Rental Trust Accounting Made Easy...
If trust account issues are giving you sleepless nights, you are not alone. It seems that many agents involved in the Rental Management industry, are not too familiar with the requirements of keeping a trust and business account and HOW it should be used.
Many Agencies believe that a Trust Account is only required for the Rental Deposits held, but this is not correct. Any monies collected by a 3rd party on behalf of a client (i.e. rentals and deposits, should pass through the TRUST account.).
Deposits can stay in the Trust Account or preferably be transferred into a separate investment account linked to the Trust Account. Commissions and other fees should be transferred from the Trust Account into the agencies Business Account.
Business expenses must never be paid out of a Trust Account or where Trust Account monies are held. This set up is important, as it will ensure that the Fidelity Fund covers any losses which may arise from misappropriation or theft of the client’s funds (Rental monies and Deposits held), and that Business expenses are not being financed with Trust monies.
Stay in Control of your Rental trust Accounting with PropWorx
The most important rule to remember is to ensure that you always remain in complete control of your Trust Account balances. Furthermore, the proper control of funds from the Agents Trust Account to their Business Account must be carefully computed as to avoid Trust Account deficits.
Believe it or not, many of the most regularly used accounting packages and services do not perform such a function and do not cater for complete management of Trust, Business and Deposits Accounts. Thankfully PropWorx Accounting and Management Software meets these requirements.
Not only does PropWorx offer you the tools to effectively manage your TRUST, DEPOSIT and BUSINESS accounts, but it also offers a myriad of lease management features to satisfy even the most discerning of agents (including maintenance, inspections and arrears). PropWorx will save you time and money by helping you anticipate problems, reduce errors as well as long and tedious transactions.
Think carefully about how your business works. If your passion is seeing your business thrive, then partner up with this quality rental management solution, to ensure you run an efficient & profitable.