Bank fees may seem small, but they add up fast and eat into your revenue. As a landlord or property manager, every dollar matters, whether it’s coming in from rent or going out for repairs. Knowing which fees to expect and how to avoid them is key to protecting your profits.
This guide breaks down the most common bank fees landlords face. We’ll show real-world examples and share simple strategies to cut these costs, along with a list of low or no-fee banking options.
Let’s dive in and start saving.
Key takeaways
- Banks commonly charge for monthly maintenance, overdrafts, ATM transactions, payment processing, bank wire fees, and other services, and these costs quietly chip away at your profits.
- Compared to costly wire or card payments, ACH transfers are low-cost (or free) and ideal for collecting rent.
- Choosing a no-fee account, setting up alerts, and using digital payments are simple tips for how to avoid bank fees.
- Nearly half (47%) of non-interest checking accounts are free, meaning they don’t impose a monthly service fee.
- Baselane offers high-yield landlord banking with no monthly fees, free ACH and wires, automated accounting, and built-in rent collection.
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Common banking fees
Here’s a comprehensive list of common banking fees in the U.S. and how they might come up during rental property operations:
Monthly maintenance fees
Many banks charge a flat monthly service fee just for having the account. These fees typically range from $5 to $25 per month for basic business accounts. For instance, you might pay a $12 monthly fee on a business checking account if you don’t meet certain requirements (e.g., maintaining a minimum balance). Over a year, that’s around $140 lost, equivalent to a minor repair or a week’s rent on a small unit.
Example: For a bank account that charges $10 monthly unless a $1,000 balance is maintained, you’ll have to pay the fee if your funds dip below $1,000. Planning your cash flow to maintain the minimum (or opting for a no-fee bank) would save you from that charge.
Overdraft fees
An overdraft fee is charged when your account balance goes negative, and the bank covers a payment on your behalf. You might face this if a large repair bill comes before the rent payments clear. Overdraft fees are among the most expensive bank fees, often around $25 to $35 per incident. The average overdraft fee in the U.S. is about $27.
Some banks also charge a similar NSF (non-sufficient funds) fee if a payment is bounced rather than covered.
Example: You cut a $1,800 contractor check the same day you’re expecting a $2,000 rent deposit. If the rent hasn’t cleared and the account goes negative, the bank might honor the check but take a $30 overdraft fee from the account.
Multiple tenants or bills could mean multiple fees; imagine you overdraft three payments in a day and pay $90+ in fees. Keeping a cash cushion or using a bank that offers overdraft protection can help you avoid these fees.
Incoming and outgoing wire transfer fees
Bank wire transfers are fast but costly. Most U.S. banks charge a flat fee of $25 to send a domestic wire and $35–$50 for international transfers. On the receiving end, the recipient may pay an additional $10–$20, depending on their bank. Landlords typically use wire transfers for property purchases, large transactions, or out-of-state fund transfers—but those fees can add up quickly.
Example: Your property management company may wire $5,000 of collected rent each month. If they charge you $30 for the outgoing wire fee and your bank has a $10 fee for incoming wires, that’s $480 in fees over a year just to move money.
Minimum balance charges
This bank service fee is essentially a penalty for letting your account balance fall below a specified threshold. It often manifests as the monthly maintenance fee when the minimum balance isn’t met. This can happen if you withdraw cash for a big expense or if rental income hasn’t come in yet.
Example: Your account drops below the $1,000 minimum balance after paying a plumber $800 for an emergency repair. That month, the bank charges a $15 maintenance fee. That’s effectively a fine for using your own money.
Over time, these charges punish you during months of large expenses or vacancies.
ATM fees (and ATM network charges)
Using ATMs can get pricey, especially if they’re outside of your bank’s network. You’ll often pay two fees, one to the ATM owner and one from your bank, totaling around $3 to $5 per withdrawal, with the average being $4.77.
If you were to withdraw cash for a local contractor or deposit rent checks, these fees can become significant if your nearest ATM isn’t in-network. Some banks even charge fees for going over a certain number of ATM transactions.
Example: You need $200 cash to pay a weekend landscaper and use a convenient gas station ATM. The ATM operator takes $3, and the bank tacks on another $3, so it’s $6 just to withdraw money. If this happens a few times a month for various small expenses, you could be losing $20+ monthly.
Debit card fees
Debit cards may seem fee-free, but hidden costs can sneak in. If you use your card abroad or pay an international vendor, many banks charge a 1% to 3% foreign transaction fee. Landlords traveling or sourcing materials overseas can get caught off guard by these charges. You might also face fees for replacement cards or out-of-network ATM use, adding to the cost over time.
Example: You order $1,000 worth of lighting from a European supplier; a 3% foreign transaction fee would cost an extra $30. It’s money lost for nothing, and it can be avoided with the right bank or card choice.
Savings account fees
Savings accounts can come with strings attached. If you’re holding reserve funds or security deposits, watch for monthly fees if you don’t meet minimum balance requirements. These can be as high as $25 for high-yield savings accounts. Some banks also limit monthly withdrawals, charging extra if you go over, though many have relaxed this rule.
Example: You generally keep $5,000 in savings, but your bank requires a $10,000 balance to avoid a $5 monthly fee, costing $60 a year. Transferring funds could cost $10 or more after exceeding your bank’s withdrawal limits. These fees penalize you for accessing your own money, so it’s smart to choose a no-fee savings account and manage transfers strategically.
Annual fees
Some premium accounts may charge an annual fee for added features or services. While you most likely won’t encounter these, it’s still wise to check your account terms to avoid surprises.
Example: Your property manager signs up to open an escrow account that charges a $100 annual fee for account management. If this isn’t required in your state, you can hold funds in a separate security deposit account that has a lower fee or none at all. Always ask your bank if there are any annual charges on accounts or related services.
Stop payment charges
Stop-payment fees typically cost up to $35 and apply when you cancel a check. You might use this if a rent check gets lost or if a contractor fails to deliver after being paid.
Example: You issue a $1,200 security deposit refund check that goes missing and pay a $30 stop-payment fee to cancel it. While costly, it offers peace of mind, knowing it won’t end up in the wrong hands. To avoid this, use electronic transfers or online bill pay, which can usually be canceled for free before processing.
Checkbook charges
Paper checks aren’t always free. Ordering a checkbook typically costs $11 to $48, depending on quantity. If you still use checks for vendor payments, property taxes, or security deposit refunds, you should factor in this occasional cost.
Example: Frequently writing checks to vendors may cost you $60+ per year just on reordering checkbooks. Switching to electronic payments can cut costs on printing, postage, and processing.
Debit card processing fees
Card processing fees apply when tenants pay rent by debit or credit card, typically 2% to 3.5% per transaction. While convenient, you should be aware of these costs for rent, deposits, or application fees.
Example: A $1,000 rent payment by debit card with a 3% fee costs an extra $30. Check that your bank lets you pass this fee to the tenant, or you’ll pay it yourself. ACH transfers are a low-cost or free alternative.
Network charges
Network fees cover costs tied to using various payment systems, like ATM surcharges, foreign transaction fees, or wire networks. These can show up as 1% to 3% card conversion fees or extra charges from international transfer systems.
Example: Receiving an international wire may cost $10 to $20. Similarly, third-party payment platforms might charge fees to transfer funds to your account. Knowing where these fees hide helps you choose fee-free networks or all-in-one platforms to avoid them.
Potential banking fees for landlords and property managers
A simple bank fee analysis reveals how much these costs stack up over time. The table below breaks down an estimate of common fees over 3 months, 1 year, and 3 years—a clear reminder that the best bank account for real estate investors can protect your bottom line.
| Fee Type | Typical Cost | 3-Month | 1-Year | 3-Year |
|---|---|---|---|---|
| Monthly Maintenance Fees | $5–$25/month | $15–$75 | $60–$300 | $180–$900 |
| Overdraft Fees | $25–$35 per incident | $75–$105 | $300–$420 | $900–$1,260 |
| Wire Transfer Fees | $10–$20 (in), $25 (out) per transfer | $30–$75 | $120–$300 | $360-$900 |
| Minimum Balance Charges | $10–$15/month | $30–$45 | $120–$180 | $360–$540 |
| ATM Fees | $3–$5 per withdrawal | $9–$30 | $36–$120 | $108–$360 |
| Debit Card Fees | 1–3% of transaction | $15–$90 | $60–$360 | $180–$1,080 |
| Savings Account Fees | $5–$25/month or $10/excess withdrawal | $15–$75 | $60–$300 | $180–$900 |
| Annual Fees | $50–$100/year | $12.50–$25 | $50–$100 | $150–$300 |
| Stop Payment Charges | Up to $35 per request | Up to $105 | Up to $420 | Up to $1,260 |
| Checkbook Charges | $11–$48 per checkbook | $33–$144 | $132–$576 | $396–$1,728 |
| Card Processing Fees | 2–3.5% per transaction | $60–$104.70 | $240–$418.80 | $720–$1,256.40 |
| Network Charges | 1–3% of transaction | $30–$90 | $120–$360 | $360–$1,080 |
12 questions landlords need to ask about bank fees
Understanding bank fees is essential for running a profitable rental business. Whether you’re new to real estate or scaling your portfolio, this quick Q&A covers what you need to know and how to avoid account maintenance fees and other charges.
1. What is a bank fee?
A bank fee is any charge your bank applies for services, transactions, or account management. These fees range from monthly maintenance charges to wire transfer costs, and they can add up quickly if you’re not careful.
2. What bank does not have monthly fees?
| Banking Platform | Monthly Fee | Key Features |
|---|---|---|
| Baselane | $0 | Banking built for landlords, no monthly fees, high interest, unlimited sub-accounts |
| Bluevine | $0-$95 | Business checking, interest-bearing |
| Wise | $0 | Multi-currency accounts, low conversion rates |
| Novo | $0 | Small business focus, ATM refunds for bounced payments |
| Axos Bank (Basic Business) | $0 | No minimum balance, free bill pay |
| Mercury | $0-$350 | Startup-friendly, no fees on wires |
3. What types of bank fees are most common for landlords?
You might encounter:
- Monthly maintenance fees
- Overdraft or NSF fees
- Incoming and outgoing wire transfer charges
- Minimum balance penalties
- Out-of-network ATM fees
- Checkbook reordering and stop-payment fees
Understanding these helps you avoid unnecessary business bank account fees.
4. How can I avoid monthly maintenance fees on my rental property bank account?
Check if your bank waives fees with direct deposits or minimum activity. Better yet, choose a landlord-friendly banking platform like Baselane that has no monthly fees and no minimum balance requirements.
5. What’s the difference between ACH transfers and wire transfers, and which is cheaper?
ACH transfers are typically free or very low-cost, but they take one to three business days to process. Wire transfers, on the other hand, are much faster, often processed same-day, but come with a hefty fee of $25 to $45 per transaction.
ACH is ideal for routine rent payments and vendor payouts, while wires should be reserved for urgent or high-value transfers where speed is essential.
6. How can I prevent overdraft fees when managing rental income and expenses?
Set up low-balance alerts, link a backup account, or choose a bank with no overdraft fees. If you’re looking for a platform that does this, Baselane offers overdraft protection without the high penalties.
7. Can multiple properties be managed without paying for multiple accounts?
Yes! Traditional banks don’t offer an easy way to manage finances by property, often mixing funds in one account or requiring separate EINs for multiple accounts with extra fees.
With Baselane, you can open unlimited sub-accounts at no cost, making it simple to track income and expenses by property for all your entities without juggling separate logins or paying unnecessary bank charge fees.
8. Do I have to pay fees when tenants pay rent by card?
Most banks charge fees for accepting rent payments made by card. Card processing fees typically range from 2% to 3.5%. These can often be passed to the tenant. Using ACH rent collection helps avoid these fees altogether.
9. How do ATM fees affect landlords, and how can I avoid them?
Out-of-network ATM withdrawals can cost $3 to $5 or more per transaction. Choose a bank that reimburses ATM fees or has a large free ATM network (Baselane has 55,000+ fee-free ATMs). This is especially helpful for landlords who still use cash for local vendors or small jobs.
10. What happens if my account balance drops below the minimum requirement?
You’ll likely be charged a monthly penalty, usually $10 to $15. To avoid this, maintain the required balance or switch to a no-minimum account. This is another reason to check out a landlord-friendly bank account for better options.
11. Are checkbooks free, and do I still need them as a landlord?
Most banks charge $11 to $48 per checkbook. While checks are still useful for things like security deposit refunds or vendor payments, switching to digital payments can reduce costs and improve tracking.
12. How can I see and manage all my banking fees?
The most effective way to manage all your banking fees is to use a platform that tracks them as you go. Baselane’s AI-powered bookkeeping and banking track, sort, and categorize every transaction (including bank fees) by property. You can see your cash flow in real-time and take action to reduce unnecessary charges.
How to avoid bank fees as a landlord
Knowing the right strategy to avoid bank monthly maintenance fees can help keep more money in your pocket. Below are practical tips to help you cut out these costs.
| Fee Type | Typical Cost Range | When It Occurs | Landlord Example | How to Avoid |
|---|---|---|---|---|
| Monthly Maintenance Fees | $5–$25/month | Account doesn’t meet balance or deposit requirements | Landlord dips below $1,000 minimum and is charged $10 | Maintain minimum balance or switch to no-fee bank |
| Overdraft Fees | $25–$35 per incident | Account goes negative, and bank covers payment | Rent hasn’t cleared; a $1,800 contractor check triggers a $30 overdraft fee | Set up low balance alerts or switch banks for no fees |
| Wire Transfer Fees | $10–$20 (in), $25 (out) per transfer | Sending or receiving wire transfers | Management firm wires $5,000 rent monthly, incurring $30/month | Use ACH or free transfer methods instead |
| Minimum Balance Charges | $10–$15/month | Balance falls below the required threshold | Emergency repair drops the balance, triggering a $15 fee | Use accounts with no balance requirement |
| ATM Fees | $3–$5 per withdrawal | Using out-of-network ATMs | Withdraws $200 from gas station ATM, pays $6 in fees | Use in-network ATMs or get accounts with reimbursement |
| Debit Card Fees | 1–3% of transaction | Foreign transactions or ordering extra cards | Pays $1,000 vendor overseas = $30 in fees | Use no-foreign-fee cards or avoid overseas purchases |
| Savings Account Fees | $5–$25/month or $10/excess withdrawal | Low balance or too many withdrawals | Reserve fund under $10k = $5/month fee | Use fee-free savings accounts |
| Annual Fees | $50–$100/year | Premium accounts or bundled services | Pays $100/year for special escrow account | Prioritize premium features that save time or reduce costs overall |
| Stop Payment Charges | Up to $35 per request | Canceling checks or scheduled payments | Stop lost $1,200 refund check; pays $30 | Use electronic transfers that are easily canceled |
| Checkbook Charges | $11–$48 per checkbook | Ordering new paper checks | Buys 3 checkbooks/year at $20 each = $60 | Use digital payments instead of paper checks |
| Card Processing Fees (Rent Paid) | 2–3.5% per transaction | Tenants pay rent by card | The tenant pays $1,000 rent and $30 in card fees | Encourage tenants to pay rent via ACH (direct bank transfer) |
| Network Charges | International transfers or payment system fees | $30–$90 | Receives rent via international wire; intermediary takes $15 | Use banking platforms with built-in tools for rent collection, bill pay, and transfers |
Choose a landlord-friendly, no-fee bank
Start with a landlord-friendly bank account that doesn’t charge you. Look for no monthly fees, no minimum balance, and free ACH transfers. Baselane offers unlimited sub-accounts, no overdraft fees, and free wire transfers.
If your current bank charges you just to hold an account, it’s time to switch.
Maintain required minimums (if applicable)
If you’re still using a traditional bank with minimum balance requirements, be strategic. Treat the threshold like an emergency reserve, just be aware that this ties up funds. Timing rent payments around rent deposits can help maintain balances and avoid monthly service fees.
The best banks for Airbnb business owners and long-term rentals don’t have minimum balance requirements.
Use online banking & ACH transfers instead of wires
Avoid paying for wire transfers by using ACH or online bill pay instead. ACH transfers are typically free and take only one to three business days. They’re perfect for paying bills or moving funds between accounts.
Opt for banks with ATM fee reimbursements
Need cash for supplies or to pay a contractor? Choose a bank that offers ATM fee reimbursements or has a large, fee-free ATM network. Some banks even refund up to $15/month for out-of-network ATM usage. It’s a simple way to stay flexible without wasting money on surcharges.
Avoid overdrafts with alerts and linked accounts
Overdrafts can cost $25 to $35 per transaction, but they’re easy to avoid. Set up low-balance alerts and link a savings account or line of credit for overdraft protection. Better yet, use a bank that doesn’t charge overdraft fees at all. And remember: you can opt out of overdraft on debit card purchases to avoid accidental charges.
Leverage direct deposits and activity to waive fees
Many traditional banks waive fees for regular activities like direct deposits or a set number of debit card transactions, even without a no-fee account. Rent payments deposited electronically or bills paid from your account can help you qualify for fee waivers automatically.
Go digital to avoid checkbook charges
Paper checks come with hidden costs: printing fees, postage, and even stop-payment fees if one gets lost. Reduce your reliance on checks by using online banking. Baselane lets you send one-time or recurring payments via ACH, wire, or a check that’s printed and mailed for you, eliminating the need to buy a full checkbook, but that’s still an option if you want one.
Open unlimited accounts and avoid monthly fees with Baselane
Managing multiple rental properties shouldn’t mean paying extra for accessing your money. With Baselane, you can open unlimited checking and savings accounts for all your properties and entities with no monthly fees or minimum balance requirements.
Unlike traditional banks that require third-party tools for rent and bookkeeping, Baselane integrates everything into a single automated platform. Banking, bookkeeping, and rent collection are all done for you, giving you real-time cash flow insights without all the extra admin work.
Get started for free today and find out how banking that’s built the way real estate actually works saves landlords 150 hours and $5,000 per year.
