NEW YORK, March 18, 2025 (GLOBE NEWSWIRE) — RentRedi, the fastest-growing all-in-one property management software that makes renting easy for both landlords and renters, has released the findings of its Landlords Tax Preparation Trends Survey analyzing tax preparation habits among landlords of different sizes. The data highlights key differences in tax filing methods, expenses, and the reliance on professional services among small, medium, and large landlords.
One of the most interesting findings is the disparity in bookkeeping methods. At 29%, small landlords (1-4 rental units) are the most likely to use an accountant or CPA to prepare their taxes as compared to the roughly 23% of medium landlords (5-19 rental units) and large landlords (20+ rental units) who hire tax professionals. Large landlords (17%) are the least likely to rely on manual methods such as pen-and-paper or spreadsheets, whereas 1 in 5 small and medium landlords are the most likely to do so.
“The data highlights a significant opportunity for property management software to bridge the gap in tax preparation,” said RentRedi Co-founder and CEO Ryan Barone. “Our software can help independent landlords reduce the time and effort spent on tax preparation by moving away from pen and paper or spreadsheets to digital solutions that improve accuracy and organization.”
For example, RentRedi’s accounting feature saves landlords time and money by simplifying the entire process and automatically syncing properties and charges from their RentRedi account. Landlords can link their bank and credit card accounts for seamless transaction imports, ensuring accurate tracking of income and expenses. They can also use matching rules and payment templates to track income and expenses, as well as view vital financial information such as balance sheets, schedule E’s, and profits, losses, or cash flow by property.
The survey further found that filing methods also vary widely across landlord sizes. A sizable 62% of small landlords file their rental property taxes along with their personal tax returns. Large landlords take the opposite approach, with only 29% filing under personal tax returns, while 66% opt to file under LLCs. Medium-sized landlords, on the other hand, are almost evenly split between filing under personal tax returns (48%) and filing under an LLC (47%).
When it comes to accounting costs, large landlords tend to invest the most, with 42% spending at least $1,000 on tax services. By contrast, only slightly more than 1 in 10 small landlords reported spending that much, with more than half keeping their tax expenses under $500.
Nearly two-thirds of landlords begin their tax preparation as soon as the new year begins, and requesting a tax extension is not uncommon among landlords. Nearly one-quarter of large landlords request an extension, compared to 11% of small landlords who also seek extra time to file their taxes.
When asked what advice they would give to new property investors, a third of landlords emphasized the importance of tracking everything—from income and expenses to maintenance costs and tax deductions. Another 16% recommended gaining a solid understanding of general tax knowledge early on to avoid costly mistakes. These insights underscore a common theme: staying organized and informed from the start can make tax season significantly easier and help landlords maximize their investment returns.
Survey Methodology
RentRedi landlords were surveyed between February 19 – March 3, 2025. There were 1,891 respondents in total. Landlords were classified by real estate portfolio size as follows: small landlords (1-4 rental units); medium landlords (5-19 rental units); and large landlords (20+ rental units). Percentages have been rounded to the nearest whole number, and therefore the values in each barchart may not equal 100%. The full survey results can be found here.
About RentRedi
RentRedi offers an award-winning, comprehensive property management platform that simplifies the renting process for landlords and renters by automating and streamlining processes. Landlords can quickly grow their rental businesses by using RentRedi’s all-in-one web and mobile app to collect rent, list and market vacancies, find and screen tenants, sign leases, and manage maintenance and accounting. Tenants enjoy the convenience and benefits of RentRedi’s easy-to-use mobile app that allows them to pay rent, set up auto-pay, build credit by reporting rent payments to all three major credit bureaus, prequalify and sign leases, and submit 24/7 maintenance requests.
Founded in 2016, RentRedi is VC-backed and a proven leader in the PropTech market. The company ranks No. 180 on the Inc. 5000 list and No. 12 on the Inc. 5000 Regionals list. It was also named an Inc. Power Partner in 2023 and 2024, and to Fast Company’s Next Big Things in Tech list in 2024, and to HousingWire’s Tech100 list in 2025. To date, RentRedi has more than $28 billion in assets under management with nearly 200,000 landlords and tenants using the platform. The company partners with technology leaders such as Zillow, TransUnion, Experian, Equifax, Realtor.com, Lessen, Thumbtack, Plaid, and Stripe to create the best customer experience possible. For more information visit RentRedi.com.
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