Do you know the difference between contingency reserves and operating funds?
Operating funds are monies that our real estate brokerage uses to pay for our business. Operating funds are our money. But, 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 Isabella_at_monticello_mews, 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 landlord clients.
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. If 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.
Property 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.
Isabella_at_monticello_mews Rental Management Resources
Basics
Basic info about what rental managment in Isabella_at_monticello_mews.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a dependable renter in Isabella_at_monticello_mews fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for property owners?
Cost
A breakdown of fees associated with rental management in Isabella_at_monticello_mews
Vetting
How Nesbitt Realty vets renters for property owners.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage property?
Clients
Who uses Nesbitt Realty management services?
Do you need understand more about this local real estate market?
Nesbitt Realty's Guide to Real Estate is a handy resource for everyone who needs to review important real estate information about Isabella_at_monticello_mews and surrounding communities. The Guide to Real Estate compiles information about what has sold and what is currently listed, and many interesting facts that you might not know. Also, our Guide has many of the fundamentals of living in Isabella_at_monticello_mews. Of course, most of this is helpful for buyers and sellers, but owners and renters will probably also find these tools to be quite useful.
Landlord Reference
a useful source for landlords in Isabella_at_monticello_mews
- Before you lease out your rental property in Isabella_at_monticello_mews
- Collections and evictions
- Communications with the tenant
- During tenancy
- End of tenancy and what happens when a tenant breaks the lease
- How does the property owner get paid?
- How your management company handles the association and your community
- How your rental manager handles utilities
- How Nesbitt Realty & Management finds renters
- Insurance matters for owners using our rental management
- How Nesbitt Realty & Management manage keys
- Isabella_at_monticello_mews landlord responsibilities
- Maintenance, repairs & inspections for your rental investment in Isabella_at_monticello_mews
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental investment
- When property owners don't yet know their new address
- Vetting renters in Isabella_at_monticello_mews