Real Estate Investor · Kissimmee, FL · Member since 2015 · 14 posts · 5 votes
Hi everyone,
We made a few utility payments for our new house in Florida over the phone and they charged every time. How can we pay without any additional charges? I am planning on setting up a new bank account and make automatic online payments. Is this the best way to do it? Also, the new bank account should be personal account or business account? We have Bank of America - if this makes any difference.
Should we open the new account in Georgia, where we live, or in Florida where the rental house is? But in this case all mail will go there - could we ask them to send it to the Georgia address?
Another question: how do we transfer money between the property manager and us? Bank transfer, check, what is the best way? Property manager says he will send an invoice each month - is this how property management works?
Sorry about all these questions that probably sound silly to the experienced investors...any advice will be much appreciated.
You should have a stand-alone bank account for all business related transactions. As for the utilities, typically online/ automatic payments are free. This is your best solution to get rid of the fees. Not exactly sure about where to open the account. I think you could open where you live for convenience...but not positive.
For your property manager, this depends on their payment methods/ terms. The simplest way is to send a check every time you get an invoice. If the manager is more advanced, they will have an option for you to pay online. There are several cheap/ free ways to arrange online payments...I would push them to offer this.
You should have a stand-alone bank account for all business related transactions. As for the utilities, typically online/ automatic payments are free. This is your best solution to get rid of the fees. Not exactly sure about where to open the account. I think you could open where you live for convenience...but not positive.
For your property manager, this depends on their payment methods/ terms. The simplest way is to send a check every time you get an invoice. If the manager is more advanced, they will have an option for you to pay online. There are several cheap/ free ways to arrange online payments...I would push them to offer this.
Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
10y
I do bill pay through my bank account. Use a bank that does not charge a fee for this. Some of my payments are electronic, others go out by check. No cost to me.
We made a few utility payments for our new house in Florida over the phone and they charged every time. How can we pay without any additional charges? I am planning on setting up a new bank account and make automatic online payments. Is this the best way to do it? Also, the new bank account should be personal account or business account? We have Bank of America - if this makes any difference.
Should we open the new account in Georgia, where we live, or in Florida where the rental house is? But in this case all mail will go there - could we ask them to send it to the Georgia address?
Another question: how do we transfer money between the property manager and us? Bank transfer, check, what is the best way? Property manager says he will send an invoice each month - is this how property management works?
Sorry about all these questions that probably sound silly to the experienced investors...any advice will be much appreciated.
Thanks so much!
Sylvia
The best way to pay utility bills would be to use Bill Pay through your bank account or to send a check or money order by mail.
It would probably be most convenient for you to open a bank account with a bank local to you. If the property is titled in an LLC or Corp then open a business account. If the property is titled in your name compare personal account vs business account terms. The personal account may have more attractive terms. If you plan to collect even one penny directly from a tenant then open the account dealing with the property at a different bank than the one you bank with personally.
My company offers direct deposit and I do believe many property managers do. Those that don't will most likely send a check after receiving the monthly rental payment. I prefer direct deposit because I do not trust the mail but I think it is a matter of personal preference. The monthly invoice should provide an accounting of distributions and fees deducted from the gross rent. Provide a mailing address, in writing, to the property manager so they know where to send your check.
Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
10y
@Sylvia Herman I would prefer checks as a property manager due to the fact there is a paper trail. You can also see if they have EFT (Electronic Fund Transfer) set up. We typically send invoices each month for service rendered.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
If you have a BofA account the only issue about where you open it will be the banking laws that apply. I opened an account in NJ years ago and it is still a NJ account even though I am in MA, it isn't an issue. Maybe once or twice they had to use a different form but go ahead and open it to your home address using a dedicated account for the property to keep track of costs. For utilities set them up as ebills through online bill pay if you can. When you set up bill pay many companies will be paid electronically if you search for them and they are already in the banks system but the bank will send paper checks too if you enter the address in their system. For the PM just issue an online payment each month. I used to get electronic invoices via email and then pay them.
Real Estate Investor · Kissimmee, FL · Member since 2015 · 14 posts · 5 votes
10y
Thanks everyone for your input. We opened an account at BoA last week in Kissimmee and set up direct payment for utilities. Property manager sent an invoice for December and he had a check for us that he deposited at BoA. So far so good.