Our tenant's credit was poor, in order to sign the lease he agreed to the Property Management's request for 1 yr prepaid rent. The amount went into a trust (per state guidelines) and we receive the rent for each month as it is "earned" by us. Do we need to claim the entire amount on our taxes?

The trustee will issue a 1099 or K-1 at the end of January, and that will have the amount you declare as income on it.