How to set up banking to manage 5 units

8 Replies

Hey John, have you ever considered a checking account for each door? I know security deposits belong in a trust or similar, but you could route rent that way. Or, you could have one checking for all revenue, one for Capital Expenses, one for Taxes, one for Operating Expenses, and one for Owner Pay with a % tied to each account that you sweep after the first of each month. I do this with a few businesses so I hope it can carry over for you in RE!

Checking/savings account for each property. You can do in your name, or in the name of the llc if property is under llc.

Deposit rent checks, move reserves(repairs/maintenance) to savings. Use quickbooks to do the bookkeeping, or hire a bookkeeper.

All transactions for property go into or out of these accounts. Making tax time much easier.

If the properties are in separate entities, then they need separate accounts. If they are all part of the same entity, I would have one checking and one savings account. Follow the KISS concept to reduce time and errors. 

You need to track expenses and income separately, but that is done in a spreadsheet or in management software.