What is the significance of trust accounts and why do you use them?

Trust accounts are FDIC insured accounts specifically designed to hold funds on someone else’s behalf. Companies specializing in property management on Oahu generally use trust accounts when processing money that belongs to tenants or property owners. These funds are usually only held for specific purposes as detailed in our management and lease rental agreements. Money and rents held in trust accounts will be used only according to the terms within the agreement between the all parties involved.

For example: HappyDoors Property Management will hold onto the tenant’s deposit with a separate trust account until a tenant moves out. During this time, the money still legally belongs to the tenant, however, we are holding on to it as a form of collateral to ensure that the tenant adhered to the terms of the lease rental agreement. When the tenant moves out, we must then return the deposit to the tenant after making any appropriate deductions based on the terms of the lease agreement.