Do we use same/different banks for IPs?

Even with the same bank, you'll get separate statements..... yes, your filing cabinet get's full *very* quickly

In reality though, we found it much harder to keep track of who had paid rent than any of the banks accounts (you just have to make sure there's enough money in the account for interest payments - and at least they are predictable)



Cheers,

The Y-man
 
hmmmm, do you ask the PM or tenants to put the rent into the same account or different one?

was thinking if it's ezier to keep track if the rent were to put into the LOC, and monthly payments to the bank deducted from LOC?
 
hmmmm, do you ask the PM or tenants to put the rent into the same account or different one?

was thinking if it's ezier to keep track if the rent were to put into the LOC, and monthly payments to the bank deducted from LOC?

All the rent goes into a central account. We track the actuals against the expected on a spreadsheet.

Depending on the PM, they put various comments. Run is probably the best in terms of this putting in the property address.

Cheers,

The Y-man
 
I have a lot more than 10 IP's and yes a very large filing cabinet.

I actually have everything saved elctronically so not really an issue.
 
hmmmm, do you ask the PM or tenants to put the rent into the same account or different one?

was thinking if it's ezier to keep track if the rent were to put into the LOC, and monthly payments to the bank deducted from LOC?

Hi,

We have our pm's put the rent into one account which happens to be an offset account. I know the approximate date rent is expected on my IP's and keep an eye out for it. The interest payments are taken from the same account and occur on or close to the same date each month.

Your idea of having the rent put into a LOC and interest payments deducted from this account would also work. I like having the rent paid into our offset account as then I can use it for other purposes if I choose to. Whereas if the rent goes into a LOC, I can only withdraw for investment purposes otherwise I cannot claim the interest as a tax deduction.

Regards Jason.
 
So far, two banks. PPR and one IP + 20% loan for another at one bank, 80% loan with a seperate lender.

All rent monies go into the PPR offset account, transactions are downloaded using online banking and imported into accounting software. Using PM statements, money is assigned to catagories and tracked in reports.
 
SoCC5435b:
Do we use same/different banks for IPs?

--------------------------------------------------------------------------------
If it's different, and if we have 10 IPs, we will have 10 loan accounts + 10 LOC?!

How did u guys manage to keep track of it?


-Filing system and each property has it's own folder, eg 12 Obsession Drive.

-Each rent is (direct credited) paid into the loan offset facility, pertaining to the loan of each said IP.

-I do keep bank statements separate from IP stuff, in case I need to get my hands on banking stuff quickly.

-Each loan payment is direct debited from said loan(s).

-I just check and keep an eye on all of the above, make sure numbers coming and going are tooing and froing and in about appropriate amounts. Utilise online for convenience.

-All PM statements go into IP folder, also.

Having said all that I have been known to walk into one bank and try to use another bank's card...it is a little embarrassing...

I think the key for me was turning point of Mr OO (world's best organiser) training me to do "whatever" filing daily, as it comes in...do not, DO NOT let it build up...then come end of financial year, I'm kinda set, all I need is end of year statements to come in.

It is a good skill for me to learn and practise too, something alien to challenge and get a grip on.

I'm good. Albeit the occasional disorientation within loans and stuff.

I am the password Queen.
 
Must get to the point where you run out of banks! A nice problem to have…

My dad has a handful of similar sized IP's in the UK - he always charges slightly different rent for each ($350 for one, $355 for another…) so that way he can work out whos paid if there's no reference on the online payment.
 
What banks do you go with for the offset account or line of credit account?

Rob Williams had an interesting point about this when he spoke a few weeks ago. He said to use the bank with the most stringent rules for aquiring the LOC/Offset account. The reason being that you use difficult banks when you have the best borrowing power and therefore when your portfolio grows and servicability starts to get a bit tighter you haven't used up the banks that have easier conditions for finance.

Gools
 
I have my PPOR with CBA, am I able to have a LOC or Offset account with another bank? Or do I need to refinance my PPOR loan to another bank?
 
Top