Do you know the difference between contingency reserves and operating funds?
Operating funds are monies that our real estate brokerage uses to fund our business. Operating funds are our money. In contrast, 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 Cannon Bluff 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 property owner. If 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.
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.
Cannon Bluff Estates Property Management Resources
Basics
Basic information about what property management in Cannon Bluff Estates.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a dependable renter in Cannon Bluff Estates fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for real estate investors?
Cost
An overview of fees associated with rental management services in Cannon Bluff Estates
Vetting
How Nesbitt Realty vets renters for landlords.
Reserves
What is a contingency reserve account?
Territory
Where does Nesbitt Realty manage rental investments?
Clients
Who uses Nesbitt Realty management services?
Do you want know more about our area?
Nesbitt Realty's Guide to Real Estate is a free resource for everyone who needs to review important real estate information about Cannon Bluff Estates and neighboring areas. The Guide to Real Estate compiles data regarding what has sold and what is currently listed, and a few compelling facts that you may not be aware of. Also, our Guide has some fundamentals of life in Cannon Bluff Estates. Of course, most of this is helpful for buyers and sellers, but rental investors and tenants will likely also find this data to be very eye-opening.
Landlord Reference
a good reference for landlords in Cannon Bluff Estates
- Before you lease out your rental in Cannon Bluff Estates
- Collections and evictions
- Communications with the renter
- During tenancy
- End of lease term and what happens when a tenant breaks the lease
- How does the landlord get paid?
- How your rental manager handles the association and your community
- How your management company handles utilities
- How Nesbitt finds renters
- Insurance matters for landlords using our rental management
- How Nesbitt Realty & Management manage keys
- Cannon Bluff Estates owner responsibilities
- Maintenance, repairs & inspections for your rental investment in Cannon Bluff Estates
- 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 renters in Cannon Bluff Estates