Summary
This article explains the common situations in which property owners may be required to send funds to Green Residential, as outlined in Paragraph 7 of the Property Management Agreement.
When to use this
Use this guide if you are:
A property owner working with Green Residential
Reviewing financial responsibilities under the Property Management Agreement
Asked to provide funds and want to understand why
Seeking clarity on advance funding requirements
Overview
One of the most common questions from property owners involves understanding when and why funds may need to be provided during the management relationship. Being familiar with these scenarios helps support transparency and allows property management activities to proceed without delay.
The situations outlined below align with Paragraph 7 (Advances) of the Property Management Agreement.
Common Situations Requiring Owner Funds
Initial Reserve Payment
At the start of the management relationship, owners are required to provide a reserve amount. This reserve helps ensure the property can be managed smoothly during the initial phase.
Make Ready Process
When a property is in the make-ready stage between tenants, funds may be required to cover cleaning, repairs, or other preparations needed to present the home properly for leasing.
Significant Repair Costs
If a repair is estimated to:
Exceed $1,000, or
Equal or exceed one month’s rent
Funds may be requested in advance to cover the cost. This ensures repairs can be completed promptly while maintaining financial stability.
Tenant Payment Issues
If a tenant has a history of:
Late rent payments, or
Rejected or returned payments
Advance funding may be required to help maintain consistent management operations for the property.
Eviction-Related Costs
If an eviction process becomes necessary, owners are responsible for covering all associated costs. Funds must be provided to allow the process to proceed efficiently and in compliance with legal requirements.
Reference: Property Management Agreement (Paragraph 7)
As stated in Paragraph 7 of the Property Management Agreement:
Owners are required to provide all necessary funds in advance for leasing and management activities
Green Residential is not obligated to advance funds on behalf of the owner or any other party
FAQs
Q: Will Green Residential ever advance funds for my property?
A: No. As outlined in the Property Management Agreement, all required funds must be provided by the owner in advance.
Q: Will I be notified before funds are required?
A: Yes. Owners are notified when funds are needed and provided with details regarding the purpose.
Contact us
If you have questions about funding requests or would like clarification on Paragraph 7 of the Property Management Agreement, contact Green Residential for assistance.