Do you know the difference between contingency reserves and operating funds?
Operating funds are monies that our property management and real estate business uses to pay for 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 West_Village_At_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 landlord clients.
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 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 landlord.
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.
West_Village_At_Shirlington Property Management Resources
Basics
Basic info about what rental managment in West_Village_At_Shirlington.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a dependable renter in West_Village_At_Shirlington fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
A breakdown of fees associated with rental management in West_Village_At_Shirlington
Vetting
How Nesbitt Realty checks the backgrounds of renters for our clients.
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 this community?
Our Guide to Real Estate is a helpful resource for anyone who wants to investigate real estate facts about West_Village_At_Shirlington and surrounding communities. The Guide to Real Estate compiles data about what has sold and what is for sale, and a couple of shocking facts that you might not know. Furthermore, our Guide spotlights many of the fundamentals of life in West_Village_At_Shirlington. Of course, all of this is useful for buyers and sellers, but rental investors and tenants will also find this information to be somewhat sobering.
Landlord Reference
a useful archive for rental investors in West_Village_At_Shirlington
- Before you put a renter in your rental in West_Village_At_Shirlington
- 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 rental manager handles utilities
- How Nesbitt Realty finds tenants
- Insurance matters for owners using our property management
- How Nesbitt Realty & Management manage keys
- West_Village_At_Shirlington rental investor responsibilities
- Maintenance, repairs & inspections for your rental investment in West_Village_At_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 West_Village_At_Shirlington