Separate credit cards for each airbnb? Or is that complicated to track?

Question

Do you recommend having a different credit card for each airbnb property? I'm wondering if things will get complicated to track if I am paying for things to multiple properties in one credit card.

Andrew Steffens · Answer

I just use 1 card for 65 units (managed) and 1 card for 8 active rentals owned.  You can use apps to scan receipts and keep expenses separated, and Amex even has that technology built in.  I think having separate cards would get quite cumbersome.

John Underwood · Answer

I just write the property address on the receipt.

I couldn't fit a different credit card for each property in my wallet.

Jake Baker · Answer

@Ana Mills

I agree with @Andrew Steffens. If you plan to scale at all, that will result in an excessive number of accounts and cards to keep track of. Scan receipts and label them with the appropriate property.

For our bookkeeping clients, we advise using the Profit First framework. This is great for small businesses and entities with multiple properties. It keeps all operating expenses in one account and income in a separate account.

Jon Martin · Answer

Yes, and separate bank accounts as well, or at least sub-accounts. Especially if you have partners. You will get accustomed to using certain cards for certain properties, unless you are the type of person who struggles with that.

Once you are setup you will not be using credit cards too often. Put the bills on autopay directly to that card or direct debit from the checking account.

Angie Keefe · Answer

Just as others have suggested, you can but not necessary.  And extra credit cards could be hard to scale as you grow. You can keep track of which expense goes to which property through your accounting software (even a spreadsheet would work).  Write the property on the receipt and keep a digital copy and the hard copy.

Quickbooks Online is a good software for both receipt capture and organizing what expense goes with which property.  You can scan the receipt with your phone using the QB app and it loads directly to the program.

Tim Delaney · Answer

Really depends how many you have and what kind of bookkeeping software you are using. Immediately writing the property name on a receipt and then scanning it to Dropbox is a way that I keep things separate. But I have also opened up new cards for specific properties if there is a nice sign up bonus for a card that I know I will hit during the rehab and furnishing phase.

Max Emory · Answer

Hey @Ana Mills, this ultimately depends on what your current portfolio looks like, your entity structure, and your plans to scale or not.

If you have a few STRs and no plans to grow, it's beneficial to have separate bank accounts and credit cards for each property.

If you plan to scale to 10+ properties and hold each property within it's own entity, maybe just a checking account per entity and keep some credit cards at the holding company level.

It really depends on your specific situation.

It's good you're thinking about the operational and bookkeeping component for your financial account structure to make things easier on yourself and any financial team members you have or may have in the future.

You're ahead of the curve!

Collin Hays · Answer

One CC is fine.  Just keep records.

Nelisa Lee · Answer

If you're purchasing these properties under the same entity, then I would just use one credit card. Unless you only plan to have a few. If your intent is to scale, I agree with many of the others that have mentioned how cumbersome that would be dealing with so many different cards and properties. The most important thing is going to be staying organized with what items are purchased for which property.

Ana Mills · Answer

Amazing! Thank you for the replies. When applying for the credit card, do you all use your LLC name or do you apply with your personal name?

Separate credit cards for each airbnb? Or is that complicated to track?

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