Trust Account

Property Management

A regulated bank account where a property manager holds rent and bond money on behalf of landlords and tenants.

Full Explanation

Australian property managers are legally required to hold all rental income and bond payments in a trust account that is separate from their business operating funds. Trust accounts are audited annually and regulated by each state's fair trading or consumer affairs body. Funds must be disbursed to landlords within prescribed timeframes. Trust accounting violations are a serious offence that can result in licence cancellation.

Example

Your property manager collects $2,200 in rent from the tenant and deposits it into their trust account, then disburses it to you on the agreed payment date after deducting management fees.

Frequently Asked Questions

Is my rent money safe in a trust account?

Yes. Trust accounts are tightly regulated and audited. The funds are legally separated from the agency's business money. If the agency goes into liquidation, trust funds are protected and cannot be claimed by the agency's creditors.

How often should my property manager pay me?

Most property managers disburse funds monthly, but some offer fortnightly payments. The disbursement schedule should be agreed in your management authority. Trust funds must be disbursed within timeframes prescribed by state legislation.