Can you run a short-term rental without accounting software?

Yes, you can run a short-term rental without accounting software. What you cannot skip is the underlying recordkeeping structure, and a bookkeeper working from your bank and platform statements can build that structure for you each quarter without you ever logging into a software tool.

What records does a short-term rental actually require?

The records a short-term rental without software still needs are more specific than most hosts expect. The IRS requires Schedule E to show rental days and personal-use days tracked per property, per night. A day of personal use includes any day, or part of a day, the unit was used by you or a family member for recreational purposes. That count lives in a calendar or log, not in a platform dashboard.

Income also needs to be separated by type, not just totalled. Keep nightly rate, cleaning fees, pet fees, resolution payouts, and cancellation fees in distinct columns. A single lump sum makes reconciliation harder and gives a preparer less to work with.

Expenses should mirror the categories on Schedule E itself, whether you track them in a spreadsheet or hand off statements to a bookkeeper. Those categories include:

• Advertising
• Cleaning and maintenance
• Commissions and management fees
• Insurance
• Mortgage interest
• Repairs
• Supplies
• Taxes and utilities
• Depreciation

When the ledger uses the same labels as the form, nothing gets lost in translation at tax time.

Why do my bank deposits never match my 1099-K?

This is one of the most common points of confusion for hosts, and it has a straightforward explanation.

Airbnb deducts roughly 3% from each payout before sending the remainder to your bank. The 1099-K Box 1a gross reports the full amount before that fee, so your bank deposit will always be lower than the figure on the form. The service fee is a deductible business expense; the correct approach is to report gross income and deduct the fee separately.

The gap widens further because the 1099-K gross also includes occupancy taxes that Airbnb collected from guests and remitted to the government on your behalf. Those amounts are not your income. To arrive at gross rental income for Schedule E, start with the 1099-K figure, subtract the platform-remitted occupancy taxes, and then subtract the service fees.

The reconciliation check runs like this, month by month: 1099-K gross, minus Airbnb service fees, minus refunds, should equal net payouts, which should equal the Airbnb deposits in your bank account. When all three sides agree, that month is closed. The Airbnb Earnings Summary CSV is the starting document for this check. One more timing wrinkle: a long stay can split into two bank deposits that land in different months, so the booking year and the deposit year can differ. Flag those in your log so nothing falls through the gap.

How do cleaning fees and security deposits work in the books?

Both items trip up hosts who are new to tracking their own numbers.

If Airbnb collects a cleaning fee from the guest and passes it through to you, that amount is included in your gross income on the 1099-K. You then deduct the actual cleaning costs you pay as a separate expense. The fee in and the cost out are two different line items, not a wash that disappears.

Security deposits follow a different rule. Do not record a deposit as income when you receive it if you plan to return it. Include it in income only when you keep all or part of it for damages or unpaid rent. Commingling deposit funds with your regular rent deposits makes it difficult to prove which money is which if questions arise later. A separate tracking column or account solves that problem cleanly.

What is the difference between a repair and an improvement, and why does it matter for my records?

Repairs and improvements must live in separate categories in your books because they are treated differently and the distinction carries forward for years.

A repair keeps the property in working condition. An improvement adds value, extends the useful life, or adapts the property to a new use. You will need improvement costs when you sell the property or when a preparer calculates depreciation. Mixing the two into a single "maintenance" bucket forces a preparer to reconstruct the split from receipts, which takes time and introduces error.

Depreciation schedules for residential rental property run over a 27.5-year recovery period under MACRS. Keeping those schedules requires acquisition documents, improvement dates, the date each asset was placed in service, and prior depreciation schedules. One point that surprises many hosts: switching from one spreadsheet to another, or dropping software entirely, does not restart an asset's depreciation clock. The schedule continues from where it left off, which is why continuity of the records matters regardless of the tool you use.

What documents should I gather each quarter so my books stay current?

Pulling these together once a quarter is far easier than reconstructing a full year in April.

From your platform, download the Airbnb Earnings Summary and Transaction History as CSV files. These are the primary income source documents and can also serve as proof of taxes remitted on your behalf if questions come up later, according to Airbnb's own guidance.

From your bank and credit cards, pull monthly statements covering all property-related activity. Add receipts and vendor invoices for repairs, supplies, and services. If you drove to the property for maintenance or inspections, a mileage log is required support. A calendar or written log showing rental days versus personal-use days for each property rounds out the income side.

Mortgage and property-tax statements, closing documents, and prior depreciation schedules complete the file. The IRS expects contemporaneous records created during the year, not reconstructed later. Quarterly gathering keeps that standard within reach without a year-end scramble.

Are there thresholds or deadlines I should know about before year-end?

A few numbers matter for how the books get set up.

The 14-day rule under IRC 280A(g) works like this: if a property is rented fewer than 15 days in a calendar year, income is not reported and expenses are not deducted. Once the 15-day mark is crossed, all income must be reported and full records must be maintained. Whether this threshold changes your filing position is a tax question; talk to your preparer. What the books need either way is a daily log so the count is accurate.

For the 2026 tax year, the federal 1099-K threshold is $20,000 and 200 transactions under the One Big Beautiful Bill Act. If you fall below that threshold, no 1099-K will be issued, but all rental income is still fully reportable. The absence of a form does not change what goes into the books.

Some states, including Maryland, Massachusetts, and Virginia, trigger 1099-K reporting at $600, which can create a mismatch between a federal return and a state return. Knowing which threshold applies in your state helps a preparer explain the difference.

Record retention should run at least three years after filing. If you claimed depreciation, keep those records longer, because depreciation recapture can come up when you sell. A quarterly file that is organized as the year goes keeps that three-year window manageable rather than overwhelming.