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. 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 The_Bromptons_At_Ballston, 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 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 rental 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.
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.
The_Bromptons_At_Ballston Property Management Resources
Basics
Basic info about what management services in The_Bromptons_At_Ballston.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a reliable renter in The_Bromptons_At_Ballston fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for property owners?
Cost
An overview of fees associated with property management services in The_Bromptons_At_Ballston
Vetting
How Nesbitt Realty checks the backgrounds of 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?
Do you want understand more about this area?
Nesbitt Realty's Guide to Real Estate is a free tool for anyone who wants to learn more about The_Bromptons_At_Ballston and surrounding communities. The Guide to Real Estate provides information about what has sold and what is on the market, as well as a few shocking facts that you may not be aware of. Furthermore, our Guide has some elements of life in The_Bromptons_At_Ballston. As a matter of course, most of this is interesting for purchasers and sellers, but rental investors and renters will probably also find this data to be quite enlightening.
Landlord Reference
a free source for property owners in The_Bromptons_At_Ballston
- Before you move a tenant into your investment in The_Bromptons_At_Ballston
- Collections and evictions
- Communications with the tenant
- During tenancy
- End of lease term and what happens when a renter breaks the lease
- How does the property owner get paid?
- How your rental manager handles the association and your community
- How your property management company handles utilities
- How Nesbitt Realty finds tenants
- Insurance matters for owners using our rental management
- How Nesbitt Realty & Management manage keys
- The_Bromptons_At_Ballston owner responsibilities
- Maintenance, repairs & inspections for your property in The_Bromptons_At_Ballston
- 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 tenants in The_Bromptons_At_Ballston