For landlords and real estate investors, managing financial transactions is a crucial aspect of the job.
Traditional banks have been the go-to option for years, but with the digital age in full swing, platforms like Baselane are entering the arena, providing unique banking solutions tailored specifically for landlords.
Let’s dive into why this might be an appealing option for real estate investors.
LIMITED TIME OFFER: Baselane is offering new customers a $150 bonus. Learn more at the link below or you can read our review of the promotion here.
What is Baselane?
Baselane, founded in 2020, isn’t just another financial platform; it’s designed with landlords in mind.
Traditionally, the landlord management domain is primarily centered around tenant screening and applicant tracking.
Baselane offers a fresh approach. Instead of merely tracking applicants, it combines the essence of a mobile bank with bookkeeping and analytics.
This integration assists landlords in understanding and optimizing their rental businesses while simplifying tax filings.
Why Baselane is Specifically Tailored as a Banking Account for Landlords
In the world of property management and real estate investing, specific financial challenges arise that aren’t typically addressed by traditional banking platforms. Baselane recognized this gap and crafted a solution tailored to meet the unique demands of landlords. Here’s why their offering stands out:
Holistic Financial Management
Landlords don’t just need a place to store money. They require tools to manage a myriad of transactions, ranging from collecting rents and tracking property-related expenses to understanding their overall financial health. Baselane’s platform integrates these functions, making it a one-stop-shop for landlords.
One of Baselane’s standout features is its impressive 4.46% Annual Percentage Yield (APY). In a world where traditional savings accounts offer minimal interest, this can be a game-changer for landlords looking to maximize their returns on idle funds.
Tailored Cash-Back Rewards
Every business loves rewards, and landlords are no exception. Baselane’s banking account offers up to 5% cash back on eligible home improvement merchant purchases, a feature that’s directly in line with typical landlord expenses. Even outside of these specific expenses, there’s an unlimited 1% cash back on other purchases, ensuring landlords are always getting a bit extra.
Categorization for Multiple Properties
For landlords with multiple properties, financial organization can quickly become a nightmare. Baselane simplifies this with the ability to create unlimited accounts for individual properties. This helps in segregating and tracking expenses per unit, making both bookkeeping and analysis more efficient.
Online Rent Collection
Perhaps one of the most tedious tasks for a landlord is managing rent collection. Baselane addresses this by allowing tenants to pay their rents directly through the platform using various payment methods. Automatic reminders and the option for tenants to enable auto-pay further streamlines this process.
When tax season rolls around, landlords often scramble to organize their financial records. Baselane’s one-click bookkeeping tool eases this stress. It provides a ledger of all transactions, categorizes them automatically, and even tags expenses to specific properties. For tax deductions and reporting, this is a valuable tool.
Understanding the financial performance of rental properties is key to making informed decisions. Baselane’s analytics dashboard provides landlords with crucial data, from operating cash flow and net operating income to estimated home appreciation, all in a simple and easily digestible format.
In essence, Baselane isn’t just another banking account; it’s a financial platform designed with the landlord in mind. Every feature it offers, from its impressive APY to its tailored cash-back rewards and analytical tools, is crafted to make the financial aspect of property management more streamlined and lucrative.
$150 Bonus & 4.19% with Baselane
- Update 11/18/2023: This offer is now $150 instead of $300. We don’t know if or when the higher bonus will return.
I’ve written a post about a $150 bonus from Baselane for landlords. Here’s another summary of how you can earn this bonus:
- Sign Up: Use the link above to register your email address and get started.
- Initiate Your Baselane Banking Account: Kick off the process by funding your Baselane Banking account. Ensure you deposit at least $500 within the first 30 days of opening your account. To qualify for the bonus, it’s crucial to maintain this average balance for a consecutive 60-day period.
- Engage with Your Baselane Debit Card: Within 90 days of account activation, use your Baselane Banking debit card for a minimum of five qualifying transactions.
- Harness the Power of Baselane’s Rent Collections: To be eligible for the bonus, landlords need to successfully collect rent payment of $1500 or more, using Baselane’s Rent Collections tool within the initial 90 days.
Pros & Cons of Using Baselane as a Banking Solution for Landlords
When making a decision about financial tools, it’s vital to weigh the advantages against potential drawbacks. Baselane, tailored for landlords, offers an array of features that can simplify and enhance property management. Here’s a deep dive into the pros and cons of this platform:
- Tailored for Landlords: Baselane isn’t a one-size-fits-all banking solution. It’s crafted specifically for the unique needs of landlords, integrating tools like rent collection, property-specific analytics, and specialized rewards.
- High-Yield Account: With an APY of 3.30%, Baselane’s account provides landlords an opportunity to earn significantly more on their funds than with traditional savings accounts.
- Cash-Back Rewards: Earning up to 5% cash back on eligible home improvement purchases and an unlimited 1% cash back on other expenditures means landlords get rewarded for their typical expenses.
- Streamlined Rent Collection: The platform allows online rent collection, with features like automatic payment reminders and the option for tenants to enable auto-pay, ensuring a more seamless collection process.
- Comprehensive Bookkeeping: The one-click bookkeeping tool offers automatic categorization and property-specific tagging, making tax time less of a hassle.
- Property-Specific Banking: Landlords can create separate accounts for each property, allowing for organized tracking and management of funds and expenses.
- FDIC Insurance: Up to $250,000 in FDIC insurance provides peace of mind, ensuring the safety of deposits.
- Zero Fees: There are no monthly account fees, bookkeeping fees, or inactivity fees, making it a cost-effective solution for landlords.
- No Tenant Screening: While Baselane excels in financial management for landlords, it lacks tenant screening or applicant tracking systems, which are crucial for many property managers.
- Limited Cash-Back Cap: The 5% cash back on home improvement purchases is capped at $5,000 in spending per year, which might be limiting for landlords with significant expenditures.
- Debit/Credit Card Rent Payment Fee: There’s a 2.99% fee for tenants if they choose to pay their rent via debit or credit card, which might discourage some from using these payment methods.
- Lack of Weekend Customer Support: While the platform offers support during weekdays, the absence of weekend customer service might be inconvenient for some landlords.
- Potential Future Costs: Though currently free, Baselane has hinted at introducing premium features in the future, which could mean additional costs for users.
Overview Of Baselane Features
- 4.46% APY with Free tier (no mins, no fees)
- 1-5% Cashback
- Unlimited Accounts (open to multiple accounts for each business as well)
- Unlimited virtual accounts
- Unlimited virtual card
- Auto-categorize rent and expenses processed via Baselane banking
- 1 Physical Debit Card
- 55K ATM network
- Free Wires and Free ACH transfers
- Super user friendly
- Free for LL’s and Tenants – pay with ACH or Card
- Free – Collect rent for unlimited properties or units
- Option to do a month-to-month or long-term lease with Auto-renew
- Invoice tenants separate from rent collection
- Auto-charge late fees
- Auto reminders for tenants and landlords
- Free Lease Creation and E-sign
Accounting and Bookkeeping
- Master transaction ledger auto-imports Baselane and external account transactions
- 1-click categorization
- Receipt upload
- Income and expense tracking
- Financial reports
- Schedule E Report + Tax Package
The Bottom Line
Navigating the world of property management is no small feat, and having a reliable platform like Baselane to lean on has been invaluable. After personally using Baselane for half a year, I’ve found it to be a game-changer in how I handle my rental properties.
From its comprehensive suite of services, I’ve especially appreciated the virtual accounts feature. This function has been instrumental in simplifying how I track the ins and outs of income and expenditures for each property. The automatic rent collection mechanism is a breath of fresh air, ridding me of the age-old stress of rent reminders. Having tenants directly deposit their rent, fees, and even security deposits into my account has been incredibly efficient.
Additionally, tax season, which typically induces a sense of dread, became more manageable thanks to Baselane’s free bookkeeping software. It’s organized, intuitive, and I’ve found myself more prepared when the taxman comes knocking.
One of Baselane’s standout features has been its in-depth analytics. Understanding the nuances of property valuations, alongside a clear view of cash flows, has enhanced my decision-making, fostering better productivity and insights into my properties’ performances.
However, it’s worth noting a few challenges. Having tenants adapt to a new platform for rent payment may pose an initial hurdle. It requires a change, and as with all changes, there might be a bit of resistance.
In a nutshell, Baselane has been an essential companion in my journey as a landlord. The myriad of benefits it offers, combined with its intuitive design, makes it an asset for any landlord or real estate investor. The slight learning curve is a small price to pay for the convenience and efficiency it brings to the table. If you’re in the realm of property management or real estate investment, giving Baselane a try might just be one of the best decisions you make.