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,
Put all your rental income in a separate bank account. It will make the accounting easier
Agreed. Separate account is best.
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
I also agree with the separate account. It can also makes it easier and cleaner to escrow a security deposit in an account for rentals.
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.
It’s like the offspring said in their Song from the 90’s.....you gotta keep em seperated
Thank you everyone for your input, I appreciate it!