What is the proper type of bank account to run my rental through?

[Michael Coritz]

Hey everyone - new investor with some basic questions. I know this probably sounds pretty elementary, thanks anyways!

I have one rental property that was purchased with a VA loan and was my primary residence for 15 months and is now a rental property. I currently am just renting at my new duty station. The lease I currently have with the tenants at my rental started on Aug. 31 and is a 12 month lease. I have a property management company running the property for me.

As far as having my accounts in order goes, does it make sense to set up a business account to run all the rental property transactions through even if it is just a single property (and no, I don't have it as part of an LLC)? Currently though everything is run through the management company portal and I just receive a monthly check like usual. Or does it make sense just to have a separate personal checking and savings strictly for the rental property?

Additionally, regardless of if the rent checks I get are coming to a personal or business account, should I be paying the actual mortgage payments with the account strictly for the house or with the current personal checking account I have been doing so for the past 15 months? Thanks!

[David Van Singel]

As I'm relatively new to the forum, I could be wrong. It comes down to your personal preference. I, personally, would not have my income be mixed with my personal/general account. This way, you have a sort of barrier in how you spend that money. It makes sense to me to keep them separated. This way, you're not accidentally spending money that you shouldn't be spending. This could be for if a big tax bill happens and you happen to buy a new car at the same time. This can keep you out of that situation.