A property manager's trust account holds your rent and other client money, and it must sit in a CBS-approved account at an authorised deposit-taking institution (ADI), kept apart from the agency's own funds. Residential bonds are different: they are lodged through Residential Bonds Online (RBO), not kept in the trust account. Agencies must keep detailed records, reconcile monthly and arrange an annual audit.
TL;DR:
- Every trust receipt should record its date, amount, payer, and purpose, while each property’s ledger tracks deposits, payments, and its running balance.
- Agencies must reconcile the cash book and trust ledger against the bank statement at least monthly, then document and resolve every difference.
- Registered agents have four weeks to lodge bonds through RBO; landlords managing their own properties have two weeks to meet the deadline.
- Audit periods vary by agency, and statements must reach the regulator within two months of period end; ask your agency for its dates.
- Before hiring an agency, request its latest audited statement, a recent month end reconciliation, and a bond lodgement confirmation; landlords can review these remotely.
Table of Contents
- What does a property manager's trust account hold?
- How are trust accounts regulated in South Australia?
- Which daily controls should a property manager run?
- How do bonds work in Residential Bonds Online (RBO)?
- What do trust account auditors check?
- What should Adelaide landlords ask to verify compliance?
- Why transparency matters to us
- How we support trust-account compliance for landlords
- FAQ
- Sources
What does a property manager's trust account hold?
Trust money is money an agency holds on behalf of someone else. Under the Land Agents Act 1994, South Australian agencies must deposit client funds such as rental income into a CBS-approved trust account at an ADI, which can be a bank, building society or credit union. They must not mix it with general office money.
Typical examples include:
- Rent paid by your tenant before we pay it out to you.
- Refunds owed back to a tenant, such as an overpayment.
- Money held for a third party, such as a tradesperson's invoice awaiting payment.
- Other client receipts handled during the management of your property.
Bonds are excluded. Residential bonds are lodged with the Commissioner in the Residential Tenancies Fund and are not held in agency trust accounts.
Separation matters because it protects both sides. If an agency's own debts or expenses could touch your rent, you would carry that risk. A dedicated trust account means your money is identifiable, traceable and available to you, which is exactly the asset protection an investor expects.
How are trust accounts regulated in South Australia?
Consumer and Business Services (CBS) administers the Land Agents Act 1994, and the rules are specific. Funds go into a CBS-approved account at an ADI as soon as practicable. Agencies must issue detailed receipts, keep a trust ledger, and retain records that an auditor can examine. Our Adelaide rental compliance guide covers the wider obligations that sit around these duties.
The regulator has real enforcement powers:
- CBS oversees compliance with trust-account requirements.
- It can prosecute agents for breaches of the Act and cancel or suspend an agent's registration.
- Agency staff handling trust money are expected to understand the rules, and training such as the REISA trust accounting course covers receipting, record keeping and the auditor's viewpoint.
For you as a landlord, asking about registration, audit outcomes and reconciliation evidence can help you assess an agency's transparency.
Which daily controls should a property manager run?
Legal duties only protect you if they become routine. In an audit-ready agency, the day-to-day controls look like this:
- Deposit promptly. Rent received is banked into the approved trust account as soon as practicable, by the agency, never held in a drawer or a personal account.
- Issue a receipt for every payment. Each receipt shows the date, amount, payer and purpose, so a deposit can be traced end to end.
- Keep the trust ledger current. Every property has its own ledger showing money in, money out and the running balance.
- Reconcile at least monthly. The cash book and trust ledger are compared against the actual bank statement balance, and any difference is resolved and documented. CBS expects reconciliations to be current, and proactive agencies can show that.
- Report to owners. Your statements should tie to the ledger, so a rent payment you receive matches a receipt and a deposit.
Pro Tip: Ask for a sample month-end reconciliation. A useful sample shows the cash book, ledger and bank statement, along with the reconciliation date and notes on any unpresented items. If the totals only match after unexplained adjustments, ask why.
How do bonds work in Residential Bonds Online (RBO)?
Bonds follow a separate path from rent. RBO is the system for lodging and managing residential bonds in South Australia, and tenants can lodge bonds directly with the Commissioner. It also supports electronic dispute resolution and stronger evidence for bond claims.
The key points for landlords:
- Registered agents have four weeks to lodge a bond; self-managing landlords have two weeks. Failure to lodge can attract heavy penalties.
- Agencies set up an RBO account using details such as licence number and ABN or ACN, as set out on the RBO help page.
- If you and your tenant disagree at the end of a tenancy, the managing party can make a non-consented claim with supporting evidence. If CBS accepts the evidence it releases funds, otherwise the dispute can be escalated to SACAT.
Inspection reports and photos can provide useful evidence for bond claims. Our guide to bond claims in SA explains the evidence that holds up.
What do trust account auditors check?
Agencies that keep a trust account must have their records audited annually. Auditors verify trust ledgers, check for overdrawn accounts and confirm that funds were handled in line with the Land Agents Act. The audit is then forwarded to the regulator within statutory timelines.
In South Australia the audit period is tied to the agency's registration and annual return cycle, so deadlines can differ between agencies. Ask your agency for its specific period rather than assuming a standard date.
Common audit checks include:
- Whether reconciliation statements are complete and accurate.
- Whether any account was overdrawn or showed a debit balance.
- Whether ledger entries match receipts and bank records.
- Whether electronic records can be audited.
An agent must forward the audit statement within two months after the audit period ends. That timeframe gives you a clear benchmark when you request evidence.
A clean audit is a good sign. A qualified one is not automatically a disaster, but it deserves a direct question about what was found and what was fixed.
What should Adelaide landlords ask to verify compliance?
You do not need accounting expertise to test an agency. A short, repeatable check works:
- Verify the licence. Confirm the agency's registration with Consumer and Business Services and note the licence number.
- Request the latest audited trust statement. Ask for the most recent audit outcome and the audit period it covers.
- Ask for a recent month-end reconciliation. It should show the ledger against the bank balance.
- Confirm RBO use for bonds. Ask to see the lodgement confirmation for a recent bond.
- Review sample receipts. Check that deposit dates are shown and prompt.
- Check your own records. Our landlord record-keeping guide lists what you should hold for SACAT and tax purposes.
For interstate and overseas investors, everything above can be done remotely. Ask for PDFs sent by email or shared through an owner portal, and request a video call with the property manager to walk through the reconciliation.
Pro Tip: Put the request in writing and ask for a reply date. A prompt response and a written record can be useful if you ever need to refer back to the request.
Why transparency matters to us
Trust accounting is not paperwork for its own sake. It is the proof that your rent is where it should be. At HOSO, we take trust accounting seriously and are happy to discuss our practices with owners. We would rather you ask hard questions than take our word for it.
When you choose a property manager, request the specific documents listed above. Adelaide landlords benefit from agencies that can demonstrate their trust-account practice, not merely describe it.
— HOSO
How we support trust-account compliance for landlords
Our property management service is built around the controls in this guide. We support rent collection, bond administration and record-keeping as part of our service. Everything is explained in plain terms, with owner reporting you can read without an accounting background.
What we can do for your Adelaide investment:
- Full property management with compliance built in from day one.
- Rent collection with clear receipting and owner statements.
- Bond lodgement and claim handling through RBO.
- Maintenance, inspections and lease administration with documented records.
Ask us how we manage trust-account compliance and reporting before you commit. Visit our services page to see how we manage properties, or get in touch to talk through your portfolio.
FAQ
Where must a property manager keep rent money in South Australia?
Rent must be deposited into a CBS-approved trust account held at an ADI, as soon as practicable. It must be kept separate from the agency's own funds, as set out under the Land Agents Act 1994.
Are rental bonds held in the agency's trust account?
No. Bonds are lodged with the Commissioner through Residential Bonds Online. Agents have four weeks to lodge and self-managing landlords have two weeks, as CBS explains for land agents.
How often must trust accounts be reconciled?
At least monthly. The cash book and trust ledger are compared against the bank statement balance, and any difference must be resolved and recorded.
Who audits an agency's trust account?
A Registered Company Auditor audits the records every year, and the audit is forwarded to the regulator within the statutory timeframe. Auditors check ledgers and overdrawn accounts among other items.
What happens if a bond dispute cannot be settled?
The managing party can lodge a non-consented claim with evidence in RBO. If CBS does not accept the evidence, the matter can go to SACAT for a decision.