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 Fleetwood At Slate Run, 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 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 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.
Fleetwood At Slate Run Property Management Resources
Basics
Elementary information about what rental managment in Fleetwood At Slate Run.
Getting Started
Learn more about getting started with property management
Find A Tenant
List your property to rent to find a reliable renter in Fleetwood At Slate Run fast.
Accounting
How does Nesbitt Realty keep track of income and expenses for property owners?
Cost
A breakdown of prices of rental management in Fleetwood At Slate Run
Vetting
How Nesbitt Realty vets tenants for landlords.
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 anyone who wants to find out more about Fleetwood At Slate Run and surrounding communities. The Guide to Real Estate includes information about what has sold and what is on the market, and many surprising facts that you might not be aware of. And, our Guide features some fundamentals of living in Fleetwood At Slate Run. Yes, all of this is interesting for purchasers and sellers, but landlords and tenants will likely also find these resources to be somewhat eye-opening.
Landlord Reference
a good reference for rental investors in Fleetwood At Slate Run
- Before you lease out your rental property in Fleetwood At Slate Run
- 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 rental investor get paid?
- How your management company handles the association and your community
- How your rental manager handles utilities
- How Nesbitt Management finds tenants
- Insurance matters for property owners using our property management
- How Nesbitt Management handles keys
- Fleetwood At Slate Run rental investor responsibilities
- Maintenance, repairs & inspections for your property in Fleetwood At Slate Run
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your rental property
- When owners don't yet know their new address
- Vetting tenants in Fleetwood At Slate Run