What Affects Owner Draws?
Several important factors come into play when it’s time to send your payment:
- Rent Collection
This one’s simple: if rent is paid on time, we’re good to go. If not, we kick off our rent collection process—that includes reminders, late notices, and applicable late fees. Most tenants pay on time, but when they don’t, we’re on it starting the 6th of the month.
(Stay tuned—we’ve got a detailed blog coming soon about how we handle rent collection.)
- Reserve Funds
Each property has a minimum reserve requirement. If that reserve dips below the threshold due to repairs or other costs, we’ll replenish it before issuing your owner draw. This ensures we can handle unexpected expenses quickly.
- Outstanding Maintenance or Repairs
Pending bills for recent repairs or approved maintenance requests may be deducted from your rental income. We always communicate major repairs ahead of time, but you’ll see the details clearly in your owner statement.
- Other Payments or Fees
Utility reimbursements, service charges, or HOA payments (if we’re handling them) are also factored in before the draw is finalized.
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