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