Credit / Debit Cards for Rental Business

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Credit / Debit Cards for Rental Business

Andrew Janssens
Philadelphia, PA · Member since 2022 · 14 posts · 5 votes
Does anyone have a particular recommendation for cards for landlords / rental business? I'm assuming most people split out from their personal account so I'm curious what people recommend!
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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4y

When I had a SF rentals, I had a card I only used for business expenses.  The card was in my name but it kept all the transactions separate.

For our apartments, we have a card for each apartment in the name of the entity that owns the property.  We have a separate card for our property management company.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    4y

    When I had a SF rentals, I had a card I only used for business expenses.  The card was in my name but it kept all the transactions separate.

    For our apartments, we have a card for each apartment in the name of the entity that owns the property.  We have a separate card for our property management company.

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  • Andrew Janssens
    OP
    Philadelphia, PA · Member since 2022 · 14 posts · 5 votes
    4y

    Thanks, Greg! Definitely appreciate the advice re: keeping things separate - I'm sure it makes things easier come tax time. I'm also curious what banks and cards people are using for their businesses!

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Get a card with lots of perks!

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Andrew Janssens:
    Does anyone have a particular recommendation for cards for landlords / rental business? I'm assuming most people split out from their personal account so I'm curious what people recommend!

     I have a variety of cards and try to get a new card every 6 months or so. I sign up for cards with mileage bonuses that enable me to travel for free. I've taken my wife to Texas a few times, Mexico, flew myself to several conferences, flew my mother out to visit, took my entire family to Hawaii last year with a couple gas, and I still have about $700,000 miles saved up. All of these miles were earned through ordinary business spending.

    send me a PM and I will be happy to give you some free advice

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Andrew Janssens

    You can keep a separate card for rental business that will make tracking and accounting easier.

    It will also save your time when filling taxes.

    Read this blog on The 6 Best Business Credit Cards for Real Estate Investors https://upgradedpoints.com/cre...

    Good Luck!

    [email protected]832-776-9582Podcast Guest on Show #469
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y
    Quote from @Andrew Janssens:
    Does anyone have a particular recommendation for cards for landlords / rental business? I'm assuming most people split out from their personal account so I'm curious what people recommend!

     We use capital one with the 2% cash back. We try and use CC for everything we can, because also resolves issue of having to send everyone 1099's and getting their W9's.

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  • Andrew Janssens
    OP
    Philadelphia, PA · Member since 2022 · 14 posts · 5 votes
    4y

    Thanks all for the input! Sounds like any good cash back credit card is the move (and to keep it separate from personal account).

    Curious if anyone has heard of cards with cash back for home improvement expenses etc.? (Home Depot, Lowe's)

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    4y

    @Andrew Janssens

    Yes, go research various credit card rewards systems.  A simple google search and you'll find the credit card analogs to BP...

    As for your assumption, no....  I just use my regular credit cards to continue to maximize your points.  It really depends on how you do your bookkeeping. As a matter of routine, I enter all my transactions into spreadsheets.  Each entry is categorized so that Excel autmatically sums them up.  So, when tax time comes, the final numbers are all right there to be transferred to my SchE (I also prepare my own returns..).  You can go either way with it.  If you Do your own bookkeeping and accounting, you don't have to pay an accoutant to do it --- its just data entry.  Also, you'll have the numbers handy immediately yourself to see whats going on.

    Also, how many rentals do you have?  More than one?  Even if you used "one" credit card (personal name is fine as long as Title to the propertiers are in your name) for all your rental expenses, you are going to have to remember of note what charge was for which rental.  So, even if you use credit statements, I'm thinking one would want to marking them up every month or sooner.  I wouldn't be able remember which Home Depot charge went with which rental at the end of the year.  I happen to use receipts, not credit card statements, and just write the number address on top since I may forget between the time I put it on my desk and when I finally scan it (and file away with appropriate rental files).  

    Maybe I'm too old school, but you can have all the "fandangled" systems you want, but in the end the bookkeeping has to get done.  NOT saying that technology is bad --- I still much prefer Excel than an "old fashioned" ledger.  But, trying to use credit cards and bank accounts to do your bookkeeping is really too cumbersome in my opinion.  It just increases your overhead, and may not necessarily achieve the bookkeeping function.

    Good luck.

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  • Rick Pozos
    Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    4y

    I have set up Home Depot pro xtra. You get some "perks" that are 1% discounts when you reach milestones. 20% off paints for being in my local Reia that is part of the national Reia. 2% gift card for all purchases. 

    What I do is use other cards that already give me back 1% or 2% AND Home Depot also gives 2% back for the sales!!

    And also my sister registers her cards to my phone number so I get her sales. My buddy who does landscaping, my aunt who is always buying stuff for her house, and on and on. I end up with about 50-60k in purchases for the year. Plus I do a few rehabs per year.

    1Reply
  • Markus Shobe
    Accountant · Indianapolis, IN · Member since 2019 · 247 posts · 134 votes
    4y

    I have a client that uses Amazon Business Prime through Amex and they get some pretty good points off of it. Overall I think Amex has a lot of good perks.

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  • Patrick Strain
    Member since 2018 · 61 posts · 22 votes
    3y

    I use a Chase Ink Business Preferred. I have a separate one for each of my properties. They offer a 100,000 Chase reward point bonus. When using my personal Chase Sapphire Reserve to redeem, that equals $1500 in cash back or travel. However, when transferring to travel partners, that can equal four or five times that amount.

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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    I get a business debit card and split properties in different checking accounts. Credit cards never got anyone rich, no need for points and spending money I don't have. 

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  • Patrick Strain
    Member since 2018 · 61 posts · 22 votes
    3y
    Quote from @Eliott Elias:

    I get a business debit card and split properties in different checking accounts. Credit cards never got anyone rich, no need for points and spending money I don't have. 


     To each their own. I always pay my credit card off in full every month so I'm not spending money I don't have. I spend a month or two abroad every year and haven't spent a dime of my own money on flights or housing because of points. My card covers primary insurance when I rent a car. Covers my cellphone insurance. It extends the warranty by a year on appliances that I purchase with the card. Yes, people can be irresponsible with credit. To me, they're an incredibly useful tool.

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  • Adah N.
    Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
    3y

    @Patrick Strain

    Are the perks enough to offset the 3% credit card fee?

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  • Patrick Strain
    Member since 2018 · 61 posts · 22 votes
    3y
    Quote from @Adah N.:

    @Patrick Strain

    Are the perks enough to offset the 3% credit card fee?


     I'm not sure what fee you're referring to. Over the past two years, I've accumulated over 400,000 Chase points. The card does have a $95 annual fee, but the points I have are worth anywhere between $6000-8000 in travel rewards, so that more than offsets the fee.

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  • Adah N.
    Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
    3y

    @Patrick Strain

    Assuming the HVAC company charged $5000 for a service. There is usually an extra 3% fee for using a credit card. In this case total cost is $5150 if credit card, but $5000 if you pay by check.

    My question - assuming balance is paid in full every month do the perks from the 2% cash back or points/miles outweighs that 3% charge for using credit cards?

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    3y

    @Adah N.

    Not sure where you get 2% cash back with @Patrick Strain 's Chase Rewards System for HVAC...  3% fee by the vendor is tough to overcome generally in my experience.

    It does depend highly on how and where you utilize the points.  You could try looking at "The Points Guy" or other boards about how they value the points.  He did mention having a Sapphire Reserve which I think their fee is some $600 annually (although their are signficant perks to make that back).  If you book with Chase's system you get a 50% bonus I think.

    I usually go on 1cent per point in figuring my breakeven points...

    Sorry, not very specific, but there are lots of variables.  I hope that helps some.

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  • Patrick Strain
    Member since 2018 · 61 posts · 22 votes
    3y

    @Adah N. 

    @David M.

    Credit card fees are a business expense that the HVAC company incurs, and they have the ability to write that fee off, as long as they're doing business above the table. Also, always make sure that if the company does make you pay a fee, that they list the fee as a separate line on the invoice. If not, they're double dipping by charging you, then by writing off the expense separately. When negotiating, tell them that they're eating any associated fees.

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    3y

    @Patrick Strain

    Oh, I agree with you on the fees and deductions.  But in the end, you never really know how their bookkeeping / accounting is being done...

    0Reply
  • Adah N.
    Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
    3y
    Quote from @Patrick Strain:

    @Adah N. 

    @David M.

    Credit card fees are a business expense that the HVAC company incurs, and they have the ability to write that fee off, as long as they're doing business above the table. Also, always make sure that if the company does make you pay a fee, that they list the fee as a separate line on the invoice. If not, they're double dipping by charging you, then by writing off the expense separately. When negotiating, tell them that they're eating any associated fees.


    Yes, it should be a business expense, they can write off. However, every contractor I've dealt with, big or small  now pass it off to the payer.  I am having some water lines replaced and there is a 3% line item if I pay by credit card. I pay 3%,  get 1% or 2% back. I guess payer can also write off…

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