Is it ok to pay mortgages from the property management bank account?

[Mary Jay]

Hi guys,

I have a property management company that has a separate bank account and all of my tenants deposit the money into this account. Lets call it "Mary's Property Management LLC"

Is it ok to pay mortgages from the account where the tenants deposit their rent?

Is it going to be mixing finances and piercing a corporate veil?

(Some of my properties are in separate LLCs, some in my personal name but all of my properties are managed by an "Mary's Property Management LLC")

[Mary Jay]

Quote from @Theresa Harris:

Quote from @Mary Jay:

Quote from @Theresa Harris:

I am not a tax person and don't have a business, but to me your business accounts should be separate from your personal accounts.  Unless the PM company owns the rentals, you should treat your rentals the same as your clients rentals and have a separate account for your rentals.  

I have multiple rentals in my name and I put all of the money into a single account.

Thank you!
So your opinion is that every property should have a separate bank account and the tenants should deposit the money into that specific bank account that belongs to that specific property? 

so if a person owns 10 properties then the person should have 10 separate bank accounts and pay for each property from a separate bank account? 
did I understand you correctly? 

That is what some people do. I don't have numbered companies or LLC. I put all of the money into my main bank account.

If I did have a PM company as well as my own rentals managed through that company; I would have a separate bank account for the rentals (1, not 10) and put the money in it the same as I would do for any of my clients.

 Thank you!

It does make sense!

I wonder what do other people do?

I cant believe that those who have 100 or 200 properties have 100 or 200 bank accounts.

Would be interesting to find out what those people ae doing and how they are handling their finances