Rental property balance sheet template
By Jenna Whitfield - updated
A rental property balance sheet shows what a property or rental business owns, what it owes and what is left for the owner on one date, usually the last day of the year. This template lists assets, liabilities and equity with a column for the prior year end, one for this year end and one for the change, and the totals show at a glance that the two sides balance. Download the CSV for Excel, Google Sheets or Numbers, or print the blank balance sheet with its line items already listed.
Download the free rental property balance sheet template
Enter your email to get the CSV and the printable copy. The CSV opens in Excel, Google Sheets or Numbers.
The printable copy is blank, ready to fill in by hand or save as a PDF from your browser's print dialog. It is one portrait letter page with blank lines at the top for property, year end date, owner or company and prepared by, and 17 rows, 17 of them already listing the line items, with columns for line item, account number, prior year end, year end and change.
A filled-in balance sheet
The Birch Lane duplex at December 31, 2024 and December 31, 2025. At the end of 2025, total assets were $287,944 and total liabilities were $250,100, so equity was $287,944 - $250,100 = $37,844. Over the year, accumulated depreciation grew by $9,091 and the mortgage fell by $4,180, the depreciation and principal figures from the chart of accounts guide. Equity moved by the year's net income of $1,914 less $6,000 of owner draws: $1,914 - $6,000 = -$4,086. The operating bank account rose by $2,525, which is the year's $6,825 of cash flow, plus $1,700 of January rent paid in December, less the $6,000 of draws.
| Line item | Prior year end | Year end | Change |
|---|---|---|---|
| Operating bank account | $8,383.00 | $10,908.00 | $2,525.00 |
| Security deposit bank account | $3,400.00 | $3,400.00 | $0.00 |
| Rent receivable | $0.00 | $0.00 | $0.00 |
| Buildings and improvements | $250,000.00 | $250,000.00 | $0.00 |
| Land | $60,000.00 | $60,000.00 | $0.00 |
| Accumulated depreciation | -$27,273.00 | -$36,364.00 | -$9,091.00 |
| Total assets | $294,510.00 | $287,944.00 | -$6,566.00 |
| Mortgage payable | $249,180.00 | $245,000.00 | -$4,180.00 |
| Security deposits held | $3,400.00 | $3,400.00 | $0.00 |
| Prepaid rent | $0.00 | $1,700.00 | $1,700.00 |
| Total liabilities | $252,580.00 | $250,100.00 | -$2,480.00 |
| Owner contributions | $55,000.00 | $55,000.00 | $0.00 |
| Owner draws | -$16,000.00 | -$22,000.00 | -$6,000.00 |
| Retained earnings | $1,350.00 | $2,930.00 | $1,580.00 |
| Net income for the year | $1,580.00 | $1,914.00 | $334.00 |
| Total equity | $41,930.00 | $37,844.00 | -$4,086.00 |
| Total liabilities and equity | $294,510.00 | $287,944.00 | -$6,566.00 |
When to use a balance sheet
Fill one in at the end of each year, after the year's profit and loss statement is done, since the year's net income is one of its lines. Comparing two year ends shows how fast the mortgage is coming down, how much depreciation has built up and how your equity in the property has changed.
Lenders, partners and buyers ask for one too. A lender looking at a refinance or a new loan for an LLC often wants a balance sheet next to the profit and loss statement and the rent roll, and a partnership or multi-member LLC may need to report one with its tax return. Ask your tax professional what your own return needs.
What a rental property balance sheet should include
- The property or company, and the date the balance sheet is drawn up.
- Assets: bank accounts, including any account that holds security deposits, rent receivable, the building at cost, the land and accumulated depreciation.
- Total assets.
- Liabilities: the mortgage balance, the security deposits you hold for tenants and any rent paid in advance.
- Total liabilities.
- Equity: the money you put in, the money you took out, earnings from prior years and this year's net income.
- Total equity, and total liabilities and equity, which must equal total assets.
- The account number for each line, from the same chart of accounts as your books.
How to use this rental property balance sheet template
The CSV holds the invented Birch Lane duplex's balance sheet at December 31, 2024 and December 31, 2025, using the accounts from our chart of accounts guide, with blank rows for your own lines. The printable balance sheet fits on a portrait letter-size page, with fields at the top for the property and the year end date and its 17 line items already listed.
- Download the CSV or the printable balance sheet below, and start a new copy for each property or company and each year end.
- Copy last year's year end figures into the Prior year end column, or start from the opening figures if this is your first year.
- Enter each bank account's balance on the statement for the last day of the year, and any rent still owed to you.
- Enter the building and land at what you paid for them, and accumulated depreciation as a negative figure from your depreciation schedule.
- Enter the mortgage balance from the lender's year end statement, the security deposits you hold and any rent paid in advance.
- Enter owner contributions, owner draws, retained earnings and this year's net income from your profit and loss statement, then check that total assets equal total liabilities and equity.
Common balance sheet mistakes
- Listing the property at today's market value. A balance sheet shows what you paid, less depreciation; an appraisal or a broker's estimate belongs in a separate note.
- Leaving out security deposits. The money you hold is an asset, and the same amount is a liability, because you owe it back to the tenants.
- Booking the whole mortgage payment against the loan. Only the principal reduces the mortgage balance; the interest is an expense on the profit and loss statement.
- Lumping land in with the building. Land is not depreciated, so keep it on its own line.
- Forgetting owner draws. Money you take out of the property lowers equity, so a missing draw leaves the balance sheet out of balance.
Frequently asked questions
What is a balance sheet for a rental property?
It is a snapshot of what a property or rental business owns, what it owes and the owner's equity on one date. Assets always equal liabilities plus equity, which is why it is called a balance sheet.
What is the difference between a balance sheet and a profit and loss statement?
A profit and loss statement covers a period, such as a year, and shows income, expenses and net income. A balance sheet shows balances on one date. The two connect through equity: the year's net income is added to equity on the balance sheet.
Should I list my rental property at market value on a balance sheet?
Usually not. Bookkeeping balance sheets show the property at cost, less accumulated depreciation. If a lender wants to see market value, give them an appraisal or a separate statement of value alongside the balance sheet.
Are security deposits assets or liabilities?
Both. The cash you hold is an asset, and the same amount is a liability, because you owe it back to the tenant when they move out, less any lawful deductions.
Transactions kept by property
KeyRing brings in your transactions through a Plaid bank feed, lets you match each one to an invoice or expense, and keeps income and expense records by property with categories you can edit. The Financials page shows income and expenses by property, and you can export your transactions to Excel when you fill in your year end figures. Your first subscription starts with a 14-day free trial.