Trust Account FAQ's

We are often asked questions about the management of your funds and how your trust account works. This information will answer the most commonly asked questions about how and when bills are paid and when your funds are distributed to you, our client. These are the basic guidelines governing your trust account.
 
  1. What is a trust account?
  2. What bills does ONEprop pay from my trust account?
  3. What is the minimum reserve?
  4. When is money sent to me?
  5. What if the tenant pays after the tenth?
  6. What if I need money before the normal distribution date?
  7. Why did you pick the tenth for funds distribution?
  8. What if there is not enough money in my account for a pending expense?
  9. My statement says I need to send money - how much time do I have?
  10. Where is the tenant's security deposit, I don't see it on my statement?
  11. Why does ONEprop hold onto the security deposit? Why can't I, as the landlord, keep it and use it?
  12. What if I have questions about expenses/transactions of my trust account?
  1. What is a trust account?

    A trust account is managed for our clients using an accounting package specifically designed for property management. The money in your account is used to pay bills on your behalf for expenses incurred against your property. The actual money is kept in a bank account(s), currently at Chase Bank. Your funds are in account(s) separate from the accounts used by ONEprop to run our business and pay operating expenses of ONEprop. This process of separation of your trust account funds from our company funds is in accordance with our training on the Real Estate Commissions rules prohibiting "co-mingling" of funds. This ban on co-mingling of funds means we are not allowed to use your money to pay our bills and we cannot use our money to pay your bills.

  2. What bills does ONEprop pay from my trust account?

    We pay bills from your trust account as allowed in your Residential Property Leasing and Management Agreement. Typical bills are from subcontractors who perform work on your home, lawn service and utility bills while a home is empty, HOA dues, and payment of fees to ONEprop. Our current policy is that we will not make regular mortgage payments or pay property taxes for our clients. There may be exceptions to these restrictions, ask your property manager if you require an exception.

  3. What is the minimum reserve?

     

    A minimum balance is required in order to have funds available to pay expenses for your property.  You are required to maintain a minimum balance in your account of $250.00 per property up to a maximum of $500.00 per account. If you have three homes under management in a single account your reserve will only be $500.00. Clients with more than five houses may require a higher reserve. Also, if you maintain multiple accounts at ONEprop each account will be subject to the minimum/maximum reserve levels.



  4. When is money sent to me?

     

    Funds are distributed on the first business day after the ninth day of each month. Our monthly accounting runs from the first through the last day of the month. On the first business day after the 9th,  any funds in your account over the minimum reserve is distributed to you using the Federal Reserve's NACHA system, commonly referred to as an "ACH" transfer or direct deposit. An ACH transfer is not an immediate transfer, the ACH system requires 2-3 working days before the funds will be received in your account. The ACH transfer may not be available into certain types of accounts, like some savings accounts. If you do not take advantage of direct deposit then funds will be distributed via check with your mailed statement. There is a monthly service charge of $7.50 for any client requiring a paper check. We encourage everyone to take advantage of the direct deposit offering, it is more reliable than any other method of getting you your funds.



  5. What if the tenant pays after the tenth?

    When the tenant pays after the tenth of the month the funds will be deposited into your trust account and distributed as normal with the next month's distribution.

  6. What if I need money before the normal distribution date?

    If you are set up for direct deposit ONEprop may be able to initiate a "transfer on request". Please ask your property manager and we will do what we can to help out.

  7. Why did you pick the tenth for funds distribution?

     

    Distributing funds on the tenth allows us to complete any batch processes and balance the books after receiving the rents your tenants pay into your account. If we ended the cycle on the last day of the month 50% of our clients would have to wait a month for their money because less than 50% of tenants pay before the first. Most property management firms distribute on the 15th or last day of the month, but these funds are your money and ONEprop wants to put the money in your hands as soon as possible.



  8. What if there is not enough money in my account for a pending expense?

     

    We may call and ask you to send funds if we anticipate a required repair will cost more then the funds available in your account. Alternately we may temporarily raise your minimum reserve to accumulate funds in your account. ONEprop cannot pay your bills from our company account, this would violate rules prohibiting co-mingling of funds. Remember, all bills are paid directly from the trust account so funds must be available for us to pay your bills.



  9. My statement says I need to send money - how much time do I have?

     

    ONEprop may have paid expenses for you which caused your trust account to be overdrawn. This situation needs to be resolved promptly; similar to if you have overdrawn your checking account. You should send us a check for the amount specified on your statement by the end of the month. There is a small loophole for you; if you have a tenant in the house paying rent the tenant's next rent check may satisfy your negative balance. This means you will not need to send funds when your negative balance will be paid by your tenant. The bottom line is the negative balance needs to be resolved whether by funds from you, by funds from your tenant or a combination from you and your tenant. If you have any questions or have some other unique situation please discuss this with your property manager.



  10. Where is the tenant's security deposit, I don't see it on my statement?

    The tenant's security deposit is maintained by ONEprop, also in a trust account(s), currently at Chase Bank. You will see the amount we have collected reflected on your mailed statement. Unfortunately our on line facility does not show this information. We may need to pay bills which will be reimbursed from the tenant's security deposit, but you will not see reimbursement in your account until the final security deposit accounting is performed, usually thirty days after a tenant's departure.

  11. Why does ONEprop hold onto the security deposit? Why can't I, as the landlord, keep it and use it?

     

    Laws governing specific procedures for trust funds vary from to state to state. ONEprop works with our attorneys to make sure the funds are handled in a manner which conform to the laws of the state where you own a rental property. All security deposit funds are held in a real estate trust account at an FDIC insured bank in order to make sure they are available as required by law.  After a tenant moves out of a home the funds are returned to the tenant except when they are sent to a landlord to reimburse for expenses as allowed in the lease. The lease normally allows the landlord to be reimbursed for any expenses caused be a tenant defaulting on any section of the lease.  Reasons for reimbursement include, but are not limited to, unpaid rent, late fees, repairs to remedy unauthorized alterations to the property, repairs due to improper use of the property, repairs from any negligence, carelessness, accident, abuse or abnormal wear and tear at the property. One of the reasons tenants like to rent from a realtor where the funds are kept in a managed trust account is because our legal and ethical obligations to the consumer require us to conform to good business practices which will make sure the monies are available to be returned to them if the leave the property and conform to their lease. In today's marketplace you will find tenants who are concerned a landlord will take their money and then not make a mortgage payment or otherwise default on their loans, and by ONEprop placing the security deposit into a real estate trust fund your property is a more attractive rental property because the tenants know that if they meet their lease obligations they will get their deposit returned to them.



  12. What if I have questions about expenses/transactions of my trust account?

     

    Call your property manager with any questions. Your property manager is the primary point of contact regarding questions about your statement. As our business continues to grow we sometimes need to change your property manager, so if you do not know your property manager you can find their contact information on your most recent statement or using the online lookup facility at our web site.

 

 

 

 

 

 

ONEprop Oklahoma LLC is a Real Estate Brokerage licensed by the State of Oklahoma, OREC license number 157720