Understanding When Owners Need to Send Funds


A common query we encounter from landlords is about the circumstances under which they would need to forward funds to us during our partnership. Understanding when and why you might be asked to send money can help build a transparent and successful working relationship. This article elucidates the most common scenarios where an owner might be asked to remit funds, as per the stipulations in Paragraph 7 of our Property Management Agreement concerning advances.

Instances Requiring Owner’s Financial Contribution

There are several instances during our partnership where we may request funds from you, each correlating with a different aspect of property management. Let’s delve into each scenario in detail:

a) Initial Reserve Payment

Upon initiating a working relationship with us, landlords are asked to pay a reserve which facilitates the smooth management of the property in the initial stages.

b) Make Ready Process

If your home is in the “make ready” process, preparing for a new tenant, it is often necessary to ask for funds to ensure the property meets the necessary standards and is presented in the best possible light to potential tenants.

c) Significant Repair Costs

When a repair’s estimated cost surpasses $1,000 or equates to one month's rent, we would ask for the funds to cover this. It's a measure to keep the property in optimum condition while averting any financial strain on the management resources.

d) History of Late or Rejected Payments from Tenants

In cases where a tenant has a track record of late or rejected payments, securing funds in advance aids in maintaining the financial stability of the property management operations.

e) Eviction Process

If an eviction process is initiated, there would be associated costs. Landlords are required to cover these costs to facilitate a smooth transition and safeguard their interests.

Reference to Property Management Agreement: Paragraph 7

It is important to note that, as outlined in Paragraph 7 of our Property Management Agreement, the owner is obliged to provide all necessary funds in advance for the leasing and management of the property, and we are not obligated to advance any funds to the owner or any other person.


Being well-acquainted with the potential instances when you might be required to send funds aids in fostering a transparent and harmonious working relationship. It ensures a systematic approach to property management where all necessary actions can be undertaken promptly without financial hurdles. For any more insights or clarification, feel free to reach out.

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