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. However, 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 Jefferson_Residential_Retirement_Community, 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 repairs and other incidentals that occur during property 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.
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.
Jefferson_Residential_Retirement_Community Rental Management Resources
Basics
Fundamental info about what rental managment in Jefferson_Residential_Retirement_Community.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a great renter in Jefferson_Residential_Retirement_Community fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for landlords?
Cost
A breakdown of prices of rental management services in Jefferson_Residential_Retirement_Community
Vetting
How Nesbitt Realty checks the backgrounds of tenants for landlords.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage rental property?
Clients
Who uses Nesbitt Realty management services?
Should you understand more about the community?
Our Guide to Real Estate is a helpful tool for everyone who wants to investigate real estate facts about Jefferson_Residential_Retirement_Community and neighboring communities. The Guide to Real Estate includes information regarding what has sold and what is on the market, as well as some compelling facts that you may not know. Also, our Guide features many of the benefits of living in Jefferson_Residential_Retirement_Community. Of course, most of this is interesting for purchasers and sellers, but rental investors and renters will probably also find this information to be quite eye-opening.
Landlord Reference
a useful reference for landlords in Jefferson_Residential_Retirement_Community
- Before you put a renter in your rental property in Jefferson_Residential_Retirement_Community
- 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 rental manager handles the association and your community
- How your management company handles utilities
- How Nesbitt finds tenants
- Insurance matters for property owners using our property management
- How Nesbitt Realty & Management manage keys
- Jefferson_Residential_Retirement_Community owner responsibilities
- Maintenance, repairs & inspections for your property in Jefferson_Residential_Retirement_Community
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental
- When property owners don't yet know their new address
- Vetting tenants in Jefferson_Residential_Retirement_Community