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MoveZen Property Management Trust Accounting Basics: Introduction

This introductory guide explains how we handle your funds, why certain rules exist, and what protections you receive as an owner.

Audience: rental property owners who want a clear, simple explanation of how MoveZen handles trust accounting, how client funds are protected, and why strict processes exist under North Carolina real estate law.

Trust accounting is the backbone of professional property management. It ensures that your money is kept safe, your records remain accurate, and MoveZen remains in full compliance with North Carolina's strict real estate regulations.

Frequently Asked Questions

What exactly is a trust account? A regulated bank account used solely for client funds—not MoveZen's money.

Why is trust accounting so strict? Because property managers handle deposits, rent, and owner funds. NC protects consumers with tight rules.

Can my funds go negative? No. Deficits are illegal in NC trust accounts.

Why can't MoveZen pay expenses before rent arrives? Because trust law prohibits spending funds that aren't available.

How often are trust accounts audited? The NC Real Estate Commission (NCREC) can audit at any time—often unannounced.

What Is a Trust Account?

A trust account is a legally protected account designated specifically for:

  • Tenant security deposits
  • Owner rental proceeds
  • Prepaid rent
  • Pet fees
  • Repair contributions
  • Utility reimbursements
  • Owner-held reserves

No operating money is ever stored here. This separation is not optional—it's mandated by NC law.

What Makes Trust Accounting Different?

Trust accounts must meet strict rules:

  • No mixing of MoveZen funds with client funds
  • No negative balances
  • No releasing money before it clears
  • Full documentation for every dollar
  • Monthly triple reconciliation
  • Legal compliance with NC Real Estate Commission standards

These requirements keep owner funds protected and traceable.

Why MoveZen Cannot Bend Trust Rules (Even When Requested)

Sometimes property owners understandably want:

  • Early disbursements
  • Vendor payments before rent arrives
  • Use of tenant deposits for mid-lease expenses
  • "Borrowing" next month's funds for current repairs

But NC trust law makes these actions illegal.

MoveZen must follow the law exactly, or risk:

  • Losing our real estate license
  • Legal penalties
  • Frozen trust accounts
  • Owner financial exposure

This is why our accounting department will never compromise compliance—even for convenience.

How Funds Flow Through the Trust Account

Here's a straightforward example of how money moves legally:

1. Tenant pays rent → funds enter trust account

Funds must clear before they can be used.

2. MoveZen verifies availability

Software and manual checks ensure accuracy.

3. MoveZen pays authorized expenses

Examples: repair invoices, utilities (if applicable).

4. MoveZen disburses owner proceeds

Owner payments are sent on the scheduled date (typically the 10th).

5. Remaining funds stay in trust

Including deposits, reserves, or prepaid amounts.

Why Owner Balances Cannot Be Negative

A negative trust balance means MoveZen spent money before it existed—a major violation.

To prevent this:

  • Repairs can only be paid when funds are available
  • Owners may need to provide contributions
  • Disbursements never occur before funds clear
  • Deposits are never touched until the lease ends

This ensures the property's accounting is always legally sound.

 

How Trust Accounting Protects You as an Owner

Trust accounting:

  • Guarantees your funds are never misused
  • Ensures accurate financial documentation
  • Prevents unauthorized spending
  • Creates a permanent audit trail
  • Ensures security deposits remain intact
  • Reduces legal and financial exposure
  • Separates your money from MoveZen's operating funds

It's one of the strongest consumer protection mechanisms in NC real estate.

Why MoveZen Uses Strict Monthly Reconciliation

Every month, MoveZen's accounting team performs:

1. Bank reconciliation

Balances must match the bank down to the penny.

2. Trust ledger reconciliation

Each owner's and tenant's individual balances are verified.

3. Trial balance reconciliation

Total held funds must equal all client obligations.

NC law requires this every single month, without exception.

Real-World Example: Why the Rules Matter

Example:

  • Tenant pays $1,500 in rent
  • Bank shows deposit as "pending"
  • Owner asks for rental proceeds immediately

If MoveZen sends funds early:

  • Trust account temporarily goes negative (NCREC violation)
  • Owner funds become improperly handled

Therefore: MoveZen must wait until the deposit clears—this protects both parties.

What Owners Can Expect From MoveZen

  • Accurate monthly owner statements
  • Fully documented expenses
  • Legally compliant deposit handling
  • Transparent communication
  • Zero deficit trust accounting
  • On-time disbursements once funds clear
  • Secure digital access to all accounting records

Our systems are designed to meet and exceed NC trust law standards.

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