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What is a Reserve and Why is it Required? | CRM Properties Inc

What is a Reserve and Why is it Required?

What is a Reserve and Why is it Required?

As a property owner, you want to make sure that your investment is protected and well-maintained. One of the ways that we ensure this is by requiring owners to provide a reserve toward their account. Let’s get into the details on what exactly an owner reserve is and why it is essential when managing your rental property.

What is an Owner Reserve?

An owner reserve is a fund that we keep on hand to address unexpected expenses that may arise during the management of a property. These expenses may include emergency repairs, maintenance, utility bills, and other unforeseen costs. The owner reserve is held in a separate account from the rental income and is managed by the property management company. The easiest way to look at a reserve is essentially like a deposit.

Why is an Owner Reserve Necessary?

Having an owner reserve is necessary for multiple reasons. First, it provides a safety net for unexpected expenses that may arise. Without an owner reserve, property owners may find themselves in a difficult financial situation when these expenses arise. This also allows us as a property management company to work efficiently when addressing any utility bills that need paid and avoid having to ask the property owner for funds.
Second, an owner reserve helps to ensure that the property is well-maintained. When unexpected repairs are needed, they can be addressed immediately. This can prevent further damage to the property and maintain the value of the investment.

When Will Your Reserve Be Returned?

Upon your single-family property becoming occupied, we will return the reserve to you. Upon termination of multiunit buildings, if ever the case, we will return the reserve to you at that time.

Having an owner reserve is an important aspect of managing your rental property. It’s important to remember that the reserve is not a fee that we charge, but rather can be viewed as a deposit to your account.

Contact us today at or 765-459-8034 to learn more about how we can help you manage your property effectively and efficiently.

For more information on the reserve, watch our Indianapolis Property Management Video!

For more information on our Indianapolis property management services for investors, check out our website below!