Investor · Wilmington, NC · Member since 2016 · 1 post · 0 votes
Hi, have just purchased a 60 SFR portfolio.
my question is:
Do I allow prop management company to open and control bank account for deposits that I draw from(and they also have draw access) or do I open my own account and allow the to DEPOSIT ONLY into it but no draw access? what is industry standard here? A lot of monthly cash is in this account as rents come in.
Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
10y
You may get more responses by having a more credible name than Account Closed.
I'm not sure what industry standard is, but we do not give our PM any access to our accounts. She sends us itemized lists of what the incoming funds are with a check and we manage the deposit account and our rental account. If she has expenses, she either deducts them from the incoming revenue and sends us less funds, or sends us the bill and asks us to pay it directly.
You may get more responses by having a more credible name than Account Closed.
I'm not sure what industry standard is, but we do not give our PM any access to our accounts. She sends us itemized lists of what the incoming funds are with a check and we manage the deposit account and our rental account. If she has expenses, she either deducts them from the incoming revenue and sends us less funds, or sends us the bill and asks us to pay it directly.
LOL, yeah, Account Closed is curious... :-)
But, someone may want to know the answer, so nice of you to answer. When I hired a PM and same for my daughter, money was sent to the PM to be placed in a reserve account that the PM could pay bills from. The PM did not have access to our bank accounts.
Investor · Houston, TX · Member since 2016 · 25 posts · 10 votes
10y
Agree with others. We have four small MF properties under management with four different management companies and in all four cases we provided an initial deposit to fund an account they use for expenses. If cash flow is negative, our contact requires us to maintain a minimum balance in that account. Assuming cash flow is positive, mgmt Co will pay all the bills, lease units and send us check and a reporting package at the end of the month to account for everything.