The 13 Best Bank Accounts for Rental Properties

You've taken the plunge into real estate investing, ready to build your empire one rental property at a time. But before you start cashing those rent checks, there's one step you can't afford to skip: opening a separate bank account for your business. It might sound like just another item on your to-do list, but trust us — this simple move can save you from a world of hassles down the road.

Opening a bank account specifically for your rental income and expenses allows you to easily track each property's profitability. It prevents the mixing of personal and business funds, which can create a mess come tax time. Separate accounts also help protect your personal assets by creating legal separation between you and your rentals in case of issues like lawsuits or bankruptcy.

Using designated rental property bank accounts is an absolute must for professional landlords and real estate investors. Benefits such as easier accounting, maximizing tax deductions, and asset protection distinguish bank accounts, as not all offer features and fees that benefit rental owners equally. This guide breaks down the best bank accounts and highlights what features you should prioritize for your rental property business banking needs.

The benefits of having a separate bank account for your rental property finances

You may be wondering why you should set up separate bank accounts for your rental properties. First off, a separate bank account for your rental finances that's distinct from your personal and other business accounts is an absolute must-have.

It's a good idea to go a step further, holding individual accounts for each property, as this approach can make it easier to manage and track your finances.

Key reasons why real estate investors need separate landlord banking accounts include:

Simplified financial tracking

Separate bank accounts for each rental property make it easier to monitor income and expenses. This clear separation aids in tracking each property's financial performance individually.

Separate accounts also make tax preparation easier by keeping personal and rental-related finances distinct. This organization helps prevent mix-ups, making it straightforward to declare income and deduct expenses during tax season.

Budget and performance

Having individual accounts for each property allows you to allocate budgets more efficiently. You can assess the financial health of each property at a glance, making it easier to plan for future expenses like repairs, renovations, or expansions.

With separate bank accounts, you can review each property's profitability and performance independently. This can help you make decisions about potential rent adjustments or whether to sell or further invest in a property.

Protection

Separate bank accounts help real estate investors limit liability by confining legal or financial issues to a specific property, protecting other properties and personal finances. For instance, if there's a lawsuit related to one property, only the funds and assets associated with that property are at risk.

Similarly, in the event of bankruptcy, these accounts safeguard the investor's remaining assets, preventing financial difficulties from affecting other investments. This approach enhances an investor's ability to manage risks associated with real estate investments.

Managing security deposits

Holding tenant security deposits in a separate account for each property helps make sure the funds are available for their intended purposes, such as to pay for damages. This makes it easier to return or withhold deposits at the end of the lease agreement.

What to look for in a business bank account

Here’s a guide on what to consider when selecting a landlord banking account:

Low fees

Reducing overhead costs allows you to allocate more funds toward property maintenance or expanding your portfolio. Opt for bank accounts that offer low or no monthly fees, minimal transaction charges, and no minimum balance requirements, as this will allow you to keep more of your rental income.

Online banking

The ability to manage transactions and payments remotely increases your efficiency as a property manager. Look for online business banking services that are secure and easy to use. Features like mobile check deposits, electronic transfers, and automatic payments can be particularly useful.

High transaction limits

Depending on the number of properties you manage, you might need to handle a large volume of transactions monthly. Choose an account that allows for a high number of transactions without incurring extra fees.

Easy integration

Your landlord bank account should integrate seamlessly with your existing property management software.This integration can simplify your financial tracking and reporting, making it easier to manage tenant deposits, rent payments, and maintenance costs.

Interest rates

Although this may not be a primary concern for daily operations, some business banking accounts offer interest on balances. This can be a small way to generate additional income from your bank account savings funds.

Customer support

Access to prompt and helpful customer support can save you a lot of time and hassle. Look for a bank that offers dedicated business support, ideally with experience in real estate bank operations.

Scalability

As your business grows, your banking needs may change. Consider a bank that offers a range of account options that you can upgrade to as your portfolio expands, such as higher transaction limits or additional services tailored to real estate investors.

Virtual accounts

An ideal bank allows you to open unlimited virtual accounts to manage your real estate finances. This feature makes it easier to segregate funds for different properties or projects. Additionally, the bank should allow customization of virtual accounts, such as naming them after properties or investment types, to help you easily identify and organize your real estate business.

Branch accessibility

If you prefer face-to-face interactions or need to handle cash transactions, consider the importance of physical branch locations. Avoid choosing a digital-only bank. Instead, select a bank with branches conveniently located near your real estate investments.

The 19 best bank accounts for real estate investing

Without further ado, let's take a look at the best bank accounts for real estate investors:

1. Azibo

Azibo offers a complete rental property management platform that simplifies tasks such as accepting online rental applications, tenant screening, and collecting rent. Azibo also provides banking services designed specifically for landlords, which include multiple account options that cater to various properties or units, all without monthly fees.

Azibo provides competitive interest rates, enhancing the profitability of funds held within these accounts. Piermont Bank provides all banking services and the FDIC insures deposits up to $250,000 per depositor.

Azibo's banking services allow for flexible payment options such as ACH, wire transfers, paper checks, and internal transfers. Azibo also generates comprehensive financial reports that can be directly sent to accountants during tax season, helping simplify the financial management process for real estate investors.

2. Baselane

Baselane is a property management software that also has banking account offerings. Options include multiple accounts tailored for different properties or units, no monthly fees, and competitive interest rates of up to 4.19% APY. Additional benefits include up to 5% cash back on certain expenses.

All banking services are securely provided through Thread Bank, ensuring FDIC insurance of up to $3 million for all deposits. For real estate investors, the Baselane Visa debit card enhances financial flexibility and management, integrating seamlessly with the overall platform for efficient transaction handling.

3. Chase

Chase Business Banking offers a variety of services tailored to meet the needs of landlords and real estate investors. Chase provides multiple business checking options, such as Chase Business Complete Checking℠, which is designed for small to medium-sized businesses and offers unlimited fee-free electronic transactions and integrated credit card processing. This account charges a $15 monthly fee, which you can waive by maintaining a $2,000 minimum balance or completing other qualifying activities.

These banking services support the operational needs of landlords managing multiple properties, offering the convenience of online, mobile, and in-person branch banking solutions to manage accounts from anywhere.

4. Wells Fargo

Wells Fargo offers business checking options such as Initiate Business Checking, which is suitable for new businesses. You have the option to waive the minimal monthly fee under certain conditions. For more established businesses, the Navigate and Optimize Business Checking accounts offer additional features, such as the ability to earn interest and free incoming wire transfers.

Wells Fargo also provides specific commercial real estate services for real estate developers, owners, and investors. These services include balance sheet lending, capital markets access, agency lending, and specialized services for community development and commercial mortgage servicing.

5. US Bank

U.S. Bank provides various business checking accounts, such as Silver Business Checking, which is notable for having no monthly service fee. The account limits free transactions to 125 per statement cycle, making it ideal for smaller businesses with moderate transaction volumes.

U.S. Bank’s banking dashboard helps real estate investors manage cash flow, invoicing, and bill payments, all accessible via online and mobile platforms. This makes it easier for landlords to see their property-related finances in one centralized location, offering integrations with various business apps and tools to streamline operations.

6. First Internet Bank

First Internet Bank offers real estate banking solutions, including checking accounts, savings options, and lending services. For businesses, they provide specialized accounts like the Do More Business Checking, which is designed for small and expanding businesses.

The entry business checking option is notable for not requiring a minimum balance, and it doesn't charge monthly fees or transaction limits. It also offers a competitive interest rate of 0.50% APY, provided the average daily balance is at least $10,000.

For savings, First Internet Bank provides high-yield options such as regular savings accounts and money market accounts, which offer attractive rates based on the balance maintained.

7. Blue Ridge Bank

Blue Ridge Bank offers services for different business sizes and sectors, including specialized checking accounts, treasury services, and lending options.

Business accounts for small businesses have low monthly maintenance fees and transaction limits, making them suitable for smaller operations. Additionally, the Green Business Checking account, which is entirely electronic and free of maintenance fees, is ideal for businesses with lower transaction volumes seeking to minimize physical paperwork.

Blue Ridge Bank also offers modern digital banking solutions. These include a digital wallet that supports payments via major platforms like Google Pay, Apple Pay, and Samsung Pay, for secure and convenient transactions.

8. Capital One

Capital One's Spark Business Basic Checking is an option for smaller businesses looking for straightforward banking solutions. It features a monthly service fee of $15, which you can waive by maintaining a minimum balance of $2,000. This account benefits from unlimited digital transactions, such as mobile deposits, ACH payments, and online bill payments, with no additional charges for digital transactions.

For businesses with more complex banking needs, the Spark Business Unlimited Checking offers greater flexibility and additional features. This account has a higher monthly fee of $35, which you can also waive by maintaining a $25,000 minimum balance. It includes the same unlimited digital transaction feature as the Basic account and adds benefits such as free incoming wires and the first five outgoing wires each month without a fee.

Both accounts provide comprehensive services, including online bill pay and access to a large network of ATMs, making them suitable for businesses that value ease of banking and extensive digital services. Potential customers should note that these accounts need to be opened in person at a Capital One branch, which is only available in certain states.

9. Bank of America

Bank of America offers business checking accounts that are beneficial for small businesses looking for comprehensive banking services combined with the accessibility of a brick-and-mortar bank. Their Business Advantage Fundamentals™ Banking and Business Advantage Relationship Banking accounts stand out for several reasons. They allow a high volume of cash deposits and offer fee-free electronic transactions. This is particularly beneficial for businesses that handle both physical and digital transactions.

Both accounts have monthly fees you can waive by meeting certain criteria, such as maintaining a minimum balance or making qualifying purchases with a business debit card.

Bank of America's business accounts also integrate well with digital tools for enhanced financial management. For example, account holders can utilize the Business Advantage 360 platform to manage cash flow and connect accounting software like QuickBooks for streamlined financial operations.

10. American Express

American Express offers a business checking account with a fully digital experience. This account stands out for its competitive APY of 1.30% on balances up to $500,000, and it does not require a monthly maintenance fee or a minimum balance.

The American Express Business Checking account includes a unique feature where you can earn Membership Rewards® points on transactions made with the Amex Business Debit Card. For every $2 spent, you earn one point, which can later be redeemed and added directly back into the checking account.

The account supports various transaction types, such as mobile check deposits, ACH, and wire transfers. It also integrates QuickBooks and other accounting software.

11. Novo

Novo offers a business checking account that caters well to small business owners, including real estate investors, emphasizing a digital-first approach. The account provides several advantages for managing real estate investments, such as easy integration with business software like QuickBooks for streamlined financial tracking and simplified tax preparation.

With Novo, real estate investors can manage payments, transfers, and invoicing efficiently, which is particularly valuable for those dealing with multiple transactions or properties.

12. BlueVine

BlueVine offers a business checking account that is quite attractive for those who manage their operations online and are looking for high-yield opportunities. With BlueVine, there are no monthly fees, and the account provides an APY of 2.00% on balances up to $250,000.

This account could be especially beneficial for landlords due to its flexibility and focus on digital financial management. BlueVine also provides additional features like free incoming wires and the ability to set up sub-accounts, which can be helpful for organizing finances for different properties or projects.

13. Relay

Relay is an online banking platform designed specifically for small business owners, freelancers, and entrepreneurs who need flexible and efficient financial management tools. It offers a highly digital banking experience, allowing users to open up to 20 virtual accounts without no account fees. This feature is particularly beneficial for those who need to manage different aspects of their business or multiple projects simultaneously.

Each Relay account can issue both physical and virtual debit cards, and users can manage and control these cards directly from their app or website. Relay supports real-time spending monitoring and can instantly issue new virtual cards, which is useful for managing employee expenses or securing online transactions.

Relay also provides enhanced bookkeeping capabilities. The platform automatically categorizes transaction data, which can significantly speed up accounting processes. There are no minimum balance requirements or maintenance fees, and this business account offers easy cash access through a network of ATMs.

Opening a real estate bank account

To open a business bank account, you generally need to provide several key pieces of documentation and information to verify your personal identity and the legitimacy of your business. Here’s a general overview of what you'll typically need:

• Personal identification: Valid personal identification, such as a driver's license or passport, helps the bank confirm your identity.
• Employer identification number (EIN): Also known as a Federal Tax Identification Number, it's essentially a Social Security number for your business. Sole proprietors without employees can use their own Social Security number, but partnerships, LLCs, and corporations need an EIN.
• Business formation documents: Depending on your business structure, this could include your Articles of Incorporation (for corporations), Articles of Organization (for LLCs), or a partnership agreement that outlines the basic structure and function of the business.
• Business license: Proof that you are licensed to operate in your city or state, if applicable to your business type.
• Partnership or operating agreement: If your business has multiple owners, banks typically require a document that outlines each partner's rights and responsibilities.
• Certificate of good standing: This document is sometimes required to prove that your business is compliant with state regulations and is authorized to do business in the state.
• Resolution of authority: If someone is opening the account on behalf of the business (who isn't a founder or owner), this document is required to authorize that individual to open and manage the account.

Finding the best business bank account for landlords

Separating your rental property finances into dedicated business accounts is an operational must for landlords and real estate investors. The options outlined in this guide provide a range of viable solutions based on factors like portfolio size, transaction volumes, technology integrations, interest rates, and fee structures.

While big banks like Chase, Wells Fargo, and Bank of America offer comprehensive corporate banking paired with nationwide accessibility, newer digital platforms like Azibo, Baselane, Novo, and BlueVine are innovating with specialized tools tailored for rental owners. Their features like multi-property account management, high-yield savings, and property performance reporting demonstrate an understanding of landlords' unique needs.

Ultimately, the "best" bank accounts are the ones that align with your specific requirements and investment goals as a rental property owner. Take the time to evaluate the options against your priorities, such as low fees, reporting capabilities, earning interest on savings, and integrating with your existing tech stack. The right banking setup lays the foundation for streamlined financial management across your rental portfolio.

Best bank accounts for rental properties FAQs

How do I structure a rental property bank account?

Create separate accounts for each rental property to easily manage income and expenses, facilitate budgeting, and ensure accurate tax reporting. This method increases legal protection by isolating each property's financial activities.

Should I set up a business bank account for my rental property?

Yes, setting up a business bank account for your rental property is a good idea. It helps keep personal and rental finances separate and simplifies accounting of your property investments.

What kind of bank account should I use for my rental property?

Use a separate business checking account for each rental property to manage finances. This approach makes it easier to do record-keeping and tax preparations. It's also a way to create clear financial boundaries between personal and business finances. When picking which company to open bank accounts with, compare factors such as monthly account maintenance fees, interest rates, and minimum balance requirements.