Do you know the difference between contingency reserves and operating funds?
Operating funds are funds that our real estate brokerage uses to fund 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 Gates Of 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 purchasers (and sometimes sellers) as we'll as contingency reserve funds for property owners.
Contingency reserve is a special type of escrow.
A contingency reserve account is money that is held in escrow 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 real estate investor. 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.
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.
Gates Of Fair Lakes Rental Management Resources
Basics
Basic info regarding property management in Gates Of Fair Lakes.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a great renter in Gates Of Fair Lakes fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for landlords?
Cost
A breakdown of prices of property management services in Gates Of Fair Lakes
Vetting
How Nesbitt Realty vets renters for property owners.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage rentals?
Clients
Who uses Nesbitt Realty management services?
Do you need understand more about this community?
Nesbitt Realty's Guide to Real Estate is a free resource for anyone who needs to find out more about Gates Of Fair Lakes and surrounding communities. The Guide to Real Estate provides facts regarding what has sold and what is currently listed, and some interesting facts that you might not know. And, our Guide has some aspects of life in Gates Of Fair Lakes. Naturally, most of this is interesting for buyers and sellers, but landlords and renters may also find the facts to be somewhat informative.
Landlord Reference
a good reference for property owners in Gates Of Fair Lakes
- Before you move a tenant into your rental property in Gates Of Fair Lakes
- 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 manager handles the association and your community
- How your property manager handles utilities
- How Nesbitt Realty & Management finds tenants
- Insurance matters for owners using our rental management
- How Nesbitt Realty & Management manage keys
- Gates Of Fair Lakes property owner responsibilities
- Maintenance, repairs & inspections for your property in Gates Of Fair Lakes
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental investment
- When owners don't yet know their new address
- Vetting renters in Gates Of Fair Lakes