Accounting, Property Management, Rent Payment

Landlord Banking: What is the Best Bank Account for Landlords

Having a business banking account is a necessity for any independent business, especially in real estate. With the rise of digital banking products, there are now more options than ever to find the best landlord banking products for your business. Read on to see our top 3 choices for the best bank account for landlords.

Linking banking and rental property management software simplifies landlord banking by streamlining rental management, accounting, rent payments, taxes, and more. In this article, we compare key aspects of traditional banks and credit unions with landlord-dedicated bank accounts – such as those offered by software providers like Baselane, Azibo, and Stessa – so that you can make the right choice.

Note: Interest rates updated as of 7/10/2024

Overview of Landlord Banking Software

These are the top three platforms that offer the best bank account for landlords:

1. Baselane

Baselane is a rental property management tool that helps landlords and real estate investors save time and money while increasing their rental property returns. Landlords can create multiple accounts per property to keep expenses organized and funds separated. For instance, one of the unique features to help landlords accomplish this includes a dedicated virtual account for security deposits. You can also apply for virtual and physical debit cards that have smart built-in controls. So you can decide how frequently and how much can be charged, for everything from monthly utilities to quick maintenance.

You can create a free bank account for rental property with no account fees or Minimum balance requirements. Moreover, Baselane offers interest yields that are 82.5 times the national average on all deposits, even on security deposits. Landlords can also receive up to 5% cash back on all spending with a Baselane Visa Debit Card.

Along with the best bank account for landlords, Baselane offers debit cards with smart controls that allow cardholders to control and manage their expenses. You can also integrate it with your bookkeeping, reporting, analytics, and rent collection tools.

2. Azibo

Azibo is an easy-to-use rental property management tool that allows you to receive online rental applications, screen tenants, collect rent (credit card, ACH, or debit card payments), and manage accounting with rental-focused tax prep tools including Schedule E, rent roll, income and cash flow statements. Along with all these features, it also offers a landlord-centric bank account with zero monthly fees. Landlords can have an unlimited number of LLCs under one account.

Bill pay with Azibo banking allows you to send and schedule payments via ACH, wires, paper checks, and transfers.

Azibo also offers built-in expense management for property owners and investors. You can tag and split transactions, categorize inflows and outflows with tax categories and property assignments, and track and reconcile your cash flow, income, and expenses in real time. This includes around 200 out-of-the-box tags for simple transaction tracking and management. View comprehensive reports in Azibo or send them to your accountant during tax season to save even more time.

3. Stessa

Stessa is a smart money management platform that helps landlords and real estate investors optimize their portfolios for performance. It allows you to automatically track income and expenses with unlimited free business or sole proprietorship accounts. This means you can open a dedicated account for every rental property or portfolio.

The best part about this landlord banking solution is that there are no fees for bounced checks, monthly maintenance fees, minimum balance requirements, and inbound wire fees.

Stessa automates bookkeeping and financial tracking by securely syncing with the bank and financial accounts associated with your rental property. These could include checking and savings accounts, dedicated credit and debit cards, mortgage accounts, and other debt accounts. Once you link your accounts, the platform automatically tracks your transactions. It then organizes them into easy-to-use reports of assets, liabilities, income, and expenses.

When your transactions are in order, you can run key reports such as an income statement and net cash flow report. You can also generate tax-ready financials to share with your accountant, based on categorized transactions for a given calendar year.

Stessa has recently introduced all-in-one money management with a Stessa Checking account, making it even easier to integrate banking with your property management tools. As compared to a traditional bank, it is easier to use Stessa to open a checking account in the name of your LLC or other business entity. Depending on the nature of your entity, you may have to submit extra documentation, but everything can be done online.

Best Bank Account for Landlords: Baselane vs Stessa vs Azibo

Bank: Subscription Fees Rent Transaction Fee APY% Cash Deposits ATM Fee Opening Deposit Requirement Minimum Balance
none Free ACH, 2.99% for credit card payments 4.19% At Allpoint ATMs only. ATM cash deposit limit is $1,000 per transaction and $2,000 per day. none none none
none Free ACH, 2.99% for credit card payments 0.15% At over 20,000 ATMs Fees may apply none none
none Free ACH, does not accept credit card payments 3.14% with Free plan; 5.09% with Pro plan No cash deposits allowed none but operator fees may apply none none

Why Landlords Should Open a Separate Bank Account for Rental Property

The biggest benefit of a separate bank account for rental property is that it allows you to collect rent and track expenses for your full portfolio. Unlimited virtual accounts and the ability to tag transactions by property or unit means you can see your finances on a property level, without handling multiple accounts and logins.

internal link Also Read: The Best Online Rent Payment Service for Small Landlords

Moreover, virtual accounts allow you to keep security deposits separate without opening another costly account. This helps you avoid commingling and abide by any legal requirements. Once you have set up separate accounts for each unit, you can then link each account directly to each property. This decreases the probability of accounting errors and helps put your income and expense tracking on autopilot within the platform. With separate accounts, most investors find that their financial reports are more precise and there is less manual work to do.

internal link Also Read: Reporting and Accounting Tools: Best Accounting Software for Landlords

Often you can be eligible for potential rewards for spending on landlord-specific categories (such as cash back at home improvement stores) and high annual percentage yield (APY) on your savings. With a dedicated bank account for landlords, you can track rent collection, set up tenant reminders, late payment fees, and invoicing – all in your banking platform. Some landlord banking tools like Stessa also speed up accounting by allowing you to tie purchases directly to a property.

Plus, you can integrate the banking platform with bookkeeping tools and auto-tag expenses to Schedule E categories. Having a direct link to banking, as opposed to Plaid (which many property management software products use), avoids the many syncing issues that Plaid tends to have.

landlord banking, bank account for landlords

Comparison: Bank Account for Landlords vs. Traditional Brick and Mortar Bank

Landlord banking and traditional banks have a few similarities in the way they operate. For instance, both types of accounts are FDIC insured up to $250,000 per depositor, per insured bank, for each account ownership category. They both accept all major forms of payment such as ACH, debit/credit, Zelle, etc. However, there are quite a few differences as well, including:

Costs and Fees

Small business accounts often have minimum balance requirements, ACH fees, and low APY on deposits. Landlord banking accounts often do not have such requirements.

For instance, Baselane and Stessa do not have any monthly maintenance fees. There are no minimum balance requirements, no fees on bounced checks, and no inbound wire fees. This makes it easy to offer tenants additional payment methods. Outbound domestic wires with Stessa incur a $5 fee, though it doesn’t support international wires yet.

internal link Also Read: Landlord Accounting Software for Your Rental Property: Stessa Overview

Likewise, Baselane’s bank account for landlords has no monthly minimums and no fees for opening or maintaining an account. There are no fees on cash withdrawals or transfers. Plus, you don’t need any minimum deposit.

internal link Also Read: Baselane Overview: Landlord Banking & Rental Property Finances


Landlord banking options often offer higher interest as compared with traditional business accounts. For example, Baselane currently offers 4.19% APY and Stessa offers 3.14% APY with the free plan and 5.09% on the Pro plan, whereas traditional banks offer as little as 0.46% APY.

The higher the APY, the faster your money grows. These landlord banks offer high interest yields that they claim are up to 60X the national average on all deposits, even on security deposits.

Cash Back

Traditional banking usually has no cash back rewards on debit card spending. A bank account for landlords, on the other hand, may offer cash back on home improvement and other landlord-related spending.

For instance, Baselane offers up to 5% cash back on all home improvement spend (up to $5,000 / year), and unlimited 1% cash back on all other debit card spend:

  • 1% cashback is unlimited
  • 5% cashback is capped at $5K on spend per year

Stessa account holders can earn 1.1% cash back on debit card purchases. There is no limit to the amount of cash back you can earn.


Traditional banks are not integrated into bookkeeping and rent collection tools, which means they aren’t tailored for landlords. On the other hand, a bank account for landlords is integrated into your bookkeeping and rent collection systems. This saves you time and money. Additionally, you can connect your Baselane account with any bank you use. It supports integrations with 11,000 banks and credit unions.

Virtual Accounts

Traditional banks do not have virtual accounts whereas landlord banking often offers unlimited virtual accounts. Multiple virtual accounts help you get better organized. For example, you can create separate accounts for every unit of a triplex, to segregate savings for a future remodel, or to keep security deposits separated.

For instance, with both Baselane and Stessa, you can automatically track income and expenses with unlimited free business or sole proprietorship accounts. This allows you to open a dedicated account for each rental property or portfolio.

Landlord Banking FAQs

Do I need a business bank account for rental income?

Certainly, having a dedicated business bank account for rental income is highly advisable for independent landlords. This practice enhances financial organization, simplifies tax reporting, and adds a professional touch to your operations. It facilitates efficient expense management, providing a clear financial trail for legal protection in case of disputes. Additionally, best bank accounts for rental properties often come with specialized services beneficial for property management. By maintaining this separation, landlords ensure accurate bookkeeping, minimize the risk of errors during tax season, and establish a solid foundation for successful and professional property management. Consulting with a tax professional is recommended for personalized advice based on individual circumstances and local regulations.

Should I open a separate account for rent?

Yes! A separate bank account for your rental business transactions makes it easier to claim all your relevant expenses, reduce your tax burden, and save money. It’ll also give clarity to your bookkeeping, helping you avoid confusion and save time. Moreover, keeping your personal and business finances separate offers greater protection for your personal assets, as there are no special protections for commingled accounts. In addition, many states prohibit landlords from mixing security deposits with other funds

Should I use separate bank accounts for each property?

If you have multiple properties in your real estate portfolio, you may be legally required to keep money earned or held from each individual property separate from each other. Having separate accounts for each property will also simplify bookkeeping and allow better cash flow management. Moreover, you will be much better prepared for tax filing or an IRS audit if your financial records for each property are sorted separately.

Are there fees for landlord bank accounts?

While some bank accounts do charge you a monthly fee or subscription charges, others like Baselane, Stessa, and Azibo don’t have any charges for opening or maintaining an account.  Some banks like LendingClub also waive the fee for accounts maintaining a certain average monthly balance.

Can I do rental property accounting through a bank account for landlords?

Yes, tools like Baselane, Azibo, and Stessa offer rental property accounting features. For instance, Baselane and Azibo allow landlords to categorize all of their transactions and get a quick snapshot of their revenue, expenses, and more. Stessa also helps you organize your property documentation and automatically track your income and expenses. You can generate an unlimited number of reports on capital expenses, cash flow, and more.

Can I collect rent online with a landlord banking account?

Yes. Azibo gives your tenants options to pay rent on their terms with ACH, debit, and credit card payment options. Baselane also allows you to accept fast payments directly into your bank account. It automatically applies late fees and sends automated payment reminders to your renters. Stessa’s online rent collection is free for both landlords and renters. Landlords get notified when a payment is made and when it’s been deposited in their account.

Bank Account for Landlords: Takeaway

Opening a bank account for landlords can save you time and money by centralizing your rent collection, bookkeeping, and banking all in one place. With a dedicated bank account for rental property, you can simplify real estate investing.

We recommend that you check out landlord banking options such as Baselane, Azibo, and Stessa. All three tools have streamlined landlord banking for new and seasoned property owners alike.

internal link Also Read: Landlord Banking: Landlord Gurus Experience

Disclosure: Some of the links in this post are affiliate links and Landlord Gurus may earn a commission. Our mission remains to provide valuable resources and information that helps landlords manage their rental properties efficiently and profitably. We link to these companies and their products because of their quality, not because of the commission.

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About Chris Lee

Chris Lee, Co-Founder, Landlord Gurus

Chris comes from a family of real estate investors, and remembers well his childhood of helping to clean and paint apartments between renters.

Chris is a licensed real estate broker and now manages a mix of his own property and others for family, consisting of single family homes, multi-family complexes, and the occasional condo unit in and around Seattle. He also has particular insight into the issues around short-term rentals as he has managed those for himself and for other owners on AirBnb, VRBO, and other platforms.

Prior to Landlord Gurus, Chris worked in website development and digital marketing, assisting firms across a wide range of industries. He, along with his wife and two kids, also found themselves living and working overseas for several years.

Upon his return to the US, Chris often turned to Eli for property management advice and help with property maintenance. At this point, the two decided to start Landlord Gurus to help the countless others searching for answers to similar problems.

In his free time, Chris enjoys outdoor sports and activities including baseball, skiing, golf, hiking, and spending time with family and friends.

- BA, Economics - Whitman College
- MA, Pacific International Affairs - University of California, San Diego
- MPA, Public Accounting - Open University of Hong Kong

View all posts by Chris Lee →

1 thought on “Landlord Banking: What is the Best Bank Account for Landlords

  1. I tried Tessa.
    Customer service is very poor. No response to emails, forums or chat messages. You can go to their forums and see that they don’t respond to even very common questions.

    The software is rigid that I can’t even income and expense categories or my own, which is critical to accounting

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