Mercury vs Relay vs Novo: Best Bank Account for Airbnb & Short-Term Rental Hosts
Launching your first Airbnb, VRBO, or other short-term rental property is exciting, but managing the money can get confusing fast. You'll have rental income coming in, then cleaning fees, property taxes, utility bills, and maintenance costs going out. Keeping your personal and business finances separate is key for tax time and understanding your property's real profit. This guide compares the top fintech-friendly bank accounts – Mercury, Relay, and Novo – to help first-time short-term rental hosts pick the right one. The right bank saves you time, prevents tax headaches, and makes managing your rental income much clearer.
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The Quick Answer
Relay for Airbnb hosts who want to use the Profit First system, create separate 'buckets' for taxes, cleaning, and maintenance, and easily work with their bookkeeper. Novo for solo hosts and new VRBO listers who need a fast, free setup and simple integrations for payment platforms like Stripe (if you offer direct bookings). Mercury for growing short-term rental businesses planning to acquire multiple properties, or those with higher-value properties and larger cash flows needing robust tools and API access. Brex is generally not for single property short-term rental owners; it’s designed for venture-backed companies with large teams and complex corporate card needs.
Side-by-Side Breakdown
Mercury: $0/month. FDIC coverage $250K standard, with options for $5M+ through a sweep network, useful if you manage very high rental income or multiple properties. Best features: strong treasury management (for high balances), API access (to link with advanced property management software), and team permissions (if you hire a property manager or virtual assistant). Best for serious, growing STR operations.
Relay: $0/month (Pro $30/month). FDIC coverage $3M through a program. Best features: up to 20 checking accounts, perfect for creating dedicated 'buckets' like 'Tax Savings,' 'Cleaning Fund,' 'Maintenance Reserve,' and 'Owner Payout.' It also offers dedicated bookkeeper seats, making tax prep seamless. Best for short-term rental hosts who want strict budget control and easy accounting.
Novo: $0/month. FDIC $250K. Best features: super fast online setup, ideal for first-time hosts. Integrations with payment processors like Stripe or Square are great if you take direct bookings or charge for additional services (like late check-out fees). It also offers invoicing features, useful for billing guests for damages. Best for solo hosts and new listings needing simplicity.
Brex: $0 basic, varies for full platform. FDIC $6M+ through sweep. Best features: corporate cards and expense management, designed for larger teams. This is overkill for almost all single short-term rental property owners. Only consider Brex if you're running a significant property management company with multiple employees and corporate spending.
When to Choose Mercury
Mercury is a solid choice if your short-term rental is a high-income property, or if you plan to scale rapidly to multiple units. Its interface is clean, making it easy to track significant cash flow from bookings across different platforms. The treasury sweep feature is valuable for protecting large sums of rental income above standard FDIC limits. If you're using advanced property management software or plan to integrate your finances with other tech tools, Mercury's API access can be a huge advantage. It's built for growth and serious financial management, which might appeal to hosts who view their rental as a significant business investment from day one.
When to Choose Relay
Relay is purpose-built for short-term rental owners who want clear separation of funds. Imagine having one checking account for 'Gross Rental Income,' another for 'Cleaning & Supplies,' a third for 'Property Maintenance,' a fourth for 'Utilities & HOA,' and a fifth for 'Tax Savings.' This 'Profit First' style of budgeting is incredibly helpful for STR hosts, ensuring you always have money set aside for specific expenses and future repairs. Its bookkeeper seat feature is also excellent, letting your accountant access transactions directly for easy categorization, which is a massive help when tax season rolls around for your rental property.
When to Choose Novo
Novo is the fastest and most forgiving option for first-time Airbnb hosts and solo operators. If you're just starting with a spare room or vacation property, Novo's quick setup means you can get your business bank account running in minutes. Its integrations with platforms like Stripe and Square are useful if you use them for direct bookings, collecting security deposits, or charging for amenities. The invoicing feature can come in handy for billing guests for damages or late check-outs. Novo is genuinely free with no minimum balance, which is perfect for new hosts whose income might fluctuate monthly.
When to Choose Brex
Brex makes sense when you have a large team generating many expenses, not typically for a single short-term rental property. If you were running a major property management company with dozens of employees, multiple corporate cards, and a need for integrated expense reporting, then Brex could be valuable. For a solo Airbnb host managing one or even a few properties, the complexity and features of Brex far outweigh any benefit. Start with Novo or Relay, and if you ever grow into a venture-backed property management empire with a staff of 50, then consider Brex.
The Verdict
For most first-time Airbnb and VRBO hosts, Relay is the top pick for its powerful budgeting tools and bookkeeper collaboration, making tax prep and financial management straightforward. Novo is best if you want the quickest, easiest setup for a solo operation, especially if you use Stripe or Square for payments. Mercury is for hosts with high-value properties or those planning to scale quickly to multiple units. Brex is almost never the right choice for a single short-term rental owner. All three recommended banks (Mercury, Relay, Novo) are free to open; you can switch later, but moving all your payment details (e.g., Airbnb payout settings, utility autopays) is a hassle worth avoiding.
How to Get Started
All these business bank accounts open online in minutes. You will typically need your Employer Identification Number (EIN) if you have an LLC or corporation for your rental, or your Social Security Number (SSN) if you're operating as a sole proprietor. You'll also need your LLC formation documents (if applicable) and a government ID. Novo is generally the fastest to approve, often within hours. Mercury and Relay might have a short review period, sometimes a few days, as they verify your business details. Apply with the bank that best fits your current stage and financial management style for your short-term rental.
RECOMMENDED TOOLS
Mercury
Best business banking for funded startups and tech founders
Relay
Multi-account banking built for budget management and bookkeeper collaboration
Novo
Fast setup with Stripe, Square, and Shopify integrations
Brex
Banking, corporate cards, and expense management for venture-backed teams
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FREQUENTLY ASKED QUESTIONS
Are these real banks or fintech apps?
They are fintech companies that partner with FDIC-member banks to hold your deposits. Your deposits are FDIC-insured, but you are not banking directly with a chartered bank.
Can I use one of these and also keep a traditional bank account?
Yes. Many founders use Mercury or Relay as their primary operating account and keep a local credit union or Chase account for in-person cash deposits.
What if I am not approved?
Mercury and Relay can decline applications, often due to business type or state restrictions. Novo is generally more permissive. If declined, try another option or use a traditional bank while you build account history.
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