CONTINGENCY RESERVE FUNDS:
To adhere to general accounting practices and comply with the law, we cannot allow your individual financial account to fall below a zero balance.
We can never know when a repair event may take place. In an effort to be able to timely fund nominal expense issues on your properties such as minor repairs, utility and advertising expenses during vacancy, etc. we ask that each of our property owners maintain an appropriate account reserve to be held in our escrow account solely for their use as their personal contingency fund. This is like you having a personal "petty cash" contingency reserve for your property.
Each Owner's property portfolio is unique. The number of properties, age of properties, routine scheduled property services such as lawn care or extermination, etc. all factor in to the picture when estimating what reserve would be appropriate. A nominal reserve of $500.00 is typical for a single property that is in generally good repair. Contact us to discuss what may be appropriate to accommodate your portfolio and investment goals.
EMERGENCY and MAJOR EXPENSE FUNDING:
It has been our experience that most all routine expense events can be addressed out of the funds that are held in the Owner's contingency reserve fund or out of the rents when they come in.
There may be a time that you choose to do a remodeling or extensive redecorating of one of your properties. Funding of this can be planned. However, with real estate there always exists the possibility for the unexpected such as the unfortunate case of a calamity from a weather event, failed heating or air conditioning system, etc. Insurance or warranty proceeds may be forthcoming but we need to act now. We will contact you when such an event presents itself to discuss options that you have available to you at that time to fund your account with us to address such an expense.
In the unforeseen circumstance that you are not reachable to discuss the emergency event, the emergency does not go away and reaction time is often critical to protect your property or persons. We will act on your behalf as best we can to address the matter at hand and discuss with you upon the first available contact opportunity solutions to funding the actions that were initiated.