Back in January, when we were anticipating the pending acquisition of our first real estate investment, a four-unit apartment building, I received an email offering me a free copy of Quicken Rental Property Manager v. 2.0. Thrilled to get the software for free, I agreed to write a review and provide a text link free of charge, in exchange for the $90 software program.
We closed on the property in the middle of January. I installed the software without a glitch, and began entering data. Quicken Rental Property Manager is very easy to use, and I was up and running in an hour with the tenant and lease information set up.
As we made repairs, incurred expenses, and received rent checks, I continued using the software to track our net gain/loss, mileage, and view our tax report. It does allow you to categorize expenses into predefined categories. You can subdivide existing categories, but users are not able to create their own categories. I don't find the existing categories to be sufficient, so I often find that I have recurring expenses in different categories from entry to entry (an example is water softener rental for one unit - is it Maintenance? Supplies? Utilities?) I would prefer my own category, and I would also like to remove some of the categories that I don't think we'll use any time in the near future, like Royalties Received.
There's also some usability issues when entering expenses. For example, a new expense is always the last row in the table, and there's a selection box calendar that opens up for the date. Unfortunately, the selection box is too big I haven't yet found a way to scroll down enough to see the date window, so I always have to key in the date.
Additionally, I have had one problem with the software (which remains unresolved) that required a support ticket. We have one tenant who prepaid their rent through the end of their lease and we have been unable to apply the additional rent to the months that are more than one month away. Support was perplexed by the problem, and recommended changing the tax year (didn't work), and then left me hanging. Every month, I have to go in to the software, double-check the amount, and apply the rent. Not the end of the world, but I would hate to have multiple units that needed this kind of attention.
I appreciate how easy it is to use the software, because I honestly don't have the time or patience right now for anything complex or difficult. However, the value-added features of Quicken Property Manager are few and far between, and I've yet to encounter any functionality that exceeds that of an Excel workbook set up by someone with intermediate knowledge of Excel. Aside from two reports that merely summarize data, there isn't anything in the software beyond simple data entry capabilities.
A feature/function I would like to see (and I plan to set up myself in Excel) is the ability to store data at the building/unit level. Right now, there is tenant information that tracks rental history, but I would like to store information about each individual unit. Something like this...
Building A, Unit 2I plan to continue to use this software for the remainder of the year, just so I can see if it adds any value at tax time, but I anticipate I will be switching to Excel next year. If you are an Excel beginner, or want something that is easy to use out of the box, Quicken Rental Property Manager v. 2.0 might be for you. If you are a seasoned Excel user, you will probably be more satisfied with a spreadsheet, and you will save $90.
Maintenance Record
Stove - Purchased 2/2/1989. Old but works. Bake/broil knob backwards, warn new tenants. Check oven temp between tenants.
Refrigerator - Purchased 5/18/2005 from Hometown Appliance. Salesperson Charles, negotiated on price.
Washing machine - Unknown, planned replacement in 2007
Water heater - Old, fixed one leak, replace at next vacancy.
Water softener - On rent from Soft Water USA for $13/month. Can be purchased outright in January 2008.
Carpet - Replaced living room carpet in May 2005, bedroom carpet was replaced in May 2002.
... etc.
Rental History
Average vacancy per year = 76 days (Excel formula)
Average rent/month for the last 24 months = $656 (Excel formula)
Average yearly income = $6,889 (Excel formula)
... etc.
5 comments:
Thanks for the review, Savvy. I had someone else tell me they weren't very pleased with the program either.
I'll keep using Excel until a better alternative comes along.
Savvy,
I would guess those categories are fixed so Quicken can help you put everything together for your taxes - the tax categories include matainence, supplies, etc.
i have been a supporter of qrpm for the last 3 years. it is not strong in canada as it will not tie into our tax programs. i have addapted a business of home renovations and 8 rental properties into the program. my accountant love the paper work it produces and is able to do my taxes directly form there
It will not work with Windows Vista
Thanks for this post, With the help of software we can do our work very easily.
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