I can easily and consistently track my rental property cash flow each month.

[Rene Hosman]

I’m always looking for ways to measure and track my money, my progress, and my success. Until recently, I’ve been doing so on a series of notes and spreadsheets and it’s been a super manual process with a lot of room for error. Since getting more involved with BiggerPockets and learning from other investors I’ve been thinking more about that notion of working “on my business instead of in my business” and how I can systematize my processes and information to free up my time to be more productive. 

Enter Baselane - maybe you’ve heard of them, maybe this is new to you, maybe you use another product to help track your investments and net worth. But they were new to me! And after speaking with a lot of folks at BPCON2024 I’m realizing this is a niche that some of you in the community are very good at, but most of you, like me, know this is a need but don’t have a good solution. 

Talking to the folks at Baselane, I learned that Baselane recently polled real estate investors to understand how well they track their rental property performance, including key metrics like return on investment (ROI) and monthly net cash flow. Here's what they found:

1. "I know exactly what my return on investment is for my rental properties (e.g., monthly net cash flow)."
Results:

• 72% of respondents strongly disagreed or disagreed with this statement.
• Only 28% agreed or strongly agreed that they can confidently track their ROI.

2. "I know the profitability of my rental property (e.g., take-home cash)."
Results:

• 57% of respondents strongly disagreed or disagreed with this statement.
• 43% agreed or strongly agreed that they know their property’s profitability.

These results show that a significant number of investors feel unsure about tracking their rental property performance, so:

How are you tracking your rental property performance? (not doing it, excel, using software - if so which?)

What impact does this have on the performance of your rental properties and your ability to invest in the next deal and grow?

https://www.baselane.com/landlord-accounting/

[Nathan Gesner]

Software is a common question on BiggerPockets. Here are some things to consider:

1. Most investors don't need software until they have 5-10 rentals. You only need a place to track tenant information, payment history, maintenance, etc. You can easily do this on a spreadsheet, and it will take less time to track than finding and learning new software. If the software is not simplifying your life or making you more accurate, you shouldn't use it. Go to Etsy and search for "rental property tracker," and you will find hundreds of nice spreadsheets to track 10-20 rentals, usually for under $10.
2. Software has extremely helpful features like online payments, marketing syndication (click a button, and your property is advertised on multiple sites), electronic document review/signing, maintenance tracking, and owner reports. Do you need all this for a couple of rentals?
3. There is no perfect software out there. Every system you try will have flaws, or you may salivate over a feature that appears in other software.

Some familiar names are mentioned frequently: Stessa, Apartments.com, RentRedi, TenantCloud, Innago, RentManager, Avail, Rentec Direct, Doorloop, etc.

I recommend conducting thorough research on each app online to understand their offerings, pricing, etc. Create a simple spreadsheet or written list to compare the features of each and identify the ones that align with your requirements. Try to narrow down your options to the top 3-4. Once you have a shortlist, sign up for an account with each one and test them extensively to see how they function. Perform the same task in each app to ensure a fair comparison.

• Load a property with pictures and details.
• Market that property.
• See what your marketing looks like from the public's perspective.
• Submit a fake application to see how easy the process is.
• Run a credit/screening report on yourself.
• Enter a maintenance request, assign a vendor, and attach a fake invoice.
• Enter charges to the tenant's ledger.
• Enter recurring charges and automatic late fees.
• Sign documents electronically.
• Run owner reports.

After testing a few apps, one should clearly stand out. It's important to choose that one and commit to using it. Remember, no system is perfect, so avoid the temptation of constantly chasing after the next shiny object. You should only consider switching when your current software has a significant flaw or lacks features that force you to spend excessive time on workarounds. At that point, it's worth researching and finding a solution that better meets your needs.