Hey all! Hoping to get some advice from my fellow landlords who manage their own properties. I currently have one SFR (4 bedroom) that I rent out room by room. I do my own finance tracking through some basic Excel spreadsheets and I am looking for a better, more efficient way to keep the books. The main goal is to get a finance system working that is intuitive and will allow me one day to outsource it when I grow my portfolio.
One option I have been looking at is using Quickbooks to log all the expenses and income. Would this be a good start and worth the cost?
Do you guys have some tips and lessons learned for a noob landlord like me?
We use quickbooks. It works for what we do.
I've used Quicken for over 20 years to keep track of about 20 properties. Works fine for me. I think Quickbooks might be a bit overkill for one property
Quickbooks is overkill for 4 doors. Most online rent collection services will track the revenue and expenses which you can then upload into your excel file and track them the way you have been. I use Cozy but most of them have this feature now.
Try Stessa! Has a ton of great features and you will be able to grow without worry if you will out grow it. Best of all it is free!
we use qbo and kind of regret it. If you get past 30 or so units, you have to bump up to their $150/mo plan. Yeesh. Buildium maybe is better.
Thanks for the advice! I use Cozy for rent collection but never explored using it for financial tracking *face palm*
Quickbooks. Easily tracks expenses, income, mortgages, etc. If you do so, you can PROBABLY write off the cost of the computer as well. Talk to your CPA
QuickBooks with desktop software so that you maintain control of data. You can back it up to the cloud if you like.
QuickBooks is the small business standard. CPAs and accountants love QuickBooks.
There are many CPAs, accountants and consultants who can help you set up QuickBooks for your rental business for a small fee.
What is wrong with excel? Seems like a good solution for a small number of rentals. You can use QB but please have somone set it up for you and train you on its use.
I have spent far more time than I can count redoing clients messed up books. This is great for me ($$$$) but bad for you as it means you will spend $$$ that did not need to be spent.
Most CPAs have an inhouse bookkeeper that can set it up and show you how to use it
Paying for accounting software is usually recommended if you are planning to scale up.
If you are holding steady at 1 property, a spreadsheet would be fine.
You can continue using Excel. You are able to export all your transactions in excel when you log into your banking website.
Alternatively, I would recommend Quickbooks. While you can use excel, Quickbooks is good as it can allow you to generate a number of reports in a matter of seconds.
You may want to reach out to some accountants now to see if it would be worthwhile to outsource the task now.
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