Looking for more affordable options for tax strategy and planning as new STR host

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Looking for more affordable options for tax strategy and planning as new STR host

Linda Rollins
Member since 2025 · 3 posts · 5 votes

My husband and I Just purchased our first short term rental property near Akron, Ohio and have been looking into short term rental accounting/book keeping. We feel good about using a software to do our own book keeping but feel that we need an accountant to help us with tax planning and strategy as we're getting started. It seems like $4000-$5000 annually seems to be the going rate for an accountant that specializes in STR taxes. We understand that a good accountant can save us a lot of money in taxes but this seems like a steep initial price to pay before even starting operations. Are there more affordable ways/options to get the tax advise we need as we get started?

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
Quote from @Benjamin Louie:

@Linda Rollins Congrats on the new STR, Linda! 🎉 You don't have to spend $4–5K right away. Many hosts DIY bookkeeping with tools like Stessa or Wave, then pay a CPA $300–600 at tax time for filing and advice. You can also book one-time strategy calls instead of a full retainer. Start lean, then upgrade to an STR-specialized CPA once your income grows.


 This is what I was thinking.

I manage my books with Eccel.

My CPA says I am one of his most organized clients.

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  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    1y

    @Linda Rollins

    You'll get some good advice on tax services here.

    I'm sure you know, but you didn't mention it, so wanted to make sure you know about bonus depreciation with your STR. Talk to a CPA about it. (There's plenty who specialize in it.) But it's the best tax strategy for the year you're starting up a short-term rental. You'll want to be sure to track your time for everything related to the property so you qualify for material participation.

    Anyway, congrats on the STR. Cheers.

    1Reply
  • Benjamin Louie
    Property Manager · Erie & Millscreek PA | Maggie Valley & Haywood County NC · Member since 2024 · 264 posts · 118 votes
    1y

    @Linda Rollins Congrats on the new STR, Linda! 🎉 You don't have to spend $4–5K right away. Many hosts DIY bookkeeping with tools like Stessa or Wave, then pay a CPA $300–600 at tax time for filing and advice. You can also book one-time strategy calls instead of a full retainer. Start lean, then upgrade to an STR-specialized CPA once your income grows.

    2Reply
    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      1y
      Quote from @Benjamin Louie:

      @Linda Rollins Congrats on the new STR, Linda! 🎉 You don't have to spend $4–5K right away. Many hosts DIY bookkeeping with tools like Stessa or Wave, then pay a CPA $300–600 at tax time for filing and advice. You can also book one-time strategy calls instead of a full retainer. Start lean, then upgrade to an STR-specialized CPA once your income grows.


       This is what I was thinking.

      I manage my books with Eccel.

      My CPA says I am one of his most organized clients.

      4Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    You can always pay for hourly consulting as well but implementation is key. With something that has big tax advantages, you need to make sure things are buttoned up. There are CPAs that are less costly than $4-5k that produce good work.

    However, id caution you against going with the $300-600 cpa for filing once you have a short term rental. I can almost guarantee that you'll get what you pay for. That cpa is likely mired in compliance work all year and does not have the time to do strategy. 

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    3Reply
  • Fulton Abraham Sanchez
    CPA| New Clients Welcome| 50 States · Member since 2016 · 440 posts · 94 votes
    1y

    Hi @Linda Rollins, congratulations on your first STR property! Starting out, it's definitely important to find a real estate–focused CPA who understands the nuances of short-term rental tax rules, especially when it comes to classifying the property, tracking expenses correctly, and maximizing deductions.

    While $4,000–$5,000 is common for full-service STR tax strategy, there are often more affordable entry-level options when you're just beginning operations. A good starting point is to review your investment goals and cash flow projections with a CPA to determine the right level of service you need right now versus what you may need as your portfolio grows. From there, you can scale services as your rental income grows.

    1Reply
    • Linda Rollins
      OP
      Member since 2025 · 3 posts · 5 votes
      1y

      Appreciate all the insights! Do many firms offer ad hoc consulting to new clients? I haven't seen one time strategy calls offered on the firm websites I've been looking at so far. How are these typically priced? 

      0Reply
  • Josh L.
    USA · Member since 2023 · 145 posts · 84 votes
    1y

    @Linda Rollins Congratulations on the closing! As I’m sure you know, you’ll find plenty of qualified individuals here on BP. I’d agree that for bookkeeping, one to two properties you can probably handle yourself, but taxes can get more nuanced. 

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    I see you have a lot of CPA's commenting, I would interview them all and see who works best for you!

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  • Josh L.
    USA · Member since 2023 · 145 posts · 84 votes
    1y

    @Linda Rollins I can’t speak for everyone, but from what I’ve seen, tax planning and compliance are usually packaged together. The number of ad hoc calls or touchpoints is typically reflected in the pricing. Best to have an initial conversation and see what works for you. There are many professionals here on BP who can help. 

    0Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1y

    @Linda Rollins

    Congrats on your first STR purchase, that's a huge milestone. While $4k–$5k is common for STR tax accountants, you don't necessarily need to commit to that cost right away. A smarter approach is to use bookkeeping software like QuickBooks and then book a CPA strategy session once or twice a year for a few hundred dollars. These sessions can cover the big-ticket items that matter most early on, such as whether to report on Schedule C vs. E, how to take advantage of bonus depreciation, and whether you or your spouse might qualify for Real Estate Professional Status (REPS).

    In other words, you don’t have to dive straight into a $5,000 annual retainer to get good advice, starting small with targeted planning sessions can give you the right foundation without overwhelming your budget.

    This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

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  • Account Closed
    Investor · FL · Member since 2016 · 332 posts · 388 votes
    1y

    I hired an STR focused CPA about my 4th year of owning STRs as when I was filing I would have my first tax bill in a decade. The annual fee was 10x ROI that year alone as he found more deductions/credits that changed a $35K tax bill into a $9k refund. I rather stop paying for QBO and use a spreadsheet than not have my CPA.

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