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As a landlord, keeping track of your rental property’s finances is essential for running a successful business. A dedicated bank account makes it easier to track rent payments, pay expenses, and prepare for tax season. Additionally, if you operate your business as a limited liability company (LLC), it offers legal protection for your personal funds.
So, whether you own a single property or a portfolio of real estate investments, having a rental property bank account will help your business run smoothly. Keep reading as we explore some of the best bank accounts for rental property and landlords, what you’ll want to look for when picking an account, and the steps you’ll need to take to open a new account.
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Why Landlords Need a Dedicated Bank Account
Many new landlords are unsure whether they need a separate business bank account. The short answer is yes. A designated bank account helps keep your business finances separate from your personal finances. Additionally, it can help provide the following benefits:
- Simplifies bookkeeping: Having a business bank account helps with organization and streamlining financial records. You can view income and expenses for your properties, making it easy to monitor their financial performance. Some landlords take it a step further by using individual bank accounts for each property they own.
- Makes tax season less stressful: By keeping your business and personal expenses separate, there will be less confusion over what is or isn’t a business expense. This delineation means fewer back-and-forth conversations with your accountant once tax season arrives.
- Protects your personal assets: Most landlords operate their businesses as an LLC. The primary benefit is that it offers legal protection and keeps personal assets out of reach. Using a business bank account ensures that all these legal protections are in place.
- Access to financing: If you plan to grow your business and utilize funding, many lenders will want to see clean business records before providing access to funds.
- Managing security deposits: Having a separate bank account for rental properties provides a secure place to hold your tenants’ security deposits, making them available for damages or returnable at the end of the lease.
What to Look for in a Landlord Bank Account
As you get started looking for a business bank account, there are several features you’ll want to consider. These include the following:
- Low or no monthly fees: Look for an account that has no fees or allows you to waive fees by completing specific requirements each month.
- Multiple subaccounts: Creating subaccounts enables you to maintain separate accounts for tax withholding and maintenance purposes. You can also use them to keep the finances for each of your properties separate.
- Online and mobile access: Most business owners want to access their financials from anywhere. Using a bank account with a robust mobile app gives you access to all your transactions, mobile check deposit, and simple cash transfers.
- Accounting integrations: Syncing your bank account with accounting platforms like TurboTenant Accounting will make tax season much easier for you and your accountant.
- Earning interest: Some accounts will give you the chance to earn an APY on the money in your account.
- High transaction limits: If you have multiple properties, you’re likely to have a high number of transactions each month. You’ll want to ensure your bank account allows for multiple transactions without incurring fees.
- Customer service: With an account that offers 24/7 support, you can still speak with someone during the night and on weekends if an issue arises.
Best Bank Accounts for Rental Property
With dozens of bank accounts for landlords to choose from, it can be overwhelming to know which is the best. Our list narrows down the options, allowing you to focus on your business.
Bluevine
Bluevine offers a digital business checking account designed for small businesses, including landlords. It offers fee-free banking, a high APY on balances for premium accounts, and features that support property management needs.
Features
- No monthly fees: Bluevine’s Standard plan charges no monthly maintenance fees. If you opt for their Plus or Premier plans, a monthly fee applies, but they offer ways to waive it.
- High APY: With a free standard Bluevine account, you’ll earn a 1.3% APY on your account balance. By upgrading to a Plus or Premier plan, the APY increases to 2.4% and 3.5%, respectively.
- Unlimited transactions: You’re allowed to make unlimited transactions, which is ideal for landlords with multiple properties that may have a significant volume of transactions each month.
- Sub-accounts: Access up to 20 sub-accounts to help improve budgeting for each property.
- Cash deposit capabilities: Even though Bluevine is an online bank, you can deposit cash at any Green Dot ATM (for a fee).
- Additional FDIC insurance: Standard FDIC insurance protects up to $250,000 in deposits. However, Bluevine accounts are insured for up to $3 million through their sweeps network.
- Added security: Multi-factor authentication, data encryption, and fraud detection help keep your accounts secure.
Why is Bluevine Good for Landlords?
Bluevine is ideal for landlords who want to earn a high APY on their account balance and may have a high number of monthly transactions. It’s also great for someone looking for more robust budgeting tools than other bank accounts can provide.
Chase Business Complete Banking
If you’d prefer a traditional business checking account from a reputable bank like Chase, then a Chase Business Complete Banking account could be the perfect choice. This is Chase’s checking account for small business owners, and it stands out to many because you can earn up to a $500 bonus for new accounts.
Features
- Sign-up bonus: You’ll earn up to a $500 sign-up bonus when you sign up for a new Chase Business Complete Banking account and complete the minimum deposit requirement.
- Built-in payment acceptance tools: With Chase QuickAccept® and the accounts invoicing tools, you can accept rent payments from your tenants and manage your business operations.
- Monthly fees: The account has a monthly fee, which can be waived under certain conditions.
- In-branch deposits: If you have tenants who pay their monthly rent in cash, you can deposit up to $5,000 in cash each month without any fees.
- Robust digital banking tools: Easily manage your finances with Chase’s digital banking tools like mobile deposit, Zelle, bill pay, and more.
How to Waive Chase’s Monthly Fee
The Chase Business Complete Banking account has a $15 monthly fee, which the bank can waive with any of the following:
- Maintain a minimum daily balance of $2,000.
- Make $2,000 in Chase Ink® business credit card purchases.
- Deposit a total of $2,000 from Chase QuickAccept® or other eligible Chase Payment Solutions® transactions.
- Link a Chase Private Client Checking℠, JPMorgan Classic Checking, or Private Client Checking Plus account.
- Submit proof of military status (active or veteran).
Why is Chase Good for landlords?
Chase Complete Business Banking is ideal for landlords seeking to work with a bank that has a strong reputation and who are interested in earning a bonus when opening a new account. With branch locations nationwide, Chase is ideal for businesses seeking an in-person banking experience.
Grasshopper
Grasshopper is a digital bank focused on small businesses and start-ups. While its checking account isn’t explicitly for landlords or real estate investors, it offers many features that would appeal to rental property owners.
Features
- No fees or balance requirements: There are no monthly maintenance fees or minimum balance requirements.
- Attractive APY: When you have an Innovator Business Checking account, you can earn up to 1.55% APY on balances. If you pair the checking account with an Innovator Money Market account, you can earn up to 3.30% APY on balances of $25,000 or more.
- Earn cash back: Earn 1% cash back on in-store and online purchases.
- Unlimited transactions: For businesses with high transaction volume, Grasshopper offers unlimited monthly transactions at no cost. Plus, you’ll receive free incoming wires and ACH transfers.
- Strong digital tools: As an online bank, Grasshopper offers a range of useful tools to manage your business. Benefits include mobile deposits, integrations with accounting software such as QuickBooks, and the invoicing tool Autobooks.
Why is Grasshopper Good for Landlords?
Grasshopper is a good choice for landlords who want a digital banking experience and won’t be dealing with cash frequently. They’re also great for anyone looking to integrate their accounting and bookkeeping services with their bank account.
American Express
American Express offers a business checking account designed for small to medium-sized businesses. Not only does this online-only bank offer a generous sign-up bonus to new customers, but you’ll earn an attractive APY on your account balance.
Features
- Sign-up bonus: Earn 30,000 Membership Rewards® points when you sign up for a new American Express Business Checking account and complete the deposit requirements.
- High APY: You’ll earn a 1.30% APY on any account balance up to $500,000.
- Earn membership rewards: You’ll earn one Membership Rewards point for every $2 you spend on Business debit card purchases.
- No fees: There is no monthly maintenance fee or minimum balance requirements.
- Third-party integrations: You can connect third-party apps like QuickBooks to your American Express Business checking account.
Why is American Express Good for Landlords?
If you want an online banking experience and don’t need to deposit cash at a branch location, then the American Express Business checking account would be a great fit. It’s also attractive to anyone who wants to earn rewards on purchases and a solid APY on account balances.
Axos Bank
Axos Bank offers landlords a checking and savings account bundle called the Axos Business Bundle. These are digital-only accounts designed to offer businesses low-fee accounts and all the tools needed to manage their businesses.
Features
- Welcome bonus: You can earn up to $600 when you open an Axos Bank Business Checking and Savings account and complete the requirements.
- High APY: With the Axos Bank Business Savings account, you can earn a 3.80% APY on your balance. This APY is one of the highest rates currently available on a business account.
- No monthly fees: There are no monthly maintenance fees, and a minimum deposit is not required.
- Unlimited transactions: You can make an unlimited number of transactions each month without worrying about fees.
- Expanded FDIC coverage: Receive expanded FDIC coverage of up to $265 million with Axos Bank Insured Cash Sweep through IntraFi® Network Deposits℠.
Why is Axos Bank Good for Landlords?
If you keep a significant amount of money in your business bank accounts and want expanded FDIC insurance, Axos Bank would be a great fit. It’s also beneficial for landlords who manage multiple properties, resulting in a substantial number of transactions each month.
Live Oak Bank
Live Oak Bank is another digital-only option that’s ideal for those who are not interested in a traditional physical banking relationship. You can open a checking or savings account with expanded FDIC coverage through the bank’s sweep program.
Features
- High APY: When you have a high-yield savings account, you’ll have the chance to earn a 3.00% APY on your balance.
- Live U.S.-based customer support: If you have a banking question, you can speak with a real person in the United States. Live customer service is available Monday through Friday from 8 am to 8 pm Eastern Time.
- Monthly Fees: Live Oak Bank offers three different checking accounts, each with a monthly maintenance fee starting at $10. These are waivable when you meet specific balance requirements.
- Unlimited transactions: You can make unlimited fee-free transactions each month. Plus, you can withdraw cash without a fee at more than 55,000 Allpoint ATMs.
- Expanded FDIC insurance: Through Live Oak Banks’ sweeps network, you’ll receive expanded FDIC insurance of up to $10 million through the IntraFi Network.
How to Waive Monthly Service Fees
Live Oak Bank offers three different checking accounts, each with a corresponding monthly fee. However, you’ll be able to waive the fee when you maintain a minimum monthly balance. The table below outlines the process for waiving the fee.
| Account | Monthly Fee | Minimum average daily balance to have the fee waived |
|---|---|---|
| Business Essential | $10 | $2,000 |
| Business Plus | $25 | $25,000 |
| Business Plus Analysis | $100 | Contact the bank to learn more |
Why is Live Oak Bank Good for Landlords?
Live Oak Bank is an excellent choice for landlords because it offers both business checking and savings accounts with the potential to earn a competitive APY. As a digital-only bank, it offers numerous tools that simplify the management of your finances. These include mobile check deposit, bill pay, QuickBooks integration, and the ability to set up permissions and access for specific employees.
PNC Bank
PNC Bank is a full-service brick-and-mortar bank with an extensive branch network and multiple business checking account options, including Business Checking, Business Checking Plus, and the Treasury Enterprise Plan. For landlords, especially those with multiple properties or who want branch access, PNC can be a strong choice.
Features
- Welcome bonus: Depending on which PNC Bank business checking account you choose, you can earn a welcome bonus of up to $1,000.
- Significant number of branch locations: If you prefer handling your banking in person, PNC Bank has more than 2,600 locations nationwide.
- Limit on total transactions and cash deposits: PNC Bank limits the number of transactions and cash deposits you can make each month based on the checking product you have (details below).
- Monthly maintenance fees: Up to $50 per month. These are waiveable when specific requirements are met.
- Cash Flow Insight®: Cash Flow Insight gives you the ability to see your business’s current performance, track expenses, and plan for what the future could look like.
Transaction and Cash Deposit Limits
| Account | Transaction Limit | Cash Deposit Limit |
|---|---|---|
| Business Checking | 150 | $5,000 |
| Business Checking Plus | 500 | $10,000 |
| Treasury Enterprise Plan | 2,500 | $50,000 |
How to Waive The Monthly Maintenance Fee
To waive the monthly maintenance fee, you’ll need to meet the following balance requirements.
| Account | Fee | How to Waive the Fee |
|---|---|---|
| Business Checking | $12 | Maintain an average monthly collected balance of $500 or more Or, use a linked PNC Business Credit Card to make a minimum of $500 in eligible purchases, Or, maintain an eligible linked Merchant Account and generate a minimum of $500 in qualifying monthly merchant service deposits. |
| Business Checking Plus | $22 | Maintain an average monthly collected balance of $5,000 or more Or, use a linked PNC Business Credit Card to make a minimum of $5,000 in eligible purchases, Or, maintain an eligible linked Merchant Account and generate a minimum of $5,000 in qualifying monthly merchant service deposits. Or, maintain an average monthly collected balance of $20,000 or more in linked business checking and Money Market accounts. |
| Treasury Enterprise Plan | $50 | Maintain $30,000 average combined monthly collected balance in all checking accounts within your Treasury Enterprise Plan. |
Why is PNC Bank Good for Landlords?
If you manage multiple rental properties and require branch access for cash deposits, checks, or in-person services, PNC Bank may be a suitable option. PNC Bank also has savings accounts, small business credit cards, and commercial real estate loans, which could be beneficial for growing your business.
How to Choose the Right Account for Your Rental Business
Choosing the right bank account depends on how your rental business operates. Here are some factors to consider when selecting the best bank account for rental property.
1. Think About How Your Business is Structured
The structure of your business influences the type of bank account you choose. If you operate your rental property business as an LLC, you’ll need to open a business bank account to separate personal and business expenses and maintain liability protection.
If you’re in business with someone else and more than one person needs access to the account, ensure the account is set up for multiple users.
2. How Will You Collect Rent?
If you’re planning to use TurboTenant to collect rent online, how you collect the rent won’t affect the bank account you select. However, if you want to offer your tenants the option to pay rent in cash each month, you should find an account that does not restrict monthly cash deposits.
If you have a short-term rental, consider choosing an account that syncs with a payment processor and integrates with various bookkeeping and accounting software. These integrations will make things simpler when tax season arrives.
3. Consider How Many Properties You Manage
If you own multiple properties, consider a bank account that offers multiple sub-accounts. This way, each property can have its own account, making it easier to track cash flow and performance. Alternatively, you can open separate accounts for each property but keep them under the same login. Just ensure you choose accounts with no monthly fees to avoid unnecessary expenses.
4. Evaluate Fees and Transaction Limits
Fees can quickly reduce your monthly cash flow if you’re not careful. If you select an account with a monthly fee, ensure you can waive it by maintaining a certain account balance.
Additionally, verify that the bank doesn’t restrict the number of transactions you can make. Be sure to consider what’s realistic for your business before opening an account.
5. Check Interest Rate and Perks
Many business bank accounts offer bonuses to new customers upon sign-up. If you plan to take advantage of these offers, ensure you can meet the requirements to qualify for the bonus.
The same applies to accounts that provide an APY on balances. If you intend to keep a substantial amount of money in a checking or savings account, it’s worthwhile to compare the offers from different banks.
6. Think Long-Term
Finally, it’s essential to think long-term. If you’re planning to expand your business to include more properties, select an account that can grow with you. For example, choosing an account with sub-accounts allows you to assign a different sub-account to each new property you acquire.
Additionally, consider other business products the bank offers, such as credit cards or loan options. These can help expand your business.
What You Need to Open a Business Bank Account
Before opening a new business bank account, make sure you have all the necessary documents. This will help you avoid potential delays. Here’s everything you’ll need when you open your account.
- Personal identification: Government-issued ID like a driver’s license or passport.
- Business formation documents: LLC articles of organization, partnership agreement, and an operating agreement if you have partners.
- Employer Identification Number (EIN): EINs are required when opening a business account; you’ll need a Social Security number if running your business as a sole proprietor.
- Proof of address: A utility bill, lease agreement, or mortgage statement.
Final Thoughts
As a landlord, it’s essential to separate your business and personal finances. Separating funds not only helps protect your business’s liability but also makes managing your finances much simpler.
Finding the best bank account for rental property can be a time-consuming and confusing process for many people. We’ve taken the time to simplify your search by selecting seven bank accounts we think you can gain value from. Compare the features of each, and you’ll be able to find the best account for your business.
Disclaimer: This blog is for informational purposes only and is published by TurboTenant. It is not legal, financial, or tax advice. Laws and regulations for landlords vary by state and locality and may change over time. Always consult a qualified attorney, accountant, or local housing authority before making decisions related to your rental property. The publisher and authors assume no responsibility for actions taken based on the information provided.
Bank Account for Landlords FAQs
Should I open a business bank account as a landlord?
Yes, opening a business bank account for a rental property is a good idea. It helps keep your business finances separate from your personal ones, making tax preparation much simpler.
Does your LLC need a business bank account?
Yes, if you have an LLC for your rental property business, you’ll need a business bank account to preserve your liability protection. Mixing personal and business expenses in one account can void the liability protection provided by your LLC. This could make you personally responsible for your business debts.
Can I use my EIN instead of SSN for a bank account?
If you’re opening a business bank account for an LLC or partnership, your bank might only need your EIN.
Can I transfer money from my LLC to my personal account?
Yes, you can transfer funds from your business bank account to your personal account. For single-member LLCs, this is the most common method of paying yourself.
