Software and ACH Setup

[Nadene Johnson]

Hello, My husband and I are starting a property management company in the Jupiter, FL area. We have one owner and one tenant so far and we are currently setting up Buildium. I am just curious how most structure their payment process when receiving and paying rental payments, vender payments, etc. We do have a business checking and savings account setup, but do all rental payments go into the same account generally? I am wondering if some of you get the owners account info to setup in the software to have their rental payments go directly in and vender payments coming directly out? Or is it necessary to receive rental payments and pay vender payments out of our property management account?

[Michael Smythe]

@Nadene Johnson most PMCs have an Operating account that all rental income is deposited in.

All Portfolio and Property expenses are paid from this account, as well as owner draws.

PMC's also have a Management account, that they transfer their management fees to (from the Operating account) and pay all company expenses from.

Third account is to hold Security Deposits (SD) according to your state laws. Check your state laws as to whether you can accept SDs into Operating account and transfer to SD account or if SD must be directly deposited to SD account.