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Is MoveZen Able to Hold a Portion of Funds for Repairs? A Reserve Fund

It helps prevent “surprise” contribution requests and keeps maintenance moving quickly (which keeps tenants happier, too).

Yes, and in most cases, it's a smart move.

A reserve fund is simply a small cushion of money MoveZen keeps in your property's trust ledger to cover routine repairs, urgent issues, or turnover items without delays.

 

Frequently Asked Questions

What is a reserve fund, exactly? It's a set amount of your own money held in your property's trust balance to pay for approved property expenses.

Is a reserve fund required? Often recommended, sometimes required depending on the home's age/condition or your management agreement setup.

Is the reserve a fee? No. It's still your money, it's just held back in the property's balance for stability.

What happens if my reserve runs low? Your monthly statement will reflect the spend, and MoveZen will typically recommend replenishing it to your preferred level.

Can I choose the reserve amount? Yes, within reasonable best-practice ranges for your property type and condition.

Does each property have its own reserve? Yes. Reserves are tracked per property (not pooled).

Why Reserves Exist in the First Place

North Carolina trust accounting rules are strict: MoveZen can't spend money that isn't available in the property's ledger. That means if a repair bill comes in and the property balance is too low, the system can't legally "float" the expense.

A reserve helps avoid:

  • Repair delays (waiting on contributions)
  • Tenant frustration from slower maintenance
  • Emergency situations turning into bigger problems
  • Constant back-and-forth on small-dollar repairs

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What a Reserve Fund Is Typically Used For

Reserves are most helpful for:

  • Minor plumbing or electrical repairs
  • HVAC service calls and diagnostics
  • Appliance repairs
  • Pest service (when owner-responsible)
  • Make-ready items between tenancies
  • Urgent repairs where speed matters (leaks, active water issues, safety issues)

It's basically your property's "maintenance buffer."

What a Reserve Fund Is Not Used For

A reserve is not intended for:

  • Major renovations (unless you intentionally fund it for that purpose)
  • Unapproved elective upgrades
  • Anything unrelated to your specific property
  • Tenant security deposit items (security deposits are handled separately and must follow deposit rules)

What's a "Good" Reserve Amount?

There's no one perfect number, but here are practical guidelines:

  • Newer / low-maintenance homes: often $300–$500
  • Average single-family rentals: often $500–$1,000
  • Older homes / homes with aging systems: often $1,000–$2,000
  • Homes with wells/septic, large yards, or frequent vendor needs: often $1,000+

Easy rule of thumb: Keep enough to cover one "real" repair event (a service call + a common fix) without scrambling.

 

How the Reserve Shows Up in Your Monthly Statement

Your reserve isn't a separate bank account—it's reflected in your property's running balance.

You'll see the reserve implicitly as part of:

  • Beginning balance
  • Income received
  • Expenses paid
  • Ending balance

If the property's balance drops below your preferred reserve amount, that's your signal to top it back up (if you want to keep the buffer intact).

For statement-reading help: https://know.movezen360.com/how-to-read-owner-statement

How Reserve Spending Typically Works (Real-Life Example)

Let's say you set a $750 reserve.

  1. Tenant reports a leak
  2. Plumber invoice is $285
  3. Property has enough funds → the repair is paid and documented
  4. Your balance decreases accordingly on your ledger/statement

Without a reserve, that same repair might require a contribution first, which can slow everything down.

Can I Set Rules Around How the Reserve Gets Used?

In many cases, yes. Property owners often set preferences like:

  • "Use the reserve for repairs under $X without delay"
  • "Always request approval over $X"
  • "Emergency repairs can proceed immediately"

The goal is to match your comfort level while still keeping the home stable and compliant.

What happens if I don’t want a reserve?

You can choose not to keep a reserve just know what that usually means:

  • More frequent owner contributions

  • More repair pauses waiting for funding

  • Potential longer maintenance timelines (especially during vacancies or slow rent-payment periods)

Not “wrong,” just less smooth.

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