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 fund 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 Enclave At Fair Lakes, 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 escrow 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 property owner. When 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.
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.
Enclave At Fair Lakes Rental Management Resources
Basics
Elementary info regarding rental managment in Enclave At Fair Lakes.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a dependable renter in Enclave At Fair Lakes fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
A list of prices of rental management services in Enclave At Fair Lakes
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 want understand more about our local real estate market?
Our Guide to Real Estate is a handy resource for everyone who hopes to investigate real estate facts about Enclave At Fair Lakes and neighboring areas. The Guide to Real Estate includes facts about what has sold and what is on the market, and some surprising facts that you might not know. Furthermore, our Guide has quite a few of the fundamentals of life in Enclave At Fair Lakes. Certainly, most of this is interesting for purchasers and sellers, but rental investors and renters may also find the facts to be very enlightening.
Landlord Reference
a good source for property owners in Enclave At Fair Lakes
- Before you put a renter in your rental in Enclave At Fair Lakes
- Collections and evictions
- Communications with the tenant
- 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 property management company handles utilities
- How Nesbitt finds tenants
- Insurance matters for landlords using our rental management
- How Nesbitt Realty & Management manage keys
- Enclave At Fair Lakes owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Enclave At Fair Lakes
- 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 Enclave At Fair Lakes