Owner Frequenty Asked Questions
My statement says I need to send money - how much time do I have?
Market Force Realty may have paid expenses for you which caused your trust account to be overdrawn. This situation needs to be resolved promptly; similar to if you have overdrawn your checking account. You should send us a check for the amount specified on your statement by the end of the month. There is a small loophole for you; if you have a tenant in the house paying rent the tenant's next rent check may satisfy your negative balance. This means you will not need to send funds when your negative balance will be paid by your tenant. The bottom line is the negative balance needs to be resolved whether by funds from you, by funds from your tenant or a combination from you and your tenant. If you have any questions or have some other unique situation please discuss this with your property manager.
What bills does Market Force Realty pay from my trust account?
We pay bills from your trust account as allowed in your Residential Property Leasing and Management Agreement. Typical bills are from subcontractors who perform work on your home, lawn service and utility bills while a home is empty and payment of management fees to Market Force Realty. Our current policy is that we will not make regular mortgage payments, HOA payments or pay property taxes for our clients. There may be exceptions to these restrictions, ask your property manager if you require an exception.
What if I have questions about expenses/transactions of my trust account?
Please feel free to call us with any questions. Your property manager is the primary point of contact regarding questions about your statement. Please know we are always here to assist you in any way.
What if there is not enough money in my account for a pending expense?
We may call and ask you to send funds if we anticipate a required repair will cost more than the funds available in your account. Alternately we may temporarily raise your minimum reserve to accumulate funds in your account. Market Force Realty cannot pay your bills from our company account, this would violate rules prohibiting co-mingling of funds. Remember, all bills are paid directly from the trust account so funds must be available for us to pay your bills.
What is a trust account?
A trust account is managed for our clients using accounting software specifically designed for property management. The money in your account is used to pay bills on your behalf for expenses incurred against your property. The actual money is kept in a bank account, currently at Chase Bank. Your funds are in account separate from the accounts used by Market Force Realty to run our business and pay operating expenses. This process of separation of your trust account funds from our company funds is in accordance with our training on the Real Estate Commissions rules prohibiting "co-mingling" of funds. This ban on co-mingling of funds means we are not allowed to use your money to pay our bills and we cannot use our money to pay your bills.
What is the minimum reserve?
A minimum balance is required in order to have funds available to pay expenses for your property. You are required to maintain a minimum balance in your account of $250.00 per property up to a maximum of $500.00 per account. If you have three homes under management in a single account your reserve will only be $500.00. Clients with more than five houses may require a higher reserve. Also, if you maintain multiple accounts at Market Force Realty each account will be subject to the minimum/maximum reserve levels.
When is money sent to me?
Funds are distributed to our landlords as soon as the tenant pays the rent. Any funds in your account over the minimum reserve is distributed to you using the Federal Reserve's NACHA system, commonly referred to as an "ACH" transfer or direct deposit. An ACH transfer is not an immediate transfer, the ACH system requires 2-3 working days before the funds will be received in your account. The ACH transfer may not be available into certain types of accounts, like some savings accounts. If you do not take advantage of direct deposit then funds will be distributed via check with a mailed statement.
Where is the tenant's security deposit, I don't see it on my statement?
The tenant's security deposit is maintained by Market Force Realty, also in a trust account(s), currently at Chase Bank. You will see the amount we have collected reflected on your mailed statement. Unfortunately our on line facility does not show this information. We may need to pay bills which will be reimbursed from the tenant's security deposit, but you will not see reimbursement in your account until the final security deposit accounting is performed, usually thirty days after a tenant's departure.
Why does Market Force Realty hold onto the security deposit? Why can't I, as the landlord, keep it and use it?
Laws governing specific procedures for trust funds vary from to state to state. Market Force Realty works with our attorneys to make sure the funds are handled in a manner which conform to the laws of the state of Texas. All security deposit funds are held in a real estate trust account at an FDIC insured bank in order to make sure they are available as required by law. After a tenant moves out of a home the funds are returned to the tenant except when they are sent to a landlord to reimburse for expenses as allowed in the lease. The lease normally allows the landlord to be reimbursed for any expenses caused be a tenant defaulting on any section of the lease. Reasons for reimbursement include, but are not limited to, unpaid rent, late fees and repairs to remedy unauthorized alterations to the property, repairs due to improper use of the property, repairs from any negligence, carelessness, accident, abuse or abnormal wear and tear at the property. One of the reasons tenants like to rent from a realtor where the funds are kept in a managed trust account is because our legal and ethical obligations to the consumer require us to conform to good business practices which will make sure the monies are available to be returned to them if the leave the property and conform to their lease. In today's marketplace you will find tenants who are concerned a landlord will take their money and then not make a mortgage payment or otherwise default on their loans, and by Market Force Realty placing the security deposit into a real estate trust fund your property is a more attractive rental property because the tenants know that if they meet their lease obligations they will get their deposit returned to them.
Market For Realty
7702 FM 1960 East
Humble, TX 77346
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