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 even so, 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 Windy Hill At Lincolnia, 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 maintenance and other incidentals that occur during rental management. Although the money is in our escrow account, the money belongs to the landlord. When 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.
Windy Hill At Lincolnia Rental Management Resources
Basics
Basic info regarding management services in Windy Hill At Lincolnia.
Getting Started
Learn more about getting started with rental property management
Find A Tenant
Market your property to rent to find a great tenant in Windy Hill At Lincolnia 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 Windy Hill At Lincolnia
Vetting
How Nesbitt Realty vets renters for landlords.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage rentals?
Clients
Who uses Nesbitt Realty management services?
Do you want know more about this local real estate market?
Nesbitt Realty's Guide to Real Estate is a free resource for everyone who needs to investigate real estate facts about Windy Hill At Lincolnia and neighboring communities. The Guide to Real Estate has facts regarding what has sold and what is for sale, as well as some shocking facts that you might not be aware of. In addition, our Guide highlights many of the fundamentals of residing in Windy Hill At Lincolnia. Of course, all of this is helpful for buyers and sellers, but landlords and tenants will also find this information to be quite informative.
Landlord Reference
a good source for landlords in Windy Hill At Lincolnia
- Before you rent out your investment in Windy Hill At Lincolnia
- Collections and evictions
- Communications with the renter
- During tenancy
- End of lease term 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 management company handles utilities
- How Nesbitt Realty finds tenants
- Insurance matters for owners using our property management
- How Nesbitt Realty & Management manage keys
- Windy Hill At Lincolnia rental investor responsibilities
- Maintenance, repairs & inspections for your rental property in Windy Hill At Lincolnia
- 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 Windy Hill At Lincolnia