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Do I Need to Provide MoveZen With Funds for a Large Repair Bill at My Property?

This isn’t unusual and it’s driven by trust accounting law, not preference.

Audience: property owners facing a significant repair who want to understand when owner funds are required and how large repairs are handled.

Sometimes, yes, large repairs may require owner-provided funds, especially if there isn't enough rent currently available in the property's trust balance.

Here's how that determination is made.

Frequently Asked Questions

Why can't the repair just be paid and deducted later? Because trust accounting rules prohibit deficit spending.

Does this apply only to very large repairs? It applies to any repair that exceeds the available trust balance.

Can funds come from another property I own? No. Each property's funds must remain separate.

Will I get the money back later? Owner-provided funds are contributions, not loans or refundable advances.

Why Owner Funds Are Sometimes Required

Under North Carolina trust accounting rules:

  • Repair bills can only be paid with available, cleared funds
  • Management companies cannot front money on behalf of owners
  • Trust accounts cannot go negative

If rent and reserves don't cover the cost, owner funds are required.

How MoveZen Determines If Funds Are Needed

Before requesting owner funds, MoveZen looks at:

  • Current trust balance
  • Pending rent payments
  • Existing reserve funds
  • Size and urgency of the repair

If funds aren't sufficient at the time the bill must be paid, a contribution is required.

Common Examples That Trigger Owner Funding

Owner funds are often needed for:

  • Roof replacement
  • HVAC replacement
  • Major plumbing or electrical work
  • Structural repairs
  • Insurance deductibles

These expenses usually exceed a single month's rent.

How Owner Funds Are Used

When you provide funds:

  1. Money is deposited into the property's trust ledger
  2. Posted as an Owner Contribution
  3. Applied to the repair invoice
  4. Reflected clearly on your Owner Statement

Funds are used only for your property.

What Owner Funds Are Not

Owner contributions are not:

  • Rent
  • Fees
  • Refundable deposits
  • Advances that get "paid back" later

They simply ensure the repair can be completed promptly.

How to Reduce the Likelihood of Future Requests

Property owners often minimize surprise contributions by:

  • Maintaining a reserve fund
  • Retaining disbursements when large repairs are anticipated
  • Planning ahead for aging systems

 

Planning for Large Repairs

Large repairs are part of long-term property ownership. Rather than reacting to contribution requests, the most effective approach is:

"How can I structure my property finances to handle this smoothly?"

Property owners who maintain adequate reserves or plan for major system replacements experience fewer urgent contribution requests and can complete necessary repairs without delays. This proactive approach protects property value and tenant satisfaction while maintaining compliance with trust accounting requirements.