Do you know the difference between contingency reserves and operating funds?
Operating funds are monies that our real estate brokerage uses to fund 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 Tiers_At_Manchester_Lake, 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 buyers (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 repairs and other incidentals that occur during property management. Although the money is in our escrow account, the money belongs to the real estate investor. When the property management ends, that money is promptly returned to the real estate investor.
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.
Real estate investors 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.
Tiers_At_Manchester_Lake Property Management Resources
Basics
Fundamental information regarding rental managment in Tiers_At_Manchester_Lake.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a great tenant in Tiers_At_Manchester_Lake fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
An overview of prices of rental management in Tiers_At_Manchester_Lake
Vetting
How Nesbitt Realty vets tenants for landlords.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage property?
Clients
Who uses Nesbitt Realty management services?
Should you understand more about this local real estate market?
Our Guide to Real Estate is a handy resource for anyone who needs to find out more about Tiers_At_Manchester_Lake and surrounding communities. The Guide to Real Estate compiles data regarding what has sold and what is currently listed, as well as many shocking facts that you might not be aware of. In addition, our Guide highlights quite a few of the assets of life in Tiers_At_Manchester_Lake. Certainly, most of this is helpful for buyers and sellers, but real estate investors and renters will also find these resources to be quite sobering.
Landlord Reference
a good archive for property owners in Tiers_At_Manchester_Lake
- Before you move a tenant into your rental property in Tiers_At_Manchester_Lake
- Collections and evictions
- Communications with the renter
- During tenancy
- End of tenancy and what happens when a tenant breaks the lease
- How does the landlord get paid?
- How your management company handles the association and your community
- How your management company handles utilities
- How Nesbitt Realty & Management finds tenants
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Tiers_At_Manchester_Lake owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Tiers_At_Manchester_Lake
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental property
- When landlords don't yet know their new address
- Vetting renters in Tiers_At_Manchester_Lake