Stop Losing Cash to Fees: The Top 5 Business Accounts to Streamline Your Airbnb Business Finances

Stop Losing Cash to Fees: The Top 5 Business Accounts to Streamline Your Airbnb Business Finances

Stop Losing Cash to Fees: The Top 5 Business Accounts to Streamline Your Airbnb Business Finances

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 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,, Expedia, or

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: 

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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