Property Management

A Connecticut property manager receives funds from a tenant for rent and a security deposit. How should these funds be handled?

ABoth should go into the manager's operating account for convenience
BRent payments go to the owner account; security deposits must be held in a separate escrow/trust account✓ Correct
CBoth should be deposited in the trust account
DThe manager may hold the funds in cash until needed

Explanation

Rent payments belong to the property owner and should be forwarded to the owner's account (or held briefly in trust before remittance). Security deposits must be held in a separate interest-bearing escrow account and cannot be commingled with operating funds or owner payments.

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