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Property Management Blog

Residential Lease Security Deposits &Trust Accounts

Erlin Taylor - Thursday, June 16, 2016

Illume Property Management takes pride in serving as a trusted liaison between property owner and residents in all residential lease transactions. One way we achieve this is by preparing and tracking all required paperwork as well as  the timely collection and documentation of rent and security deposit receipts from the resident. 

In an average transaction, Illume Property Management does all the legwork before a lease is signed. That includes a thorough background check into the prospective resident’s references, job history, as well as any past criminal records, evictions, and credit records check. The lease signing and exchange of funds only happens when we are satisfied that the applicants match our rental criteria.

A Security Deposit is due from the resident upon signing the Execution of Deposit, which holds the property off market for the resident.  Funds are receipted and immediately placed into a Trust Account.  This deposit will be used to fund the repair of any damages assessed during the final accounting phase.  Final accounting is essentially a detailed property inspection conducted by our team following property vacation by the resident.  The purpose of this inspection is to discover any damages or required maintenance issues not fulfilled by the residents once the lease has expired or been terminated. In our years of experience, the Security Deposit funds collected and held in the Trust Account generally cover any damage or permitted maintenance issues incurred during a resident’s stay.  The departing resident will be invoiced if the funds on account do not cover all that is required to bring the property back to it’s original state. 

As part of our goal to provide peace of mind to our property owner clients, we also insure the security of their property investment by changing all locks and employing a professional team of vendors to clean, service and maintain the property between leases. 

For more information on our handling of Security Deposits or Trust Accounts and our representation of property owners and their residential investment properties, please contact Illume Property Management directly.