HOW MUCH DOES THE MANAGEMENT COMPANY EXPECT ME TO KEEP IN THE ESCROW ACCOUNT AS A CONTINUED BALANCE?
This can very from Management Company to Management Company, there isn’t any specific amount. It can range from $700 to $1,500. You have to realize that it is your responsibility to keep a balance in the account. If there are no funds in the account to pay the bills, the Management Company cannot be expected to pay them! They are not a bank and can’t allow you an overdraft! You can’t expect them to cover your account just because you have some reservations coming in soon! Equally if you are renting out the property yourself and collecting the revenue, the Management Company will not be receiving any income, so you must ensure that they have sufficient funds to cover the outgoings. There is nothing more embarrassing than having a guest call you early in the morning complaining and demanding compensation because there is no electricity or water on in the home! And remember, failing to pay, the mortgage, property taxes, insurance and Homeowners Association dues, can cost you your house. F
