As part of our property management services, Nestwell requires a $100 reserve balance per managed property/unit to be kept in your owner account. This reserve helps ensure your property expenses can be paid quickly and without interruption.
Per the Property Management Agreement:
“Owner agrees to maintain a minimum balance/reserve of One Hundred Dollars ($100) per unit managed in Agent’s custodial trust account, which may be used for expenses incurred on the Property.”
This reserve is also referred to as the:
$100.00 Reserve Balance (“Portfolio Minimum”)
The Portfolio Minimum is a required balance maintained in your owner account to help ensure property expenses can be paid promptly and without interruption.
Why Is the Reserve Required?
The reserve acts as a small emergency or operating cushion for routine property-related expenses such as:
Utility bills
Maintenance costs
Minor repairs
HOA dues
Other recurring property expenses
Having these funds readily available allows Nestwell to handle time-sensitive property expenses efficiently and helps avoid delays in service or late fees.
Do I Earn Interest on the Reserve Funds?
No. The $100 reserve balance is held in Nestwell’s custodial trust account and does not earn interest.
How Is the Reserve Used?
If property expenses arise and there are not enough available rental funds at that time, Nestwell may use the reserve balance to cover approved property costs.
When reserve funds are used:
Future rental income or owner disbursements will first be applied to restore the reserve balance back to $100.
This helps keep the account prepared for future property expenses.
What Happens If My Account Balance Goes Negative?
If there are not enough funds in the account to cover outstanding property expenses, the property owner is responsible for paying the balance due.
Nestwell will notify you through:
Your monthly owner statement, or
Other written communication
Owners are expected to bring the account current within 15 days of notice.
What If Outstanding Bills Remain Unpaid?
If unpaid balances remain outstanding after additional notice, Nestwell may:
Charge the payment method on file to cover the expenses, or
In certain situations, advance funds to the account to prevent disruption of services or unpaid bills
If Nestwell advances funds on behalf of an owner, additional finance charges and interest may apply as outlined in the Property Management Agreement.
Questions?
If you have questions about your reserve balance or owner statements, please contact the Nestwell team through support@nestwell.com for assistance.