I've completed a relatively thorough review of Xero and am going to recommend it with "select" clients who need a bookkeeping solution moving forward.
Here are the things I liked:
--It's more condensed and less overwhelming than QBO. I think it will be less intimidating for clients who are not accountants.
--Classes, called "tracking categories" by Xero, are available at all subscription levels and have the exact same functionality as classes in QBO as far as classifying transactions and reporting goes. They can be added to a P&L report, Balance Sheet report, and G/L report. Unfortunately they can't be added to a T/B in Xero, however classes can't be added to a T/B in QBO either.
--Classifying and reconciling transactions is largely the same in Xero as QBO, however it's not as aesthetically pleasing I'll admit.
--Recurring invoices can be setup just like QBO. Late invoice reminders can be setup just like QBO.
--Price. I imagine most of my clients would be fine with the growing plan (currently $37 per month assuming no partner program discount).
Here are the things I didn't like:
--When reconciling transactions, switching to a separate account (e.g. checking, savings, credit card) requires you to scroll to the top and click a drop down box. They're not in separate bubbles up top like in QBO. "Out of sight, out of mind." I think this is mitigated by the dashboard, which generates a hyperlink to reconcile transactions when there are unreconciled transactions in any account.
--Invoices aren't as aesthetically pleasing as QBO.
--Sales tax rates and data seem to be integrated prominently into reports and invoices. This isn't necessary for US rental operations. It may be able to be removed, but I haven't investigated that thoroughly yet.
--Accepting online payments isn't as streamlined and integrated as QBO. You need to sign up with a third party processor for an account. But...it appears the Xero recommend third parties will auto categorize and reconcile these payments like QBO.
--Partner program discounts are less generous than QBO.
--The invoice interface and some settings interfaces look like they're straight out of the 90s. Very antiquated.
Overall, I'm going to give clients with a respectible or growing rental portfolio the choice. QBO has more bells and whistle, but for the cost conscious landlord, Xero is a valid choice IMO.