How to track rent payments: 3 easy methods

Every month, the same ritual repeats: checking who has paid, who hasn’t, and who still owes from last month. If you manage more than 10 tenants, this process can take hours and is highly prone to errors.

The problem isn’t tenants paying late—that’s normal in the rental business. The real problem is when you don’t know exactly who has paid and who hasn’t. As a result, some get missed in collection, some get wrongly billed, and cash flow becomes unclear.

In this guide, you’ll learn 3 methods for tracking rent payments—from the simplest to the most efficient. Choose the method that fits your business scale and needs.

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Why is payment tracking important?

Before discussing methods, let’s understand why good payment tracking is crucial for your rental business.

Avoiding billing errors

Without clear records, you might:

• Forget to collect from tenants who haven’t paid
• Wrongly bill tenants who already paid (damaging relationships)
• Not know how long arrears have been going on

Monitoring cash flow accurately

How much income this month? How much is still outstanding? These simple questions are hard to answer without proper records. Yet this data is important for business decisions—whether to renovate, raise rent prices, or expand.

Evidence if disputes arise

When a tenant claims they’ve paid when they haven’t (or vice versa), payment records become undeniable proof. Without evidence, disputes are hard to resolve fairly.

Simplifying tax reporting

If you report rental income to tax authorities, neat payment records will help tremendously. No more trying to remember or recalculating from scratch.

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Method 1: Property management app (Recommended)

If you’re serious about managing your rental business and want to save time in the long run, using a dedicated app is the best choice.

Why is this method best?

All data in one place: Tenant data, room information, and payment history are integrated. No need to open multiple files or apps.

Access from anywhere: Data is stored in the cloud, accessible from phone or computer anytime. No worries about losing data if your phone breaks.

Minimal manual errors: No formulas that can error like in spreadsheets. The system calculates automatically.

Additional features: Besides payments, there are usually other features like tenant management, occupancy calendar, and ID scanning.

How to use Kamaru for payment tracking

Kamaru is a property management app designed specifically for boarding house owners. Here’s how to use it for tracking payments:

Step 1: Create an account and add property

Register for a free Kamaru account, then add your property. Enter basic information like property name, address, and number of rooms.

Step 2: Add room data

For each room, enter information like room number, rent price, and available amenities. This will be the foundation for payment tracking.

Step 3: Register tenants

Add tenant data for each occupied room. Kamaru has an ID scanning feature that speeds up data input—just photograph the ID, and data fills in automatically.

Step 4: Record incoming payments

Every time you receive a payment, open the app and record that payment. Select the tenant, enter the amount, and choose the payment method. Done in seconds.

Step 5: Monitor payment status

On the dashboard, you can see all tenants’ payment status at once. Who has paid, who hasn’t, and who still has outstanding balances—everything is clearly visible.

Pros

• Quick setup (5-10 minutes)
• Data safe in cloud with automatic backup
• Accessible from phone and computer
• Complete features beyond just payments
• Suitable for all property sizes

Cons

• Requires internet connection for access
• Subscription fee for premium features (free version available)

Ready to try? Sign up for Kamaru free and start tracking payments in 5 minutes.

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Method 2: Spreadsheet (Excel/Google Sheets)

If you’re more comfortable with spreadsheets and manage a small-to-medium scale property, this method can be a good choice. Google Sheets is free and accessible from anywhere, while Excel is suitable for those already familiar with Microsoft Office.

When to use this method?

The spreadsheet method is suitable if:

• You’re already familiar with Excel or Google Sheets
• Number of tenants isn’t too many (under 20)
• You want full control over format and appearance
• You don’t want to depend on third-party apps

How to create a payment spreadsheet

Step 1: Create basic structure

Create a new file in Excel or Google Sheets. Create the following columns:

No	Tenant Name	Room	Rent Price	Jan	Feb	Mar	…
1	John	101	$500	✓	✓
2	Sarah	102	$500	✓
3	Mike	103	$400	✓	✓	✓

Step 2: Use consistent formatting

Determine how to mark payment status:

• ✓ or “Paid” for completed payments
• Payment date for more detailed tracking
• Red color for unpaid
• Yellow color for partial payments

Step 3: Add formulas for totals

Use formulas to calculate total income and arrears:

=COUNTIF(E:E,"✓")*D2  // Total that has been paid
=COUNTBLANK(E:E)*D2   // Total that hasn't been paid

Step 4: Create separate sheets per year

To keep the file tidy, create a new sheet each year. This also makes annual reporting easier.

Step 5: Backup regularly

If using Excel offline, make sure to backup files regularly to cloud storage or external hard drive. Google Sheets automatically saves to the cloud.

Simple template

Here’s an example structure you can use:

Sheet 1: Tenant Data

Room	Name	Phone	Rent Price	Move-in Date
101	John	555-xxx	$500	Jan 1, 2026

Sheet 2: Payments 2026

Room	Name	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
101	John	1/5	2/3

Pros

• Free (Google Sheets) or already owned (Excel)
• Flexible, fully customizable
• No need to learn a new app
• Can be accessed offline (Excel)

Cons

• Prone to formula errors
• Must update manually for each payment
• Files can corrupt or be deleted
• Hard to access from multiple devices (Excel offline)
• No additional features like reminders or automatic reports

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Method 3: Manual records (Notebook/Paper)

The most traditional method still used by many landlords, especially for small properties.

When to use this method?

The manual method is suitable if:

• Number of tenants is very few (under 5)
• Not comfortable with technology
• Only need simple record-keeping
• As a backup to digital methods

How to create a payment record book

Step 1: Prepare a dedicated notebook

Use a notebook or cash book specifically for rental payments. Don’t mix with other notes so it’s easy to find.

Step 2: Create a consistent format

On each page, create a simple table:

RENT PAYMENTS - JANUARY 2026

Date    | Room | Name  | Amount | Notes
--------|------|-------|--------|------------
Jan 3   | 101  | John  | $500   | Bank transfer
Jan 5   | 102  | Sarah | $500   | Cash
...

Step 3: Create monthly recap pages

At the end of each month, create a recap page:

JANUARY 2026 RECAP

Total occupied rooms: 10
Already paid: 8
Unpaid: 2 (Rooms 105, 108)
Total income: $4,000
Outstanding: $1,000

Step 4: Keep payment proof

For cash payments, provide receipts and keep copies. For transfers, ask tenants to send transfer proof and staple it in the record book.

Pros

• No technology needed at all
• No cost
• Can be used immediately
• Physical evidence you can hold

Cons

• Very prone to being lost or damaged
• Hard to find old data
• Cannot be accessed remotely
• Time-consuming for recaps
• No automatic backup
• Handwriting can be hard to read

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Comparison: Which method should you choose?

Criteria	App (Kamaru)	Spreadsheet	Manual
Setup time	5-10 minutes	30-60 minutes	5 minutes
Time per transaction	10 seconds	30 seconds	1-2 minutes
Data loss risk	Very low	Medium	High
Access from anywhere	Yes	Limited	No
Cost	Free - $10/month	Free	Free
Additional features	Many	Limited	None
Suitable for	All sizes	Small-medium	Very small
Needs internet	Yes	Depends	No

Recommendations based on scale

1-5 rooms: Manual or spreadsheet methods are sufficient. But if you want to be more organized and plan to grow, there’s no harm in starting with an app from the beginning.

6-20 rooms: Spreadsheets can work, but start to feel cumbersome. An app will save a lot of time.

More than 20 rooms: An app is almost mandatory. Managing dozens of tenants with spreadsheets or manual records is very risky and time-consuming.

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Tips for successful payment tracking

Record immediately after receiving payment

Don’t delay recording. As soon as money is received—whether cash or transfer—record it immediately. Delaying = forgetting.

Use one consistent system

Choose one method and use it consistently. Don’t mix records in books, spreadsheets, and apps at the same time. This just creates confusion.

Backup data regularly

For offline spreadsheets and manual records, make regular backups. Photograph notebook pages and save to cloud. Backup Excel files to Google Drive.

Weekly review

Set aside 10-15 minutes each week to review payment records. Make sure nothing is missed and follow up with those who haven’t paid.

Keep payment proof

For every payment, keep proof—transfer screenshots, cash receipts, or receipt photos. This is important if disputes arise later.

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Common mistakes to avoid

Relying on memory

“I think Mr. Smith paid last week.” Memory can be wrong, especially when managing many tenants. Always record, don’t just remember.

Inconsistent recording

Sometimes recorded, sometimes not. Sometimes in a book, sometimes on phone. This inconsistency causes inaccurate data.

Not having backup

File corrupts, phone lost, book falls in water—all can happen. Without backup, years of data can be lost in an instant.

Mixing personal and business finances

Rent money goes into personal account and mixes with daily expenses. This makes payment tracking and business financial analysis difficult.

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FAQ

Should I record payments from long ago?

Yes, still record even if the data is from memory or old transfer proofs. Imperfect data is better than no data at all. Mark as “historical data” so it doesn’t mix with accurate data.

What if a tenant pays partially?

Record as partial payment with clear notes. For example: “Paid $250 of $500 total. Remainder will be paid on the 15th.” In apps like Kamaru, there’s a special status for partial payments.

Should I give receipts for every payment?

For cash payments, highly recommended. Receipts protect you and the tenant if disputes arise. For bank transfers, transfer proof is sufficient as documentation.

How do I migrate from manual records to digital?

Start from the current month. No need to enter all historical data—just active tenant data and current payment status. Old data can be entered gradually if needed.

How long should payment data be kept?

Keep at least 5 years for tax and legal purposes. For digital data, this takes no space. For physical records, consider digitizing (photo/scan) after a few years.

Which method is safest for data?

Cloud apps like Kamaru are safest because data is automatically backed up to encrypted servers. Google Sheets is also quite safe. Manual records are riskiest because there’s no automatic backup.

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Conclusion

Tracking rent payments doesn’t have to be complicated. The key is choosing a method that fits your business scale and using it consistently.

For small properties (1-5 rooms), manual records or spreadsheets are sufficient. For medium and larger properties, apps like Kamaru will save time and significantly reduce error risk.

Most importantly, start now. An imperfect system run consistently is far better than a perfect system that’s never started.

Ready to manage payments more efficiently? Try Kamaru free today. Setup takes just 5 minutes, and you can immediately track all tenant payments in one dashboard.

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• 8 ways to reduce rent payment arrears
• 10 fatal mistakes boarding house owners make
• Occupancy calendar: complete user guide
• 7 signs your property needs a digital management system