Advice for Business/Checking Accounts for Rental Property

Managing Your Property
2yFollow

Advice for Business/Checking Accounts for Rental Property

Dustin SwansonPro Member
Wholesaler · Oceanside, CA · Member since 2022 · 6 posts · 1 vote

Hello All,

My cousin and I partnered up and purchased our first rental property in western Massachusetts. He is local and will be fulfilling landlord duties. I am remote (living in Reno, NV) and will be handling all accounting/finances. 

CPA recommended we open a joint business checking account under both of our names to keep tax season simple. Any recommendations or experience on good online banks with high APY for this purpose? 


NOTE: We planned on using Turbo Tenant for tenant management.

Thanks in advance for your help!

1Reply
26 views

Most Popular Reply

Brian Kloft
Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
2y

I can not speak about online only banks as I have not used any. However most brick and morter banks these days have a lot if not just as many online features. I am not sure how you plan to handle rent collections but if you think there may be times that a tenant will need to pay via some non online option then having a bank in the area of the property can be good. Some lower income tenants tend to pay via cash or money orders and you could have them deposit it direct into your account and text you the receipt for you to input. I recommend trying to make it be where everyone pays online as it makes your life easier. However I have had a few tenants that did not have a computer nor a smart phone so they were not able to pay online. 

Personally I refuse to deal with any of the large banks, (Wells, BofA, Chase) and prefer to deal with smaller regional banks or credit unions. The regional ones tend to have most or all of the same services but tend to provide much better customer service. 

As far as a specific bank recommendation,  it looks like Mountain America Credit Union has a couple of branches in the surrounding area and I personally like them.  

1Reply
See this reply in the discussion

3 Replies

Jump to latestLatest
  • Brian Kloft
    Investor · Arizona & Oregon Coast · Member since 2023 · 128 posts · 113 votes
    2y

    I can not speak about online only banks as I have not used any. However most brick and morter banks these days have a lot if not just as many online features. I am not sure how you plan to handle rent collections but if you think there may be times that a tenant will need to pay via some non online option then having a bank in the area of the property can be good. Some lower income tenants tend to pay via cash or money orders and you could have them deposit it direct into your account and text you the receipt for you to input. I recommend trying to make it be where everyone pays online as it makes your life easier. However I have had a few tenants that did not have a computer nor a smart phone so they were not able to pay online. 

    Personally I refuse to deal with any of the large banks, (Wells, BofA, Chase) and prefer to deal with smaller regional banks or credit unions. The regional ones tend to have most or all of the same services but tend to provide much better customer service. 

    As far as a specific bank recommendation,  it looks like Mountain America Credit Union has a couple of branches in the surrounding area and I personally like them.  

    1Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2y

    @Dustin Swanson  Baselane is a  software with online accounts associated with it.   Look it up. I haven't used it but they have virtual tenant accounts ect.  I use Bank of America and a local bank but a local bank by the property won't work for you as well remotedly depending on what you need to use it for you.  

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    I vote for Baselane if you're OK with completely remote. Leader Bank has great high yield accounts but if you want somewhere local I would Google banks or CUs nearby that would give you the best local service. 

    [email protected]
    The Elle Group5153 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free