit
Auto-generates CPA-ready forms
Rent collection + bookkeeping in one app

From a Redditor:

“Baselane made tax time way less painful. Way easier than trying to hack QuickBooks or spreadsheets.”

🏠 Stessa

Another popular tool, especially among real estate investors with small portfolios.

Schedule E-ready reports
Categorizes expenses automatically
Good mobile experience
Integrates with your bank

Note: Stessa is free because it offers financial products (so check the fine print).

🏢 AppFolio, Buildium, Doorloop, Yardi

All solid—but overkill unless you’re managing 20+ doors or running a property management company.

Why Most Landlords Upgrade Too Late

Reddit threads are full of landlords who waited until their books were a mess. A few warning signs it's time to level up:

You can’t see property-by-property cash flow
You’re using Venmo, Zelle, or cash for rent (no tracking!)
You missed a tax deduction last year
You dread Schedule E every spring

Still Love Spreadsheets? Use the Right One.

If you do prefer a spreadsheet but want the automation and clarity of a full software tool, you don’t need to start from scratch.

The Rental Income & Expense Worksheet from ManjaSheets is built by landlords and includes:

Monthly rent ledger by unit/property
Expense categories with tax-ready codes
Maintenance vs CapEx log
Automatic net-cash dashboard & year-end summary
Multi-property tabs + printable reports

✅ Real-world tested by landlords with 1–20+ doors
📄 Works in Excel or Google Sheets
💡 One-time cost, not a subscription

👉 Grab the Rental Income & Expense Worksheet here

Conclusion: Use the Right Tool for Your Rental Stage

Just starting out? A solid spreadsheet might be perfect.
Scaling up? Baselane or Stessa will reduce your admin load.
Managing 20+ units? You’re probably ready for AppFolio or Buildium.

But whatever you choose, make sure it:

Separates properties clearly
Tracks CapEx vs repairs
Syncs or stores receipts for tax season
Preps your Schedule E automatically or easily

Don’t wait until April to clean it up. Your CPA—and your sleep—will thank you.

FAQs

Q: Can I just use Excel to track rental income and expenses?
Yes—if your spreadsheet has the right formulas and categories. Look for one built for landlords with Schedule E codes, net cash flow by property, and tax-ready summaries.

Q: Is QuickBooks good for rental property accounting?
It can work, especially with class tracking. But it's not built for rentals, and setup can get messy fast. Most landlords eventually switch or supplement it.

Q: What’s the best free option for rental accounting?
Baselane and Stessa are both solid free choices with landlord-focused tools. Spreadsheets can also be free if you build your own—but be sure it includes all necessary tax categories.