Why Let Idle Funds Sit?
If you’re a property manager handling security deposits, operating reserves, or short-term rental income, you’re likely holding thousands—if not hundreds of thousands—of dollars in cash across multiple properties. Most of this money sits in non-interest-bearing accounts. That’s lost opportunity, and inflation is making you lose money on those funds.
The Smart Move? Open a Business Brokerage Account.
By opening a brokerage account under your property management business, you can place idle funds in safe, interest-yielding vehicles like Treasury Bills, money market funds, or short-term bond ETFs. These accounts function similarly to a traditional bank account but can offer returns of 4–5% annually or more depending on current rates.
Real-World Example:
$100,000 in tenant deposits sitting idle for 6 months
5% return in a brokerage account = ~$2,500 annually
Multiply that across 10 properties, and you’re adding $25,000+ in bottom-line value with minimal effort
Top Benefits:
✅ Passive Income: Earn interest on money you’d be holding anyway
✅ Liquidity: Withdraw funds quickly if needed for repairs or disbursements
✅ Transparency: Keep funds separate and traceable—critical for compliance
✅ Professionalism: Shows owners and tenants you manage funds wisely
Is It Legal?
Yes—with proper structure. Security deposits must remain accessible and traceable, and local regulations vary. Always consult an attorney or CPA to ensure compliance. Brokerage accounts offer flexible tools to designate sub-accounts and keep records clean.
Final Thought:
In a high-rate environment, not putting your clients’ or company’s idle cash to work is leaving money on the table. A business brokerage account is a simple, low-risk way to maximize yield—and elevate your property management business.