Page 16 - The Playbook

Maintenance Reserve
Part of your contract with Nest PM is that we’ll hold a maintenance reserve for expenses
related to your property. The purpose of this is not simply to keep your money, but is rooted in
escrow requirements and keeping us in compliance with VA Brokerage Laws. Under state
brokerage laws, we are not allowed to spend money we do not have on hand in your rental
account. So, we must keep money on hand in the event work is required during the time
between disbursement of your rent and collection of the following month’s rent. The money
held is still YOUR money and would be returned to you at the conclusion of our agreement. In
conjunction with this requirement – we typically work with small, local contractors who
provide good services with small overhead. This provides you with inexpensive, quality
options for repairs, but means that we need to pay them in a timely manner. The maintenance
reserve helps us meet both of these needs.

Accounting

Keeping track of your money seems like the most mundane of our activities when you consider
the maintenance needs, particularly emergency maintenance, and customer service – anyone
in the customer service industry knows those interactions are anything but ordinary. And, we
hope that accounting for your money is the most basic task we perform routinely. Rent
collection, paying bills, disbursing the net gains to you. Simple, right? We hope it looks that
way!
In reality – its much more complicated. “Simply” paying a bill is a process that involves most of
our team members to ensure it happens appropriately and that your money is protected. The
person who signs the checks, shouldn’t be entering the invoices. There is a process involved to
ensure against impropriety and to protect accuracy. A bill is entered by the Accounting
Operations Manager, approved and reviewed for correctness by the Property Manager,
processed by the Operations Manager and finally signed by a Principal, before distribution to
the vendor.
th
Owner’s Statements and disbursements (your money) are sent on the 15 of each month. So –
st
we collect the rent on the 1 , pay the bills associated with the property for the month, and send
th
the remainder to you on the 15 – at your discretion via ACH or paper check. We typically will
email the statement, but can send it via mail if that is preferred.
Sales Process

We understand that part of your strategy may be to sell your rental property – in fact, it may be
your number one goal and we’re happy to be a part of that process. Obviously – our sister
company, Nest Realty, has a bevy of Realtors ® who can help you and assist with this process.
There are some things you need to know prior to engaging a Realtor ® if we are managing
your property.

Your tenant has rights in this process and you need to be cognizant of those rights as you plan
to list your property.