Making Tax Digital has forced landlords to rethink how they manage their finances. At first glance, many tools marketed as MTD software for landlords appear to do the job. They submit quarterly figures to HMRC, tick the compliance box, and promise peace of mind.
However, problems begin the moment a landlord owns more than one property — or deals with joint ownership, different expense profiles, or multiple income streams. This is where most MTD software for landlords quietly falls apart.
The One-Property Illusion
Many MTD tools are built for the simplest possible scenario:
one property, one owner, one bank account.
As soon as a landlord adds a second property, the cracks start to show. Expenses become harder to track, rent payments are no longer easy to reconcile, and understanding true profitability at a property level becomes guesswork.
Yet HMRC’s MTD rules do not become more forgiving as portfolios grow. Every transaction still needs to be recorded digitally, categorised correctly, and reported accurately. Using inadequate MTD software for landlords often pushes landlords back to spreadsheets — exactly what MTD was designed to eliminate.
Where Generic MTD Software Breaks Down
Most basic MTD software for landlords focuses on submission rather than management. Common limitations include:
- No way to track income and expenses by individual property
• Poor handling of joint ownership or unequal profit splits
• Limited or no tenancy management features
• Manual work required to reconcile bank transactions
• Little visibility into portfolio performance
These shortcomings increase the risk of reporting errors and make quarterly updates unnecessarily stressful.
What Landlords Actually Need from MTD Software
True MTD software for landlords should do far more than talk to HMRC. It must reflect how property businesses actually operate.
That means:
- Property-level income and expense tracking
- Support for multiple properties and portfolios
- Joint ownership with flexible profit-sharing ratios
- Integrated accounting and reporting
- Automation to reduce manual admin
Without these features, compliance becomes a chore rather than a system.
Why RentalBux Is Built Differently
RentalBux was created by accountants who specialise in landlord and sole trader accounting. This practical experience shows in how the platform handles complexity — not just compliance.
Unlike generic MTD software for landlords, RentalBux combines property management and full-scale accounting in one system. Landlords can manage tenants, rent, mortgages, and property details alongside bookkeeping, bank feeds, invoicing, and tax reporting.
Crucially, RentalBux handles joint ownership properly. Whether properties are owned by spouses, family members, or investors with different profit-sharing ratios, income and expenses are automatically apportioned correctly — a common pain point under MTD.
Conclusion
Owning more than one property should not turn MTD compliance into a nightmare. The problem is not MTD itself, but the limitations of most MTD software for landlords.
RentalBux is built to handle the realities of modern property investing: multiple properties, joint ownership, detailed reporting, and ongoing compliance. For landlords who want clarity, control, and confidence — not spreadsheets and stress — choosing the right MTD compatible software makes all the difference.
