Baselane Category Definitions & Bookkeeping Guidance
Last Updated: December 10, 2025
Update: Custom Categories are now live! With flexibility comes great responsibility. Vestora has taken the stance that Baselane’s core categories/sub-categories are sufficient for most landlords and shouldn’t be changed. However, there are a few additions that landlords can add for better bookkeeping clarity. They are summarized below:
Revenue -> Fees & Other Revenue -> Move-In Fees: Adding Move-In Fees will help landlords better account for fees charged when a tenant moves in.
Operating Expenses -> Auto & Travel -> Mileage: Adding Mileage will help landlords distinguish between business mileage vice Travel which is more appropriate for hotels.
Operating Expenses -> Other Operating Expenses -> Cash Back-Contra Expense: Adding Cash back will help landlords avoid categorizing transactions of cash back/credit card rewards incorrectly as income. The IRS looks at cash back/credit card rewards as discounts/rebates against expenses vice tax income, except for new account bonuses and typically the bank will send the landlord a 1099-INT for that. This category is treated similar as Insurance Proceeds (Contra Expense).
Operating Expenses -> Utilities -> Heating Oil: This is more of a nice-to-have if a landlord has a property using heating oil vice gas which are typically in rural areas.
Operating Expenses -> Insurance -> Mortgage Insurance (or Private Mortgage Insurance): Adding Mortgage Insurance or Private Mortgage Insurance as a sub-category will help to to differentiate between other insurance expenses and insurance expenses related to having a mortgage loan with less than a 20% down payment.
Background/Overview
Baselane offers numerous categories and sub-categories to aid landlords in classifying activity from their rental businesses in a standardized way. Accurate bookkeeping is essential for landlords to gain insights into their investment’s performance and for tax purposes.
The Baselane team developed and standardized the following categories and sub-categories with the help of industry experts. This reference should be used as a guide to assist landlords, bookkeepers, and/or accountants in correctly categorizing transactions by providing a standardized definition for each category and sub-category, typical supporting documentation used to substantiate activity, and any special considerations like increased IRS scrutiny, favorable tax treatments, and/or unique circumstances.
If you have recommendations for different or new categories or sub-categories, please send us an email to us and we can coordinate additions with the Baselane team. Check out the overview below!
Accounts
Account name
Standardized definition
Typical usage among users
Supporting documentation
Special considerations like IRS scrutiny, favorable tax treatments, unique circumstances
Revenue
Rents: Rents, or rental income, is any payment a landlord receives for the use or occupation of property. This includes payments received from tenants for the use of residential, commercial, or industrial spaces.
The Rents category includes the following four sub-categories:
Short Term Rents: Rents received from tenant durations that average less than seven days. Typically, short-term rents will include amounts received from platforms like Airbnb and/or Vrbo.
Medium Term Rents: Rents received from tenant durations between one month and 12 months.
Long Term Rents: Rents received from tenant durations greater than twelve months.
Section 8 Rents: Rents received that are subsidized by the U.S. Department of Housing and Urban Development (HUD) through the Section 8 Housing Choice Voucher Program. This program aims to assist low-income families in affording decent and safe housing in the private market.
Rent amounts may be substantiated with any of the following documentation:
Baselane-issued Form-1099s (only applicable to rents collected via Baselane’s rent collection feature)
Airbnb/Vrbo-issued Form 1099s (only applicable to rents collected via short-term rental platforms like Airbnb and Vrbo)
Public Housing Authority (PHA) Section 8 Statements (only applicable to Section 8 Rents)
Baselane Banking statements
External bank account statements
Special Considerations
Short-term rentals have special tax considerations based on the average stay of the tenant, if substantial services were provided, and whether the taxpayer provided material participation.
The IRS doesn’t define mid-term rentals and only differentiates between short-term rentals (<=7 days on average) and long-term rentals (>7 days on average).
Fees & Other Revenue:
The Fees & Other Revenue category includes the following nine sub-categories:
Application Fees: Amounts received from prospective tenants by submitting rental applications.
Cleaning Fee: Amounts received from tenants for move-in cleanings, move-out cleanings, or other times where rental turnover is high and a landlord charges for cleaning the unit.
Late Fee: Amounts received from tenants for failing to pay rent on-time and is subject to a late fee as outlined in the lease terms.
Laundry Fee: Amounts received from tenants for use of laundry equipment (such as a washer or dryer).
Other Fee: Amounts received that don’t fall into Rents or any of the other Fees & Other Revenue sub-categories.
Parking Fee: Amounts received from tenants for use of a parking space or facility.
Pet Fee: Amounts received from tenants for allowing pets.
Storage Fee: Amounts received from tenants for use of a storage unit.
Tenant Pass-Throughs: A tenant pass-through refers to a cost-sharing arrangement where certain expenses incurred by the landlord are passed on to tenants. This practice is common in commercial real estate but can also apply to residential leases in some cases. Common pass-through expenses include property taxes, insurance, maintenance costs, utilities, and sometimes management fees.
Fees & Other Revenue amounts may be substantiated with any of the following documentation:
Leases clearly articulating tenant pass-through obligations
Baselane Banking statements
External bank account statements
Operating Expenses (OpEx)
Operating Expenses: Operating expenses for rental properties are the costs associated with managing and maintaining the property. These expenses are essential for keeping the property functional and attractive to tenants.
Advertising: Amounts paid by a landlord to advertise a property or unit for lease.
Auto & Travel: Amounts paid when traveling for a rental property business.
The Auto & Travel category includes the following three sub-categories:
Entertainment: Definition
Meals & Food: Amounts paid by a landlord on food, drinks, refreshments, and other meals in support of their rental business. Meals & Foods are only 50% deductible.
Travel: Amounts paid by a landlord to travel in support of their rental business.
Cleaning & Maintenance: Amounts paid by a landlord cleaning and maintaining a property or unit.
The Cleaning & Maintenance category includes the following 12 sub-categories:
C&M Labor: Amounts paid by a landlord for cleaning services labor only. The Vestora team recommends using this sub-category only if the transaction does not fit better into the other sub-categories on this list.
C&M Supplies: Amounts paid by a landlord for purchasing cleaning and/or maintenance supplies such water filters, air filters, and/or disinfectants. The Vestora team recommends using this sub-category only if the transaction does not fit better into the other sub-categories on this list.
Cleaning & Janitorial: Amounts paid by a landlord for professional cleaning services performed at a property or unit, such as deep cleans at tenant turnover or common-area janitorial contracts.
Common Area: Amounts paid by a landlord for maintaining and cleaning shared spaces such as lobbies, hallways, stairwells, or community facilities.
Gardening & Landscaping: Amounts paid by a landlord for lawn care, gardening, tree trimming, or landscaping upkeep.
Linens, Soaps, & Other Consumables: Amounts paid by a landlord for consumable items provided to tenants (common for short-term or furnished rentals), such as soap, shampoo, linens, or paper products.
Painting: Amounts paid by a landlord for painting services or paint materials used in maintaining or refreshing a property.
Permits & Inspections: Amounts paid by a landlord to obtain permits (building, electrical, plumbing, etc.) or to cover mandated inspections (fire safety, building code, habitability checks).
Pest: Amounts paid by a landlord for pest control services, including termite, rodent, or insect treatments.
Pool & Spa: Amounts paid by a landlord for pool or spa cleaning, chemicals, or related maintenance services.
Security, Locks & Keys: Amounts paid by a landlord for specifically changing, servicing, and cleaning any key and lock set. Additionally, the Vestora team recommends using this sub-category to account for security cameras such as Ring or other brands.
Snow Removal: Amounts paid by a landlord for specifically removing snow/ice from a property and include plowing and salting services.
Commissions: Definition
The Commissions category includes the following two sub-categories:
Leasing Commissions: Amounts paid by a landlord to real estate agents, brokers, or leasing professionals for securing a tenant lease.
Other Commissions: Amounts paid for commissions not related to leasing, such as referral commissions or partnership-based finders’ fees.
Depreciation Expense or Depletion: The allocation of the cost of property improvements, capital assets, or natural resources over their useful life. For real estate, landlords typically deduct depreciation of buildings and capitalized improvements annually.
Insurance: Definition
The Insurance category includes the following seven sub-categories:
Earthquake: Amounts paid by a landlord that are specific to insuring against earthquakes. Typically, earthquake insurance isn’t required by a lender, but may be a good idea to carry if the property or unit is located in an area prone to earthquakes like a fault line.
Flood: Amounts paid by a landlord that are specific to insuring against flooding. Some lenders may require a landlord to obtain flood insurance if the property or unit is located within a 100-year flood zone.
Hurricane: Amounts paid by a landlord that are specific to insuring against hurricanes.
Liability: Amounts paid by a landlord for insurance coverage that protects against claims of bodily injury or property damage occurring on the rental property.
Rental Condo: Amounts paid by a landlord that are specific to insuring condominium properties or units. Condominiums generally differ from dwellings as the insurance only protects against losses from the inside of the unit. These insurance policies generally don’t cover losses to the exterior or common areas which are generally covered by a homeowner’s association’s master insurance policy.
Rental Dwelling: Amounts paid by a landlord that are specific to insuring a property or unit that is not a condominium such as a single-family home, duplex, tri-plex, and/or four-plex.
Umbrella: Amounts paid by a landlord for additional liability insurance that provides extra coverage beyond the limits of standard landlord insurance or homeowner’s insurance.
Insurance amounts may be substantiated with any of the following documentation:
Insurance policy documentation
Insurer-issued invoices/receipts
Special Considerations
Insurance premiums are deductible in the year paid. Proceeds from insurance claims (if used to repair or replace property) may require capitalization rather than direct expensing.
Legal & Other Professional Fees: Amounts paid by a landlord for professional services directly related to their rental property business.
The Legal & Other Professional Fees category includes the following eight sub-categories:
Accounting & Tax Fees: Fees paid for bookkeeping, accounting, tax preparation, and advisory services. Vestora’s services would fall into this category.
Appraisal Fees: Fees paid for professional appraisals of property, typically related to financing, refinancing, or valuation needs.
Consulting Fees: Fees paid for professional consulting services related to property management, business planning, or investment analysis.
Court Fees: Fees paid to courts for filings, hearings, or other judicial processes connected to rental activities.
Eviction Fees: Fees paid for eviction filings, legal representation, or sheriff’s services during tenant removal.
Inspection Fees: Fees paid for property inspections, such as home, pest, structural, or safety inspections.
Legal Fees: Fees paid to attorneys for legal representation, contract drafting, or dispute resolution.
Survey Fees: Fees paid for land surveys, boundary checks, or related property measurements.
Management Fees: Definition
The Management Fees category includes the following five sub-categories:
Booking & Platform Fees: Amounts paid to third-party booking platforms (Airbnb, Vrbo, Furnished Finder) for reservation and service charges. This category should be used for manual monthly/annual reconciliations if you used a third-party booking platform.
Fund Management: Fees paid to entities managing pooled investment funds or syndications in which the landlord participates.
Property Management: Fees paid to professional property management companies for overseeing operations, tenant relations, and maintenance.
Rent Collection: Fees charged by services or platforms (including Baselane) for processing rental payments.
Service Calls: Fees paid to property managers or vendors for responding to one-off service requests.
Other Operating Expenses: Definition
The Other Operating Expenses category includes the following 10 sub-categories:
Background & Credit Checks: Fees paid to screening services for tenant background, credit, or rental history checks.
Bank Fees: Fees paid to banks for account maintenance, overdrafts, wire transfers, or returned checks.
Education: Costs for training, courses, or seminars directly related to managing or investing in rental properties.
Gifts: Costs of nominal gifts to tenants, vendors, or partners (IRS limit of $25 per recipient per year for deductibility).
HOA Dues: Payments to a homeowners’ association for property-related maintenance and shared services.
Insurance Proceeds (Contra Expense): Insurance reimbursements received that offset prior expense claims. This sub-category is important because if a landlord chooses not to fix whatever damage was cause that the insurance claim proceeds were meant for, then a landlord might have to pay tax on the proceeds, thus treating it as income.
Licenses: Fees for business or rental licenses required by city, county, or state.
Memberships: Fees for memberships in professional associations or real estate investor groups.
Rent Concessions: Reductions or rebates in rent granted to tenants (contra-revenue).
Software Subscriptions: Fees paid for digital tools, apps, or platforms used for property management or accounting.
Repairs: Definition
The Repairs category includes the following nine sub-categories:
Appliance Repairs: Costs for repairing or servicing appliances (refrigerators, ovens, dishwashers, etc.).
Door & Window Repairs: Costs for repairing or replacing doors, windows, locks, or frames.
Electrical Repairs: Costs for fixing wiring, outlets, breakers, or electrical fixtures.
HVAC Repairs: Costs for repairing or servicing heating, ventilation, and air-conditioning systems.
Other Repairs: General repair costs not categorized elsewhere.
Plumbing Repair: Costs for fixing plumbing leaks, clogs, or water heater issues.
Repairs Labor: Labor-only costs for general repair work.
Repairs Supplies: Materials and parts used in repair work.
Roof Repairs: Costs for patching, sealing, or repairing roof systems.
Supplies: Definition
The Supplies category includes the following two sub-categories:
Office Supplies & Postage: Costs for paper, ink, pens, postage, or mailing supplies.
Other Supplies: Costs for general supplies not otherwise categorized, such as tools or consumables.
Taxes: Definition
The Taxes category includes the following six sub-categories:
City, State & Local Taxes: General non-property taxes levied by municipalities or states.
Federal Taxes: Federal income taxes related to the rental business (usually not deductible, but tracked).
Property Tax: Real estate property taxes assessed by municipalities.
Short Term Occupancy Tax: Taxes levied on short-term rental stays (e.g., hotel or lodging taxes).
Special Assessments: Charges levied by local governments or HOAs for specific projects, such as road or sewer improvements.
Tax Licenses & Registrations: Fees paid for registering tax accounts or licenses required for compliance.
Utilities: Amounts paid by a landlord to provide basic core services to a piece of real estate.
The Utilities category includes the following six sub-categories:
Electric: Amounts paid by a landlord to a utility provider for electricity services at a property or unit.
Garbage & Recycling: Amounts paid by a landlord to a utility provider for garbage and/or recycling services at a property or unit.
Gas: Amounts paid by a landlord to a utility provider for natural gas or propane services at a property or unit.
Gas & Electric: Amounts paid by a landlord to a utility provider for gas and electricity services at a property or unit. Some utility providers offer both gas and electric (e.g., Pacific Gas & Electric) while others specialize in one or the other (e.g., Dominion Energy).
Phone, Cable & Internet: Amounts paid for communication services provided to a property or unit.
Water & Sewer: Amounts paid for water usage, wastewater, and sewage disposal.
Loan Payments & Capital Expenditures (CapEx)
Loan Payments & Capital Expenditures: Transactions related to financing a property or making long-term capital improvements.
Capital Expenditures: Amounts paid by a landlord for significant investments made to improve, upgrade, or extend the life of a property or unit. These expenditures are usually substantial and are intended to enhance the value of the property over time. There are many complex rules that govern how capital expenditures are treated for tax purposes. Typically, these expenditures will require the landlord to depreciation the cost over time unless special requirements are met to accelerate the recovery of such expenditures.
The Capital Expenditures category includes the following 12 sub-categories:
Appliances: Amounts paid by a landlord for appliance items like washers, dryers, refrigerators, stoves/ovens, dishwashers, and/or microwaves (depending if they are fixed versus placed on a countertop).
Closing Costs: Amounts paid by a landlord to finalize a real estate transaction and may include loan origination fees, appraisal fees, home inspection fees, title insurance, attorney fees, escrow fees, and/or recording fees.
Doors & Windows: Costs of installing or upgrading doors, windows, and frames.
Flooring & Carpet: Costs of installing or upgrading flooring and carpeting.
HVAC: Costs of purchasing or installing new HVAC systems.
Landscaping: Large-scale or permanent landscaping improvements (patios, irrigation systems).
New Acquisitions: Amounts paid for acquiring new properties or units.
New Furniture & Equipment: Purchases of significant, durable furniture or equipment for a property. Furnishings for Airbnb or other short-term rentals would fit here.
Painting: Large-scale painting projects treated as capitalized improvements.
Plumbing & Electrical: Major upgrades to plumbing or electrical systems.
Remodeling: Substantial renovation projects that increase property value or extend useful life. Treat this as a catch-all sub-category that doesn’t fit into the other sub-categories.
Roof: Costs for replacing or significantly upgrading a roof.
Capital Expenditure amounts may be substantiated with any of the following documentation:
Itemized contractor invoices/receipts
Sales contracts
Closing documents
Special Considerations
Capital expenditures generally must be depreciated over time. Some may qualify for bonus depreciation or Section 179 expensing if conditions are met.
Mortgage Payments: Amounts paid by a landlord to pay back loans that are collateralized to a piece of real estate.
The Mortgage Payments category includes the following 2 sub-categories:
Mortgage Loan Interest Payments: Interest portion of monthly mortgage payments.
Mortgage Loan Principal Payments: Principal portion of monthly mortgage payments.
Mortgage Payment amounts may be substantiated with any of the following documentation:
Loan servicer-issued Form 1098, Mortgage Interest Statement (see example).
Special Considerations
Mortgage loan interest is deductible on a Schedule E, while mortgage loan principal is not. It’s important to properly segregate these two components for keeping accurate accounting records.
Other Loan Payments: Amounts paid by a landlord to pay back loans other than mortgages.
The Other Loan Payments category includes the following 2 sub-categories:
Other Loan Interest Payments: Interest paid on non-mortgage loans (e.g., hard money, private loans).
Other Loan Principal Payments: Principal paid on such loans.
Other Loan Payment amounts may be substantiated with any of the following documentation:
Loan agreements, amortization schedules, payment receipts.
Special Considerations
Only the interest portion is deductible as an expense.
Down Payments: Amounts paid by a landlord to obtain a mortgage with a lender. These amounts are treated the same as principal repayments. Down payments add to a landlord’s equity within a property or unit.
Down Payment amounts may be substantiated with any of the following documentation:
Closing Documents
Settlement Statements
Special Considerations
Down payments are not deductible. They are treated as an addition to the property’s cost basis.
Mortgage Disbursements Received: Amounts received by a landlord paid by a mortgage lender for the purposes of acquiring a property or unit.
Mortgage Disbursements Received amounts may be substantiated with any of the following documentation:
Closing Documents
Settlement Statements
Special Considerations
Inflows from lenders are not taxable income but must be tracked for cash-flow clarity.
Other Loan Disbursements Received: Amounts received by a landlord that are paid by a non-mortgage lender or creditor (e.g., hard money lender, friends/family loans, or other non-collateralized loans such as personal loans).
Other Loan Disbursements Received amounts may be substantiated with any of the following documentation:
Loan agreements, promissory notes, wire confirmations.
Special Considerations
Same treatment as mortgage disbursements — not taxable income, but track for accuracy.
Sales Proceeds: Amounts received by a landlord for selling a property or unit.
Sales Proceeds amounts may be substantiated with any of the following documentation:
Closing disclosures, settlement statements, HUD-1.
Special Considerations
Sales proceeds must be reconciled against basis and selling costs to determine capital gains/losses.
Transfers & Others
Credit Card Payments: Payments made to credit cards used for rental property expenses. These are not deductible by themselves but represent transfers.
Escrow Payments: Amounts paid by a landlord to increase the balance of an escrow account. Escrow accounts are often used by mortgage loan servicers that allows a landlord to contribute monthly payments into an account and the mortgage loan servicer will pay for non-frequent items such as insurance and property taxes.
Interest Received: Interest income received on deposits, escrow balances, or other accounts.
Other: Miscellaneous transactions not falling into other categories, typically infrequent or one-off items.
Owner Contributions/Distribution: Amounts contributed to or withdrawn from the rental business by the owner. Contributions increase equity; distributions reduce it.