Done with Stessa. Where should I go?

Question

I've used Stessa for a couple years and I just can't take it anymore.  My bank connection breaks multiple times a year, and we are going on 2 months with no offered solution from Stessa other than they are working on it.  I use a regional bank and it seems like Stessa needs you to use a large national bank to not have consistent issues.  I have enjoyed Stessa's interface but unfortunately it is useless to me if I have constant bank connection issues.

Does anyone have any recommendations?  I manage a small rental portfolio that I am slowly adding to, and also have a few flips going at all times.  I have seen REI Hub recommended on here, but I am unsure of their ability to work with local banks, so if anyone has any experience they can speak of that would be greatly appreciated.

Devin Redmond · Answer

Having been associated with Stessa/Roofstock for many years now, I can say that this is spot on. Large general purpose accounting platforms have the resources to work 1:1 with national (and some regional) banks to develop stable proprietary data feeds, but obviously lack the focus and incentive to customize their offerings to serve specialized audiences like rental property owners. Specialized purpose-built platforms generally all rely on the same handful of data aggregators to connect their customers to the 10,000+ unique bank/mortgage institutions in the US. When you bank with a smaller regional or local player, you run the risk that the 3rd party aggregator won't see the value in maintaining a bespoke connection protocol that likely provides very little data compared to the big national banks. I've found this to be true across virtually all finance and accounting platforms serving rental investors.

Jake Baker · Answer

@Bailey Rentz

Stessa is an excellent platform for tracking income and expenses for investors; it is user-friendly. However, its downfall (and really what makes it so easy) is that it is a single-entry system. This means there are no checks and balances to ensure all transactions are entered correctly. A double-entry system (like QuickBooks) allows you to reconcile your bank statements, ensuring no missing or duplicate transactions. I would recommend Stessa so much more if you could reconcile; hopefully, they will! Or maybe they do now since the last time I used it.

It’s an excellent solution for smaller portfolios because you can easily spot discrepancies. However, if you have a more extensive portfolio or plan to become larger in the next year or two, I would look for a double-entry system that allows bank reconciliations. Most bookkeepers won’t work in it if you plan to outsource it in the future.

QBO has every feature you need to run a business, excellent reporting features and integration with other software. It is the most popular software in the industry, and most Tax Preparers are familiar with it, which makes tax season easier. Bank connections are pretty good about not breaking. However, many on the forums will advise against QBO. It can feel like feature overload. The main reason is that it is not initially set up for a Real Estate business like other “real estate-specific” accounting software. It takes a certain level of QB knowledge to set it up correctly.

Adam Dansby · Answer

Bailey,

Did you decide on where to go after Stessa? I have made do for the last 15 years with spreadsheets, MINT, and this past year, Simplifi.  I want to stop being pennywise pound foolish and get things set up properly.  My research was leading me to Stessa. But I feel like having the bank connections (to automatically pull in those expenses/revenues) is key to streamlining things. But if you are saying that is always breaking or giving you issues, I know that can be a make or break. Even if a software is free or cheap, it's the time investment getting things set up and then tweaking it for the first few months that is the real "spend". Hoping not to waste my time if Stessa is problematic.

Max Emory · Answer

Hey @Bailey Rentz, I'll say that we use QuickBooks Online exclusively for all of our Clients and they are constantly working to improve the bank feed feature and specifically the connections. Small, local banks and credit unions always have connection issues no matter the software. But, I like to make relationships with software that take feedback and execute to fix quickly.

Since you mentioned REI Hub, I worked with REI Hub in the past and they had the same connection issues but their CEO is usually good about making quick updates to create a better user experience.

That being said, there is no perfect solution out there regarding bank feed connections so I'd go with one you know and ensure the accounts are linked on a weekly basis to be confident every transaction is flowing through without interruptions.

Scott Chauncey · Answer

I tried to work with Digb and they provided some of the worst customer service I ever experience. It made Stessa's service look strong, which we both know it is not.

Bonnie Low · Answer

Hi, Bailey - I have a feeling you're not alone in this. I host a group for midterm rental operators and I had 2 people in last week's meeting essentially say the same thing. I don't use Stessa and never have so I don't know what's going on, but I suggested they take a look at Baselane, which is what I use. Baselane is a banking and bookkeeping platform that was built specifically for real estate investors. I have found that it does pretty much everything I need it to to manage my portfolio. I switched from Quick Books to Baselane and I am SO glad I did. It has everything you need and nothing you don't, IMO. I recommend you do an online demo to see the features that it offers. It is very user-friendly for you as the landlord, and my tenants have had no problems using it as well. It's very easy to set up your accounts and to set up sub-accounts for each property if you want to, which is what I do. You can use it for rent collection, leases, tenant vetting, the list goes on. The revenue and expense categories line up with your Schedule E which makes it a breeze to prepare for filing your taxes and I like the reporting features, too. It gives you the power of a professional real estate bookkeeper but it's simple enough for someone who is not a fan of bookkeeping to stay on top of things because the User Experience is well thought out. It's definitely making me a better investor because I'm able to do my books myself now instead of having to hire a bookkeeper. Hope this helps!

Don Konipol · Answer

I use quicken for personal and WAVE for my businesses.  I have totally given up on Quickbooks though it remains the best accounting software for the non CPA type

Brandi K. · Answer

@Adam Dansby I've used Quicken  for about 7 years and have had no issues at all. The version I have is built for rental properties. I belive it's called business,rental and Personal.

Adam Dansby · Answer

That is great info Sabrina Marie! It's crazy because there are so many platforms.  I see a lot about BaseLane. But that honestly looks like it is all set up to try and be a banking solution (ie, get as many users keeping money in BaseLane's bank accounts so they can make that sweet sweet float on the interest. I'd rather pay for a platform whose revenue comes from subscription fees because at least they are developing features and functionality for the "right reasons.

I've never heard of Digb (what kind of name is that?).  But I'll check it out.  I'm tempted to go with $7.99/month of "Quicken Business & Personal".  At least I know they are "in it for the right reasons".  But damned if I can find anything online about landlords using it! I got quickbooks once and it was so complicated and cumbersome that I gave up trying to use it.

Done with Stessa. Where should I go?

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