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What Are Some Common Reasons That an Owner Contribution Would Be Requested?

An owner contribution is a request for funds from the property owner to cover a legitimate property expense when there aren’t enough available funds in the property’s trust balance.

Audience: rental property owners who want to understand why MoveZen may occasionally request an owner contribution, how this ties into trust accounting rules, and how to minimize these situations over time.

Owner contributions are requested when expenses need to be paid but insufficient funds are available in your property's trust balance. Understanding when and why these requests occur can help you plan more effectively.

Frequently Asked Questions

Is an owner contribution a fee? No. It's your money being added to your property's trust balance to cover expenses.

Does a contribution mean something went wrong? Not necessarily. Many contributions are timing-related or expected.

Can MoveZen pay expenses without funds and "true it up later"? No. North Carolina trust accounting law strictly prohibits deficit spending.

Can I avoid owner contributions entirely? Often yes—with proper reserves and planning.

Why Owner Contributions Exist at All

North Carolina trust accounting rules require that:

  • Every property ledger remain non-negative
  • Funds must be available and cleared before expenses are paid
  • One property's funds cannot be used to cover another's costs
  • Future rent cannot be spent before it's received

Because of this, expenses sometimes need to be funded before rent arrives—and that's where owner contributions come in.

The Most Common Reasons Contributions Are Requested

1. Repairs Occur Before Rent Is Collected

This is the most common scenario.

Examples:

  • HVAC repair on the 1st, rent paid on the 3rd
  • Plumbing emergency during a vacancy
  • Safety-related repair that can't wait

If the property balance isn't high enough at that moment, a contribution is required.

Related article: https://know.movezen360.com/is-movezen-able-to-hold-a-portion-of-funds-for-repairs-a-reserve-fund

2. No (or Low) Reserve Fund

Without a reserve, even modest repairs can trigger a contribution request.

Common examples:

  • $250 service call
  • $400 appliance repair
  • $600 plumbing issue

A small reserve often eliminates these requests entirely.

3. Turnover Expenses Between Tenants

During vacancy, there's no rent coming in—but expenses still happen.

Typical turnover costs include:

  • Cleaning
  • Carpet cleaning or replacement
  • Paint touch-ups
  • Minor repairs
  • Inspections

If the prior tenant's rent or deposit doesn't cover everything, a contribution may be needed.

4. Large or Unexpected Repairs

Some repairs exceed normal monthly rent amounts, such as:

  • HVAC replacement or major repair
  • Roof or water damage
  • Major plumbing or electrical issues
  • Appliance replacement

Even well-performing properties may need owner funding for big-ticket items.

5. Rent Is Late, Partial, or Missed

If rent hasn't been paid yet—or is paid late—expenses can't legally be covered using "expected" rent.

This can happen when:

  • A tenant pays late
  • A payment is returned or reversed
  • Rent is on a payment plan

Expenses still have to be handled, so a contribution bridges the gap.

6. HOA Dues, Utilities, or Fixed Bills Come Due

If MoveZen is authorized to pay:

  • HOA dues
  • Utilities during vacancy
  • Other recurring owner expenses

...and funds aren't available at that moment, a contribution may be required to avoid late fees or violations.

Related article: https://know.movezen360.com/will-movezen-pay-my-hoa-dues-on-my-behalf

7. Special Assessments or One-Time Charges

These include:

  • HOA special assessments
  • City or county compliance charges
  • One-time inspection fees

These are never assumed to be covered unless funds exist or a contribution is made.

8. Owner Preferences for Faster Repairs

Sometimes property owners choose speed over waiting.

Examples:

  • "Go ahead and fix it immediately"
  • "Don't wait for rent to post"
  • "Handle it while the vendor is already there"

In these cases, a contribution allows work to proceed without delay.

How Owner Contributions Appear on Your Statement

Contributions show as:

  • A clearly labeled Owner Contribution
  • A deposit into your property's trust balance
  • Not taxable income
  • Not a fee

They simply increase the available funds to pay expenses.

For statement help, see: https://know.movezen360.com/how-do-i-read-my-monthly-owner-statement

How to Reduce or Eliminate Contribution Requests

Most property owners can greatly reduce contributions by:

  • Keeping a reasonable reserve
  • Approving small repairs automatically
  • Planning ahead for turnovers
  • Anticipating larger repairs for older homes
  • Keeping HOA and utility schedules in mind

Related article: https://know.movezen360.com/is-movezen-able-to-hold-a-portion-of-funds-for-repairs-a-reserve-fund

A Helpful Mindset Shift 🧠

Instead of thinking:

“Why am I being asked for money?”

Try thinking:

“This is how my property stays compliant, maintained, and protected.”

Owner contributions aren’t penalties they’re part of responsible property ownership under strict trust laws.

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