A property manager in Vancouver, BC, receives a cheque for $2,000 as a damage deposit for a new tenancy. According to the BC Residential Tenancy Act and standard trust accounting practices, which of the following is the correct action for the property manager to take upon receipt of these funds?

Question: A property manager in Vancouver, BC, receives a cheque for $2,000 as a damage deposit for a new tenancy. According to the BC Residential Tenancy Act and standard trust accounting practices, which of the following is the correct action for the property manager to take upon receipt of these funds?

Answer options:

• Deposit the $2,000 into the property management firm's general operating account within 24 hours. ✅ Deposit the $2,000 into a pooled trust account specific to damage deposits for multiple properties.
• Deposit the $2,000 directly into the landlord's personal bank account.
• Hold the cheque in a secure safe until the tenant moves in, then deposit it into an operating account.

Correct answer: Deposit the $2,000 into a pooled trust account specific to damage deposits for multiple properties.

Explanation: Damage deposits are trust funds and must be immediately deposited into a trust account, separate from operating funds, to comply with provincial regulations such as the BC Residential Tenancy Act which mandates trust account usage for tenant deposits.