Overview
Property reserve funds typically refer to funds set aside by a property manager or property owner for the purpose of covering future maintenance, repairs, and other unexpected expenses related to a property or a community of properties. These reserves are essentially a financial safety net that helps ensure the long-term sustainability and functionality of the property.
The Steps
Setting property reserve funds on a property is a simple process that needs to be done on the property level for each property you want reserve funds for.
To set the reserve funds for a property, click on Rentals on the main menu and then click on Properties.
Find and click the Property you want to set reserve funds for.
Once on the property, click the Settings tab and then click Reserve Funds.
On the Property Reserve Funds window, on the Reserve Funds Amount field, enter the amount you want to hold in reserves.
Click Save to finish.
That's it. Reserve funds are now set for that property. When you now make Owner Distributions, you'll notice that it will show the amount in Reserve and will not distribute that to the owner when creating Owner Distributions.
Tip: If you need to remove the Property Reserve Funds, follow the above steps again and set the Reserve Funds Amount to $0.00. This will remove the reserve funds, and they'll be available for distribution again.
Note: You can view how much you have in property reserves from the Cash Flow Statement report.
Things to Consider
Setting Property Reserves will keep those funds from being distributed to the owner.
Property Reserves do not appear on the Balance Sheet report. Instead, you will see them in the Cash Flow Statement report and the Owner Statement.