How to Track Rental Property Income and Expenses
If you own one or two rentals, a simple ledger beats a shoebox of receipts. You'll know whether each property actually makes money, and tax time gets much easier. Here's a plain system you can keep up in about 15 minutes a month.
Set up one ledger per property
Give each property its own tab or section. Every line gets the same columns:
| Date | Property | Category | Description | Income | Expense | Receipt? |
|---|---|---|---|---|---|---|
Keep the receipt column honest: a "yes" means you saved a photo or PDF somewhere you can find again.
Income categories
- Rent, logged on the date it actually arrives, not the due date
- Late fees and other tenant charges
- Security deposits, tracked separately. A deposit you'll return isn't income, so don't count it as rent.
- Other, like laundry, parking, or pet rent
Expense categories
Use a short, consistent list so totals mean something:
- Mortgage interest (the interest part, not the principal)
- Property tax
- Insurance
- Repairs and maintenance
- Utilities you pay
- HOA fees
- Property management and leasing fees
- Advertising, supplies, travel to the property
- Capital improvements (a new roof or HVAC), kept separate from repairs. These are usually treated differently for taxes.
For a general (non-rental) small business, How to Sort Small Business Expenses Into Categories covers picking a list and handling mixed receipts.
A worked month
| Line | Amount |
|---|---|
| Rent received | $1,450 |
| Mortgage interest | −$610 |
| Property tax (monthly share) | −$210 |
| Insurance (monthly share) | −$95 |
| Faucet repair | −$140 |
| Net for the month | $395 |
Principal payments aren't an expense on this list, but they do leave your bank account. Track cash flow too, so a "profitable" month doesn't surprise you.
The monthly routine
- Download the bank statement for the account the rental uses.
- Log every rental line into the ledger and tag a category.
- Match receipts. Snap photos of any you're missing.
- Check that each tenant paid in full and on time.
- Look at year-to-date net per property.
Using a separate bank account for the rentals makes step 1 almost automatic.
Common mistakes
- Mixing personal and rental spending in one account
- Counting security deposits as income
- Lumping big improvements in with repairs
- Logging in a rush once a year instead of once a month
If you want a spreadsheet for this: the Rental Property Tracker ($12, Excel and Google Sheets) has a rent log, an expense log with 13 categories that roughly follow common Schedule E lines, and net cash flow by property and by month for up to 5 rentals. It doesn't calculate depreciation. If the rental is one part of a bigger business, the Small Business Bookkeeping Spreadsheet ($12) has income and expense categories and monthly totals. A notebook or a sheet you build yourself works fine too.
Honest note: I make these templates and sell them under Cedar & Ledger, so I'd earn from a purchase. General information only, not tax or legal advice. Ask a tax professional about your situation.
Try the free rental cash flow calculator →
Related template: Rental Property Tracker. Also see: Small Business Bookkeeping Spreadsheet
See all Cedar & Ledger templates
Frequently asked questions
What does this guide cover?
A simple ledger for small landlords: income and expense categories, a worked month, a 15-minute monthly routine, and common mistakes. Not tax advice.
What's the main idea?
Give each property its own tab or section. Every line gets the same columns:
Is there a template for this?
The Rental Property Tracker ($12, Excel and Google Sheets) has a rent log, an expense log with 13 categories that roughly follow common Schedule E lines, and net cash flow by property and by month for up to 5 rentals. It doesn't calculate depreciation. I make it and sell it under Cedar & Ledger, so I'd earn from a purchase.
Is this financial advice?
No. It's general information with example numbers only, not financial, tax, legal or medical advice. Use your own numbers and check anything important with a qualified professional or the official source.