Property Management

A Wisconsin property manager who fails to deposit security deposits in a separate trust account and instead uses them for operating expenses is guilty of:

AA minor bookkeeping error
BCommingling and potentially conversion of client funds✓ Correct
CA civil infraction only
DNo violation if rent is current

Explanation

Using security deposits for operating expenses violates Wisconsin trust accounting requirements; it constitutes commingling and potentially conversion (theft) of the tenant's funds.

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