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How to track rental income and expenses in a spreadsheet

By Spruce Sheets · Updated November 14, 2026 · 6 min read

If you own one to ten rentals, you probably don't need accounting software. You need a reliable way to record every dollar in and out, per property, in categories your tax preparer will recognise. A spreadsheet does that well, as long as it's set up with a little structure and you keep up with it. This guide shows how.

Before you start: separate the money

The single most helpful bookkeeping step happens at your bank, not in a spreadsheet: open a separate checking account for your rentals (one account for all of them is fine for most small landlords). Put rent in, pay rental expenses out, and nothing personal goes through it. Your bank statement then becomes a near-complete record you can reconcile against, and you'll never have to untangle a grocery run from a plumber's bill.

The structure: two logs, then summaries

Keep raw entries in two long lists, one row per transaction, and let summaries calculate from them. Don't type numbers into a monthly summary by hand; that's where errors creep in.

Income log columns

Column Example
Date received 2026-03-02
Property Maple Duplex
Unit / tenant Unit A
Category Rent, late fee, pet fee, laundry, other
Amount $1,350.00
Method ACH, check #, cash
Period covered March 2026
Notes Partial, balance due 3/15

Expense log columns

Column Example
Date paid 2026-03-09
Property Maple Duplex (or "Portfolio" for shared costs)
Category Repairs
Payee ABC Plumbing
Amount $285.00
Payment method Rental account debit card
Receipt reference Photo filename or folder
Notes Kitchen faucet, Unit B

Use dropdowns for property and category so spelling stays consistent; summaries depend on exact matches. A "check" column that flags a row with a missing date, property or category saves you from hunting for gaps in March of next year.

Categories: match Schedule E

Most US landlords report rental income and expenses on Schedule E (Form 1040). If your expense categories follow its lines (advertising, auto and travel, cleaning and maintenance, commissions, insurance, legal and professional fees, management fees, mortgage interest, other interest, repairs, supplies, taxes, utilities, depreciation, other) your year-end totals map straight onto the form. We explain each line in Schedule E expense categories for landlords.

You can add sub-categories for your own insight (HOA dues, pest control, software) as long as each one rolls up to a single Schedule E line.

A worked month

Here's March for a made-up duplex, entered in the two logs and summarised:

Income Amount
Rent, Unit A $1,350.00
Rent, Unit B $1,275.00
Late fee, Unit B $50.00
Total income $2,675.00
Expense Category Amount
Mortgage interest (from the lender statement) Mortgage interest $1,040.00
Water and sewer Utilities $142.50
Lawn care Cleaning and maintenance $120.00
Kitchen faucet repair Repairs $285.00
Filters and light bulbs Supplies $36.40
Total expenses $1,623.90

Net income for March: $2,675.00 − $1,623.90 = $1,051.10.

The mortgage payment was $1,420, but only the $1,040 of interest is an expense. The other $380 went to principal: it reduces the loan, so it isn't an expense, but it did leave your bank account. Cash flow for the month was therefore $1,051.10 − $380.00 = $671.10. That difference between "net income" and "cash flow" confuses many new landlords; your spreadsheet should show both.

Rental Property Bookkeeping Spreadsheet

Know exactly what each rental earns, without accounting software. Log rent and expenses with dropdowns. The dashboard, monthly summary and year-end P&L per property update automatically.

Excel & Google Sheets · sample + blank file · PDF guide

A 20-minute monthly routine

  1. Download the bank and card statements for the rental account.
  2. Log every transaction not yet in your logs, with property and category.
  3. Match receipts. Snap a photo of each paper receipt and name it with the date and payee, or note where it's stored.
  4. Check rent. Compare rent received with rent due for each tenant, and follow up on anything missing. (A rent ledger makes this automatic.)
  5. Split mixed payments. Record the mortgage payment as interest (and, if your lender escrows them, taxes and insurance) and principal, using your lender's statement.
  6. Review the summary. A sudden jump in utilities or repairs is easier to investigate in April than next February.

Tricky items

  • Repairs vs improvements. Fixing a broken lock or repainting a room is a repair. Replacing the entire roof or adding a bathroom is an improvement, which generally must be capitalized and depreciated rather than deducted in one year. Log improvements in their own category so your tax preparer can deal with them.
  • Security deposits. A deposit you expect to return isn't income when received (IRS Publication 527). Track it separately; record income only if you keep some of it.
  • Advance rent. Rent received in advance is income in the year you receive it, whatever period it covers.
  • Shared costs. Insurance or software that covers several properties can be logged to "Portfolio" and allocated later, or split across properties when you enter it.
  • Mileage. If you drive to your rentals, keep a simple mileage log (date, from, to, purpose, miles). The IRS rules on local transportation are in Publication 527.
  • Owner draws and contributions. Money you move between the rental account and your personal account isn't income or an expense. Log it separately so it doesn't distort the summaries.

Year-end: the P&L per property

At year-end, your summary should give, per property: total rent and other income, each expense category, net income, and your ownership share if you co-own. That's the page your tax preparer wants, along with Form 1098 from each lender, property tax bills, the closing statement for any property bought or sold, and the list of improvements.

How long to keep records

The IRS says to generally keep records that support your return until the period of limitations for that return runs out, which is three years in the normal case (longer in some situations). Records relating to the property itself (purchase, improvements, depreciation) should be kept until the period of limitations expires for the year in which you sell or otherwise dispose of the property. See the IRS page "How long should I keep records?" for the full list.

Common bookkeeping mistakes

  • Logging the full mortgage payment as an expense. Split it into interest, principal and any escrow.
  • Mixing personal and rental spending in one account, then guessing at year-end.
  • No receipts for cash purchases at the hardware store. A quick photo is enough.
  • One giant "repairs" category that hides improvements and maintenance. Keep them apart.
  • Forgetting small income: application fees, pet fees, laundry, a late fee here and there. They're generally part of rental income.
  • Catching up once a year. Twelve monthly sessions of 20 minutes are far easier than one weekend in March.

Spreadsheet or software?

A spreadsheet is enough when you have a few properties, a separate account and the discipline for a monthly routine. Software starts to pay off with bank feeds, many units, staff, or an accountant who prefers it. Many landlords start with a spreadsheet and never need more.

Rent Ledger & Late Rent Tracker

Know who paid, who owes, and for how long. Add your tenants once and log payments as they come in. Rent is charged on each due day, late fees follow your rule, and every balance updates by itself.

Excel & Google Sheets · sample + blank file · PDF guide

General information, not tax, legal or accounting advice. Tax rules change and depend on your situation; confirm with a qualified tax professional.

Frequently asked questions

Can I do rental property bookkeeping in a spreadsheet?

Yes. For a handful of properties, a well-structured spreadsheet with an income log, an expense log and categories that match Schedule E covers what most small landlords need. It works best with a separate bank account and a monthly routine.

Is the mortgage payment a rental expense?

Only part of it. The interest portion is generally a deductible expense, while the principal portion reduces your loan and is not an expense. Your lender's statements and Form 1098 show the split.

Is a security deposit rental income?

According to IRS Publication 527, a security deposit you plan to return is not income when you receive it. It becomes income if you keep part or all of it, for example for damage or unpaid rent. If it is meant as the last month's rent, it is advance rent and is income when received.

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