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How agencies handle rent, bill payments, and financial transactions plays a crucial role in efficiency, compliance, and customer satisfaction in property management.

While traditional trust accounting has long been the standard, newer models that prioritise automation, efficiency and direct payments are reshaping the industry.

This article explores the key differences between these models, their advantages and drawbacks, and introduces a hybrid approach that combines the flexibility of ‘direct to landlord’ accounting with the security and control of trust accounting.

Below is a quick guide to what we’ll cover in this article:

What is traditional trust accounting in property management

What is ‘direct to landlord’ (or trustless) accounting

For decades, traditional trust accounting has been the industry standard for property management agencies. This model requires agencies to hold rental funds in a dedicated trust account, ensuring compliance with strict financial regulations.

 – Trust accounts are familiar to property investors, renters, and auditors.

More time to manage investor cash flow issues 

– With mid and end-of-month disbursements, funds move at a slower pace, giving property managers more time to resolve issues that could impact a property investor’s cash flow.

Aligns with historic compliance standards 

– Trust accounts operate within an established legal and financial framework, which makes it straightforward when dealing with questions of compliance from auditors and cautious investors.

 – Trust accounting involves significant manual work– including receipting, reconciliation, and audits – which don’t add any customer or business value.

Rigid structure means less flexibility for customers

 – Traditional trust accounting can be inflexible when it comes to payment methods, visibility into payments, and customer preferences.

 – Traditional trust accounting relies heavily on manual data entry, reconciliation, and reporting. Mistakes such as incorrect allocations, missed transactions, or delayed processing can cause significant disruptions and require time-consuming corrections.

 – Because funds are pooled in a trust account, agencies must have strict controls in place to prevent unauthorised access, mismanagement, or fraudulent activity. Trust account fraud can have serious legal and financial consequences, and compliance regulations require rigorous oversight to mitigate these risks.

 – Because traditional trust accounting is highly manual and lacks real-time visibility, key team members often struggle to take time off. If an agency relies on a single person to manage trust accounting, it can be challenging to step away without causing delays or disruptions.

 – Property managers often find end-of-month and EOFY processing overwhelming, as it requires halting other work to focus on reconciliations and disbursements. This creates high-pressure deadlines and limits the ability to focus on customer service and other important business activities.

Examples of legacy trust accounting software providers

Console Cloud, Property Tree, and PropertyMe are widely used legacy trust accounting software designed for property managers.

Direct to landlord property management (sometimes called trustless, trust-free, no-trust accounting, or automated direct payments) is a modern approach that eliminates the need for agencies to hold rental funds in a traditional trust account. 

Instead, all payments are automated, moving directly from the renter to the property investor, with deductions such as management fees and bills processed along the way, without being held in any kind of account that people have access to.

Pros of ‘direct to landlord’ accounting

 – ‘Direct to landlord’ systems reduce the need for manual handling of funds, minimising human error and removing the complexity of trust account regulations, audits, and reconciliations.

 – Without funds being held in a trust account, the risk of mismanagement or fraud is significantly lowered. Every transaction is transparent and recorded in a secure digital ledger that only authorised parties can access in real time.

More transparency provides a better experience for everyone 

– This model enables real-time rent payments to property investors, eliminating end-of-month delays and improving cash flow. Many platforms also provide real-time tracking, giving property managers and investors complete visibility into transactions. Agencies that prioritise transparency will stand out in a competitive market.

Provide more cash flow options to renters and investors.

 Offer more ways to pay rent and bills like via credit and debit cards.

 – Agencies can save significant time by eliminating manual receipting, reconciliations, and end-of-month reporting, allowing teams to focus on customer relationships and business growth.

 – Trust accounting often comes with additional costs, such as auditing and bank fees. A ‘direct to landlord’ significantly reduces and in some cases eliminates these expenses.

Cons of ‘direct to landlord’ accounting

Limited flexibility and compatibility with all payment scenarios

– In some states, agencies need to maintain a trust account to process bonds and Centrepay payments. ‘Direct to landlord’ systems also can’t support complex payment setups like those in commercial leases or social housing, limiting their use as a universal solution.

– Many renters and property investors are accustomed to traditional trust accounting and may take time to adjust to a new system or prefer their funds are held in trust.

 – Change can be difficult, especially in an industry that has long relied on trust accounts. Adjusting to a new way of handling payments and reconciliations can require training and a shift in mindset for some property managers.

Example of ‘direct to landlord’ accounting software for property managers:

Managed App and Kolmeo are examples of property management software that use ‘direct to landlord’ (or trustless) accounting, automating payments without a traditional trust account.

At Ailo, we believe in choice. That’s why we offer 

 that gives agencies the flexibility to process payments via a trust account or via automated ‘direct to landlord’ payments —whichever suits their business and their client's best.

 Give investors and renters greater flexibility. Let them choose the payment approach that suits them best—like instant access to rental income for investors or more ways to pay rent and bills, including Visa and Mastercard credit cards.

Real-world flexibility to handle complex payment scenarios. 

Enjoy the transparency and efficiency of the ‘direct to landlord’ model, while still being able to handle complex payment scenarios like bonds, Centrepay, commercial leases, and social housing.

 Automated payments, investor statements, and rent reminders reduce manual admin and improve accuracy. Property managers report saving 6–10 hours per week and seeing a 65% drop in overdue tenancies. End-of-month processing and team leave are no longer disruption points.

Confidence in a shifting regulatory landscape. 

Navigate a complex and ever-evolving regulatory environment, so you can operate with confidence.

It’s easy to gradually move toward a more automated, efficient payments workflow, without disrupting your day-to-day operations.

 Autopay and expanded payment options mean suppliers get paid quickly—often faster than industry averages.

 – The platform adheres to strict compliance and risk management protocols to protect user funds. 

Always know what’s going on– no surprises.

 Everyone can see payment history, real-time balances, transfers, and upcoming bills at a glance. That means no more end-of-month surprises or “paid-to” phone calls.

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Property Manager

Property Investor

Renter

Tradie

Business Owner

Legacy systems that rely solely on trust accounting can be rigid and time-consuming. They offer limited visibility into payments, force agencies to follow strict trust account rules, and create unnecessary administrative bottlenecks—especially at the end of the month when everything grinds to a halt.

On the other hand, ‘direct to landlord’ models like Managed App remove the complexity of trust accounting but lack flexibility for agencies that still need trust accounts for certain scenarios.

Ailo’s choice model allows agencies and their customers to choose the best option for them. Whether a property investor prefers the familiarity of traditional trust accounting or opts for ‘direct to landlord’ payments, Ailo supports both seamlessly. Automation is built into the platform, so property managers can remain agnostic—neither option creates extra work. The result: more choice for clients, with no added burden for your team.

Ultimately, understanding your options and technology available will help you make an informed choice that aligns with your agency’s goals. Each agency’s situation is unique, but the overarching goal remains the same: safeguarding client funds and ensuring trust is paramount.

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Frequently asked questions about payments & accounting in property management

Trust accounting vs. ‘direct to landlord’ payments: Why the new choice model wins in property management

The property management industry is shifting, and a new wave is building. 

Up until now, property management has been seen as  collecting rent, finding tenants, and fixing things when they break. The entire industry—its revenue models, technology, and even its culture—was built around this concept. Success was measured by efficiency—how fast you could collect rent, find tenants, and handle repairs. And, innovation in the industry focused on improving these processes.

But expectations have changed, and property investors, renters, and homeowners want more. They want a seamless experience, proactive insights, and more value. 

Now, the third wave of property management is here, and it’s being driven by something much more powerful: service, experience, and relationships.

The property management industry has evolved through three major waves of transformation, each reshaping how agencies operate:

– Paper-based processes were replaced with software, helping agencies manage leases, payments, and maintenance more efficiently.

– Systems moved online, allowing for remote access, automation, and greater collaboration within teams.

The third wave: Customer experience and service

 – The industry is now shifting away from pure efficiency and toward delivering greater value through service, relationships, and advisory support.

The first two waves of innovation in property management were groundbreaking at the time, but they were ultimately about making the 'old ways', faster

This third wave is fundamentally different. It’s not just about doing the same things faster; it’s about redefining what property management can be.

The right tools and technology are critical to catching the third wave

Old technology is holding the industry back. Legacy systems aren’t solving these problems and pressure is mounting on property management businesses.

Service standards are rising everywhere, and property management is no exception.

They’re caught between high expectations and time-consuming admin.

Business owners are competing on price more than service.

 Instead of offering more value, many feel forced to cut fees just to stay competitive.

These pressures make it increasingly difficult to scale, retain great staff, and meet rising investor expectations. The key to easing this strain is moving away from legacy systems and adopting technology that expands the scope of property management services and lets you deliver exceptional, personalised service at scale.

By implementing systems that allow teams to focus on delivering exceptional service, agencies can attract more clients, drive higher revenue, and confidently charge premium fees.

Real-world success: how Ailo is helping agencies lead the third wave

Ailo isn’t just another tool—it’s a fresh approach to property management. Ailo is designed to help businesses grow by focusing on service, not admin. It helps agencies:

Deliver a better experience for investors.

 More transparency, more control, deep personalisation, and fewer friction points.

Make property management a more rewarding, less stressful job

Less time on admin, more time on meaningful work, better job satisfaction, and easier recruitment.

When relationships are strong, agencies can expand into new services and markets. A better service experience means more referrals and portfolio consolidation.

– No more juggling multiple platforms. Ailo replaces outdated trust accounting and admin tools with a single, streamlined solution.

 – Every conversation, update, and transaction in one place, so nothing falls through the cracks.

Property managers should be relationship managers

 – Significantly reduce the admin so there is capacity to focus on value-added service. Rent is processed instantly, so investors get their money sooner. Maintenance, inspections, and everyday tasks are simpler and more efficient.

Investors and renters deserve more choice

 – Less friction, more flexibility, and a better overall experience. Give your customers more choice without burning out the team.

Lavender

The third wave is here—will you catch it?

The industry is changing, and those who adapt first will gain the biggest advantage. Businesses have three choices:

 But that means more admin, tighter margins, and growing pressure.

But standing still while others innovate means falling behind.

Businesses that embrace change now will set new service standards, attract more investors, and build stronger rent rolls.

Ailo helps businesses take that third path: transforming property management from a process-driven industry into a service-driven and advisory-focused one.

The third wave of property management is here. Agencies that recognise this shift and expand their services will build stronger connections, grow their businesses, and charge higher fees as a result.  Are you ready?

Catching the third wave of property management—how service-driven agencies will win big

The new partnership is set to transform service delivery in property management businesses across Australia, and help the LJ Hooker network lead in consumer experience.

, a leading Australian real estate group, has partnered with 

, a groundbreaking property management platform, to assist its franchise network to lead in consumer experience and unlock new commercial opportunities.

Ailo is a powerful, all-in-one property management platform designed to handle payments and accounting, communication, and workflows. Unlike legacy property management software, Ailo helps property managers move beyond admin tasks and focus on building strong relationships with homeowners and renters.

 said Ailo had proven to be a beneficial addition to the LJ Hooker business partner ecosystem.

“We’re seeing LJ Hooker property managers extract efficiencies, improve their service offering and improve margins through adoption of the Ailo platform,” he said. 

A number of LJ Hooker offices have already found success on the platform, including 

Shane Colquhoun’s award-winning business in Nerang

Since migrating to the Ailo platform last year, Shane said his team has never been happier: they’ve 

dramatically reduced the hours spent on administration

, arrears sit below 1%, clients are happier, and they’ve even had creditors ringing to say thank you because they are getting paid faster.

“I've never seen anything like it. The platform truly is working for us. It’s a better experience for everyone,” he said.

Ailo Head of Enterprise Sales Benjamin Ling said the team was thrilled to partner with LJ Hooker, an industry leader embracing cutting-edge technology to deliver a competitive advantage to their network.

“We love partnering with progressive industry partners like LJ Hooker, which not only wants to provide a superior customer experience, but also shares our vision of transforming the property management industry,” he said.

“The future of property management is centred around the customer experience. And the Ailo platform is the only all-in-one property management software on the market built from the ground up to help agencies deliver exceptional customer experiences efficiently.”

Benjamin said the future of property management is that it becomes the growth engine for real estate agencies; the part of your business that nurtures strong relationships with everyone in your community.

LJ Hooker Group has been pioneering real estate since opening its first LJ Hooker office in Maroubra, Sydney, in 1928. Since then, it has expanded internationally to provide a comprehensive range of residential and commercial real estate services in Australia and New Zealand. 

Collectively, the LJ Hooker Group comprises one of the largest residential and commercial sales and property management networks, with 420 offices and a team of 4,300 sales professionals, property managers and support staff. Visit 

Ailo is a groundbreaking property management platform that enables agencies to adapt to rising consumer expectations, attract and retain top talent, and unlock new commercial opportunities to build more profitable businesses. 

It is the only all-in-one property management software system that 

, accounting, and compliance, consolidates all 

, and empowers teams to deliver exceptional service. Founded in 2017, Ailo has helped 250,000 property managers, property investors, renters, and tradies work more efficiently together. Visit 

LJ Hooker Group welcomes a new era of property management with Ailo partnership

Since migrating to the Ailo platform last year, Shane said his team has never been happier. 

They’ve dramatically reduced the hours spent on administration, arrears sit below 1%, clients are happier, and they’ve even had creditors ringing to say thank you, because they are 

Shane Colquhoun is no stranger to the property management industry. As the 

, he’s seen it all—the challenges, the changes, and the opportunities that come with running a modern agency. For Shane, staying ahead means embracing new ways of working, and that’s exactly why he made the move to Ailo.

Accountability & transparency: a game-changer for principals

“As the principal, I love it. I really like the accountability measurements that are there,” Shane said. “It’s got very in-depth reporting, which is better than what I’m used to seeing at the end of each month from our old system.”

For Shane, visibility isn’t about micromanagement—it’s about empowering his team.

“The team have full visibility of the stats and numbers, giving them the insight and tools to improve—ultimately fostering greater accountability and empowering them.”

Shane believes this level of insight benefits everyone—property managers, investors, and renters alike. 

“The investor is on the same page, the renter is on the same page, the property manager is on the same page, and the business has the visibility it requires.”

Why Shane loves Ailo—as a property investor himself

Shane’s endorsement of Ailo doesn’t stop at the agency level. In fact, what excites him most is the experience from an 

“I love it as a landlord,” he said. “I never had that love for an app or a property management software as a landlord before.”

Shane believes the Ailo platform has completely changed the way investors interact with their properties.

“It’s an easier app to log in to, to use, to access. With other platforms, it was a battle getting into it. But I just really enjoy using Ailo.”

4 reasons why investors fall in love with Ailo

For Shane, Ailo represents the future of property management—a platform that fosters transparency, accountability, and efficiency. And 

As the industry evolves, Shane is confident that businesses that embrace change will be the ones that thrive.

“There’s a dividend in there, for lack of a better description, for everyone.”

Principal, property investor, and Ailo advocate: why Shane won’t look back

, Senior Operations and Property Manager at McGrath on Sydney's Lower North Shore, first heard her office was switching to Ailo, she wasn’t convinced. “I was skeptical. I thought, ‘Why change? Our current system works fine.’” But now, after nearly two years on Ailo, she describes it as a “cut above the rest.”

A seasoned property manager with almost 30 years of experience, Tania knows how demanding the job can be. From managing multiple properties to handling urgent maintenance requests, staying on top of everything is no easy task. Before Ailo, she often felt like she was juggling too much at once.

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One of the platform's biggest advantages is visibility. “Before Ailo, landlords didn’t always understand the amount of work we do behind the scenes. Now, they can log in and 

—when their next routine inspection is, outstanding maintenance, financials.

Tania said this transparency builds trust and reduces unnecessary back-and-forth, making property management smoother for property investors and property managers.

This not only helps suppliers but ensures property managers get faster service, leading to happier tenants and landlords.

"Our suppliers love Ailo, because they’re paid immediately. If you were a plumber, would you prioritise the agency that pays you today or the one that makes you wait until the end of the month?" she said.

And for property investors, Tania said Ailo gives them financial flexibility they’ve never had before. “Owners can log in and pay themselves whenever they want.”

Reflecting on her initial hesitation, Tania laughed. “At first, I had my guard up. I thought there was nothing wrong with what we were using. But as I’ve seen Ailo grow, I’ve realised how much easier it makes my job. It allows property managers to focus on relationships, not just admin," she said.

For anyone considering Ailo, Tania’s advice was simple: “Have a look for yourself. Let me organise a demo for you!”

From skeptic to advocate: How Ailo won over this seasoned property manager

In today's competitive market, exceptional customer experience is a key driver of business growth. Studies show that companies 

 can achieve revenue growth rates above their industry average.

, Customer Service Manager at LJ Hooker Nerang, moving to the Ailo platform to improve their level of customer service was an essential part of the business’ growth strategy.

Having worked in real estate for over 17 years in roles ranging from property management to accounting and customer service, she recognises the importance of delivering exceptional service.

With the Ailo platform, Emily Jane and her team have scaled operations without sacrificing service quality. Here’s how:

1. Automate to eliminate the daily struggles

From an operational standpoint, property managers spend their day juggling multiple tasks that all demand their attention at the same time.

“Ailo eliminates a lot of those struggles through better systems and automations,” she said.

To begin, the Ailo platform automatically handles the bulk of payments and accounting, so her team now spends less time on the books and more time delighting customers. And with projects and inspections, she can streamline workflows with automations or completely eliminate some tasks. Now, her team can manage larger portfolios without the stress.

2. Give financial control to your investors

For many landlords, managing cash flow is one of the biggest challenges in property investment. So why should they have to wait until the end of month to access their rental income?

The Ailo platform allowed Emily Jane to introduce a level of flexibility when it came to cash flow that empowered her investors.

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What it means for your property manager to be on Ailo | investors

3. Give your renters more choice and transparency

Property managers use Ailo to manage rental payments and bills, keep homes safe and comfortable, and ensure renters are always kept in the loop. But they also use it to give more transparency and control back to renters.

“If I look at one of my tenants, for example, he loves the Ailo platform because before, he didn’t have that visibility. And he’s all about chat!” she said.

 makes it easy for property managers to deliver high frequency, quick and personalised interactions with customers. And live ledgers show renters how much they owe and when. This improved transparency fosters trust and eliminates confusion around payments, ultimately strengthening relationships between renters and property managers. 

Watch how the Ailo platform was designed to help property managers give renters a better experience 👇

4. Don’t forget the employee experience

One thing that Emily Jane loved about Ailo when she first saw it, was that it was designed to be intuitive and user-friendly– as easy to use as Facebook.

“With Ailo, it allows us to elevate the customer experience not only for our external customers, but also the internal customers which are our property management team, administration staff, and also management,” she said.

"So whether you're an investor, tenant, business owner, or an admin sitting on the front desk directing traffic from phone calls, it’s very easy to navigate,” she said.

5. Don’t ignore the importance of change management

On the Ailo platform, some things can feel a little different at first. You barely do any accounting, arrears or admin, everyone has more transparency into what’s going on, and your investors and renters have more choices.

Emily said bringing the team along the journey was critical.

"The reason to move to Ailo for us was not only to create better experiences for our clients, but we also wanted to increase the amount of properties we can each manage," she said.

“Ailo definitely helps us do that—the streamlined procedures, everything, the help has been fantastic."

How to scale customer experience & your customer count–in tandem

Growing a property management business is no small feat, but for 

, co-owner and Senior Property Manager at Ray White Mittagong, finding the right technology partner made all the difference.

Partnering with Ailo, Katelyn has transformed her business—streamlining operations, boosting team efficiency, and achieving unprecedented growth. Find out how, in just a few months, she added over 25-30 new managements, increasing her portfolio value by more than $250,000.

As Katelyn’s successful real estate business grew, so did the challenges. Managing properties while maintaining a high level of service became increasingly difficult.

“We needed to shift our focus,” Katelyn said. “We took a step back, identified areas that needed improvement, and restructured our property management department."

Katelyn and her team faced common industry pain points:

Lack of visibility into day-to-day operations

“If we keep growing like this every year, then we’re a force to be reckoned with!”

Trust and transparency win every time

“The fact that funds are readily available in real-time, is a massive selling point for landlords. ”

MORE TRANSPARENCY

Unprecedented visibility, no surprises

Communication is the single biggest driver of customer satisfaction

BETTER COMMUNICATION

Less back and forth with customers

Better service = more growth