Where do landlords keep rental income to earn interest before expenses?

[Kevin Lanphear]

I am looking for smart ways to maximize interest on rental income before mortgage and expense payouts—what accounts or platforms do you use?

Right now, I keep my rental income in a standard checking account that doesn’t earn interest. On average, I bring in about $8K/month in rent and spend around $6.5K on mortgage and expenses. That leaves me with roughly $1,564 sitting idle each month—not earning anything.

High Yield Account option examples:
Robinhood Gold Account - earn 3.75% APY on cash
SoFi Online Bank Account - earn 3.8% APY on cash
CIT Bank Platinum Savings - earn 3.85% APY on cash
American Express High Yield Savings Account - earn 3.5% APY on cash
Axos Bank Axos ONE Savings Account - earn 4.36% APY on cash

I’d love to hear how other landlords manage this. Are you using high-yield savings accounts, money market accounts, or landlord-specific platforms to make your cash work harder between rent collection and payouts?

[Ricardo R.]

Hey Kevin,

Good question — most landlords don’t think about this piece, but it adds up. A few thoughts from how I (and others I know) handle it:

• High-yield savings (HYSAs): Simple and safe. I’ve personally used Ally and Amex HYSAs — rates float a bit, but it’s painless to transfer rent income in and out. For short-term parking of reserves (1–3 months), this works well.

• Money market accounts (MMAs): Another option if you want check-writing ability. Some brokerage-linked MMAs (Fidelity, Vanguard) sweep idle cash into funds that currently pay 4%+. The only downside is making sure transfers back to your operating account are quick enough to cover mortgage drafts.

• Separate buckets: I keep one account just for operating (mortgage, repairs, utilities) and another for reserves. Rent flows into operating, then I sweep the monthly leftover into the reserve account that’s earning interest. Keeps me organized and still puts idle cash to work.

• Automation matters: Whatever you choose, make sure transfers are smooth. The last thing you want is a “funds delay” that causes a mortgage auto-draft to bounce. I usually keep at least one month of float in checking, and the rest in a HYSA.

You’re right — on ~$1,500 sitting idle each month, that’s ~$60/month in interest at 4% APY. Not life-changing, but over years (and with reserves growing) it’s real money.

My two cents: prioritize liquidity over squeezing every last 0.25% APY. You want the cash available at a moment’s notice for a furnace, roof, or vacancy; I hope this helps you a bit in either case it's a good problem to have just make sure you can easily access your funds (liquidity), I sent you a DM on BP and hope you can assist.