Where to hold rental income

7 Replies

Hi there,

My name is Kristy and I am putting my townhome in Davie, Fl up for rent this month. I have never had rental property before. When you collect rent money, is it better to have a separate bank account specifically for the property? I am thinking ahead and want to know what will work to my advantage when I have to do my taxes next year. Any and all advice would be appreciated!

Thanks in advance,

Kristy

Put all your rental income in a separate bank account. It will make the accounting easier

Ok this is what I would recommend.  

The security and any deposits you colelcted should be in a separate non-interest bearing account .

The rental checks should go into separate account. Similarly expenses related to the rental should be drawn from this account. This would keep things clean

You might consider an umbrella insurance policy (maybe $1M) to protect against law suits. I didn't know this when I was you and I unknowingly accepted risk to personal assets.