Different Bank Accounts for Different Properties?

[Alec Hilliard]

Hey you guys!

About to acquire my 3rd rental property!

My legal structure looks something like this *pictured below*

My question is this: 

Do I need to have separate bank accounts for each rental property, LLC?

& do tenants need to make checks out to "rental property 1, LLC" or to the holding company, LLC?

How are you structured? 

Thanks! 

[David M.]

@Alec Hilliard

You need a bank account per LLC. The rent checks should be written to the entity that the property is being rented from. (I can't see your structure on my smartphone). That's probably the LLC that holds Title, unless you've got an agreement between your LLC's.

Search around BP. Many people don't have LLC's for residential rentals. Many people even put as many as 10 or more single family rentals in a single LLC

Good luck.