Trust Account Management
Residential Property Management Software From Rentables

What Are Trust Funds?

Trust funds are cash or non-cash items, but are generally monies received and deposited into a trust account. Property managers, real estate brokers, and salespersons regularly receive cash, checks, or other payments on behalf of others in the course of their business. Those funds are received “in trust” and create a fiduciary responsibility to the funds’ owners.

Manage your Trust Account with Rentables

Establishing a trust account with a financial institution provides better accounting control over the trust funds and separates the clients' funds from the business’s or the property manager’s own funds. To realize these benefits and meet regulatory requirements for trust accounting, it is essential that you maintain a complete record of who the funds in the trust account belong to. If you work in property management you know just how difficult this can be. Let Rentables help you manage your trust account and simplify your property management business.

When transactions affecting the trust account occur, such as rents received, bills paid, or owners' proceeds drawn, the primary concern is how much of the total balance belongs to each client or beneficiary. With each transaction, Rentables' maintains the accounting necessary to determine each beneficaries' balance. Our property management software can also help you prepare bank reconciliations, beneficiary reports, owner ledgers, and more. Whether you are a property manager, broker, or accountant, Rentables can simplify and organize your business.

Key Benefits of a Trust Account

  • Get your money faster
    When you use a trust account to deposit the rents you collect, you are in a position to collect your management fee upfront. You won’t have to forward the check to the owner, create an invoice for your management fee, and then wait for the owner to pay you.
  • Compliance made easy
    Regardless of if you use a trust account or not, you are still subject to regulatory accounting requirements. Rentables makes it easy to be compliant and to maintain proper accountings of each property.
  • Earn bank credits and other perks
    While you may be allowed to collect interest on security deposits held in your trust account, most banks will give you credit toward other services for carrying a large monthly balance.

Trust Account Violations

State and local laws and standards dictate how the property manager must handle and control trust funds. Failure to comply with these standards may result in unfavorable business consequences such as the suspension or revocation of their real estate license and the possibility of being held financially liable for any damages incurred by clients. Managing your trust account with Rentables can help you maintain your trust account while preventing the most common violations.

The top three trust account violations are:

  1. Allowing a property’s cash balance to become negative
  2. Not preparing bank reconciliation in a timely fashion
  3. Not depositing owner funds in a timely fashion

Affordable Residential
Property Management Software

Let Rentables property management software streamline and automate the workflow of your business. By using Rentables your information stays organized and is easily accessible 24/7.

You'll save time performing routine tasks such as:

  • Recording rent
  • Tracking PM fees
  • Payment processing
  • Generating owner statements
  • Emailing (or worse - mailing) monthly owner statements

Use the time you'll save to grow your business or to enjoy life's other pursuits.

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Start organizing your property management business and saving time and money today.