Recent reporting by Bangor Daily News about an investigation involving a property management company has understandably caused some property owners to pause and think more carefully about how their rental income and security deposits are handled.

 

While investigations take time and facts matter, situations like this tend to surface a broader issue that often doesn’t get much attention until something goes wrong: where rent money and security deposits are actually held, and who has control over them.

 

At Standard Management Company, we’ve made a deliberate decision to structure our financial systems in a way that minimizes risk by design.

 

We Do Not Hold Rent or Security Deposits

 

Our operating model is simple. We do not take custody of owner or tenant funds.

 

Using AppFolio, each property we manage is mapped directly to the landlord’s bank account. Both rent payments and tenant security deposits are paid directly into that account.

 

Funds do not pass through our operating accounts. They are not pooled with other properties. They are not held temporarily and then sent out later. We do not retain them for any period of time.

 

Because we never possess the funds, we also cannot delay them, use them, invest them, or earn interest on them.

 

Why This Structure Matters

 

Many financial issues in property management arise not from bad intentions, but from systems that rely too heavily on internal controls. When large sums of money sit in a management company’s trust account, even a well-run operation can face challenges if cash flow tightens, staffing changes, or processes break down.

 

By routing rent and security deposits directly to the landlord, the risk is reduced at a structural level. Owners always know where their money is, when it arrives, and that it was never commingled with other funds.

 

This approach also provides clarity during audits, simplifies accounting, and reduces exposure for everyone involved.

 

Security Deposits Are Not Management Company Money

 

Security deposits deserve special care. They belong to tenants, with clear legal obligations tied to how they are handled and returned.

 

In our system, security deposits are paid directly into the landlord’s bank account and tracked at the property level. They are never used for operating expenses, never leveraged, and never treated as float or working capital.

 

This protects owners from unnecessary risk and ensures deposits are handled in a way that is consistent, transparent, and defensible.

 

Transparency Comes From Systems, Not Assurances

 

Property owners shouldn’t have to rely on reassurances about how their money is handled. They should be able to verify it themselves.

 

Direct-to-owner banking provides that clarity. Owners can see funds arrive in real time and know they were never held elsewhere. That visibility builds confidence not because of what is promised, but because of how the system is designed.

A Final Thought for Property Owners

 

If you own rental property in Maine, it’s worth asking any property manager a simple question: where does my rent and my tenants’ security deposits actually go before it reaches me?

 

The answer matters more than most people realize.

 

If you’d like to understand how our process works in more detail or compare it to your current setup, we’re always happy to explain.

 

Call us : (207) 203 -7578

Email us: sales@standardmanagementcompany.com

Visit us: www.standardmanagementcompany.com

 

Financial integrity in property management starts with keeping your money where it belongs—your own bank account.