Bank Account Clarity

[Nick Gagel]

Hello,

Looking for the best way to layout bank accounts for a property. 

1- account for security deposit 

2- account for mortgage to come out of, that tenant pays into monthly via Zelle

3- account for property expenses via monthly profits throughout current lease.

Is a 3rd account necessary for expenses on the property?  Is keeping it in the account (2) above best until lease is up and profits can be transferred into personal account? 

Or, should I have a separate account for tenants to pay into, another account for mortgage to come out of, another account to keep funds for expenses, and another for profits? If this is the case, when is best time to submit profits into personal account? 

Thank you!

[Curtis Bidwell]

@Nick Gagel Keep it simple! One account for income and expenses (checking). And one account for security deposits (savings/ trust acct).  Transfer excess proceeds you won’t need for your rentals to your personal account. 

Keep a ledger of income and expenses. Easy enough with a couple units to do in Excel. Once you grow do it in Quickbooks or other software where you can keep more detailed records with reporting features for your accountant.