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. Conversely, 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 Top_of_Arl_Ridge_Road, 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 real estate investors.
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 landlord. 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.
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.
Top_of_Arl_Ridge_Road Property Management Resources
Basics
Basic info about what rental managment in Top_of_Arl_Ridge_Road.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a reliable renter in Top_of_Arl_Ridge_Road fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for property owners?
Cost
A breakdown of fees associated with rental management services in Top_of_Arl_Ridge_Road
Vetting
How Nesbitt Realty vets tenants for landlords.
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 our community?
Our Guide to Real Estate is a handy resource for everyone who hopes to learn more about Top_of_Arl_Ridge_Road and neighboring communities. The Guide to Real Estate includes facts regarding what has sold and what is currently listed, as well as a couple of compelling facts that you may not be aware of. In addition, our Guide spotlights quite a few of the elements of living in Top_of_Arl_Ridge_Road. As a matter of course, most of this is helpful for purchasers and sellers, but landlords and renters should also find this data to be somewhat informative.
Landlord Reference
a good reference for property owners in Top_of_Arl_Ridge_Road
- Before you put a renter in your property in Top_of_Arl_Ridge_Road
- Collections and evictions
- Communications with the tenant
- During tenancy
- End of tenancy and what happens when a renter breaks the lease
- How does the landlord get paid?
- How your property manager handles the association and your community
- How your management company handles utilities
- How Nesbitt finds renters
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Top_of_Arl_Ridge_Road rental investor responsibilities
- Maintenance, repairs & inspections for your rental investment in Top_of_Arl_Ridge_Road
- 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 renters in Top_of_Arl_Ridge_Road