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

7 Replies

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!

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.

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.
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.