Managing multiple rental properties, each with individual financial details, without a streamlined banking solution can be a recipe for confusion and wasted time. 

Instead, having a bank account that caters to landlords with tools that help simplify everything from maintenance funds to rent collection can significantly save you time and impact your profitability.

In this article, we’ll walk you through the essential features to look for in a bank account tailored for your rental properties. You’ll gain insight into what to prioritize, ensuring you choose a business bank account that facilitates the financial management of your properties and even helps you compound your rental income.

Features to look for when choosing a bank account for your rental properties

When selecting a business bank account for your rental properties, here are some essential features to keep in mind: 

• Current APY: Seek out banks with a competitive annual percentage yield (APY), which can help you earn more interest on your account balance.
• FDIC insurance limit: Ensure your funds are protected by checking the Federal Deposit Insurance Corporation (FDIC) insurance limit, which typically covers up to $250,000 per depositor.
• Support for LLC’s/business entities: Choose accounts that allow you to open them in the name of your LLC or corporation for enhanced management and legal compliance. 
• Minimum balance requirement: Look for accounts with low or no minimum balance requirements to avoid fees and maintain flexibility.
• Monthly fees: Seek out accounts with minimal or no monthly fees to keep more of your rental income in your pocket.
• Cash back: Opt for accounts that offer cash back on purchases, which can provide additional savings and rewards for routine expenses related to property management.
• Wire fees: Consider the cost of sending and receiving wires, as these can add up, especially if you make frequent transfers.
• Ability to create separate bank accounts for each property: Look for the option to open several separate accounts under one umbrella, which can simplify tracking income and expenses for each property.
• Mobile banking app: Access to a user-friendly banking platform is essential for managing your accounts on the go.
• Rent deposit options: Evaluate how easy it is to deposit rent payments, whether through mobile check deposits, ATMs, or in-person services.
• Integration with property management software: Consider an account that can automate and simplify your accounting processes, saving time and effort.

Best banks for rental property owners

We’ve analyzed the top banks that are particularly well-suited for rental property owners. By comparing their offerings based on the key features discussed above, you can make a more informed decision on the bank that best aligns with your financial needs and goals.

Stessa

Designed with landlords in mind, Stessa Cash Management accounts* offer a comprehensive suite of features to make managing rental properties more efficient while helping your money grow.

From integrated accounting to automated rent collection, Stessa streamlines the financial aspects of property management, saving you time and effort on manual tasks.

A standout feature of Stessa’s banking is its seamless integration with its software, helping ensure all your transactions are automatically synced, categorized, and easily accessible. That means less data entry and more accurate financial tracking, which can be especially beneficial come tax season or when preparing financial reports.

You can open cash management accounts online in the name of your LLC or business entity with Stessa. This streamlined process can save you time and help ensure your financial operations stay compliant and organized. Simplifying account setup lets you focus on your properties and portfolios.

Stessa also focuses on convenience, providing physical and virtual debit cards for each property. This way, you can keep property-specific expenses separate, helping simplify your accounting processes and ensure accuracy in your financial records.

Also, Stessa’s robust security measures and real-time data syncing offer peace of mind. Your financial information is both protected and up to date.

Leveraging Stessa’s user-friendly interface and advanced financial management tools allows you to manage multiple properties easily. The platform is an ideal choice for novice and experienced landlords looking to optimize their operations and maximize their investment returns.

Features

• Current APY: 2.67%–4.32%
• FDIC insurance limit: $3 million
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1.10%
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes, unlimited
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks via mobile app
• Integration with property management software: Yes

*Stessa Cash Management information as of Nov 2024.

Ally Bank

Ally Bank is a leading online bank offering a wide range of financial services through its user-friendly digital platform. You can efficiently handle various banking tasks from anywhere. However, the bank doesn’t specialize in business accounts.

Features

• Current APY: 0.10% for an average daily balance of $15,000 or less and 0.25% for an average balance above $15,000
• FDIC insurance limit: $250,000 per depositor
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1%–3% depending on card and type of purchase
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Up to 30 spending buckets
• Mobile banking app: iOS and Android
• Rent deposit options: Online and wire transfers, direct deposit, mail, no cash deposits
• Integration with property management software: No

(Ally banking information as of August 6, 2024)

American Express

American Express provides an extensive suite of business banking solutions tailored to support the financial needs of businesses of all sizes. With over 50 years of experience, they designed their services to enhance financial management and operational efficiency, making them a reliable partner to consider.

Features

• Current APY: 1.3% on balances up to $500,000
• FDIC insurance limit: Up to at least $250,000 per depositor
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1 Membership Rewards® point for every $2 spent on eligible Business Debit Card purchases
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, wire transfers, check deposit, but no cash deposits
• Integration with property management software: No

(American Express banking information as of August 6, 2024)  

Axos Bank

Axos Bank offers an assortment of small business banking services, including checking and savings accounts, treasury management, and merchant and payroll services for small to medium-sized businesses.

Features

• Current APY: 4.01% with a Business Savings account
• FDIC insurance limit: Up to $250,000 for individual accounts and $500,000 for joint accounts
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 0.50% for average daily balance less than $1,500 or 1.00% for balance above $1,500
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks, and cash deposit through Green Dot Network
• Integration with property management software: No

(Axos Bank banking information as of August 6, 2024)

Azibo

Azibo partners with Piedmont Bank for all banking services and offers an all-in-one financial platform tailored to residential and commercial property owners. This bank can integrate rent collection, tenant screening, lease management, and comprehensive accounting tools.

Features

• Current APY: 0.15%
• FDIC insurance limit: Up to $250,000
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1.00%
• Wire fees: $25
• Ability to create separate bank accounts for each property: Yes, unlimited
• Mobile banking app: Web browser only
• Rent deposit options: ACH, bank transfer, cash app, cash, or credit and debit
• Integration with property management software: Yes

(Azibo banking information as of August 6, 2024)

Baselane

Baselane offers a comprehensive financial platform for landlords, integrating banking, rent collection, and accounting into a single streamlined service. With 30,000 landlords and real estate investors on Baselane compared to over 200,000 landlords using Stessa, the larger user base may suggest a broader reach with Stessa’s platform.

Features

• Current APY: Varies by account balance, beginning at 1.95% for balances of less than $10,000 to 4.19% for balances of $50,000 or more
• FDIC insurance limit: $3 million
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1%, with up to 5% on home improvement spending
• Wire fees: None for inbound wires (for a limited time)
• Ability to create separate bank accounts for each property: Yes, unlimited
• Mobile banking app: No
• Rent deposit options: ACH and credit and debit
• Integration with property management software: Yes

(Baselane banking information as of August 6, 2024)

Bluevine

Bluevine is a financial technology company that delivers integrated banking solutions for small businesses, focusing on enhancing growth and operational efficiency. While their platform prioritizes seamless money management, it’s not specifically designed for rental property owners.

Features

• Current APY: 2.0%–4.25% depending on checking plan
• FDIC insurance limit: $3 million
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 1%, 4%, or 20% based on type of purchase
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes, up to 5 subaccounts on 1 primary account
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks, and cash deposits through Green Dot
• Integration with property management software: No

(Bluevine banking information as of August 6, 2024)

Capital One

Capital One provides a wide array of banking services and a diverse range of business credit cards, catering to various financial needs. This extensive selection might be advantageous for many businesses but may introduce an unnecessary complexity for landlords seeking straightforward banking solutions for rental property management.

Features

• Current APY: 6-month promotional rate of 4.1% based on account balance
• FDIC insurance limit: Up to $250,000 per depositor
• Minimum balance requirement: None
• Monthly fees: Starting at $15 per month for Basic Business checking, waived with a $2,000 minimum balance
• Cash back: 1%–2% depending on the card selected
• Wire fees: $15 per incoming wire
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks via mobile deposit, and credit and debit
• Integration with property management software: No

(Capital One banking information as of August 6, 2024)

Chase

Chase for Business provides a suite of financial services, including business checking, loans, and credit card processing solutions tailored to various business sizes and industries. While their extensive offerings, such as merchant services, are ideal for retail businesses, they might be more complex than necessary for landlords focused on rental property management.

Features

• Current APY: 0.01% when linked to a Business Premier Savings account
• FDIC insurance limit: Up to $250,000 per depositor for each account ownership category
• Minimum balance requirement: None
• Monthly fees: $15 per month, waived with a monthly minimum balance of $2,000
• Cash back: 10% cash back Business Relationship Bonus with a Chase business checking account on your first business credit card anniversary
• Wire fees: $15 for inbound wires
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, Zelle, mobile app, wire transfer, checks with Chase QuickDeposit, credit and debit with Chase QuickAccept, and integrates with PayRent
• Integration with property management software: No

(Chase banking information as of August 6, 2024)

First Internet Bank

First Internet Bank offers a diverse range of business banking products, focusing on deposit accounts, business lending, and commercial real estate lending. The bank specializes in tailored financing solutions across various sectors rather than focusing solely on residential rental property services.

Features

• Current APY: 0.50% with an average daily balance of $10,000
• FDIC insurance limit: Up to $250,000 per depositor for each account ownership category
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: 3% for gas and 1% for all other purchases
• Wire fees: $15 for incoming wires
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks, wire transfer, and credit card (Visa or Mastercard)
• Integration with property management software: No

(First Internet Bank banking information as of August 6, 2024)

Live Oak Bank

Live Oak Bank specializes in business banking with a robust selection of services, including 3 types of business checking accounts, checking with treasury services, and high-yield savings and CDs. While their offerings provide comprehensive financial solutions for businesses, they may exceed the needs of residential landlords seeking simpler banking options.

Features

• Current APY: 4.0% in a high-yield savings account
• FDIC insurance limit: Up to $250,000 per depositor for each account ownership category
• Minimum balance requirement: None
• Monthly fees: From $10 per month to $100 per month, depending on selected plan, waived with an average daily balance of $1,000 to $25,000 or more
• Cash back: Not stated on the website
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks via mobile app, and credit and debit
• Integration with property management software: No

(Live Oak Bank banking information as of August 6, 2024)

Novo

Novo offers a streamlined business checking account tailored for small businesses, with no hidden fees or minimum balance requirements. With integrations to various tools, such as QuickBooks, Xero, eBay, and Etsy, this bank may be more beneficial for merchants than all-in-one systems preferred by residential landlords like Stessa.

Features

• Current APY: No interest offered
• FDIC insurance limit: Insured up to $250,000
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: Offers business debit card, but cash back not stated on the website
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes, provided each business has its own employer identification number (EIN)
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, paper checks, and integrations with Stripe, PayPal, and Square
• Integration with property management software: No

(Novo banking information as of August 6, 2024)

Relay

Relay provides a wide-ranging suite of business banking and financial management tools, including an accounts payable feature and integration with financial software for bookkeeping and payroll. These advanced features cater to the diverse needs of businesses, but landlords might prefer a single platform like Stessa for simplicity.

Features

• Current APY: Varies between 1%–3% depending on the balances held in a business savings account
• FDIC insurance limit: $3 million
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: Not stated on the website
• Wire fees: None for inbound wires
• Ability to create separate bank accounts for each property: Yes, up to 20 checking accounts
• Mobile banking app: iOS and Android
• Rent deposit options: ACH transfers, wires, checks, cash, and payouts from payment processors like PayPal, Stripe, Square, and more
• Integration with property management software: No

(Relay banking information as of August 6, 2024)

U.S. Bank

U.S. Bank provides a wide array of business checking solutions, savings accounts, merchant services, and specialized loans and lines of credit. However, these extensive offerings may surpass a landlord’s simpler financial management requirements.

Features

• Current APY: 0.005% to 0.01%, depending on selected checking plan
• FDIC insurance limit: Up to $250,000 per depositor, per insured bank for each ownership category
• Minimum balance requirement: None
• Monthly fees: None
• Cash back: Offers 6 business credit cards with bonus points, cash back, and rewards, depending on the card selected
• Wire fees: $20 for incoming wires
• Ability to create separate bank accounts for each property: Yes, up to 10 under the same small business user name
• Mobile banking app: iOS and Android
• Rent deposit options: ACH, mobile app check deposit, and wire transfer
• Integration with property management software: No

(U.S. Bank banking information as of August 6, 2024)

A side-by-side comparison of each bank account

* Stessa is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Stessa Cash Management Visa® Debit are issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa cards are accepted.

Your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program here and a list of program banks here. Please contact customerservice@thread.bank with questions on the sweep program.

No minimum balance or opening deposit required. Fees could reduce earnings on the account. Account holders can earn 1.10% cash back on debit card purchases. Cash back earned each month will be credited to your account by the next month’s statement cycle. ATM transactions, the purchase of money orders or cash equivalents, loan payments and account funding made with your debit card are not eligible for cash back rewards. No minimum opening deposit and no minimum balance requirements. Terms and eligibility requirements apply.

Essentials is a free plan and Pro is a premium plan. Annual Percentage Yield (APY) of 3.14% (APR of 3.10%) on deposit accounts for new Essentials users signing up, accurate as of August 9th, 2024; and 5.09% APY (APR of 4.97%) for Pro users is accurate as of August 9th, 2024. APY for the account may change at any time, before or after the account is opened.