Best Accounting Software for Landlords UK 2026

Landlords have accounting needs that most software was never designed to handle. Section 24 mortgage interest restrictions, multi-property expense tracking, the distinction between repairs and improvements, furnished holiday let rules, and now Making Tax Digital for Income Tax — these are specific requirements that generic small business software handles poorly, if at all.

In 2026, with MTD now live for landlords earning over £50,000 in qualifying income, choosing the right software is no longer just about convenience. It is a compliance requirement with real penalties for getting it wrong.

We have tested the main options from a landlord's perspective. Here is an honest assessment of what works, what does not, and which platform suits which type of landlord.

What Landlords Need From Accounting Software

Before comparing platforms, it is worth being specific about what landlords require. These needs are distinct from those of a typical sole trader or freelancer.

Section 24 Mortgage Interest Handling

Since the full phase-in of Section 24, residential landlords can no longer deduct mortgage interest as an expense. Instead, they receive a 20% tax credit on finance costs. Your software needs to handle this correctly — treating mortgage interest as a tax credit rather than a deductible expense. Getting this wrong means your tax calculation is wrong, potentially by thousands of pounds.

Multi-Property Tracking

Most landlords own more than one property. You need to track income and expenses separately for each property while still getting an overall view of your rental business. Software that lumps everything together makes it impossible to assess the profitability of individual properties.

Repairs vs Improvements

HMRC treats repairs and improvements differently for tax purposes. Replacing a broken boiler with a like-for-like equivalent is a deductible repair. Upgrading to a more expensive model may be a capital improvement that is not immediately deductible. Your software should help you categorise these correctly.

Letting Agent Fee Tracking

If you use a letting agent, their fees, commission, and any charges for tenant finding or property management need to be tracked and categorised as allowable expenses.

MTD Quarterly Submissions

Making Tax Digital requires quarterly updates to HMRC for landlords above the income threshold. Your software must be HMRC-recognised for MTD and able to submit these updates directly.

Self Assessment Filing

Most landlords file Self Assessment with property income schedules (SA105). Being able to file directly from your accounting software rather than re-entering everything on the HMRC website is a significant time-saver.

The Best Accounting Software for Landlords

1. Accounted — Best for AI-Powered Landlord Bookkeeping

Price: From £12/month | MTD: Yes | Section 24: Yes | Multi-property: Yes

Accounted handles landlord-specific requirements natively. The platform supports multiple properties with separate income and expense tracking for each, handles Section 24 mortgage interest restrictions correctly in its tax calculations, and distinguishes between repairs and capital improvements in its categorisation logic.

Penny, the AI bookkeeper, categorises rental-related transactions automatically — letting agent fees, insurance premiums, ground rent, service charges, maintenance costs, and tenant deposits are all handled. When a transaction could be either a repair or an improvement, Penny flags it for your review rather than guessing.

The WhatsApp integration works particularly well for landlords. When your plumber sends you a receipt for a boiler repair, photograph it and send it to Penny. The AI extracts the details, categorises it correctly against the right property, and matches it to your bank transaction. No logging into a portal, no manual data entry.

Accounted supports the SA105 property income schedule, so your Self Assessment return includes your rental income automatically. MTD quarterly submissions pull directly from your live bookkeeping data.

Strengths: Landlord-specific features, AI categorisation, WhatsApp receipt capture, Section 24 handling, multi-property support Weaknesses: UK only, no invoicing, newer platform

See our pricing for what is included, or start a free trial.

2. FreeAgent — Best Free Option for Landlords

Price: £14.50/month (free with NatWest/RBS) | MTD: Yes | Section 24: Partial | Multi-property: Limited

FreeAgent handles basic rental income tracking and can file Self Assessment including property schedules. If you bank with NatWest, RBS, or Ulster Bank, you get the full platform for free, which makes it an attractive starting point.

The limitations for landlords are that multi-property tracking requires workarounds (using projects or cost centres rather than dedicated property tracking), and the Section 24 handling is not as automated as purpose-built solutions. You may need to adjust your tax calculations manually.

Strengths: Free with NatWest, full-featured for the price, good general bookkeeping Weaknesses: Multi-property tracking is awkward, Section 24 handling requires manual adjustment

We compare these two directly in our Accounted vs FreeAgent review.

3. Xero — Best With a Property Accountant

Price: £15–£47/month | MTD: Yes | Section 24: Via accountant/add-ons | Multi-property: Via tracking categories

Xero is the platform most property accountants know and recommend. Its tracking categories allow you to separate income and expenses by property, and the accountant collaboration features mean your accountant can access your books, make adjustments, and file on your behalf.

For landlords who manage their own accounts without an accountant, Xero can be challenging. Section 24 calculations typically require accountant intervention or manual journal entries, and the general complexity of the interface is higher than landlord-specific tools.

The strength of Xero for landlords lies in the ecosystem. Add-on tools like Hammock integrate with Xero to provide purpose-built landlord features, including Section 24 calculations, multi-property dashboards, and tenant management.

Strengths: Accountant familiarity, strong ecosystem, tracking categories for properties Weaknesses: Not landlord-specific, requires add-ons or accountant for full functionality, expensive

4. Hammock — Best Dedicated Landlord Platform

Price: From £8/month per property | MTD: Yes | Section 24: Yes | Multi-property: Yes

Hammock was built specifically for landlords. It handles multi-property tracking natively, calculates Section 24 correctly, tracks repairs vs improvements, and manages tenant information alongside your finances. If you want a platform designed exclusively for property, Hammock is a strong contender.

The trade-off is that Hammock focuses only on property. If you also have self-employment income, you need a separate platform for that side of your finances. And the per-property pricing can add up if you have a larger portfolio.

Strengths: Purpose-built for landlords, native Section 24, multi-property management Weaknesses: Property only (no self-employment), per-property pricing adds up

5. QuickBooks — Best for Landlords With Other Business Income

Price: £12–£32/month | MTD: Yes | Section 24: Manual | Multi-property: Via classes

QuickBooks handles basic rental income tracking through its class and location features, which can be used to separate income and expenses by property. The general bookkeeping and invoicing features are strong, which is useful if you have business income alongside rental income.

For pure landlord needs, though, QuickBooks requires significant manual setup. Section 24 calculations need to be done manually, and the platform does not natively understand the distinction between repairs and improvements in a property context.

Strengths: Good if you have mixed income sources, strong invoicing, decent MTD support Weaknesses: No native landlord features, manual Section 24, requires workarounds

Read our Accounted vs QuickBooks comparison for a broader view.

6. Sage Accounting — Best for Traditional Landlords

Price: £12–£26/month | MTD: Yes | Section 24: Manual | Multi-property: Via departments

Sage handles rental income tracking through its department features, and the platform is reliable for general bookkeeping. UK-based support is a genuine advantage if you prefer phone help.

Like QuickBooks, Sage does not natively handle landlord-specific requirements like Section 24 or the repairs vs improvements distinction. You would need to manage these manually or work with an accountant.

Strengths: Established brand, UK support, reliable bookkeeping Weaknesses: No native landlord features, manual tax calculations for property

Special Considerations for Landlords

Furnished Holiday Lets

If you operate a furnished holiday let, the tax rules are different from standard residential lettings. The business rates, capital allowances, and profit sharing rules that applied to FHLs have changed — make sure your software handles the current rules correctly. Accounted and Hammock both accommodate FHL treatment.

Non-Resident Landlords

If you live abroad but own UK rental property, the Non-Resident Landlord Scheme applies. Your letting agent may need to deduct basic rate tax from your rental income unless you have HMRC approval to receive rent gross. Not all software handles this correctly.

Mixed Portfolios

Many landlords have a mix of residential, commercial, and holiday let properties. Each type has different tax treatment. Software that handles all three — and keeps the calculations separate — is essential for accurate tax returns.

How to Choose

Choose Accounted if you want AI-powered bookkeeping that handles landlord-specific requirements automatically. Penny categorises property expenses, manages multi-property tracking, and calculates Section 24 correctly. Try it free.

Choose Hammock if property is your only income source and you want a platform built exclusively for landlords. Just be aware you will need separate software if you also have self-employment income.

Choose Xero if you work with a property accountant who uses Xero. The combination of Xero plus a landlord add-on like Hammock, managed by an experienced accountant, is hard to beat for complex portfolios.

Choose FreeAgent if you bank with NatWest and want a free, full-featured platform. You will need to work around some landlord-specific limitations, but the price (free) is unbeatable.

For a wider comparison of platforms beyond landlord-specific needs, see our best bookkeeping software guide. And if MTD compliance is your main concern as a landlord, our complete Making Tax Digital guide covers everything you need to know.

The right software for your rental portfolio depends on its size, complexity, and whether you have other income sources. But one thing is certain: spreadsheets are no longer adequate when HMRC expects quarterly digital submissions. The sooner you get set up on proper software, the smoother the transition will be.

See how Accounted compares to Xero, Sage, QuickBooks and more — and why sole traders are switching. See the full comparison →