Landlords have different software needs from sole traders running a trading business. Property income has its own categories, multiple properties need to be tracked separately for your own records (even though MTD reports them as one combined property business), and many landlords work with an accountant and need easy multi-user access. This guide focuses specifically on what matters for property income.
What Landlords Specifically Need From MTD Software
- Property-level tracking. even though your MTD quarterly update reports one combined property income figure, you need to track income and expenses per property for your own management purposes (and for the Final Declaration if you later sell a property and need historical figures for Capital Gains Tax)
- Mortgage interest tracking. since the 2020 changes, mortgage interest is no longer deducted from rental income directly but instead given as a tax credit. Good software tracks this separately and applies it correctly at the Final Declaration stage
- Joint ownership support. if you co-own properties, you need your own account reflecting only your share of income and expenses
- Accountant access. most landlords with multiple properties use an accountant; software with strong multi-user permissions matters
- Bank feed for buy-to-let accounts. automatic transaction import from dedicated landlord bank accounts saves significant time
Xero. Best for Landlords With Multiple Properties
Strengths for Landlords
- Tracking categories let you tag every transaction by property. best portfolio-level visibility of any provider
- Best-in-class accountant access. share your account with your letting agent's accountant or your own
- Strong reporting. profit and loss by property, portfolio-wide cash flow
- Handles mortgage interest tax credit tracking well
- Largest ecosystem of property-specific add-ons
Weaknesses
- Steeper learning curve if you manage everything yourself without an accountant
- No dedicated "property management" features. it's accounting software, not a lettings platform
- Mobile app less polished than QuickBooks for receipt capture
Best for: Landlords with 3+ properties, those who use an accountant, portfolio landlords who want detailed per-property reporting.
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QuickBooks. Best for Self-Managing Landlords
Strengths for Landlords
- Best mobile app. photograph receipts for repairs and maintenance on the go
- Most intuitive for non-accountants, simpler interface than Xero
- Handles combined self-employment + rental income in one account (useful if you also have a sole trade)
- Self Assessment / Final Declaration tax estimate visible throughout the year
- Strong UK bank feed coverage including most buy-to-let mortgage providers
Weaknesses
- Per-property tracking less sophisticated than Xero for large portfolios (5+ properties)
- Accountant ecosystem slightly smaller than Xero's, though still extensive
Best for: Landlords with 1–3 properties managing their own books, landlords who also have self-employment income, those who prioritise ease of use over advanced reporting.
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FreeAgent. Good for Smaller Portfolios
Strengths for Landlords
- Very simple, clean interface
- Free if you bank with NatWest, RBS, or Ulster Bank business accounts
- Built-in Final Declaration / Self Assessment tool
Weaknesses
- Property categorisation less detailed than Xero or QuickBooks
- Not designed primarily for property. better suited to service businesses
- Limited multi-property tagging for large portfolios
Best for: Landlords with one or two properties and very simple finances, particularly NatWest/RBS account holders.
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Zoho Books. Best Free Option for Small Landlords
Strengths for Landlords
- Free for turnover under £35,000. covers many Phase 2/3 landlords entirely free
- HMRC-approved for MTD ITSA
- Decent property tagging on the free tier
Weaknesses
- No accountant access on the free tier. a real limitation for landlords with an accountant
- Less established for UK property-specific workflows than Xero/QuickBooks
Best for: Landlords with one property and rental income near the £20,000–£35,000 range, who manage their own affairs without an accountant.
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Software for Joint Property Ownership
If you co-own a rental property, with a spouse, family member, or business partner, each co-owner needs theirown MTD software account and submits their own quarterly updates, based on their individual share of the income.
Software does not automatically "split" joint income between accounts. In practice:
- Each owner records their own share of the rental income and expenses in their own software account (e.g. 50% each for a 50/50 split)
- If one person manages the property day-to-day and pays expenses from a joint account, both owners need visibility of the joint account transactions to record their respective shares
- Xero and QuickBooks both work well for this. set up two separate accounts, one per owner, each recording their proportional share
For full detail on how joint ownership thresholds and registration work, see our complete guide to MTD for joint property owners.
Furnished Holiday Lets. No Special Software Needed Now
Since the Furnished Holiday Let tax regime was abolished from 6 April 2025, FHL income is treated as ordinary property income for all tax purposes. including MTD. If you previously used FHL-specific accounting features, you no longer need them. All the software listed here handles FHL income in exactly the same way as any other rental income.
Quick Comparison for Landlords
| Software | Best Portfolio Size | Accountant Access | Price |
|---|
| Xero | 3+ properties | ✓ Best | £16/mo |
| QuickBooks | 1–3 properties | ✓ Good | £14/mo |
| FreeAgent | 1–2 properties | ✓ Good | £19/mo |
| Zoho Books | 1 property, near threshold | ✗ Limited (free tier) | Free tier |
Prices correct July 2026, verify before purchasing.
Frequently Asked Questions
What is the best MTD software for landlords with multiple properties?
Xero is generally the best choice for landlords with multiple properties, particularly if you use an accountant. It allows property-by-property tracking, strong multi-user access, and excellent reporting across a portfolio. QuickBooks is a strong alternative for landlords managing their own books without an accountant.
Do I need different software for each rental property?
No. All major MTD software allows you to track multiple properties within a single account, with income and expenses categorised by property. Your MTD quarterly update reports your combined property income as a single property business, but most software lets you drill down by individual property for your own records.
What software handles joint property ownership for MTD?
Each co-owner needs their own MTD software account and submits their own quarterly updates based on their share of the income. Software does not automatically split joint income between owners. you each record your individual share. Xero and QuickBooks both handle this well since each owner has a separate account.
Does MTD software handle Furnished Holiday Lets differently?
Since the FHL regime was abolished from April 2025, FHL income is now treated as ordinary property income for tax purposes, including MTD. Major MTD software providers have updated their property categories accordingly. No special FHL module is required for MTD purposes from 2025–26 onwards.
Can my letting agent's software be used for my MTD records?
Not directly. Letting agent statements provide useful data for your records, but you need your own MTD-compatible software to keep digital records and submit quarterly updates. Many landlords import letting agent statement data into their MTD software as a starting point for categorisation.
Check Your Landlord MTD Position
Our free calculator handles joint property splits, multiple properties, and combined rental + self-employment income. and recommends the best software for your situation.
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