Bank Accounts + Landlording

[Abe B.]

Hi there,

I'm about to close on my first property (6 doors) and am realizing that I don't know how to collect rent in a convenient fashion for the tenants. I have been told to use Baselane so that they can ACH transfer for free, and that baselane also gives me 4.5% APR for my money saved there (i.e. security deposits, etc.)

However, I don't like Baselane's withdrawal limits, and also how long it would take for baselane to transfer money to my primary checking accounts, at JP Morgan. I am considering opening a business account at JP Morgan for all income + expenses, and simply use baselane for rent collection + higher APR on security deposits, etc. (I am not required to pay tenants the interest on security deposits).

Any concerns with this? Am I thinking about it properly?

Thanks!

[Alecia Loveless]

@Abe B. I use my smallish local bank. They have about 15 branches between New Hampshire and Vermont.

Personally I keep one account for each building and one account for security deposits. I know a lot of investors say this is foolish just have one operating account for all your buildings but I like to keep them separate. That way I just deposit rents in each individual account and pay the mortgages out of the proper account. At any given time I can get a snapshot of how each individual building is doing very quickly.

It probably helps that I currently have my mortgages through this bank as well because it has had the most competitive interest rates each time I have gone for a loan.