need advice on having separate accounts for vacancy, capex, etc.

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need advice on having separate accounts for vacancy, capex, etc.

Don Carey
Rental Property Investor · Chesapeake, VA · Member since 2018 · 52 posts · 14 votes

Hey everyone. Im looking for advice on having separate accounts for vacancy, repairs, CapEx etc. Do you have a separate vacancy, repairs, CapEx etc account for every property or does all your vacancy, repairs, CapEx etc funds go to the same account for all properties?

Thanks in advance!

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Dick Stevens
Rental Property Investor · Haverhill, MA · Member since 2017 · 290 posts · 185 votes
8y

You’re over complicating things.  Just have a business checking account and pay your expenses from that account.  You could setup a separate savings account to save for future large repairs.

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  • Dick Stevens
    Rental Property Investor · Haverhill, MA · Member since 2017 · 290 posts · 185 votes
    8y

    You’re over complicating things.  Just have a business checking account and pay your expenses from that account.  You could setup a separate savings account to save for future large repairs.

    3Reply
  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    8y

    Don,

    Just have an operating account for the monthly rent and repairs, separate from that, do a savings account and put your funds in there for capx

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  • Don Carey
    OP
    Rental Property Investor · Chesapeake, VA · Member since 2018 · 52 posts · 14 votes
    8y

    @Dick Stevens @Kim Meredith Hampton thanks for your advice.

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  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    8y
    I’d agree with the others about one account. BUT, I would keep a spreadsheet (or accounting software if you’re so inclined) and track the set-aside for capex, vacancies, maintenance, etc. At the end of the year, compare what you’ve ‘set aside’ versus what you’ve spent. This will help you determine if you’re spending more or less than your ‘budget’ and help with future planning.
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  • Michael J.
    Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
    8y
    A separate account for each property will be a nightmare unless you only plan on buying a few properties. Personal and business 100% separate. And one or a few accounts for each category. Like mentioned use a budgeting software to track what is what if you lump in more than one category to one account.
    1Reply
  • Mike B.Pro Member
    Chicago, IL · Member since 2017 · 33 posts · 8 votes
    8y

    Agree with @Mike McCarthy on keeping track with good records on a spreadsheet. I do that and keep it saved on a cloud server to prevent loss of records.

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