Accounting for Rental Properties: What Landlords and Property Managers Use in 2026
Hi everyone! I’m Alex, a product manager at Hemlane, where I work closely with thousands of rental property owners and property managers on accounting, tax reporting, and financial operations. Our team recently analyzed survey responses from nearly 600 landlords and operators to understand how rental property accounting actually works across portfolio sizes — from single-unit owners to professional managers. This report shares real-world data on the accounting tools landlords use, when QuickBooks becomes necessary, and how financial needs change as rental businesses scale. The results show clear patterns in the tools and strategies property managers use for accounting and financial management, and why QuickBooks dominates among larger portfolios while integrated property management systems serve the small landlord market.
The right accounting setup can make all the difference in how efficiently you run your rentals, and how confident you feel about your numbers and operations. Our survey highlights which accounting tools for property managers work best at different scales, whether it’s integrated property management accounting features, or QuickBooks integrations for larger operators.
Key Finding: How Portfolio Size Determines Your Rental Property Accounting System
The strongest correlation in our landlord bookkeeping survey was between portfolio size and the accounting platform choice. As property managers scale from one unit to 100+ doors, their financial management tools follow a predictable evolution.
The progression is clear: smaller landlords tend to stick with the built-in accounting tools in their property management software. As portfolios grow, owners are more likely to add QuickBooks or fall back on spreadsheets to handle the added complexity.
In fact, more than a quarter of owners managing 21–100 units still use spreadsheets alongside other tools, highlighting the need for more flexible ways to track rental income and categorize expenses as operations scale.
Small Landlord Accounting: Why Integrated Property Management Accounting Works Best
Among single unit rental owners, 86% rely on integrated property management accounting tools rather than standalone accounting software.
For these small landlords, accounting for rental properties is best when rent tracking, expenses, and financial reporting live inside the same system used to manage tenants and maintenance. This is why property management accounting features built into platforms like Hemlane are so widely adopted by small landlords.
Property Manager Accounting vs. Landlord Accounting: Different Scale, Different Tools
Accounting for property managers often looks different from accounting for landlords, especially as portfolios grow. Our survey showed three patterns:
- Property owners (own only): Most rely on property management accounting tools
- Professional property managers: Prefer integrated property management accounting software
- Hybrid owner-managers: Show the highest adoption of QuickBooks for rental properties
Within the 21–100 unit range, QuickBooks usage jumps to 57%, reflecting a shift toward professional accounting workflows. As portfolio size grows, accounting platform choice is driven less by ownership and more by operational complexity needs, especially when outside accountants are involved.
QuickBooks Integration for Property Managers: Why Larger Portfolios Want It
The survey data shows a clear inflection point in accounting for rental properties once portfolios exceed around 20 units. At this size, property managers often reach for more advanced tools or help, such as a CPA. This is where QuickBooks becomes more heavily relied on and where Hemlane’s QuickBooks integration bridges the gap between daily operations and professional accounting.
Choosing the Right Accounting for Rental Properties by Portfolio Size
1- 4 Units: Integrated Property Management Accounting
For small landlords, integrated accounting tools inside a property management platform are usually sufficient. The majority of landlords at this stage successfully manage rental property accounting without separate software.
5 - 20 Units: Transitioning to Professional Accounting As portfolios grow, many landlords begin supplementing property management accounting with QuickBooks especially when working with a CPA or managing properties professionally.
21+ Units: QuickBooks + Property Management Software At scale, professional accounting software becomes non-negotiable. Most larger landlords and property managers rely on QuickBooks for rental properties, paired with a property management platform like Hemlane for operations.
Getting Started with Property Management Accounting Software
Whether you're implementing rental property accounting software for the first time or upgrading from spreadsheets, the survey data suggests a clear implementation path:
1. Start with integrated property management: For 1-4 units, leverage your property management platform's built-in accounting. Most landlords at this scale don't need separate software, especially with robust reporting capabilities, like Hemlane’s.
2. Implement proper categorization from day one: Even with simple accounting, align expense categories with IRS Schedule E to simplify future tax filing and CPA transitions.
3. Add QuickBooks integration when you hire a CPA: The survey shows 94% of QuickBooks users work with accountants. This integration point typically happens around 5-10 units or when operations professionalize.
4. Maintain both systems for optimal workflow: Use property management software for daily operations (rent collection, maintenance, tenant communication) while QuickBooks handles accounting, reporting, and CPA collaboration. See our QuickBooks integration guide for setup details.
Overall Findings: Matching Accounting Tools to Your Property Management Scale
This survey of nearly 600 rental property owners and managers demonstrates that accounting for landlords and property manager accounting follows predictable patterns based on portfolio size and operational complexity.
Small landlords (1-4 units) overwhelmingly choose integrated property management systems that combine rental tracking, tenant management, and basic accounting in one platform. This approach works because it matches operational reality without dedicated accounting staff.
Larger operators (20+ units) transition to QuickBooks for its professional-grade features and sophisticated reporting capabilities. The optimal solution for this segment combines QuickBooks for accounting with property management software for operations, connected through seamless integration.
Our key insight: don't over-engineer your rental property financial management when starting out, but plan for professional accounting integration as you scale. Visit Hemlane’s accounting features page to learn how integrated property management accounting works for small portfolios, or explore our QuickBooks integration for professional-scale operations.
Frequently Asked Questions About Rental Property Accounting
What is the best accounting software for rental properties?
The best choice depends on portfolio size and whether you work with an accountant.
For 1-4 units, integrated property management systems dominate (85% of single-unit owners use them). For 20+ units, QuickBooks becomes essential, with 30% adoption and 89% of owners working with CPAs at this scale
Do I need QuickBooks for rental property accounting?
Not necessarily. Only 1% of single-unit owners use QuickBooks, while 85% rely on their property management system.
QuickBooks becomes more important as you scale. Our data shows 14% adoption at 2-4 units, 17% at 5-20 units, and 30% at 21-100 units. Consider QuickBooks when hiring a CPA (94% of QuickBooks users in our survey work with accountants).
How do property managers handle accounting differently than landlords?
Professional property managers (67%) and landlords (61%) show similar property management system usage. However, hybrid owner-managers who both own and manage for others adopt QuickBooks at much higher rates (27% overall, 57% at 20+ units), indicating professional operational standards drive accounting tool choice.
When should I hire a CPA for rental property taxes?
CPA usage increases with portfolio size: 44% at 1 unit, rising to 89% at 21-100 units. QuickBooks users almost always work with CPAs (94%), while property management system users split between CPAs (53%) and self-filing with TurboTax (38%). Consider a CPA when you acquire 5+ units or your tax situation becomes complex.
Can I use my property management software for accounting instead of QuickBooks?
Yes, especially for smaller portfolios. 85% of single-unit owners successfully use property management system accounting.
As you grow (particularly past 20 units), QuickBooks integration might become more valuable to you. The optimal approach combines both: property management software for operations with QuickBooks integration for professional accounting.
Survey Methodology
This analysis is based on survey responses from 584 rental property owners and managers collected in early 2025. Response rates varied slightly by question, with 580 respondents answering the primary accounting platform question. Sample sizes for specific segments are noted throughout the article. The 101–500 unit segment (n=4) is excluded from analysis due to insufficient sample size. Survey participants represented diverse property types, geographic markets, and experience levels, providing a comprehensive view of rental property accounting practices across the industry.
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