What bank account should I use for my rental property?

General Real Estate Investing
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What bank account should I use for my rental property?

Alec Jacobs
New to Real Estate · Industry, PA · Member since 2023 · 65 posts · 52 votes

I'm looking to fill my unit of mine with a tenant and I was wondering what sort of bank account I should use?

I'm assuming that a business account would work but I'm sure there is some nuance and tips that I don't know about.

Any insight is greatly appreciated, thank you!!

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Jake BakerBusiness Member
Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 696 votes
1y

@Alec Jacobs

I often recommend Relay to my clients. It’s designed for small businesses and landlords, allowing you to create multiple accounts for rent deposits, maintenance, and taxes. Plus, it integrates seamlessly with accounting tools like QuickBooks, making bookkeeping much more straightforward.

Whichever account you choose, look for one with no monthly fees, online banking, and features like automatic bill pay. These small conveniences can save you time and money in the long run.

For rent collection, you can try Rent.app, which is easy for tenants to use and keeps everything streamlined. Alternatively, if you’re using QuickBooks Online with a plan that includes the "Payments" feature, you can collect rent directly through QuickBooks while staying on top of your bookkeeping

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  • Jeffrey Robison
    Lender · Tyler, TX · Member since 2016 · 49 posts · 23 votes
    1y

    It's usually best to open a separate business checking account so your rental income and expenses stay organized and away from personal funds. That makes your bookkeeping easier, and it can also provide liability protection if you hold title in an LLC. If you're unsure about which specific account to choose, ask a local CPA or banker, since every situation can vary. Keeping clean records from day one really helps when tax season rolls around.

    1Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    1y

    @Alec Jacobs I have basic low/no fee business checking accounts. I have a separate interest bearing account for security deposits as required by my state laws.

    1Reply
  • Jake BakerBusiness Member
    Flipper/Rehabber · San Diego, CA · Member since 2020 · 1k+ posts · 696 votes
    1y

    @Alec Jacobs

    I often recommend Relay to my clients. It’s designed for small businesses and landlords, allowing you to create multiple accounts for rent deposits, maintenance, and taxes. Plus, it integrates seamlessly with accounting tools like QuickBooks, making bookkeeping much more straightforward.

    Whichever account you choose, look for one with no monthly fees, online banking, and features like automatic bill pay. These small conveniences can save you time and money in the long run.

    For rent collection, you can try Rent.app, which is easy for tenants to use and keeps everything streamlined. Alternatively, if you’re using QuickBooks Online with a plan that includes the "Payments" feature, you can collect rent directly through QuickBooks while staying on top of your bookkeeping

    [email protected]
    BookkeepingRE - Bookkeeping for Real Estate & Service-Based Businesses52 Reviews
    WebsiteView Page
    2Reply
  • Max Emory
    Accountant · 100% Remote · Member since 2019 · 497 posts · 216 votes
    1y

    Hey Alec, agree with @Jake Baker. Relay bank is good. You won't open a "business" account unless your property is held within an entity.

    0Reply
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