Updated over 3 years ago on . Most recent reply
Bank account management
I’m in Wilmington, NC and am about to place a tenant in my first rental property. I was wondering what kind of bank accounts the pros use. For example, when the tenant gives you a security deposit, do you just park that in a savings account, or do you put it in some sort of interest producing account to have it passively grow?
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- Real Estate Broker
- Cody, WY
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Two accounts and you can use them for multiple properties. I have over 30 rentals using two accounts.
Checking: all money goes in, all money goes out. Tenant pays deposit, I put it in Checking and then transfer it to Savings. Tenant pays rent, I put it in Checking. I pay bills from Checking. I maintain a small reserve to prevent any issues.
Savings: Security deposit is transferred and held here so I don't accidentally spend it. I also keep my reserves in savings (maintenance, taxes, insurance, etc.). When I have additional money in Checkings, I transfer it to Savings and hold it for the next investment.
- Nathan Gesner
