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. Above all, 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 Wooster_Mercer_Lofts, 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 repairs and other incidentals that occur during rental management. Although the money is in our escrow account, the money belongs to the landlord. If 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.
Landlords 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.
Wooster_Mercer_Lofts Rental Management Resources
Basics
Basic information regarding management services in Wooster_Mercer_Lofts.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a great renter in Wooster_Mercer_Lofts fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
An overview of prices of rental management in Wooster_Mercer_Lofts
Vetting
How Nesbitt Realty vets 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 know more about this area?
Our Guide to Real Estate is a handy tool for everyone who hopes to investigate real estate facts about Wooster_Mercer_Lofts and nearby areas. The Guide to Real Estate includes information about what has sold and what is for sale, as well as a few shocking facts that you might not be aware of. Also, our Guide spotlights quite a few of the assets of life in Wooster_Mercer_Lofts. Yes, all of this is useful for buyers and sellers, but property owners and tenants will also find this data to be very informative.
Landlord Reference
a free archive for rental investors in Wooster_Mercer_Lofts
- Before you put a renter in your property in Wooster_Mercer_Lofts
- Collections and evictions
- Communications with the renter
- During the lease term
- End of tenancy and what happens when a renter breaks the lease
- How does the landlord get paid?
- How your property management company handles the association and your community
- How your management company handles utilities
- How Nesbitt finds renters
- Insurance matters for owners using our property management
- How Nesbitt Realty & Management manage keys
- Wooster_Mercer_Lofts rental investor responsibilities
- Maintenance, repairs & inspections for your rental investment in Wooster_Mercer_Lofts
- 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 Wooster_Mercer_Lofts