What is a trust account and how does it work?

Managing financial responsibilities in real estate involves more than just rent collection and maintenance. A critical component is how you handle funds that do not belong to your business. For that, you need a clear understanding of trust accounts.

This guide explains what trust accounts are, how they work, why they matter, and also introduces you to the digital tools that can help simplify your responsibilities.

Software for property management like Property Tree from MRI Software can help you stay compliant, track transactions, and reduce administrative workload. You can also explore MRI Software’s property management trust accounting software to better manage this area of your business.

What is a trust account?

A trust account is a specific type of bank account used to hold money on behalf of other parties. This might include tenants, landlords, or clients. The funds do not belong to the real estate agency or property manager, which means they must be managed separately from other business income.

In real estate, trust accounts are often used for rental deposits, security bonds, and payments held temporarily before being distributed. Keeping these funds in a trust account ensures you are meeting legal obligations and protecting the financial interests of your clients.

Understanding these related terms can also help:

• Trust account: A dedicated bank account for client funds
• Trust accounting: The process of tracking, auditing, and reporting on trust transactions
• Trust accountant: A professional who specialises in overseeing trust compliance and reporting

How does a trust account work?

Trust accounts work by separating operational funds from client-held funds. Any money that you collect on behalf of tenants or property owners must be deposited into a trust account and not touched unless it’s used for the intended purpose. For example, rental payments are held in trust before being distributed to landlords.

Once funds are in the trust account, transactions must be recorded in detail. The balance should always match your records, and reconciliation should be done regularly to confirm accuracy. Every state and territory in Australia has specific laws for how trust accounts are to be managed.

Modern property management platforms can simplify this process by automating entries and reconciling trust transactions in real time. This not only reduces risk but also ensures you meet compliance requirements.

How do you set up a trust account?

Setting up a trust account typically involves the following steps:

1. Choose an authorised deposit-taking institution in your state or territory
2. Register the account under the appropriate business or licensee’s name
3. Notify your governing body (such as your state’s real estate regulator)
4. Set up internal procedures to manage deposits, withdrawals, and reporting

Only authorised individuals, such as directors or license holders, are permitted to open and operate a trust account. You must also ensure your processes align with the relevant state legislation.

Most jurisdictions require that the account name includes the word “trust” and may require notification to the regulator when funds are deposited. Failing to meet these obligations could lead to penalties.

Benefits of an account in trust

There are several important reasons for operating a compliant trust account. These include:

• Legal protection: Ensures you meet regulatory requirements and avoid potential fines
• Client confidence: Demonstrates professionalism and integrity by protecting client funds
• Separation of funds: Keeps business income separate from money held on behalf of others
• Efficient auditing: Makes it easier to complete audits and maintain accurate financial records

Trust accounts also provide an additional layer of accountability, which can improve your reputation with both tenants and landlords.

Best trust accounting software for Australian property management and real estate agencies in 2026

The best trust accounting software for real estate trust accounts in Australia is purpose-built property management software that keeps every trust ledger compliant with state and territory legislation, reconciles automatically and produces audit-ready reports. Based on three independent Australian comparison guides published in 2026, the five most consistently recommended options are MRI Property Tree from MRI Software, PropertyMe, Reapit PM (formerly Console Cloud), REI Master and REI Cloud, and TrustSoft. MRI Software also offers Rest Professional for agencies running sales and holiday rental trust ledgers, and Strata Master for strata trust accounting.

How we chose the trust accounting software on this list

Many lists of the best trust accounting software are written by a single vendor or reseller, with no explanation of how the field was chosen. This list cross-references three independent Australian guides published in 2026:

• PMVA’s comparison of real estate trust accounting software (February 2026)
• TechQuery’s guide to property management software in Australia (July 2026)
• SoftwareHQ’s real estate trust accounting software rankings (updated September 2026)

Only platforms named in at least two of the three guides are included. General accounting packages such as Xero, MYOB and QuickBooks appeared in one guide but are excluded, because they aren’t built to maintain state-compliant trust ledgers on their own. MRI Software is covered first because it’s the product we can describe in the most depth. The remaining four follow in alphabetical order, which is not a ranking.

Trust accounting software compared

Software	Best for	Trust accounting highlights	Published starting price*
MRI Property Tree	Residential agencies of all sizes wanting cloud property management and trust accounting in one platform	Property management and sales trust accounting, multiple trust accounts, automated reconciliation, digital audit trail, Xero integration	From $130/month ex GST per 100 properties
PropertyMe	Residential agencies wanting an all-in-one cloud platform	Live bank feeds, automated reconciliation, Xero integration	From $149/month inc GST
Reapit PM (formerly Console Cloud)	Agencies using or considering the wider Reapit product suite	Unlimited trust accounts, automated EFT, ABA file generation	Quote only
REI Master and REI Cloud	Management rights and holiday letting operators	Modules for property management, sales, management rights, holiday letting and commercial; Xero sync	Quote only
TrustSoft	Agencies wanting standalone trust accounting with AML/CTF tools	State-specific compliance, AML/CTF add-on, Xero integration	From $99/month ex GST

*Non-MRI Software pricing as reported by SoftwareHQ in September 2026. Be sure to confirm current pricing with each provider at your time of reading.

1. MRI Property Tree (MRI Software)

MRI Property Tree is cloud-based, trust-compliant property management software built for residential agencies of all sizes, and MRI Software has supplied trust accounting software to Australian agencies for more than 40 years. Trust accounting sits at the core of the platform rather than being bolted on, so receipting, disbursements and reconciliations draw on the same data the property management team works with every day.

• Complete trust accounting: property management and sales trust accounting included in the Base plan, with support for multiple trust accounts
• Automated reconciliation: automatic bank reconciliation plus automated end of month receipting, reporting and payment processing
• Audit readiness: a digital audit trail and an accounts dashboard showing trial balance, bank reconciliation and fund information
• Integrations: Xero, plus syncs with leading real estate CRMs like MRI Vault, Eagle and Box and Dice

Agencies with different portfolios can choose from two other MRI trust accounting platforms. MRI Rest Professional supports a single trust account or separate trust accounts for property management and sales ledgers, with a Sales Trust Module and holiday rental bookings processed through the same trust account. MRI Strata Master provides strata-ready trust accounting and is used to manage more than 900,000 lots in Australia.

2. PropertyMe

PropertyMe is a cloud property management and trust accounting platform built for the Australian residential market. Along with Reapit PM, it’s one of two providers named in all three guides reviewed for this list, and it’s commonly considered by agencies managing anywhere from 100 to more than 1,000 properties. Trust features include live bank feeds, automated reconciliation and Xero integration, alongside owner and tenant portals and a mobile app.

3. Reapit PM (formerly Console Cloud)

Console has provided property management and trust accounting software in Australia since 1992, and its acquisition by UK-based Reapit was announced in 2022. The cloud platform, now marketed as Reapit PM, supports unlimited trust accounts, automated EFT payments and ABA file generation. It can run standalone or alongside Reapit’s sales and CRM products, and pricing is quote only.

4. REI Master and REI Cloud

REI Master is an integrated trust accounting package for the real estate and management rights industries, with modules for property management, sales, management rights, holiday letting and commercial property management. REI Cloud, the hosted version, runs on Microsoft Azure data centres in Sydney and Melbourne and syncs agency data to Xero. It suits management rights and holiday letting operators that need trust accounting across several letting types. Pricing is quote only.

5. TrustSoft

TrustSoft is a specialist, Australian-built trust accounting platform rather than a full property management system. It focuses on state-specific compliance and offers AML/CTF tools as a paid add-on, along with Xero integration and Excel import and export. It suits agencies, including commercial agencies, that want a standalone trust ledger to sit alongside their other software. Pricing starts at $99 per month ex GST.

What to look for in trust accounting software

The best trust account software for one agency won’t be the best for another, because the right fit depends on rent roll size, property mix and the systems already in place. Whichever platform makes your shortlist, check that it covers:

1. State and territory compliance: trust account rules differ in each state and territory, so confirm the software is kept current with the legislation where you operate.
2. Automated reconciliation: daily bank feeds and automatic matching reduce the manual work behind monthly reconciliations.
3. Separate trust ledgers: support for property management, sales and, where relevant, holiday letting or strata trust ledgers.
4. Audit-ready reporting: a complete digital audit trail of receipts, disbursements and journals makes the annual trust account audit faster.
5. AML/CTF support: since 1 July 2026, AUSTRAC’s AML/CTF obligations apply to real estate agents providing designated services such as acting for clients in property sales, so agencies holding sales trust funds should check how their software supports customer due diligence and record-keeping.
6. Integrations: connections to accounting, CRM and payment tools so data is entered once and flows everywhere it’s needed.

For most Australian agencies, the best software for trust accounting combines compliance, automation and a clear audit trail inside the system the team already uses every day. Explore MRI’s trust accounting software to see how Property Tree, Rest Professional and Strata Master handle trust accounting for residential, sales, holiday rental and strata portfolios.

Example of an account in trust

Imagine a tenant pays their rental bond and the first month’s rent in advance. These funds cannot be used for business operations. They must be held in a trust account until they are either refunded (in the case of the bond) or passed on to the property owner (for rent).

If the money was mistakenly deposited into the business’s operational account, it could be misused or mistakenly spent. This creates both legal and reputational risk. By keeping the funds in a trust account, you ensure transparency and compliance.

Requirements when opening a trust account

Each state and territory in Australia sets its own requirements for trust accounts. Some of the common expectations include:

• The account must be held at an authorised institution
• You must notify the regulator when the account is opened
• Monthly and annual reconciliations are required
• Access must be limited to authorised individuals only

Real estate agencies are also expected to keep detailed records for all trust transactions. These records must be retained for a specific number of years depending on local laws. Regular training and updated procedures can help ensure ongoing compliance.

Trust account audit requirements

Trust account audits are mandatory in most Australian states and must be completed by a registered auditor. These audits check whether the funds in the account match the records kept by the business.

Your auditor will typically review:

• Deposit and withdrawal records
• Bank reconciliations
• Receipts and disbursement journals
• Internal procedures

Failing an audit can lead to serious consequences including penalties, suspension of your real estate licence, or legal action. Many businesses choose to use trust accounting software to ensure they remain audit-ready throughout the year.

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