Rental Trust Account Audit Procedures
Real estate agencies managing rental properties are required to hold tenant bond and rent money in a trust account, and to have that trust account independently audited each year in accordance with estate agents legislation. We provide rental trust account audits for Melbourne real estate agencies, giving you the compliance sign-off required by the relevant regulator.
Why Rental Trust Account Audits Are Required
Real estate agents hold significant amounts of client money – rental bonds, rent collected on behalf of landlords, and other client funds – and trust account audits exist to protect that money and confirm it’s being handled in accordance with the law. Agencies are generally required to lodge an annual audit report with the relevant state regulator, regardless of the size of the trust account.
What We Check During a Rental Trust Account Audit
- Trust account receipts and payments are properly authorised, recorded and supported by documentation
- Bond money is held and disbursed in accordance with tenancy legislation
- Landlord disbursements match rental statements and agency agreements
- Trust account reconciliations are performed accurately and regularly
- Any trust account shortfalls, irregularities or unclaimed funds are identified and reported
Preparing for Your Audit
Having your trust account reconciliations, receipt and payment records, bond lodgement records, and property management software reports ready for the audit period makes the process considerably faster. We provide a clear checklist of what’s required before starting.
Common Issues We See in Rental Trust Accounts
The most common issues in rental trust account audits relate to reconciliation timing differences, unclaimed or “stale” funds not being followed up, and disbursement records not clearly matching what’s owed to landlords. We flag these clearly and provide practical recommendations to tighten up your agency’s processes for the next audit period.
Working With Property Management Software
We’re familiar with the trust accounting modules of the major property management software platforms used by Melbourne agencies, which helps us complete the audit efficiently and understand your records in the format you already use day to day.
Frequently Asked Questions
Is a rental trust account audit mandatory for real estate agencies?
Yes – agencies holding rental bonds and rent money in trust are generally required to have the account independently audited annually and the report lodged with the relevant state regulator.
What happens if the audit finds a shortfall or irregularity?
We discuss any issues with the agency principal as they’re identified, and any reportable matters are handled in accordance with the relevant regulatory requirements.
What records do we need to have ready for the audit?
Trust account reconciliations, receipt and payment records, bond lodgement documentation, and property management software reports for the audit period.
How long does a rental trust account audit take?
Timing depends on the volume of transactions and how well-organised your records are – well-maintained records generally mean a faster audit.
Do you work with agencies using different property management software?
Yes – we’re familiar with the trust accounting modules of the major property management platforms used across Melbourne agencies.
How much does a rental trust account audit cost?
Cost depends on the volume of trust account transactions during the audit period. We agree a fixed fee upfront.
Related Audit & Compliance Services
If your agency or its principals are also involved with a solicitor’s trust account, an incorporated association, or a not-for-profit organisation, we can coordinate all your required annual audits together rather than engaging separate providers.
The audit checklist, requirements, and overall cost for a rental trust account depend on your agency’s transaction volume and the property management software you use – we confirm exactly what’s needed before the audit begins so there are no surprises when it comes to lodging with the regulator.