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 pay for our business. Operating funds are our money. On the other hand, 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 Townes_of_Shirlington, 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 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 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 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.
Property 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.
Townes_of_Shirlington Rental Management Resources
Basics
Basic information about what property management in Townes_of_Shirlington.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a dependable renter in Townes_of_Shirlington fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for landlords?
Cost
A list of prices of property management services in Townes_of_Shirlington
Vetting
How Nesbitt Realty checks the backgrounds of tenants for landlords.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage property?
Clients
Who uses Nesbitt Realty management services?
Should you know more about this local real estate market?
Nesbitt Realty's Guide to Real Estate is a handy tool for anyone who hopes to investigate real estate facts about Townes_of_Shirlington and nearby communities. The Guide to Real Estate provides information about what has sold and what is on the market, and some interesting facts that you might not be aware of. Not to mention, our Guide highlights quite a few of the elements of residing in Townes_of_Shirlington. As a matter of course, all of this is helpful for buyers and sellers, but property owners and renters will probably also find the facts to be somewhat eye-opening.
Landlord Reference
a handy archive for landlords in Townes_of_Shirlington
- Before you move a tenant into your rental property in Townes_of_Shirlington
- Collections and evictions
- Communications with the renter
- During the lease term
- End of tenancy and what happens when a tenant breaks the lease
- How does the property owner get paid?
- How your rental manager handles the association and your community
- How your rental manager handles utilities
- How Nesbitt finds tenants
- Insurance matters for rental investors using our rental management
- How Nesbitt Realty & Management manage keys
- Townes_of_Shirlington landlord responsibilities
- Maintenance, repairs & inspections for your rental property in Townes_of_Shirlington
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental
- When landlords don't yet know their new address
- Vetting renters in Townes_of_Shirlington