When starting out how did you find the best way to set up your bank accounts? What type of accounts have you found to be the best? Do most people use a trust account or one in there own personal name? Will a tenant, or Real estate, deposit our rental income in to our chosen bank account each month? Any info would be greatly appreciated.
Hello RichLee
If you have a trust it makes sense to set up an account in the name of the trustee. I have a company as the trustee so that's the name on the account. The type of account is up to you. If you have an offset account linked to your mortgage then this seems like a good place to have the rent deposited into otherwise the best interest you can get.. Keep your personal accounts separate from your IP accounts Makes life much easier specially at tax time.
The tenant pays the rent to the property managers office and then they transfer it to your nominated account each month. This way they keep track of the incoming rent. The PM should deposit it into your account as soon as they get it ( not once a month at the end or something ) and send you a statement. You can ask them to pay things like council rates, water, property insurance, landlords insurance etc. out of the rent. All these will show on your statements. In Melb. this is all part of the service. I don't know in other places so ask if this costs extra.
Good luck with your first IP.
Elka
thank you so much elka, your info was great and extremely helpful
You must be logged in to reply to this topic. If you don't have an account, you can register here.
