General information, not legal advice. This template is a starting point. Laws differ by state and city, so have a licensed attorney review your final document before you use it.
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The short version
- A chart of accounts is the list of categories every transaction is sorted into.
- Use one chart for every property and tag transactions by property, instead of a separate chart per building.
- Security deposits are a liability, not income, until lawful deductions are made.
- Split loan payments into interest (an expense) and principal (a reduction of the loan).
What a chart of accounts is
A chart of accounts is the backbone of your bookkeeping: a numbered list of the categories every dollar is sorted into. Assets are what you own, such as bank accounts and buildings. Liabilities are what you owe, including tenant deposits and loans. Equity is the owner’s stake. Income is what you earn, and expenses are what you spend. With a consistent chart, your profit and loss, balance sheet and tax return all fall out of the same records.
When to use it
When you set up books for a new rental business, when you move from a spreadsheet to accounting software, or when your current categories have grown into a mess. The spreadsheet version of this template has the same columns as the printed list, ready to import or adapt.
How to use the template
- Download the spreadsheet and review each account.
- Delete accounts you will never use and rename any that do not fit.
- Add sub accounts only where you need detail.
- Set up the chart in your accounting tool, keeping the numbers.
- Ask your tax preparer to review the list before your first year end.
How the numbering works
- 1000s, assets: bank accounts, receivables, property and equipment.
- 2000s, liabilities: payables, tenant deposits, prepaid rent and loans.
- 3000s, equity: owner contributions, distributions and retained earnings.
- 4000s, income: rent and other income, and concessions.
- 5000s, expenses: operating costs, interest and depreciation.
Tips
- Separate deposit cash where your state requires a separate account, and match it to the deposit liability each month.
- Keep repairs and improvements apart. Repairs are expenses now. Improvements are assets that are depreciated over time.
- Track concessions as contra income so gross rent stays visible.
Common mistakes
- Posting deposits to income.
- Posting the full loan payment as an expense, which overstates expenses and hides the loan balance.
- A new account for every vendor, which buries the numbers that matter.
- Separate charts per property, which makes portfolio reports painful.
Accounting in TenantLoop
TenantLoop includes a chart of accounts made for rentals. Rent, deposits, bills and owner money post to it as they happen, bank feeds come in through Plaid for reconciliation, and the profit and loss for each property is one click away. If you keep your books in QuickBooks Online, TenantLoop can sync with it.
What is in the template
A ready-made chart of accounts for rental property: numbered asset, liability, equity, income and expense accounts, each with its type, normal balance and what to post there. Download it as a spreadsheet to import or adapt.
Read the whole rental property chart of accounts template
Get the file
Free, no sign up. Print the PDF, edit the Word file or open the CSV in any spreadsheet.
General template, not legal advice. Have an attorney in your state review before use.
Before you send it.
What is a chart of accounts?
It is the numbered list of accounts in your books, grouped into assets, liabilities, equity, income and expenses. Every rent payment, bill and deposit is posted to one of them.
How many accounts do I need?
Fewer than most people expect. Start with this list, delete what you will never use and add sub accounts only where you need detail for decisions or taxes.
Should each property have its own accounts?
Usually no. Use one chart and tag each transaction with its property, so you can run a profit and loss per property and for the whole portfolio from the same accounts.
Is this list right for my taxes?
It follows common rental property categories, but your tax preparer may want accounts mapped to the lines of your return. Ask them to review it before your first year end.