Bank accounts for vacancy and maintenance

8 Replies

When buying a rental property for buy and hold purposes and being from out of State (in my case out of country), when I find a bank to set up an account with, is it ok or suggested, to use the same account for both your vacancy and maitenance amounts that you put in there each month or should these be kept separate? My only concern would be having fees on 2 separate accounts!?

Would appreciate any and all thoughts.

Thanks guys!!

I've got 2 accounts set up for 15 different units (4 buildings). One checking account that handles all of my transactions and one savings account that holds all of my deposits. You should not be paying any fees for an account!

Medium logoMichael Seeker MBA, Renting502 | http://www.Renting502.com | Podcast Guest on Show #94

I am set up like michael. 2 accounts. One for sec deposits

Depends on your state. In Oregon there is no requirement to escrow the deposits so can use as you wish. There are strict rules about returning these monies though and penalties if not returned within 30 days of vacating the property.

@Shaun Anderson You can setup anything however you want. I work at a bank as a banker and I find it much easier to separate expenses between different accounts.

Secondly, most banks have accounts requirements for waiving fees and they are typically very easy to meet. Talk with your local business banker in the branch and explain how you want to separate expenses between accounts and they should provide you a solution that will fit your needs. If they can't it may be time to either switch or find someone more knowledgeable.

Let me know if you have any questions I could probably point you in the right direction.

Thanks very much for all the info guys, I have to find a bank in Ohio first of all that will give accounts to Canadians and then I will quiz them about all the required info I need!!

Hi Shaun

I am Canadian as well (Toronto) You will have a problem opening a US Account from Canada. You have to show up at the door to sign Signature Card. You can go to your closest border city and open account at a National Bank, doesn't have to be in Columbus. I work the Columbus market and my Bank is Rochester NY. (Chase) The Royal Bank has US Branches and they will let you access both from Canada. Its the only one that does that in Canada. I did find a couple of Para Legal Companies down there that set up business for you, they had a bank opening service but was very expensive. That was 4 years ago. Good luck

@Shaun Anderson

You may be able to open an account at TD Bank or RBC's U.S.A. subsidiary (Harris?) from Canada if you have a relationship with either of those banks and if their U.S.A. subsidiaries operate in the areas in which you wish to invest.

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Originally posted by @Michael Seeker :
I've got 2 accounts set up for 15 different units (4 buildings). One checking account that handles all of my transactions and one savings account that holds all of my deposits. You should not be paying any fees for an account!

I do something similar. One account holds security deposits and I also put an amount in each month to cover property taxes and major repairs.