So where do the rent checks go when they are cashed (or direct deposited)?
Do they go to they’re own checking account per door or do all rent from all property’s go to one account and you manage it somehow?
can you also explain the reasoning behind whichever is the better option?
Thank you all for the time.
I have a separate bank account for each property. Rent from property A goes into account A, etc. It helps with bookkeeping. This is what my accountant recommended to me and it has worked well. Too many deposits into one account can make it more complicated than it needs to be.
For example if you have 20 properties and you have 20 rent checks going into one account it can be a mess to keep track of things. With each having their own account it just makes it simpler for me. Everyone has their own way, but this works best for us.
@A. Maldonado I was not aware that tenants are still paying rent by check. Make life easier for yourself and have all tenants pay rent electronically from that same checking account they would be using to write you a check. There are many different options to use that are free.
@Brent Paul so I guess my next question would be what happens with the money when you reach your reserve goal (you have 3, 6, 12 months of money for expenses). Do you send the excess to your personal?
@Ray Johnson yeah that’s why I mentioned direct deposit. That how I would do it personally.