Property Management

A Florida property management company manages 50 residential units for various owners. The company must keep each client's funds:

AIn a single pooled trust account for convenience
BIn separate accounts for each property owner
CIn an escrow account with the funds maintained separately from operating funds✓ Correct
DIn any federally insured bank regardless of commingling

Explanation

Property managers who hold tenant deposits and rental proceeds must maintain these funds in properly designated escrow/trust accounts that are not commingled with the brokerage's operating funds. Client funds must be kept separate from business operating funds. While separate accounts for each owner aren't always required, the funds must be properly identified and reconciled for each owner.

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