Re: Importance and Explanation of Reserve Funds (This is a requirement and not optional.)
Where the $500 Reserve Will Be Held:
- The owner's funds will be held in the Pellego Brokerage Operating Account.
What is the Use of $500 Reserve and why it is important?
- Ensure efficient payment of utilities on behalf of the owner when the property is vacant.
- To effectively address any property-related costs and maintenance issues.
- To avoid homeowner's negative trust account balance at all cost.
- Vendors expect prompt payment of service to maintain good relationships.
- In order for Next Brick to effectively manage properties as a management company, it is important to clarify that we do not have the capability to make payments on behalf of homeowners when there are insufficient funds available. It is the responsibility of the homeowner to ensure that adequate funds are available for any necessary payments or expenses related to the property. By maintaining sufficient funds, homeowners can ensure smooth management and avoid any potential payment-related issues.
Reserve Name Appeared As on Homeowner Statement:
Important note about the $500 Property Reserve:
We would like to emphasize the significance of the $500 Property Reserve as a crucial component of the home onboarding process. It is imperative that this amount is submitted as soon as possible to ensure our efficient management and care of your property.
The homeowner's bank account balance consistently maintains the $500 threshold. This requirement is reflected in the accounting statement, with the starting balance set at $500 and the expectation that the ending cash balance also remains at $500.
How to contribute the$500 reserve for the property as a homeowner?
Make a Homeowner Contribution
The homeowner can make secure monetary contributions via credit/debit card or eCheck (ACH) to the property of their choice.
Log into your Owner Portal(AppFolio) and click the Transactions tab on the left-side menu of the portal and click Make a Contribution.
Select a property, enter an amount ($15,000 max), select a payment method, and click Continue. Transaction fees apply when paying online. You are notified of the fee amount before you submit the payment.
Enter the bank account or card details and click Continue.
Review your payment information and click Submit.
Homeowner's Account Balance Must Remain Positive at All Times :
- Washington Real Estate Law and Next Brick require homeowners to deposit sufficient funds before making withdrawals.
- Homeowners must maintain a positive balance in their accounts at all times.
- To prevent the account from going negative in case of upcoming expenses, submit a $500 contribution as soon as the account is established with Next Brick.
- Promptly make the requested contribution for upcoming maintenance work to avoid delays or the inability to carry out necessary repairs, including significant equipment replacements.
- Next Brick takes homeowners' trust account balance seriously. We conduct regular accounting audits are conducted to ensure transparency and accountability regarding homeowner's account balance.