Rental Property Investor · MS · Member since 2017 · 4 posts · 0 votes
Right now were 3 STRs and looking to getting more. This is what I'm wondering. Right now each property has a bank account set up for it where the mortgage comes out of. 2 of the three have the utilities and expenses coming out of their own accounts. The other one was our old house so some utilities are coming out of our personal account. I plan on changing that one to where all the utilities come from its own account also. That's 1 account for each property and there is a 4th account for taxes, escrow and repairs. 2 properties don't have taxes and insurance coming out of the mortgage.
What I am thinking of doing is this: At the end of the month come up with all the expenses and figure out the profit for that month. Take all the profit and divide it into 25% to our personal account, 35% for additional properties, 30% for taxes, escrow and repairs and 10% to leave in the individual property accounts or for an expense account for supplies.
I feel like plenty of people have already figured this out, so there is probably no reason to reinvent the wheel. Any suggestions or explanations of how you do it would be appreciated.
Property Manager · Cleveland, OH · Member since 2015 · 699 posts · 799 votes
5y
Seems unnecessarily complex to have a different account for each property. Run everything through one account then get some software like Quickbooks to help track everything.
Property Manager · Cleveland, OH · Member since 2015 · 699 posts · 799 votes
5y
Seems unnecessarily complex to have a different account for each property. Run everything through one account then get some software like Quickbooks to help track everything.
We use quickbooks, 1 bank account for income/expenses, and 1 bank account for repair fund with auto deposit into it. We have 1 cc that runs most of the expenses on it, autopaid by the expense account. I also keep a excel spreadsheet that shows the revenue, expense and profit per property so I can compare, see trends, and evaluate how to buy the next property.
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
5y
You can do it your way if you want the extra headaches. But it's not how it's done, ask your accountant. When I was a big-time :-) General Contractor, I used to have a separate bank account for each property, it seemed to make it easier handling the P&L for each job. But if you own a business call XYZ Vacation Rentals, that business owns all of the rentals and they should all be run through the same bank account. If you feel like you have more control know the exact ins and outs of each property, then you can always run separate spreadsheets for each one. Your choice, but you will eventually find your method to be cumbersome and time consuming.....