Guide · Accounts
Xero for landlords: keeping rental accounts up to date
Rental accounts are simple in principle: rent in, costs out, property by property. In practice they fall behind, because the information sits in an inbox, a property spreadsheet and a bank feed that never quite agree. Xero is a good home for the figures if something keeps it up to date.
Updated 10 October 2026
Why landlords use Xero
Xero gives you a bank feed, a record of every transaction with its receipt, and reports your accountant can work from directly. For a landlord it replaces the year-end shoebox of receipts with figures that are right all year.
What to record
Most rental income and costs fall into a handful of categories. Set up an account for each one you use:
- Rent received, and other income such as parking, storage or livery
- Repairs and maintenance
- Insurance
- Letting and management fees
- Certificates and safety checks
- Ground rent, service charges and utilities you pay
Split it by property
Your tax return needs the totals, but running the portfolio needs the figures for each property. Recording which property each item belongs to shows which ones earn their keep and which cost more than they should.
Keep the receipt with the entry
Attach the invoice or receipt to each transaction rather than filing it separately. When your accountant or HMRC asks about a figure, the evidence is one click away, and nothing is lost between the inbox and the books.
Making Tax Digital
HMRC’s Making Tax Digital for Income Tax brings quarterly digital updates to many landlords, starting with those on higher incomes. Keeping your records in software like Xero puts you in a good position for it. Check HMRC’s guidance for whether and when it applies to you.
How TenantTool works with Xero
On TenantTool Pro, connect your own Xero organisation and map TenantTool’s categories to your Xero accounts once. From then on, rent, repairs and other spending recorded in TenantTool are sent to Xero for you, with the receipt or invoice attached. A contractor’s invoice that has not been paid yet goes across as a bill. Card payments taken with Stripe pay links, and Stripe’s fees, go across too.
Common questions
- Do I still need an accountant if I use Xero?
- Many landlords keep one for the tax return and advice. Up-to-date records in Xero make that work quicker, and usually cheaper.
- Does TenantTool replace Xero?
- No. TenantTool runs the properties, tenancies, certificates and repairs, and keeps Xero up to date with the money side, so each does what it is good at.
- Which TenantTool plan includes Xero?
- TenantTool Pro.