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What If I Have a Repair Bill Due, but My Tenant Has Not Paid Rent Yet and There Are No Funds for My Property?

This situation can feel frustrating, but it’s also very common especially during vacancies, late payments, or early in a tenancy.

Audience: property owners facing a repair expense when rent hasn’t been collected yet and wondering how that situation is handled.

Because MoveZen operates under strict trust accounting rules, repairs can only be paid when funds are actually available.

Here's how this scenario is handled.

 

Frequently Asked Questions

Can the repair still be completed if rent hasn't been paid? Yes. Repairs can still be authorized and completed.

Can MoveZen pay the vendor and deduct it later once rent comes in? No. Trust accounting rules prohibit paying expenses without available funds.

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

Will this delay the repair? Sometimes—unless owner funds or reserves are available.

Why Rent Timing Matters

Under trust accounting law:

  • Funds must be collected and cleared before use
  • Trust accounts cannot go negative
  • Property funds cannot be borrowed or fronted

So even if rent is expected, it can't be used until it's actually received.

What Happens in This Situation

When a repair bill is due but no funds are available:

  1. The repair is evaluated for urgency
  2. Available trust balance is reviewed
  3. If insufficient, options are discussed
  4. An owner contribution may be required
  5. Once funds are available, the vendor is paid

This ensures compliance and prevents audit issues.

Emergency vs. Non-Emergency Repairs

Emergency Repairs

For health or safety issues:

  • Repairs may proceed immediately
  • Owner funding may be requested urgently
  • Payment is issued once funds are available

Non-Emergency Repairs

For routine issues:

  • Repairs may be scheduled
  • Work may wait until funds are available
  • Owner may choose how to proceed

How Owners Can Resolve This Quickly

Property owners typically choose to:

  • Send an owner contribution
  • Use existing reserve funds
  • Retain future disbursements
  • Wait until rent is collected (if timing allows)

What Cannot Be Done

MoveZen cannot:

  • Pay vendors "on credit"
  • Use expected rent
  • Use funds from other properties
  • Allow the trust balance to go negative

These safeguards protect both property owners and tenants.

How This Appears on Your Statement

Once resolved:

  • Repair expense is posted
  • Funding source is visible
  • Ledger shows a clear audit trail

Resolving Funding Gaps

When facing this situation, the most productive question to ask is:

"What's the fastest compliant way to fund this repair?"

This approach leads to quicker resolution while maintaining trust account compliance. Property owners who maintain reserve funds or respond quickly to contribution requests experience minimal delays in repair completion.