Rental businesses generate a surprising amount of financial “paperwork,” even when everything is going smoothly. You’re tracking rent payments, late fees, repairs, vendor bills, mileage, property-specific expenses, and the records you’ll need for tax time. If you’re also acting as the property manager, the leasing agent, and the maintenance coordinator, staying on top of property accounting can feel like a second full-time job. 

It’s no wonder many landlords look for help. In fact, the DIY landlord wave has been growing: the article notes a net increase of 82,367 Americans who became first-time landlords from 2021 to 2024. With more first-timers entering rentals, it’s normal to feel overwhelmed and to consider outside support—either by hiring accountants for landlords or by adopting rental property accounting software. 

So which is better: software or an accountant? The answer depends on your portfolio size, your budget, and how hands-on you want to be with your bookkeeping.

Option 1: Accountants for Landlords

If your finances have lots of moving parts—or you’re consistently stressed by the complexity—hiring an accountant can be a practical way to put the details in experienced hands. 

Pros of Hiring an Accountant

Expertise for Complex Situations  

Accountants can be especially helpful for landlords, property managers, and real estate professionals with larger portfolios and complicated ledgers. The article also emphasizes that, just as you’d evaluate the best real estate accounting software carefully, you should thoroughly vet any accountant before hiring. 

You generally have two paths:

• CPA (Certified Public Accountant): CPAs have extensive training and must pass a rigorous exam beyond their degree requirements. They can analyze transactions, handle taxes, and provide financial advice. They may also help you maximize deductions and credits when tax season arrives. 
• Bookkeeper: Bookkeepers focus on day-to-day transaction tracking and routine tasks like payroll, invoices, and basic recordkeeping. They typically don’t provide the strategic tax expertise a CPA can offer, and they usually don’t file taxes (though they can prepare documentation for an accountant). They’re often a more affordable choice if your primary goal is organization. 

More Support for Financial Planning  

Beyond “keeping the books,” an accountant can help you plan ahead. With deep experience reviewing financials, they may identify ways to reduce expenses, increase revenue, and map progress toward long-term goals for your rental business. 

Cons of Hiring an Accountant

Cost  

Accountants for landlords can be expensive. The article cites an average annual pay of $73,405 for property accountants in the U.S. (as of October 2024). That’s a real budget commitment—especially for small landlords—although larger businesses with many transactions may decide it’s worth it. 

Fraud and Error Risk  

Bringing in a third party to manage your finances can create anxiety for some landlords. The article points out the possibility of fraud (a dishonest employee or contractor stealing funds), as well as the reality that you could still be responsible for mistakes made on your bookkeeping or taxes. These issues may be unlikely, but they’re risks you should take seriously when delegating financial control. 

Option 2: Rental Property Accounting Software

If you want to get organized quickly and keep costs down, property accounting software may be a better fit. The tradeoff is that you stay more directly involved—so you’ll want a system that’s accessible, reliable, and built around landlord workflows. 

Pros of Using Software

Cost-effective  

One of the biggest benefits of property accounting software is affordability. The article compares typical subscriptions (around $15–$70 per month) to the much higher annual cost of hiring an accountant. For many small rental businesses, software can be the only realistic option.

Customer Support When You Need It  

A key difference is responsiveness. The article notes that the best real estate accounting software providers often offer support within 24 hours or less, while most accountants don’t provide round-the-clock availability. If something urgent comes up—like a payment issue, a reconciliation question, or a reporting deadline—software support can feel like a safety net. 

Hands-on Control (with Automation)  

If you’re a DIY landlord, software keeps you in the driver’s seat. You can access your numbers whenever you need them and may even connect your accounting tools with property management software. Many platforms also automate data entry, which reduces the time you spend manually crunching numbers (and can help you avoid paying someone else to do it). 

Cons of Using Software

Potential Hiccups with Technology  

Outages, updates, and glitches can happen with any online tool. The article mentions that bugs or platform updates may temporarily make your finances inaccessible, which can be stressful if you rely on a web-based ledger. A practical safeguard is to back up your accounting data regularly. 

Inflexibility and Limits  

Not every platform can match every landlord’s needs. Some tools have limited features, property caps, or constraints that may become obvious only after your portfolio grows. That’s why researching before you commit matters—especially if you’re trying to choose the best real estate accounting software for more complex property accounting demands. 

How to Decide: A Simple Recap

The article offers a straightforward way to choose: 

You may want an accountant if you:

• Own a large array of properties
• Want to increase deductions and credits
• Are willing (and able) to pay for personalized help 
• You may want accounting software if you:
• Prefer a less expensive option
• Want to manage finances yourself
• Need quick, easy access to your financials 

Conclusion

Choosing between accountants for landlords and rental property accounting software comes down to how complex your rental business is, how much support you need, and what you can afford. Accountants offer tailored expertise and planning support, but they can be costly and introduce third-party risk. Software is usually more affordable and keeps property accounting in your control, but you may face occasional tech issues or feature limitations depending on the platform you choose.