Do you know the difference between contingency reserves and operating funds?
Operating funds are funds that our real estate brokerage uses to pay for our business. Operating funds are our money. Conversely, escrow funds are different. Escrow funds are monies that Nesbitt Realty is holding on behalf of tenants, landlords, buyers and sellers. Escrow funds are not our money, but they are monies that we are trusted to safeguard. At any given time, Nesbitt Realty has hundreds of thousands of dollars in escrow accounts.
In Olde_Towne_Alexandria, the Commonwealth of Virginia requires that all real estate licensees manage escrow funds in a particular manner. Most importantly the Commonwealth requires that escrow funds are properly accounted for at all times. In additional all escrow funds must be kept separate from operating funds. The biggest portion of our escrow funds are tenant security deposits, but also hold deposits for purchasers (and sometimes sellers) as we'll as contingency reserve funds for property owners.
Contingency reserve is a special type of escrow.
A contingency reserve account is money that is held in savings to pay for maintenance and other incidentals that occur during rental management. Although the money is in our escrow account, the money belongs to the landlord. If the property management ends, that money is promptly returned to the property owner.
When a repair bill arises we use money in the contingency reserve account to pay that bill. When bills are paid in this manner the account is depleted. When the account is missing funds, at the end of the month when new rents are paid, Nesbitt Realty replenishes the count with money withheld from this rent. As property managers, Nesbitt Realty prepares a statement each month to show if/when money is depleted and how/when money is replenished into the contingency reserve account.
Owners do not pay us money to set up the contingency reserve account. Instead, Nesbitt Realty withholds money from the first month of rent in order to set up the account.
Olde_Towne_Alexandria Rental Management Resources
Basics
Elementary information about what rental managment in Olde_Towne_Alexandria.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a great renter in Olde_Towne_Alexandria fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for property owners?
Cost
A list of fees associated with property management services in Olde_Towne_Alexandria
Vetting
How Nesbitt Realty vets renters for property owners.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage rental property?
Clients
Who uses Nesbitt Realty management services?
Should you know more about the area?
Our Guide to Real Estate is a free resource for anyone who wants to find out more about Olde_Towne_Alexandria and nearby communities. The Guide to Real Estate has facts regarding what has sold and what is on the market, as well as a couple of interesting facts that you may not know. And, our Guide highlights some fundamentals of residing in Olde_Towne_Alexandria. As a matter of course, all of this is interesting for buyers and sellers, but property owners and tenants might also find this information to be somewhat eye-opening.
Landlord Reference
a useful archive for landlords in Olde_Towne_Alexandria
- Before you rent out your investment in Olde_Towne_Alexandria
- Collections and evictions
- Communications with the tenant
- During the lease term
- End of tenancy and what happens when a tenant breaks the lease
- How does the landlord get paid?
- How your property management company handles the association and your community
- How your rental manager handles utilities
- How Nesbitt finds renters
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Olde_Towne_Alexandria landlord responsibilities
- Maintenance, repairs & inspections for your rental property in Olde_Towne_Alexandria
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When owners don't yet know their new address
- Vetting renters in Olde_Towne_Alexandria