August 24, 2023 - Landlord Gurus

Rental property is a business, and just like any business, it’s best to have a separate bank account for rental property. Keeping personal funds separate from business funds helps landlords better track income and expenses, simplifying accounting and bookkeeping. Moreover, by avoiding the commingling of funds, you not only protect your assets but also make things easier for yourself at tax time. Let’s take a look at some of the benefits of having a separate bank account for rental property and how you can choose one for your rental business.

Why You Should Have a Separate Bank Account for Rental Property:

Avoid commingling of personal and business funds; keep tenant deposits separate
Establish credibility
Enjoy rewards such as 5% cash back on certain purchases and interest rates over 60 times higher than the national average
Scale your rental business
Safeguard personal assets
Speed up and simplify accounting
Streamline tax preparation
Obtain financial help, access to loans, lines of credit, and insurance
Integrate your rent collection

How to Choose a Bank Account for Rental Property

When it comes to choosing a bank account for rental property, you might want to look at a number of things, such as the monthly or subscription fees, transaction fees (especially for collecting rent), interest rate/APY, ATM fees, minimum balance requirements, and opening deposit requirements.

You may also want to look at features special to landlords such as integration with accounting software and rent collection, direct deposit capabilities for rent, virtual accounts, loan products tailored to real estate investors, international banking to transfer funds if you are an international investor, cash back rewards, and credit/debit card availability.

Learn more about landlord banking, plus find out how you can earn a $300 bonus.

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