Everything you need to know about opening a bank account for a Resident’s Association￼
In shared complexes, which are usually residential buildings, there is a committee that manages the site. By law, the building funds must be managed by a Resident’s Association
and a joint bank account must be opened in the name of the tenants representing the building – these being the Resident’s Association representatives.
In order to do this, each Resident’s Association appoints a representative on their behalf as their treasurer who manages the budgets and funds. How do you open a bank account for a Resident’s Association, and what is the process? Take a look below for all the details.
The difference between a Resident’s Association bank account and a regular account
Anyone who isn’t involved in the field of building management or in the general management of condominiums, may think that a bank account for a Resident’s Association is just a regular account. But it is important to know the various conditions of this bank account versus a regular account:
Resident’s Associations usually have a limited bank account which is different from a private bank account of a person receiving a monthly salary, or an independent company.
Line of credit
Resident’s Associations’ bank accounts do not have a line of credit, nor can a credit card be issued for them. All actions in these accounts are based on checks or bank transfers.
Step-by-step approach to opening a bank account
It is important to know that the Real Estate Law states that the Resident’s Association is obligated to manage and deposit the tenants’ payments into the joint account, and not anywhere else. The opening of the account is possible without the permission of the apartment owners in the shared building.
In order to open a bank account, you must present these documents:
Original protocol of the tenants’ meeting in which there is evidence of the election of the committee representatives for the purpose of managing the common building.
Resident’s Association representation stamp.
ID cards of the Resident’s Association representatives.
Bllink – The digital wallet of homeowners
With new technology, comes new innovation and Bllink is here to ease the building management payment process for all Resident Associations.
Bllink platform is a digital system through which you can proactively collect management fees from the tenants, pay suppliers, easily transfer funds from account to account and enjoy personal interactions with our technical support center.
All these great features allow you to manage your bank account easily and to enjoy an orderly balance of income against expenses in full transparency.
Bllink will not charge you a monthly usage fee, the tenants do not have to download the app or open a user account, rather it enables features through a direct link.
If you come across tenants who do not pay, Bllink has a collection system and even an option to approve the spread of credit payments across a pre-defined time period. This makes collection more effective, and management more convenient.
Since many of the tenants can also be elderly people, Bllink has a support center that gives a full explanation of the use of the system.
Proper management of the bank account in terms of expenses and income will result in effective and efficient management of the building, and together you will create a comfortable and pleasant living environment for all tenants.
Contact us now for a consultation, and together we will make a positive impact on the future of building management