Separate bank accounts?

Question

Hi!

Are you separating rental payments from your general operating account or depositing all monies from the business, including rents in one account. I only have one rental right now but as I acquire more properties, I want to keep up with the accounting for each property the most efficient way available.

Simon W. · Answer

@Cheree Harris 1 account per LLC, not per property

Account Closed · Answer

Generally one account per LLC is a good rule of thumb. Having separate bank accounts that are just for security deposits can be super helpful, and may even be required by your state.

Heather Canoles · Answer

I have a different bank account for each of my properties (4). I also have separate savings account for each so that I can get more interest on them. I keep just enough in the checking account to pay mortgage and transfer excess to the savings. I do this through Ally Bank. Super easy. All in one dashboard. Very user friendly. I don't have an llc or anything though. Just managing as an individual.

Tim Bartel · Answer

Quicken also works well for keeping properties separate. Just use the Tags, a different Tag for each property. You can produce reports for any combination of properties with the report filters.

Also see my response at this link:  Using multiple accounts in the Profit First system.

Ken Nyczaj · Answer

If you have your property under an LLC, keep all outgoing and incoming payments into the bank account attached to that specific LLC. If it's under your personal name, probably still best to keep it all separate to make it easier for accounting purposes.

For my accountant, for each different LLC, I keep a general folder for business expenses- marketing, mail, OE, client meetings, etc and then a separate manila folder for each specific property.

Tracy Streich · Answer

If you are using an accounting software such as quickbooks you should be able to manage this with one account and set up different GL accounts for each house so you can track income and expense.   However, you should always keep the tenant deposit in a separate account since it is not your money.   I see that you are in Oklahoma and law there stipulates you keep deposits in a separate trust account and do not co-mingle the monies

Ujwal Velagapudi · Answer

I used 1 account for dozens of units, just simply had the tenants notate (by hand or electronically) whenever they sent rent. They'd put their unit # & street name, or just their name, which allowed me to account for it. I banked with Chase and it was easy since there was one on every block where my units were.

My PM's had their own method, so my owner disbursements were just 1 larger checks every month with the rent roll provided in their software.

Security deposits have different laws based on state.

Separate bank accounts?

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