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Bookkeeping · rental real estate

Real Estate Bookkeeping for rental property owners

Rental property bookkeeping for landlords with one property or several, owned personally or through an LLC, in any state. We track income and expenses by property in QuickBooks Online or Zoho Books, separate repairs from improvements, keep depreciation records and hand over books ready for Schedule E. From $200 a month.

Who our rental property bookkeeping is for

One or two rentals
You rent out a condo, house or townhouse and want real numbers at tax time, not a box of receipts.
A growing portfolio
Properties in different cities or states, different tenants and property managers. You see income and expenses for each property, not one lump sum.
Property held in an LLC
A single-member LLC usually reports on the owner's Schedule E; a multi-member LLC files Form 1065. We set up the books around the return you file.
Planning to sell
We pull together the purchase price, improvement costs and depreciation taken — the numbers you need to figure the gain on the sale (Form 4797).

What our real estate bookkeeping includes

Income and expenses by property
Each property is tracked separately with a class or tag in the software: rent, mortgage interest, property tax, insurance, utilities, property management fees.
Tenant security deposits
A deposit you'll return to the tenant isn't income, so we track it separately. It becomes income if you keep it because the tenant broke the lease, or if it's applied to the last month's rent.
Repairs vs improvements
A repair keeps the property in good working order and reduces rental income in the same year. An improvement — a new roof, new flooring or kitchen modernization — is recovered through depreciation. We split these costs under IRS rules.
Depreciation and Schedule E-ready books
Residential rental property is depreciated over 27.5 years; land isn't depreciated. We track the building, improvements and appliances separately and hand over the numbers for Schedule E at year-end.

How our rental property bookkeeping works: 4 steps

If you have only a few transactions, you don't need monthly bookkeeping: we can clean up the books once at year-end with a Year-End Clean-Up from $300.

01

A call and a list of properties

We ask how many properties you have, whose name they're in, and whether there's a mortgage or a property manager. You get a price before any work starts.

02

Setting up the books

We connect your bank and cards to QuickBooks Online or Zoho Books and set up each property. Setup is $200. If past months were never recorded, we catch them up from $180 per month.

03

Bookkeeping through the year

We record rent and expenses by property, track deposits, separate repairs from improvements, reconcile the bank and send a Profit & Loss for each property.

04

Your tax return

We hand over the numbers for Schedule E and can prepare the return in-house: Schedule E is $150 per property, Form 1065 for a multi-member LLC is $450.

Monthly packages: BASIC — up to 75 transactions, $200/mo; STANDARD — up to 150, $350/mo; PREMIUM — up to 250, $570/mo. The QuickBooks or Zoho Books subscription is not included. At tax time: sale of rental property (Form 4797, depreciation recapture) — $200, depreciation schedule — $50 per asset. Bookkeeping prices → · Tax return prices →

What to prepare for rental bookkeeping

Purchase documents for each property (closing statement) and the date it became available for rent
Leases and details of tenant security deposits
Statements for the accounts and cards used for rent and expenses — or online banking access
Form 1098 for the mortgage, property tax and insurance bills, property manager reports
Last year's return with Schedule E and the depreciation schedule, if the property was already rented

Rental property bookkeeping FAQ

How much does real estate bookkeeping cost?

Monthly bookkeeping starts at $200 a month, depending on the number of transactions. The tax return is billed separately: Schedule E is $150 per property. We quote the exact amount after a conversation about your properties.

Do I need bookkeeping for just one rental?

The IRS advises keeping good records of rental income and expenses, and if your return is selected for audit, you have to back up every number with documents. With one property there aren't many transactions, so the books stay simple and no deductions get lost.

Is a tenant's security deposit income?

Not if you have to return it at the end of the lease. The part you keep because the tenant broke the lease is income in the year you keep it. If the lease says the deposit will be used as the last month's rent, it's advance rent and is income in the year you receive it.

What's the difference between a repair and an improvement?

A repair keeps the property in good working order and is deducted in the same year. An improvement is a betterment, a restoration or an adaptation to a new use — for example, a new roof, new flooring, kitchen modernization or a new water heater. Its cost can't be deducted right away; it's recovered through depreciation.

How long is rental property depreciated?

A residential rental building is depreciated over 27.5 years using the straight-line method. Land can't be depreciated, so we separate the building's value from the purchase price. Appliances, carpets and furniture in a residential rental are depreciated over 5 years. Depreciation starts when the property is ready and available for rent.

What should I know before selling a rental property?

The gain is the sale price minus the property's tax basis, and the basis is reduced by depreciation — including depreciation you could have claimed but didn't. The part of the gain tied to depreciation on the building is taxed at up to 25%. We report the sale on Form 4797 for $200. Keep purchase and improvement records until the statute of limitations runs out for the year of the sale.

My property is in an LLC. Which return do I file?

A single-member LLC that hasn't elected another tax status is disregarded by the IRS: the rental goes on the owner's Schedule E. An LLC with two or more members is a partnership by default and files Form 1065 — $450 with us, including K-1s for two partners.

Can I deduct a rental loss against my salary?

Rental losses are generally passive, with one exception: if you own at least 10% of the property and make the management decisions — approving tenants, setting rental terms, approving expenses — you can deduct up to $25,000 of loss a year against other income. The allowance shrinks once modified AGI exceeds $100,000 and is gone at $150,000; the rules are stricter if you're married filing separately. Unused losses carry forward to later years.

Related services: Form 1040 Bookkeeping LLC formation

Let’s start with a free 15-minute interview

Send us a request — we’ll get back to you within one business day, hold a free 15-minute interview and give you a price.

Send a request — it’s free Call: +1 (929) 340-2427