In this Baselane review, I’ll let you know what to know before subscribing to Baselane, particularly for independent landlords seeking an efficient way to manage their real estate investments. Baselane emerges as an all-in-one financial system tailored for landlords managing rental properties.
If you’re currently relying on manual processes like Google Spreadsheets for your real estate financials, Baselane offers a more automated solution. This can be particularly beneficial for those looking to save time on administrative tasks to focus on activities like vetting new tenants or scouting new properties.
For landlords who are either considering diving into real estate investment or already managing a rental portfolio but struggling with the demands of financial management, Baselane could be an ideal fit. The platform integrates several tools to manage and grow investment portfolios, offering a comprehensive solution for rental management.
Keep on reading for all you need to know to conclude if Baselane is the right solution for your needs.
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What To Know Before Subscribing To Baselane
Before subscribing to any service, it is important to understand the cost, benefits and drawbacks. I will get into all the juicy details, but first, I want to highlight what exactly Baselane is.
What is Baselane?
Baselane, founded in 2020, is a fintech platform that offers a comprehensive solution for landlords, combining financial and banking services with rental management software. While not a bank itself, Baselane has established a partnership with Thread Bank, providing a range of specialized banking accounts tailored for property management.
This platform stands out in the landlord management space, which has traditionally focused on tenant screening and applicant tracking. Baselane takes a different approach by integrating the functionalities of a mobile bank with advanced bookkeeping and analytics.
This combination allows landlords to gain real-time insights into their rental businesses, including accurate property valuations, comprehensive income statements, and other essential financial details.
The platform not only aids in understanding business finances but also assists in claiming eligible deductions, making the tax preparation process more efficient. Offering its extensive services at no cost, Baselane is an attractive option for both independent landlords and experienced real estate investors, particularly those looking to grow their rental businesses.
Benefits of Subscribing to Baselane For Landlords
What Baselane brings to the table is going to be one of the most important factors in your consideration on whether to subscribe. I broke down advantages of Baselane of landlords below:
- High-Yield Savings and Checking: Baselane provides a no-fee bank account combining high-yield savings and checking features. It offers a 3.30% APY, no minimum balance requirement, and up to 5% cash back on debit card purchases, including a special rate for home improvement expenses.
- Multiple Accounts for Different Needs: Landlords can create unlimited accounts for individual properties, which is beneficial for categorizing and tracking expenses, especially for those with multiple units. These accounts are available for various business entities like LLCs, Partnerships, and Corporations.
- Virtual Accounts: The platform allows the creation of virtual accounts, useful for managing security deposits or allocating funds for property improvements.
- Online Rent Collection: Baselane streamlines rent collection, allowing tenants to pay via debit/credit card or ACH payments, with options for automatic payment reminders and auto-pay.
- Landlord Insurance: Through a partnership with Obie, Baselane helps landlords obtain insurance quotes to protect their properties.
- Loan Assistance: Partnering with Lendency, Baselane offers loan options ranging from $50,000 to $2 million for various property types, including single-family homes and multi-unit properties.
- Automated Bookkeeping: Baselane’s one-click bookkeeping tool automates the tracking of income and expenses, categorizing transactions for easy management and potential tax deductions.
- Property Analytics: The platform provides detailed analytics, including operating cash flow, expenses per property, net operating income, and estimated home appreciation, all of which can be exported for further analysis.
- Free and Transparent Pricing: Baselane’s services come with no hidden fees, offering free cash withdrawals, transfers, and no minimum deposit requirement, making it a cost-effective choice for landlords.
Benefits of Subscribing To Baselane For Renters
Baselane doesn’t only make the property management process easier for landlords, it also offers several advantages for renters. Here are a few of the benefits renters can expect to enjoy:
- Simplified Rent Payments: Allows tenants to easily pay rent through bank transfers, debit, or credit cards, secured by Stripe and Plaid for safe transactions.
- Affordable Renters Insurance: Through a partnership with Sure, Baselane provides access to cost-effective renters insurance, protecting tenants and their belongings.
- Automated Payment Reminders: Offers the convenience of setting up automatic reminders, helping tenants avoid late payments.
- Payment Flexibility: Supports various payment methods, giving tenants the freedom to choose how they pay their rent.
- Digital Lease Signing: Streamlines the lease signing process, enabling tenants to sign agreements electronically, thus eliminating traditional paperwork.
- Transparent Communication: Facilitates open and direct communication between landlords and tenants for maintenance requests and updates, fostering a trustworthy relationship.
- Easy Access to Loans: Through Baselane’s partnership with Lendency, tenants can find flexible loans to support their rental needs.
Drawbacks of Subscribing to Baselane
Before deciding if a Baselane subscription is best for you, I want to highlight some potential shortcomings you should be aware of:
- Potential Additional Fees: Some of Baselane’s services or features might incur fees. Users are advised to review the pricing structure thoroughly to understand any additional costs they may encounter.
- Learning Curve: New users, especially those not familiar with digital property management platforms, may need time to acclimate to using Baselane effectively.
- Dependence on Technology: As Baselane operates entirely online, users must have reliable internet access and be comfortable with using digital platforms. Landlords who prefer traditional methods may find Baselane less appealing.
- Tenant Onboarding: Getting tenants to adopt Baselane for rent payments can require effort from landlords in terms of communication and education to ensure smooth transactions.
- Limitations in Cash Back Rewards: The high-interest cash back feature has certain restrictions, which might limit its appeal to some users.
- Uncertainty About Future Costs: While Baselane offers free services currently, there is no guarantee that these services will remain free indefinitely.
- No Physical Presence: Baselane operates without a physical presence, which could be a drawback for users who prefer in-person interactions or support.
- No Rental Advertising Support: The platform does not provide services to help landlords advertise their rental properties to potential tenants.
Baselane Pricing
Cost is always an important factor when considering a subscription, luckily for potential Baselane users, Baselane’s main features are currently free of charge. Baselane currently offers services, such as checking, rent collection, and analytics, free of charge.
However, it’s important for users to be aware that services from Baselane’s partners, like Lendency and Obie, may involve additional costs. These partnered services include loans and insurance products, each with their own set of terms, interest rates, and premiums.
Final Thoughts
Throughout this article, I’ve explored various facets of Baselane, providing a comprehensive understanding of what to know before subscribing to Baselane. The platform stands out as an all-encompassing solution for landlords, offering an array of free services like checking, rent collection, and analytics.
Baselane presents a robust and efficient solution for landlords seeking to streamline their rental business operations. For those interested in exploring Baselane further or getting started for free, Click Here.
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The post What To Know Before Subscribing To Baselane: All The Benefits, Drawbacks, And Considerations appeared first on Modest Money.