Airbnb management companies provide crucial services to owners of short-term rental properties. They support owners by providing a range of services, including handling booking requests, responding to customer inquiries, resolving problems that arise, arranging cleaning after the guests leave, and more.
While there are a number of large Airbnb management services with large staff and extensive resources, many are run by entrepreneurs, who themselves need services that support their small business as it grows.
A key service these small business owners need is a business bank account. It will serve as the central financial hub for the Airbnb rental management company, so choosing the right one is crucial. Here’s how to find the best business checking account for short-term rental management companies.
Airbnb Management Companies Have Unique Needs
First, let’s focus on some of the unique banking needs of this type of business. While most people think of Airbnb.com when they think of these types of properties, Airbnb hosts and short-term rental management companies may offer bookings on and off various platforms that include Airbnb, Booking.com, Expedia, or Booking.com.
Some real estate investors get their start in the Airbnb business by managing just a few properties, while some choose to focus just on this niche. The size and complexity of your business will help determine the best account for your business needs.
It is essential that anyone who wants to run an Airbnb management or property management company understands that banking for a property management company offers unique challenges.
Escrow Services/Trust Account. Property management companies use escrow services or trust accounts to hold deposits or hold funds on behalf of property owners. Escrow accounts and trust accounts are often required by state law in certain circumstances.
If you are taking in funds that ultimately belong to the property owner, those funds must be protected from claims against your business, whether it’s a lawsuit or a lien from the IRS for past-due taxes. Your run-of-the-mill bank account will not do this. Also the word “trust account” is sometimes used incorrectly, and that can leave client’s funds at risk. Make sure you talk to your banker before you open an account to make sure your account is properly set up and maintained.
Other features that are often important to small business owners include:
Digital Banking
Online banking is important for this type of business. They aren’t likely to collect cash payments, but instead will need access to 24/7 online banking services to manage deposits, payments, refunds and more.
Mobile Banking
Short-term vacation rental management company owners and employees are often juggling multiple properties and tasks. They need to be able to complete banking tasks whenever and wherever they are. A robust mobile app helps take care of business.
Cash Flow Tools
Money is frequently coming in and out of this type of business, and managing cash flow well is essential for success. It’s also important because these businesses often experience seasonal fluctuations in revenue, based on property locations.
Accounting and Tax Services
Being able to quickly and easily connect the business bank account with accounting software is crucial to stay on top of the businesses’ financial health. It’s also essential for the business owner to stay on top of tax deadlines, and file and pay all business taxes on time, not just including state or federal income tax returns, but also quarterly estimated taxes (if required), payroll taxes (if the business has employees), occupancy tax (if not collected and paid by the platform).
Bill Pay
While many business owners prefer to pay for business expenses with a small business credit card, recurring bills that can’t be paid this way can be paid more efficiently with online bill pay services.
FDIC Insurance
While most people don’t think much about FDIC insurance, some recent high-profile bank failures have led business owners to double check that their funds are FDIC insured. This is especially important for management companies who may manage funds on behalf of clients.
FDIC insurance can cover business accounts up to certain limits. If the account is properly set up, each client’s funds may be insured up to the $250,000 limit, but if it is not, your clients may not be fully protected.
Best Business Checking Accounts for Airbnb Management Companies
Here are some of the top business checking accounts to consider for your short-term rental business:
Great For Digital Banking
Chase Business Complete Banking®
Earn up to $500 when you open a new Chase Business Complete Checking® account. For new Chase business checking customers with qualifying activities. Multiple ways to waive the $15 Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card. Full-service business banking. Convenient access to all your business banking services in one place -- lending, checking, credit card and payment solutions. Your choice of payment types. Choose from a full range of options for accepting payments and making deposits that include Zelle®, Online Bill Pay, wire transfers and ACH payments. Convenient access to payment processing. Process all major debit and credit cards with QuickAccept®. It's a built-in feature with your Business Complete Checking account. Get support you can rely on. Get access to our customer support team, plus a wide array of solutions that carter to every stage of your business Full-featured banking online and on-the-go. Manage your business' finances on your terms with the latest online and mobile banking technology. Associate Debit and Employee Deposit Cards available upon request
Minimum Balance
None
Monthly Cost
$15 with ways to waive
Monthly Free Transactions
Unlimited
Noteworthy Perks
$500 Sign Up Bonus
Great For Unlimited Digital Transactions
Capital One Business Checking Accounts
No fees on unlimited digital transactions. Free overdraft coverage and debit cards included. All options include online and mobile banking, as well as mobile deposits from your smartphone. Send electronic payments to vendors for free.
Minimum Balance
None
Monthly Cost
Starts at $15 monthly service fee, waived with $2,000 minimum balance
Monthly Free Transactions
Unlimited Digital Transactions
Noteworthy Perks
Deposit checks from your phone
Great For High Interest Rate
Bluevine Business Banking
Earn 4.0% APY on Bluevine Premier and 2.0% APY on Bluevine Standard when you meet a monthly activity goal. Save time and pay vendors with unlimited transactions via ACH, same day ACH, domestic wires, and international payments. Add up to 5 sub-accounts, each with designated account numbers. $95 (waivable) monthly fee for Premier, $0 for standard. No overdraft fees, no minimum balance requirements. To earn the $300 bonus, customers must apply for a Bluevine Business Checking account anytime between now and 12/31/2024 using the referral code above. After opening the account, customers must add funds within 30 days, then meet at least one of the following eligibility requirements every 30 days for the next 90 days from account funding: Deposit at least $5,000 from eligible merchant services to your Bluevine account Make at least $5,000 of outbound payroll payments from your Bluevine account using eligible payroll providers Spend at least $2,000 with your Bluevine Business Debit Mastercard® and/or Bluevine Business Cashback Mastercard®
Minimum Balance
None
Monthly Cost
$0-$95 (Waivable)
Monthly Free Transactions
Unlimited
Noteworthy Perks
Up to 3.7% APY
Key Features To Look For in a Business Checking Account
When looking for the best bank account for your business, consider which features will be most helpful to your business. Key features to consider for include:
Low Fees
Fees on some business checking accounts can quickly add up if you’re not paying attention. Understand how you plan to use the account and review the service fee schedule to make sure you understand the types of fees you may need to pay, including various transaction fees. Even free business checking accounts will charge fees for certain types of transactions, so make sure you factor those costs into your comparison.
Free and Fast Transfers/Payments to Owners and Contractors
You’ll need to make sure you can quickly and easily pay owners, contractors or other partners in the business. For some use cases, that may mean ACH payments or wire transfers, for others it may be online transfers to external accounts directly from the bank or through services like Paypal, Venmo or Zelle.
Interest Rates To Earn on Cash Balances
You may be able to earn interest on larger balances, and this is additional income for the management company (if it’s not required to be passed along to the property owner).
Business checking with interest accounts, and business savings accounts that earn interest can provide some additional income to the business.
Accounting and Rental Platform Integrations
If you use accounting software or rental property software, you’ll want to make sure you can easily import your bank account information for record-keeping and tax purposes.
Unlimited Transactions
Carefully consider how many transactions your business makes to determine whether the bank you’re considering will support those transactions without excessive fees. These days there are more options than ever for low or no-fee business bank accounts, but read the fee schedule so you aren’t surprised by unexpected fees.
If you need to access funds through ATMs, check that the ATM network is accessible for your business, or look for a bank that reimburses ATM fees.
Fraud Protection and Monitoring
Fraud can be costly, and while FDIC insurance can protect accounts (up to limits) in the case of bank failure, it doesn’t cover fraud. That’s why it’s important to review the fraud monitoring services available from the bank you’re considering. These can include:
- Account alerts
- Transaction limits
- Account access controls
- Spending limits on employee cards
Business Cards
You don’t have to get your business credit card from the same financial institution that holds your checking account. If you want to maximize rewards like cash back or travel points, it’s wise to shop around. (Some card issuers even offer 0% intro APRs which can be helpful for financing startup costs or short-term purchases.)
Still, you will likely be offered a business debit card. If you accept it, make sure you understand the fraud protections offered, and how to take advantage of them if your account is compromised.
Account Requirements
To open an account you’ll need to provide personal information about yourself (name, address, Social Security number, personal ID), as well as information about your business (business name, address, phone number, and perhaps a business license, articles of incorporation or other documentation). Some business bank accounts are available to sole proprietorships, but others will only open an account for an LLC or corporation.
Final Thoughts
A business checking account is a key part of your business financial management system. The right business bank account can help your business save time and money.
The right provider and suite of services can help a short-term rental management company streamline its business finances so it can focus on the tasks required to provide an excellent customer experience to both Airbnb property owners and their guests.
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Gerri Detweiler
Education Consultant, Nav
Gerri Detweiler, a financing and credit expert, has been featured in 4,500+ news stories and answered 10,000+ credit and lending questions online. In addition to Nav, her articles have appeared on Forbes, MarketWatch, and Startup Nation. She is the author or co-author of six books, including Finance Your Own Business, and she has also testified before Congress on consumer credit legislation.