Question about how property managers collect rent - who's bank account?
I'm hiring a property manager for two properties I own. I assumed that we'd set him up as a co-signer on my business bank account, the business that owns the property. This way we could run all transactions through that account.
However, he suggested setting up a new bank account in my company's name but using his tax ID. Rent would be paid to that account, and he'd use the account to pay for any repairs/maintenance, mortgage, etc. When cash is available or upon request, my business (that holds the property) would take a check. I'd then take an owner's draw or salary from my own business.
He does maintain full financial reports on that account, and I can be the sole signer of any checks written from that account if desired.
Do managers typically set up new accounts under their own tax ID for each property, or do they typically use the property/business existing account and act as a co-signer? I'm new to using a property manager so I'm not suggesting that one is better than the other - just looking for opinions!