For holiday home owners, knowing that your property manager is handling your rental income correctly is just as important as knowing your property is being marketed and maintained properly.
Over the past two months, Air Design Australia has been working through its annual trust account audit process. We are pleased to say that we passed with flying colours, providing another important reassurance to our property owners that their funds are being managed with care, transparency and in accordance with our regulatory obligations.
What does a trust account audit involve?
A trust account audit is an independent review of the money a licensed property manager holds on behalf of property owners and other clients.
The auditor reviews records and transactions to ensure that:
- Owner funds have been correctly received and recorded
- Payments and disbursements have been properly authorised
- Trust account balances reconcile with the accounting records
- Owner statements accurately reflect income and expenses
- Trust money has been kept separate from the agency’s own operating funds
- The required accounting records and procedures are being maintained
- The agency is complying with the relevant legislation and regulations
In NSW, licensed property agents are required to hold client funds in a trust account and comply with specific trust account management and audit requirements under the Property and Stock Agents Act 2002.
Victoria also requires estate agents to have their trust accounts audited annually by an approved independent auditor, with the audit covering the financial year from 1 July to 30 June.
Why does an independent auditor matter?
The purpose of an independent audit is to provide an objective review rather than relying solely on the agency’s own accounting team.
This is particularly important when an agency manages multiple properties and processes significant amounts of owner and guest money. An independent auditor can identify discrepancies, weaknesses in processes or areas where additional controls may be required.
The audit process is therefore not simply about ticking a compliance box. It provides an additional layer of protection and accountability for property owners.
In NSW, auditors are required to form an opinion on whether the agent has complied with the relevant legislation and regulations in all material respects, and audit results are lodged with NSW Fair Trading.
What does this mean for Air Design owners?
For our owners, a successful audit provides confidence that there are robust systems behind the day-to-day management of your holiday home.
At Air Design Australia, we believe professional holiday home management isn’t just about securing bookings and achieving strong rental returns. It is also about having the right financial controls, processes and accountability behind your property.
Passing our recent trust account audit with flying colours is something we are proud of — and another reason our owners can have confidence in the way their property and funds are managed.
