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For vacation rental managers, trust accounting is more than just a bookkeeping requirement—it’s a legal and ethical responsibility. Ensuring compliance with state regulations is crucial for maintaining transparency and protecting both property owners and guests. Barefoot Technologies is proud to offer a short-term rental software solution with full and true trust accounting that meets North Carolina’s real estate certification standards, giving our clients peace of mind that their financial processes are in line with regulatory requirements. 

Understanding Trust Accounting in Vacation Rentals 

Trust accounting refers to the management of rental income, security deposits, owner payments, and other funds held on behalf of clients in a way that meets strict legal standards. Many states, including North Carolina, require real estate firms and property managers to maintain separate trust accounts to protect these funds from misuse. 

Key components of trust accounting include: 

• Segregation of funds: Rental income and security deposits must be held separately from operational business funds. 

• Detailed record-keeping: Every transaction must be properly documented to provide a clear audit trail. 

• Timely disbursements: Funds must be distributed to property owners, vendors, and other stakeholders according to legally mandated timelines. 

• Regular reconciliations: Trust accounts must be reconciled consistently to ensure accuracy and compliance. 

North Carolina’s Trust Accounting Regulations 

In North Carolina, trust accounting is heavily regulated by the North Carolina Real Estate Commission (NCREC). Vacation rental managers who hold funds for property owners are required to adhere to strict rules, including: