When Should You Switch from Spreadsheets to PM Software?

Every landlord who starts with spreadsheets eventually asks this question. The answer isn't as simple as "when you hit X units."

I've managed 12 units in spreadsheets for years and I still haven't fully switched to PM software. But I know landlords with 8 units who switched and are happy they did.

Here are the real signals that it's time.

Signal 1: You're Missing Things

This is the biggest one. If you've missed a late rent payment because you forgot to check your sheet, that's signal number one.

Spreadsheets are passive. They can't reach out to you. If you miss checking for 3 days and a tenant is overdue, the spreadsheet just sits there. No notification. No alert. Nothing.

One missed payment might cost you $1,400 and 3 months of collection. I wrote about exactly what a 2-week missed payment really costs. If that's happened more than once, something needs to change.

Signal 2: You're Spending More Time on Admin Than Managing

Track how much time you spend on spreadsheet admin per week. Entering data, cross-referencing sheets, formatting, fixing formulas.

If it's more than 2 hours a week for under 20 units, your system is working against you.

I was spending about 90 minutes a week on spreadsheet maintenance at 12 units. That includes checking rent status, logging maintenance, updating expenses, and fixing the occasional broken formula. That felt reasonable to me.

But I know a landlord with 15 units who was spending 4 hours a week because his spreadsheet had gotten so complex. Macros, linked sheets, automatic calculations that kept breaking. At that point, the spreadsheet is creating more work than it saves.

Signal 3: You Need Multiple People in the System

If you have a partner, spouse, or assistant who also needs to update the data, spreadsheets get risky. Two people editing the same sheet leads to conflicts. Overwritten data. Confusion about what's current.

PM software handles multi-user access much better. Roles, permissions, audit trails. If you're not the only one managing your properties, this alone might be worth switching.

Signal 4: You Need Tenant-Facing Features

If you want tenants to submit maintenance requests through a portal, or pay rent online through your system, or sign leases digitally, spreadsheets can't do that.

These are features that PM software provides. If you need them, a spreadsheet isn't going to work no matter how clever you make it.

Signal 5: Tax Time Is a Nightmare

If pulling together your income and expense data for taxes takes more than a couple hours (our Google Sheets bookkeeping guide for taxes can help), your tracking system needs an upgrade. PM software with built-in accounting makes tax prep much easier.

That said, a well-organized spreadsheet can handle taxes fine. I export mine to my accountant as a CSV and she's happy with it.

When NOT to Switch

Don't switch because someone told you "real landlords use software." That's marketing talking.

If your spreadsheet works, if you're checking it regularly, if nothing is falling through the cracks, keep using it. Seriously. Don't fix what isn't broken.

Also don't switch to solve a discipline problem. If you forget to check your spreadsheet, you'll forget to check your PM software too. The tool isn't the problem. The lack of alerts is. I explain this more in my post about managing rental properties in spreadsheets.

The Middle Ground

You don't have to choose between "spreadsheet only" and "full PM platform." There's a middle option.

Keep your spreadsheet for the data. Add monitoring for the alerts.

That's what I did with RentGuard. My Google Sheet is still my source of truth. RentGuard reads it daily and alerts me when something needs attention. I get the simplicity of a spreadsheet plus the alerting of software.

If you're on the fence about switching, try the middle ground first. descoshop.com. Free forever.