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How Are Owner Disbursements Calculated?

They’re calculated using a structured accounting process designed to ensure accuracy, transparency, and compliance with North Carolina trust accounting rules.

Audience: property owners who want to understand how MoveZen determines the exact amount they receive in each owner payment.

Owner disbursements aren't guesswork or estimates. This guide explains how your owner payment amount is determined.

 

Frequently Asked Questions

Is my payment just rent minus the management fee? Not exactly. Several items are considered before a disbursement is finalized.

Can my disbursement ever be negative? No. Trust accounting rules prohibit negative owner disbursements.

Does timing affect the amount? Yes. Only cleared and earned funds are eligible.

Is each property calculated separately? Yes. Each property has its own trust ledger.

The Core Disbursement Formula

In simple terms, owner disbursements are calculated as:

Collected & earned rent
– Management fees
– Approved expenses
– Other authorized deductions
= Owner disbursement

Only funds that meet all requirements make it into the final number.

Step-by-Step: How the Amount Is Built

1. Rent Is Collected and Cleared

Tenant payments must:

  • Be received
  • Fully clear the bank
  • Be applied to the correct month

Uncleared or future rent is excluded.

2. Rent Is Earned

Rent is earned only for:

  • The current rental period
  • Actual occupancy days

Prepaid future rent is held until the appropriate month.

Related article: https://know.movezen360.com/prepaid-rent-owner-disbursement

3. Fees Are Applied

Applicable fees are deducted, such as:

  • Monthly management fee
  • Leasing or renewal fees (if applicable)

All fees are defined in your management agreement.

4. Expenses Are Deducted

Approved expenses may include:

  • Maintenance and repairs
  • Utilities during vacancy
  • HOA dues (if authorized)

Vendor invoices must be posted before disbursement.

5. Trust Balance Is Verified

Before releasing funds:

  • The property ledger must remain non-negative
  • All entries must reconcile

If funds aren't sufficient, disbursement may be reduced or deferred.

What Is Not Included in the Calculation

The following are excluded from owner disbursement calculations:

  • Security deposits
  • Unearned prepaid rent
  • Owner contributions
  • Funds from other properties

Each property stands on its own.

How This Appears on Your Owner Statement

Your MoveZen Owner Statement clearly shows:

  • Gross rent
  • Each deduction
  • Net disbursement amount

This allows you to trace the math line by line.

Related article: https://know.movezen360.com/how-to-read-owner-statement

Common Reasons a Disbursement May Be Lower Than Expected

  • Large repair posted that month
  • Prorated rent
  • Rent paid late
  • Reserve funding
  • Timing of cleared payments

None of these indicate an error—just timing or activity.

Why This Process Protects Property Owners

This approach ensures:

  • Accurate reporting
  • Compliance with trust laws
  • No clawbacks later
  • Clean audit trails
  • Fair allocation of income

It's intentionally conservative and consistent to protect property owners and maintain legal compliance.

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