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. Still, 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 Cloverleaf_Farm_Estates, 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 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 property 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 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.
Cloverleaf_Farm_Estates Property Management Resources
Basics
Basic information regarding management services in Cloverleaf_Farm_Estates.
Getting Started
Learn more about getting started with property management
Find A Tenant
Market your property to rent to find a great renter in Cloverleaf_Farm_Estates fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
A list of fees associated with rental management in Cloverleaf_Farm_Estates
Vetting
How Nesbitt Realty checks the backgrounds of tenants for property owners.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage property?
Clients
Who uses Nesbitt Realty management services?
Do you want know more about this community?
Our Guide to Real Estate is a free resource for anyone who hopes to learn more about Cloverleaf_Farm_Estates and nearby areas. The Guide to Real Estate compiles information regarding what has sold and what is currently listed, and a few compelling facts that you may not be aware of. In addition, our Guide has some elements of life in Cloverleaf_Farm_Estates. Certainly, most of this is useful for purchasers and sellers, but property owners and tenants will also find these tools to be very edifying.
Landlord Reference
a free source for property owners in Cloverleaf_Farm_Estates
- Before you put a renter in your investment in Cloverleaf_Farm_Estates
- Collections and evictions
- Communications with the renter
- During tenancy
- End of tenancy and what happens when a tenant breaks the lease
- How does the owner get paid?
- How your management company handles the association and your community
- How your property management company handles utilities
- How Nesbitt Realty & Management finds tenants
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Cloverleaf_Farm_Estates property owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Cloverleaf_Farm_Estates
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental investment
- When property owners don't yet know their new address
- Vetting renters in Cloverleaf_Farm_Estates