Do you know the difference between contingency reserves and operating funds?
Operating funds are funds that our property management and real estate business uses to fund our business. Operating funds are our money. Nevertheless, 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 Dundree_Hills_Ths, 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 property owner. 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.
Dundree_Hills_Ths Rental Management Resources
Basics
Elementary info about what property management in Dundree_Hills_Ths.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a dependable renter in Dundree_Hills_Ths fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for landlords?
Cost
A list of prices of rental management in Dundree_Hills_Ths
Vetting
How Nesbitt Realty vets renters for our clients.
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 know more about the community?
Nesbitt Realty's Guide to Real Estate is a helpful tool for anyone who hopes to learn more about Dundree_Hills_Ths and surrounding areas. The Guide to Real Estate includes data regarding what has sold and what is on the market, as well as many compelling facts that you may not know. Not to mention, our Guide highlights many of the aspects of life in Dundree_Hills_Ths. Of course, most of this is interesting for purchasers and sellers, but rental investors and tenants might also find this data to be quite eye-opening.
Landlord Reference
a free archive for rental investors in Dundree_Hills_Ths
- Before you lease out your rental property in Dundree_Hills_Ths
- Collections and evictions
- Communications with the tenant
- During the lease term
- End of lease term and what happens when a tenant breaks the lease
- How does the property owner get paid?
- How your property management company handles the association and your community
- How your property management company handles utilities
- How Nesbitt Realty finds renters
- Insurance matters for rental investors using our rental management
- How Nesbitt Realty & Management manage keys
- Dundree_Hills_Ths rental investor responsibilities
- Maintenance, repairs & inspections for your rental investment in Dundree_Hills_Ths
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When owners don't yet know their new address
- Vetting tenants in Dundree_Hills_Ths