Property Management

A Louisiana property management company that manages properties for multiple owners must:

AMaintain a separate bank account for each property owner
BMaintain a trust account for all clients' funds, with detailed accounting records to track each owner's funds separately✓ Correct
CPool all client funds in one general business account for efficiency
DReport monthly to the LREC on all client fund activities

Explanation

While a single trust account may hold funds for multiple clients, the property manager must maintain detailed accounting records identifying each client's funds separately. Commingling is prohibited, but a single trust account with proper bookkeeping is generally acceptable.

Related Louisiana Property Management Questions

Practice More Louisiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Louisiana Quiz →