Day: February 10, 2020

Bank Accounts – How Many Should I have and Why?

One of my favorite things about helping business owners, particularly landlords, is discussing systems and processes. There is just something about providing solutions for a client and seeing that look on their faces that makes me happy. One of the items on my list of implementable systems is Bank Accounts. For a rental property business, the setup of your banking information, as it pertains to your business, is crucial to creating and maintaining an efficient operation. Let’s get right into it. The number of bank accounts I recommend any rental property business have is 3. An Operating account, a Security & Key Deposit account, and a Repairs account. The reason why I recommend having these accounts is because it helps keeps monies separate and helps ensure there is a reserve in case of large repairs. The Operating account is where the rent goes. It is also the account that expenditures for business will come out of. Expenditures like office supplies, business credit card payments, and payments made to contractors. Owner’s Draws can be taken from this account, too. You want to make sure to keep things simple with this account. Try to avoid paying for personal expenses out of this