Is it necessary to set up separate bank accounts?

[Jimmy Wen]

Hi all,

After a year of studying and hesitation (I will admit that), I finally pulled the trigger and got a duplex under contract! This will be my very first investment property!

Here is a quick question: do you create separate banking accounts for all transactions on your rental properties? From the Rental Property Investing book by Brandon Turner, he clearly stated: "don't use your personal checking account to run your rental business!"

I am not quite sure where the author is coming from. Why is it so bad to mix personal and rental property transactions in the same bank account? Is it to make tax reporting simpler? Or are there any legal considerations?

Best,

Jimmy Wen