Landlords, Xero, and Rental Property Accounting

Last updated: 26 June 2026

Xero is general-purpose accounting software that works for landlords, but it lacks property-specific features like rent tracking, tenancy management and a rent roll report. Landlord Studio is purpose-built for UK landlords and integrates with Xero, so you can manage your properties in Landlord Studio while your accountant uses Xero for quarterly Making Tax Digital submissions.

Xero vs Landlord Studio vs Landlord Studio + Xero: which is best for landlords?

The short answer: use Xero for general business accounting, Landlord Studio for property-specific income and expense tracking, and Landlord Studio + Xero together if you want purpose-built property management feeding into an accountant-friendly ledger for Making Tax Digital for Income Tax. Here is how the three options compare:

It doesn’t matter if you have several buy-to-lets, a single HMO, furnished holiday lets, or commercial property, understanding cash flow, staying on top of budgets, and having detailed reports for the end of the tax year are all essential if you want to run a profitable property business.

Without the right systems in place, it can be easy for property investors to become overwhelmed. There is a lot to do, from finding and managing tenants and routine safety checks and property inspections to keeping accurate and detailed records of income and expenses.

Thankfully there are several solutions on the market designed to meet your accounting and property management needs including property management software like Landlord Studio, and accounting packages such as Xero or QuickBooks. In this article, we take a look at Xero for tracking rental property expenses, and how it can be combined with industry-specific software to help save you time and money.

Why Do Property Investors Like Xero?

Xero is one of the leading accounting software packages on the market today for a reason. They offer a comprehensive and thorough accounting package with customisable reporting designed to streamline tax time and give investors a complete overview of their finances.

A brief overview of how Xero works for landlords:

1. Create your account
2. Upload or set up your chart of accounts
3. Set up your bank accounts
4. Set up your tracking categories. (Tracking categories can be used as a logical way to group your properties – for example, you might set one up for each business category or even one for each property.)
5. Set up your reports
6. Begin tracking income and expenses.

For more information visit Xero support.

Xero has several key benefits for landlords including:

• Connect bank feeds to view and reconcile income and expenses.
• Set up automated rent invoices to help avoid late rent payments.
• Cloud accounting software so your data can be accessed anywhere you are.
• Grant access to multiple people so your accountant and business partners can access and edit data.
• Comprehensive and customisable reporting.
• An intuitive dashboard.
• Good customer service.

However, setting up Xero to properly track your income and expenses for your property investments can be a challenge.

Unless you’re an accountant, you might want to explore industry-specific solutions, such as Landlord Studio, to make your income and expense tracking easier, less time-consuming, and reduce this learning curve.

The Limitations of Xero for Property Accounting

Xero is an excellent software for your general accounting needs. However, the majority of Xero’s users are small business owners and this has a fundamental impact on the design, development, and support service. As such Xero doesn’t have some of the additional time-saving features designed specifically for property investors.

A few of Xero’s key weaknesses for rental property accounting include:

• Lacking property management features such as tenancy management, document storage, reminders, email and SMS templates and automation.
• No industry-specific reports such as a rent roll report, mileage tracking and reporting, vacancy report etc.
• Can’t upload important documents such as property inventories, tenancy documents, and safety certificates.
• The help centre is aimed at regular businesses, not property investment.

One solution to overcoming these weaknesses is to combine Xero with an industry-specific solution. We go into more detail as to how that works below.

How Xero + Landlord Studio handle Making Tax Digital for Income Tax

You keep your digital records in Landlord Studio, sync reconciled transactions to Xero, and your accountant files the quarterly updates and Final Declaration in Xero — both Xero and Landlord Studio are HMRC-recognised software for Making Tax Digital for Income Tax (MTD for IT).

Making Tax Digital for Income Tax is now live. Since 6 April 2026, landlords with qualifying property (and self-employment) income above £50,000 must keep digital records and send quarterly updates to HMRC using HMRC-recognised software, followed by a Final Declaration that replaces the old Self Assessment return. The threshold drops to £30,000 from April 2027. You can read the full breakdown in our complete guide to Making Tax Digital for landlords and the MTD hub.

Here is how the workflow fits together when you pair the two:

1. Keep digital records in Landlord Studio. Log rent and expenses against each property, scan receipts, and reconcile against your bank feed throughout the year.
2. Sync to Xero. The one-way integration pushes your reconciled transactions into Xero automatically, so there is no double entry.
3. File quarterly updates and the Final Declaration. Your accountant uses Xero, as HMRC-recognised MTD software, to submit the quarterly updates and the Final Declaration. (Landlord Studio is also HMRC-recognised for MTD for IT, so landlords who prefer to file directly can do so within Landlord Studio.)

For a step-by-step walkthrough, see Landlord Studio, Xero, and preparing for MTD.

Xero vs QuickBooks For Rentals

QuickBooks is the other big name in the game when it comes to small business accounting. While both Xero and QuickBooks offer similar functionality, their approaches differ and each has its own pros and cons.

It’s important to note that both Xero and QuickBooks are optimised for small to mid-sized businesses rather than for landlords, so when it comes to rental management you may still be better off looking at industry-specific software. But there’s still a lot to love about both systems.

Xero has a focus on usability and design that has made it one of the most widely used cloud accounting platforms in recent years. Xero is also competitive on features when compared to QuickBooks and comes at a slightly different price point depending on the package you need. Xero also has a large app marketplace of integrations.

On the other hand, QuickBooks has been a long-standing industry choice for accountants. QuickBooks is widely used and comes with the core tools small businesses need in order to manage their accounts.

Ultimately, their features stack up fairly evenly. They do differ significantly in how you use them, however, so if you already have familiarity with one platform you may be better off sticking with what you know so that you don’t have to learn a whole new software. You may also want to talk with your accountant before making any final decision. For a closer look, see our QuickBooks vs Landlord Studio comparison.

Xero + Property Management Software

Landlord Studio is a property management software and landlord app designed by landlords for landlords. It allows you to track your income and expenses efficiently and easily and gain a clear financial overview of your portfolio. Manage your rental property accounting on the go with the Landlord Studio app and never miss an allowable expense again.

Many of the problems experienced by landlords can be made easier (if not solved) with improved organisation and better use of available tools.

You can now pair Xero’s advanced accounting and reporting functionality with Landlord Studio’s complete suite of property management and income and expense tracking tools with the Landlord Studio Xero integration:

• Save time with task automation, and features like bank feeds and smart scan receipts.
• Utilise cloud-based software and easy to use apps. Access your data on the go from any device, available on iOS, Android and desktop.
• Keep everything in one place. Store important documents, set reminders for key dates and gain quick insights into your portfolio financials.

Benefits of Using Landlord Studio + Xero

Easy Income and Expense Tracking

Using the apps or desktop software track and reconcile income and expenses with a few quick taps against the relevant property.

Simple Setup

Set up your Landlord Studio account in under 5 minutes, and with default categories already prefilled, you can start tracking income and expenses immediately.

Bank Feeds

Connect your bank accounts to reconcile income and expenses in real-time and let the integration automatically sync reconciled transactions to your Xero account.

Tailored Reporting

Make the most of Landlord Studio’s easy-to-use real estate specific reports as well as Xero’s powerful customisable reporting perfect for tax time.

Digitise Receipts

Use your phone to digitise receipts while the smart scan feature auto-fills the expense details.

Document Storage & Tenant Management

Store important documents securely to the cloud server and easily manage tenant communications, track current and historical tenancies, and automate rent reminders.

How to Use Landlord Studio and Xero

Using property management-specific software like Landlord Studio will help you optimise the day-to-day management of your rentals. However, Xero is one of the world’s leading accounting software packages for a reason. It’s an excellent solution for tracking your business’s income and expenses.

Combining the two allows you to streamline your property management and gain a complete overview of both your personal finances and real estate accounts.

The easiest way to use Landlord Studio with Xero is through the integration. This one-way integration enables an automatic flow of information to your Xero account, eliminating double entry and allowing users to make the most of both powerful software packages. (Note: historical transactions cannot be synced retrospectively through the integration — the sync begins once setup is complete and your categories are mapped.)

Step 1: Set up your Xero account with your real estate chart of accounts, tracking categories, and bank accounts.

Step 2: Log into your Landlord Studio account.

Step 3: Configure the Xero integration.

Step 4: Map your chart of accounts.

Step 5: Map your bank accounts and tracking categories.

Step 6: Invite your accountant to review your setup.

You only need to set up the integration once. Once it’s set up your financial data will flow seamlessly into Xero.

Frequently Asked Questions

Is Xero good for landlords?

Yes for general accounting — Xero is HMRC-recognised, cloud-based and accountant-friendly. However, Xero has no property-specific features such as a rent roll report, tenancy management or document storage, so landlords often pair it with purpose-built software like Landlord Studio.

Does HMRC recognise Xero for Making Tax Digital?

Yes. Xero is HMRC-recognised software for Making Tax Digital for both VAT and Income Tax. Landlord Studio’s Xero integration lets landlords feed reconciled digital records into Xero so an accountant can file the quarterly updates and Final Declaration.

What is the best accounting software for landlords in the UK?

It depends on your portfolio and how you work. Xero or QuickBooks are strong general accounting packages; Landlord Studio is purpose-built for property-specific income and expense tracking and reporting. Many UK landlords use Landlord Studio and Xero together so they get property management plus accountant-ready books.

Can I use Xero and Landlord Studio together?

Yes. The one-way integration syncs reconciled transactions from Landlord Studio into Xero, removing double entry. You manage properties, receipts and tenancies in Landlord Studio, and your reconciled financial data flows automatically into Xero.

Is Xero or Landlord Studio better for Making Tax Digital?

They serve different roles. Use Landlord Studio for digital record-keeping and day-to-day property management; use Xero, via the integration, for accountant-led quarterly MTD submissions. Both are HMRC-recognised for MTD for Income Tax, so landlords can also file directly within Landlord Studio if they prefer.