As a property manager or landlord, you know the importance of keeping track of your rental property accounting. But with so many different software options available, which one should you choose?
In this blog post, we’ll look at 2 of the most popular options – REI Hub and Stessa – and compare them. By the end, you’ll know which one is best for you.
- Stessa is free cloud-based rental property accounting software that helps investors maximize profits through money management, tracking expenses and income, online rent collection, and tax reporting.
- REI Hub also offers rental property accounting software with 4 monthly subscription plans based on the number of units under management.
- Stessa also provides free online rent collection for tenants and landlords, a feature that REI Hub doesn’t have.
REI Hub overview
REI Hub offers 4 pricing plans based on the number of units under management. All plans include access to all features, with no long-term contract required, and the company offers a free 30-day trial:
- Essentials: $10 a month for up to 3 units
- Growth: $20 a month for up to 10 units
- Investor: $40 a month for up to 20 units
- Professional: $70 a month, unlimited units included
- It’preconfigured for real estate investments and rental-specific transactions.
- Connect bank, credit card, and mortgage accounts to automate the accounting process.
- Automate mortgage accounting by splitting payments into principal, interest, and property taxes.
- Lease tracking keeps track of tenants, dates, and lease terms.
- A mileage log feeds directly into Schedule E categories for self-managed rental properties.
- Store receipts and documents in the cloud.
- Access all 3 major accounting reports: profit and loss (P&L) statement, statement of cash flows, and balance sheet
- Track your fixed assets (including capital expenses) and accumulated depreciation
- Pull a Schedule E report for each property with no additional configuration
Stessa is a free, cloud-based software that helps real estate investors maximize profits by automating income and expense tracking, personalized reporting, online rent collection, smart money management, and more.
The company was founded in 2016 by 2 experienced real estate investors with 30 years of combined experience. Stessa was created to take care of monitoring and analyzing the details, so you don’t have to. More than 100,000 investors already use Stessa to track over 250,000 properties with over $60 billion in asset value.
Stessa is a Roofstock company that is working to build the leading real estate investment marketplace. The Roofstock platform allows everyone from first-time investors to global asset managers to evaluate, purchase, and own residential investment properties with confidence from anywhere in the world.
Stessa is the perfect tool for landlords who want to keep track of their property’s performance, finances, and records easily and for free. For an additional fee, Stessa also offers optional premium services to help with things like rent analysis and market research.
- Track unlimited properties (single-family, residential multifamily, and short-term rentals).
- Automate income and expense tracking by linking bank, credit card, and mortgage accounts.
- A rental property chart of accounts assigns income and expenses according to Schedule E.
- Collect rent online with automated ACH payments from tenants and convenient automatic reminders with Stessa online rent collection.
- Stessa Cash Management allows you to create unlimited free business or sole proprietorship accounts, which allow you to open a dedicated account for each rental property or portfolio. You can also earn 2.00% APY* on Cash Management deposit accounts.
- Stessa partners with Plaid to keep landlord and tenant information safe and secure.
- Get comprehensive performance dashboards at the portfolio and property levels.
- Access your portfolio from anywhere, 24/7.
- Run monthly reports (income statement, net cash flow, capital expenses, tenant rent roll, and more).
- The real estate balance sheet periodically updates property values, mortgage balances, and owner’s equity.
- Easily collaborate with partners, family, lenders, and buyers by granting selected access capabilities.
- Organize and store all your real estate documents, invoices, and payment receipts to create a record that all investors need.
- Track expenses on the go with the iOS and Android apps.
- Export tax-ready financials and access the Stessa Tax Center (makes tax time a breeze).
* Annual Percentage Yield (APY) of 2.00% is effective as of 8/8/2022. No minimum opening deposit or account balance required. Fees could affect earnings on the account. Stessa is a financial technology company, not a bank. Banking services provided by Blue Ridge Bank, N.A., member FDIC.
REI Hub vs. Stessa rental property accounting software
There are a few key features to look for when choosing accounting software for your rental property business. Online rent collection, financial reporting, and tax management are some of the most important.
Choosing accounting software with these key features will help you run your rental property business more efficiently and effectively. Here’s a look at how REI Hub and Stessa compare based on these 3 essential features:
Online rent collection
REI Hub does not provide online rent collection. However, there are a variety of online rent payment tools landlords can use, including PayRent and Zillow Rental Manager.
With Stessa, landlords can collect the monthly rent plus one-time fees, such as a security deposit, prorated rent, or late fees for free with Stessa’s online rent collection feature. Tenants can also set up an automatic rent payment to ensure the rent is paid on time. ACH rent payments with Stessa are free for tenants and landlords.
REI Hub can produce all major accounting reports – P&L (available for portfolio, property, or unit), the statement of cash flows, and the balance sheet (available for your portfolio).
Stessa provides a full range of financial reports for free, including an income statement, net-cash-flow, and capital expense (CapEx) reports, tenant rent roll, real estate balance sheet with owner’s equity for individual rental properties, and entire portfolios.
Both Stessa and REI Hub track income and expenses using Internal Revenue Service (IRS) Schedule E categories to help make tax reporting more straightforward.
REI Hub allows you to easily pull a Schedule E report for each property with no additional configuration. The Stessa Tax Center is free for users and includes a personalized year-end tax package with an income statement, net-cash-flow report, and a ZIP file in a single email.
Stessa vs. REI Hub: Which is right for you?
If you’re looking for an affordable and feature-rich rental property accounting software program, then Stessa just might be the better choice. While REI Hub and Stessa are similar, REI Hub requires a monthly subscription plan while Stessa is free. Additionally, Stessa offers online rent payments, which can help increase your on-time rent receipts to keep you and your tenants happy.