Spreadsheets vs Landlord Software: Which Should You Use?

Spreadsheet advantages

Spreadsheets offer flexibility, no ongoing cost, and complete control over how you structure your data.

Why landlords love spreadsheets

• Free: Excel/Google Sheets cost nothing (or come with Office 365)
• Familiar: Most people already know the basics
• Flexible: Build exactly what you need
• Full control: Your data, your format, your rules
• Offline: Works without internet (Excel)
• No learning curve: If you know spreadsheets already

Spreadsheets work well for

• Simple rental income tracking
• Basic expense logging
• Property purchase analysis
• Mortgage comparisons
• Ad-hoc calculations
• Custom reports no software offers

Spreadsheet limitations

Spreadsheets require ongoing maintenance, have no automation, and put the burden of accuracy entirely on you.

Where spreadsheets struggle

• No reminders: Spreadsheets don't email you when gas safety expires
• Manual entry: Every transaction typed in by hand
• Error-prone: One wrong formula breaks everything
• No bank feeds: Can't auto-import transactions
• Scaling issues: Gets unwieldy with more properties
• MTD complications: Need bridging software for submission
• No document storage: Files stored separately
• Version control: Which file is current?

Hidden costs of spreadsheets

Software advantages

Dedicated software automates tedious tasks, reduces errors, and provides landlord-specific features that spreadsheets can't match.

Key benefits

• Automation: Bank feeds, reminders, calculations
• Compliance: Tracks certificates, sends expiry alerts
• Time saving: Less manual data entry
• Accuracy: Built-in validation, fewer errors
• MTD-ready: Direct HMRC submission
• Document storage: Certificates, receipts in one place
• Mobile access: Check things on the go
• Updates: Software stays current with law changes

Features spreadsheets can't replicate

• Automatic bank transaction import
• Proactive email/SMS reminders
• Receipt scanning and data extraction
• Direct HMRC API submission
• Multi-user access with permissions
• Tenant portals for communication

Software limitations

Software has ongoing costs, requires learning, and may not fit unusual situations as well as a custom spreadsheet.

Potential drawbacks

• Monthly cost: £10-30/month adds up
• Learning curve: New system to learn
• Less flexible: Can't always customise
• Vendor lock-in: Data in someone else's system
• Internet required: Most are cloud-based
• Feature bloat: May include things you don't need

Making Tax Digital impact

MTD changes the equation significantly. Spreadsheets alone won't meet requirements—you'll need bridging software or to switch to MTD-compatible tools.

MTD requirements

• Digital records (spreadsheet can qualify)
• Quarterly submissions to HMRC
• Software must connect to HMRC API
• End of period statement and final declaration

Spreadsheet + MTD options

1. Bridging software: Keep spreadsheet, use bridge to submit
2. Full switch: Move to MTD-compatible landlord software
3. Accountant: They submit using their software from your data

The reality check

If you're staying with spreadsheets for MTD:

• You still need to pay for bridging software
• Your spreadsheet must meet "digital links" requirements
• No typing numbers from spreadsheet to submission—must be digital transfer
• Audit trail requirements are stricter

The MTD deadline changes everything

Making Tax Digital for Income Tax becomes mandatory from April 2026. If you earn over £50,000 from property, spreadsheets alone will no longer be enough to stay compliant.

What's happening and when

HMRC's Making Tax Digital for Income Tax Self Assessment (MTD ITSA) rolls out in two phases:

• April 2026: Mandatory for landlords and sole traders with income over £50,000
• April 2028: Extended to those with income over £30,000

Under MTD, you must submit quarterly updates to HMRC using MTD-compatible software that connects directly to HMRC's API. Spreadsheets cannot submit these quarterly updates directly. You either need dedicated software or bridging software on top of your spreadsheet, which adds cost and complexity.

Why this matters for the spreadsheet vs software debate

• Quarterly submissions: You must file income and expense summaries every three months, not just once a year
• Digital links required: You cannot manually retype figures from a spreadsheet into submission software; data must flow digitally
• End of period statement: An annual finalisation replaces the traditional Self Assessment property pages
• Penalties for non-compliance: HMRC's new points-based penalty system means late submissions stack up quickly

If you're still using spreadsheets and earn above the threshold, now is the time to switch to MTD-compatible software. Waiting until April 2026 leaves no room for learning the system or resolving setup issues.

Read our full MTD guide for landlords for a complete breakdown of what's required and how to prepare.

LandlordOS and MTD

LandlordOS is designed with MTD compliance in mind. Track your property income and expenses digitally throughout the year, and when quarterly submission time comes, your records are already in the format HMRC requires. No bridging software. No manual retyping. No last-minute scramble.

Renters' Rights Act compliance

MTD isn't the only reason software is pulling ahead. The Renters' Rights Act 2025 introduces significant new obligations that are difficult to track in a spreadsheet.

New compliance demands

The Renters' Rights Act 2025 abolishes Section 21 no-fault evictions, introduces a Landlord Register and Property Portal, strengthens tenant protections, and adds new rules around rent increases. For self-managing landlords, this means more deadlines, more documentation, and more things that can go wrong if you miss something.

Why software wins here

• Automated reminders: Get alerts for new compliance deadlines before they pass
• Document storage: Keep registration confirmations, notices, and correspondence in one place
• Audit trail: Demonstrate compliance if challenged, with timestamped records
• Regulatory updates: Software can adapt to new requirements; your spreadsheet cannot

A spreadsheet can record what has happened, but it cannot warn you about what needs to happen next. With two major regulatory changes landing in the same year, the gap between spreadsheets and dedicated software has never been wider.

When to switch to software

Consider switching when the time cost of spreadsheets exceeds software cost, or when you need features spreadsheets can't provide.

Switch triggers

• You have 3+ properties and spreadsheet is getting complex
• You've missed a certificate renewal deadline
• You're spending hours on data entry each month
• MTD deadline approaching: If you earn £50k+ from property, you need MTD-compatible software by April 2026
• Renters' Rights Act: New compliance obligations from the Renters' Rights Act 2025 are hard to manage in a spreadsheet
• You want to access things from your phone
• You're considering using a letting agent
• Your accountant is asking for better records

Stay with spreadsheets if

• You have 1-2 simple properties
• You genuinely enjoy spreadsheet work
• Your situation is unusual and needs custom setup
• You're under MTD thresholds and happy to bridge when needed

Hybrid approach

Many landlords use both: software for day-to-day management and compliance, spreadsheets for analysis and custom calculations.

Use software for

• Property and tenant records
• Income and expense tracking
• Certificate and compliance management
• MTD submission
• Day-to-day management

Use spreadsheets for

• Property purchase analysis
• Mortgage comparison calculations
• Custom yield calculations
• What-if scenario modelling
• Portfolio strategy planning

Best of both worlds

Most landlord software can export data to spreadsheet format. Run your business in the software, export when you need to do custom analysis. You get automation for routine tasks and flexibility for special cases.