Multiple Rentals - Multiple Bank Accounts??

[Nick Willi]

For those that have 2 or more rentals- do you put all security deposits in 1 account "together" and then 1 account for all depositing monthly rent payments in another or do you set up multiple accounts for each rental? I tried searching the forums but didn't find anything. I really appreciate any help you can provide.

[Jimmy Chao]

@Nick Willi I have 1 account for operations and 1 account for security deposits. All of my rentals use these 2 accounts. I find it easier to lump the operational funds together, it helps smooth out cash flow when I have a major repair or vacancy - the other properties carry the one with negative cash flow. Security deposits should be handled as required by your state laws.