hey hey...I own a duplex in cincinnati that is currently being managed under a property management company (while my wife and I lived in Japan and now have since relocated to Lexington). The house is set up under it's own LLC already but since it's under a property manager, they already have their own bank account for the day to day activities (rent, repairs on the house, etc). I don't have a debit card, etc to access this account.
As you know there are other misc expenses outside of the house. I.e. buying a computer, lawn equipment, seminars, gifts, etc that would be a general expense that I would buy and not the property manager.
My question is how do you suggest managing the bank accounts?
1. get access to the property manager's account (which adds confusion, etc)
2. get an additional business account under the LLC name
3. an additional personal checking account just for the misc expenses
I am torn between a business account or personal checking so would love to hear your thoughts!
Open a bank account under the LLC and run all business transactions through that account. On a periodic basis, you’ll want to consolidate all financial transactions (PM statements, bank statements, mortgage statements) on to one set of “books,” such as a spreadsheet or QuickBooks. Feel free to be in touch if you have any other questions.
I agree with @Daniel Hyman
Get a business account and operate your business from it.
Best of Luck with Your RE Investing!
Awesome thanks Daniel and Paul! I will continue forward with the business account. I plan on increasing the portfolio here soon now that I have a better cash and equity position..when I expand do you think I should keep all properties under one LLC or have a separate LLC for each place? If so, then I was wondering how to manage the misc expenses if there are multiple LLC's, etc.
Thanks again for your help!