How to Account for Mortgage Payments in Baselane: Two Proven Methods for Landlords

Baselane makes it easy for landlords to track mortgage payments—whether you split each monthly transaction into principal, interest, taxes, and insurance, or reconcile everything at year-end.

Managing rental property finances comes with plenty of moving parts—rent collection, expense tracking, and perhaps the trickiest of all: mortgage payments. If you’re using Baselane bookkeeping software to manage your real estate portfolio, you have two primary ways to record mortgage payments.

Both methods are accepted, but they come with different pros and cons depending on whether you value real-time accuracy or time savings during the year. In this article, we’ll walk through the two approaches step by step, explain when each makes sense, and give you tips on choosing the right one for your bookkeeping style.

Why Mortgage Payment Accounting Matters for Landlords

Before we dive into the two approaches, let’s cover why this decision is important. A monthly mortgage payment typically covers more than just paying down your loan balance. It often includes:

• Principal – reduces your loan balance (not an expense, but equity).

• Interest – deductible expense reported on Schedule E.

• Taxes (Escrowed Property Taxes) – deductible when paid.

• Insurance (Escrowed Homeowner’s Insurance or PMI) – deductible as a rental expense.

The challenge is that your lender usually takes one lump-sum payment each month. If you record that entire payment under “Mortgage,” your books won’t reflect how much was interest (deductible) vs. principal (not deductible).

That’s where Baselane bookkeeping gives you flexibility: you can either split every payment into components or wait until year-end to reconcile using your Form 1098 mortgage statement.

Method 1: Splitting Each Monthly Mortgage Payment

This is the most accurate approach and the one that gives you the clearest financial picture throughout the year. Here’s how it works in Baselane:

1. Record your monthly mortgage payment when it clears your bank.

2. Use the transaction split feature to categorize each component into:

   • Principal (loan balance adjustment, not deductible)

   • Interest (Schedule E expense)

   • Property Taxes (Schedule E expense)

   • Insurance (Schedule E expense)

3. Save the transaction, and Baselane automatically updates your reports and dashboards.

Advantages of Splitting Monthly

• Real-time financial clarity – You’ll always know how much of your payment is reducing debt versus hitting expenses.

• Accurate cash flow reporting – Baselane’s analytics and dashboards will reflect your true operating costs.

• Smooth tax prep – By year-end, most of the work is already done; your accountant simply pulls reports.

Disadvantages

• Time-intensive – You’ll need to split every mortgage payment, which can add up if you own multiple properties.

• Requires lender detail – You must know the exact breakdown (usually available on your mortgage statement or online portal).

Best for: Landlords with multiple properties, growing portfolios, or anyone who relies on monthly financial reports for decision-making.

Method 2: Reconciling at Year-End With Manual Adjustments

The second approach is simpler during the year but requires adjustments at tax time. Instead of splitting every payment, you:

1. Record the entire monthly mortgage payment as “Mortgage” in Baselane.

2. At year-end, when you receive Form 1098 from your lender, create manual adjusting transactions for:

   • Total interest paid (deductible)

   • Property taxes paid (deductible if escrowed and remitted)

   • Insurance paid (deductible if escrowed and remitted)

   • Principal (loan balance adjustment)

Advantages of Year-End Reconciliation

• Faster month-to-month bookkeeping – Just one category, no splits needed.

• Simple for single-property landlords – You won’t waste time on details that don’t affect your monthly decisions.

• Relies on official documents – The Form 1098 ensures accuracy when adjusting.

Disadvantages

• Less accurate financial reports during the year – Cash flow dashboards in Baselane won’t distinguish between expenses and principal until you adjust.

• Year-end workload – More manual clean-up is required, which can be stressful if you wait until tax season.

Best for: Landlords with one or two properties who primarily care about year-end tax reporting rather than monthly cash flow tracking.

Side-by-Side Comparison: Splitting vs. Reconciling

Compare the two common approaches to recording mortgage payments in Baselane. On mobile, this table becomes easy-to-scan cards.

Side-by-side comparison of Baselane mortgage accounting methods

Feature	Split Monthly Payments	Year-End Reconciliation
What it is	Break each monthly payment into principal, interest, property taxes, and insurance using Baselane’s split transaction feature.	Record one monthly “Mortgage” payment during the year, then make manual adjusting entries at year-end from Form 1098 (interest) and your escrow totals (taxes/insurance) plus principal to loan balance.
Accuracy	High — real-time clarity every month.	Deferred — low during the year, accurate after adjustments.
Time commitment	Ongoing monthly splitting; moderate effort.	Very low during the year; higher at tax time.
Tax prep	Mostly done already; clean Schedule E export.	Requires manual year-end entries from 1098/escrow statements.
Best for	Multi-property investors, partners, and growth-focused landlords who want monthly performance visibility.	One or two properties, owners prioritizing simplicity and only caring about year-end results.
Pros	Accurate monthly cash-flow and expense categorization Cleaner analytics and lender/partner reporting Smoother audits and tax filings	Fast monthly bookkeeping Leverages official 1098 figures Minimal effort until tax season
Cons	Takes longer each month Needs exact lender breakdown More clicks across multiple loans	Dashboards less accurate during the year Larger year-end workload Risk of procrastination or missed entries
Baselane steps	Import/confirm the bank transaction Use Split to allocate principal, interest, taxes, insurance Save and review reports	Categorize each payment as “Mortgage” during the year At year-end, enter interest, taxes, insurance as expenses Record principal as a loan balance adjustment
Consistency tip	Use the same categories and naming across all properties Recommended	Document your year-end workflow and repeat it annually

Tip: Pick one method and apply it consistently across properties for cleaner books and faster reporting.

Which Method Should You Choose?

Ultimately, the choice comes down to how hands-on you want to be with your Baselane bookkeeping.

• If you want accurate, real-time insights into cash flow and property performance, splitting each payment is worth the effort.

• If you want to keep things simple and only care about taxes once a year, year-end reconciliation is perfectly fine.

At Vestora, we generally recommend splitting for landlords with multiple properties or partners—it keeps reporting consistent, especially when scaling. But for smaller landlords, year-end adjustments can be more than enough.

Final Thoughts

When it comes to accounting for mortgage payments in Baselane, there’s no one-size-fits-all approach. The key is to stay consistent. Pick a method and use it across your properties so your bookkeeping doesn’t get messy.

Baselane’s flexibility makes it easy to do both. Whether you prefer detailed monthly tracking or a streamlined year-end reconciliation, the platform adapts to your style—helping you stay tax-ready and financially organized.

Baselane: The Modern Financial Platform for Real Estate Landlords, Investors, Co-Hosts, and Property Managers

Managing rental properties can be a rewarding investment strategy, but it often comes with financial headaches—tracking rent payments, managing expenses, organizing tax documents, and keeping properties profitable. Baselane is a modern financial technology platform built specifically for real estate landlords, investors, co-hosts, and property managers. Unlike traditional banks or accounting tools, Baselane streamlines rental property finances in one integrated, easy-to-use solution.

In this article, we’ll break down what Baselane is, its key features, and the benefits it offers to rental property owners and managers who want to save time, reduce stress, and maximize returns.

What Is Baselane?

Baselane is an all-in-one banking and financial management platform designed for rental property owners. Instead of juggling multiple systems—bank accounts, spreadsheets, accounting software, and payment apps—Baselane centralizes everything into one streamlined dashboard.

The platform combines banking, bookkeeping, rent collection, and analytics in a way that’s tailored to the unique needs of real estate professionals. Whether you own one condo, manage multiple single-family homes, or oversee short-term rentals, Baselane is built to scale with your portfolio.

Key Benefits of Baselane

1. Seamless Rent Collection

Baselane allows tenants to pay rent online via ACH, debit, or credit card. Payments are deposited directly into your dedicated Baselane landlord banking account, reducing late or missed payments. Automatic reminders, digital receipts, and flexible payment options make it easier for tenants while ensuring landlords get paid on time.

2. Dedicated Banking for Landlords

Unlike traditional banks, Baselane offers bank accounts designed for rental property owners. Each property can have its own virtual account, making it simple to track cash flow, security deposits, and expenses by property. Baselane accounts also earn interest, giving landlords a better return than most big banks.

3. Integrated Bookkeeping & Expense Tracking

Baselane eliminates the need for clunky spreadsheets. Landlords can tag transactions by property, vendor, or Schedule E category, making tax preparation faster and easier. The built-in bookkeeping tools are designed with landlords in mind, ensuring accurate reporting and smooth integration with tax filings.

4. Financial Insights & Analytics

Baselane’s dashboards give landlords real-time insights into rental income, operating expenses, and net cash flow. This helps property owners make smarter investment decisions, monitor portfolio performance, and identify opportunities for savings or growth.

5. Built for Scale: From Single-Unit Owners to Property Managers

Whether you manage one rental or an entire portfolio, Baselane scales with your business. Co-hosts, property managers, and real estate investors can use Baselane to manage multiple properties, track performance across units, and streamline operations for long-term success.

Why Landlords and Property Managers Are Switching to Baselane

Traditional banks and generic accounting tools weren’t built for landlords. They make tax season stressful, portfolio tracking confusing, and rent collection inefficient. Baselane solves these problems by offering a platform designed exclusively for real estate finances.

• Time savings: Automates rent collection and bookkeeping.

• Financial clarity: Tracks cash flow and expenses by property.

• Tax readiness: Categorizes transactions for Schedule E reporting.

• Profitability: Earns interest on deposits and reduces missed payments.

Final Thoughts

For landlords, investors, co-hosts, and property managers looking to streamline operations, Baselane is more than just a bank account or rent collection tool—it’s a complete real estate financial operating system. By combining banking, bookkeeping, and analytics in one place, Baselane helps you spend less time managing money and more time growing your portfolio.

If you want to simplify property management, improve cash flow visibility, and be fully prepared at tax time, Baselane is a smart choice.

Baselane vs. QuickBooks: Why Vestora Exclusively Uses Baselane for Real Estate Investors

Baselane is the clear winner when considering an accounting solution specifically geared towards real estate investors, landlords, co-hosts, and property managers.

When it comes to bookkeeping for real estate investors, not all accounting platforms are created equal. While QuickBooks has long been considered the industry standard for small businesses, Baselane is quickly emerging as the best-in-class solution for landlords and property managers.

At Vestora, we exclusively use Baselane because it was built from the ground up for real estate investing—especially when it comes to Schedule E tax reporting and cash-basis accounting, which most landlords prefer for its simplicity.

1. Real Estate Focus vs. Generic Small Business Accounting

• QuickBooks: A general accounting software designed for every type of business—from restaurants to e-commerce shops. While flexible, it requires significant setup, a customized chart of accounts, and multiple add-ons to work properly for rental property owners.

• Baselane: Created specifically for landlords and real estate investors. Out of the box, Baselane aligns your bookkeeping with Schedule E categories, ensuring that every dollar is categorized correctly for tax season.

👉 For landlords and investors, this means no messy workarounds—just clean, IRS-ready financials.

2. Schedule E Categorization + Cash-Basis Accounting

This is where Baselane shines and why Vestora is “all in.”

• QuickBooks: Requires manual setup of Schedule E categories and defaults to accrual-style reporting unless adjusted. That often leads to confusion for landlords who don’t track receivables and payables like traditional businesses.

• Baselane: Not only does it mirror IRS Schedule E categories automatically, it also assumes cash-basis accounting—the same method the IRS expects most landlords to use. Cash-basis is easier to understand and aligns directly with how rental income and expenses actually flow (money in when received, money out when paid).

✅ At Vestora, this dual advantage saves our clients hours of work and reduces the risk of tax errors or mismatched reporting.

3. Automation and Ease of Use

• QuickBooks: A powerful platform, but heavy. Bank rules, property tagging, and expense splits require manual setup. Many investors find it overwhelming without hiring a bookkeeper.

• Baselane: Automation is built in. Transactions can be auto-categorized, properties tracked separately, and rent collection integrated directly into the platform.

Vestora leverages this automation to provide real-time visibility into your portfolio, without the overhead of managing complicated software.

4. Cost Comparison

• QuickBooks Online: Plans typically range from $30–$200/month, not including payroll, add-ons, or integrations. Bookkeepers often charge extra for custom real estate setups.

• Baselane: Free to use for bookkeeping and rent collection. This makes it more cost-effective for landlords, especially those with smaller portfolios.

👉 At Vestora, our clients benefit from professional bookkeeping services layered on Baselane’s free core software, delivering premium results without bloated software costs.

5. Why Vestora Exclusively Uses Baselane

As real estate investors ourselves, we know that landlords don’t need a generic accounting system—they need one that speaks the language of rental properties.

By using Baselane exclusively, Vestora ensures:

• Perfect alignment with Schedule E for tax filings

• Cash-basis accounting that simplifies performance understanding

• Streamlined bookkeeping workflows

• Lower software costs for our clients

• Real-time property insights without extra configuration

In short: QuickBooks is for businesses. Baselane is for real estate investors. And at Vestora, investors are our business.

Final Thoughts

If you’re a real estate investor, landlord, co-host, or property manager still running around trying to make QuickBooks work, you’re likely paying more and working harder than you need to. Baselane was built for you—and at Vestora, we’ve built our entire bookkeeping and advisory practice on it.

🚀 Ready to simplify your real estate bookkeeping? Book a free strategy call and see how Baselane + Vestora can streamline your rental portfolio today!