New to Real Estate · Long Island, NY · Member since 2022 · 59 posts · 23 votes
If you own multiple properties, do you have a bank account for each of those properties? How do you keep track of the finances if you have a say a duplex with two different sides/doors of the house that has tenants come and go at different times for each unit? Any suggestions on certain banks to avoid or great banks you have investing experience with?
If you are using LLCs, it is a good idea to have a separate bank account for each LLC you are using. This helps to avoid co-mingling of funds, which can be cause to pierce the corporate veil and undo your limited liability in a lawsuit situation.
As others have said here, it is important to keep your books and records clear when handling the rental income and expenses. If you can do that in one bank account, that's great! If it helps you to keep track with separate accounts or separate sub-accounts, that's also great.
You do not need separate accounts for each property, but it is good to have a separate account or accounts for your rental business to avoid commingling funds with your personal stuff. For accountint, I just used good ole fashioned Excel to track my portfolio, but I am pretty organized. I like our regional and local banks, so cannot really comment on NY.
Agreed, treat REI as a business. Have a business account that can have multiple properties in it. Definitely a separate account for your REI vs. personal account, but having multiple properties in the one account is no big deal. Just keep good accounting records so you know what each property is earning you.
Hi @Kate Jones! Definitely no problem to have multiple properties share a bank account - you can use Stessa to track expenses for each property, which is super helpful! Also if you have an LLC, that should have it's own bank account. Basically any "entity" should have it's own bank account. Hope that helps! Let me know if you have any questions or concerns!
If you are using LLCs, it is a good idea to have a separate bank account for each LLC you are using. This helps to avoid co-mingling of funds, which can be cause to pierce the corporate veil and undo your limited liability in a lawsuit situation.
As others have said here, it is important to keep your books and records clear when handling the rental income and expenses. If you can do that in one bank account, that's great! If it helps you to keep track with separate accounts or separate sub-accounts, that's also great.