Definitions of Some Commonly Used Cash Flow Items
What is Security deposit? Do I need to pay it every month?
Security deposit is the amount of money reserved as agreed in the contract for WealthPark to meet unexpected expenses, such as emergency repairs or tax payments. It is a one-time payment only. The amount of security deposit will be shown in the monthly cash flow statement. If the balance falls below the agreed amount, WealthPark will request less than one month’s required amount to be maintained. You will be asked to remit or allow us to use the rental income to make up the balance. When you terminate the contract with WealthPark, the balance of security deposit will be returned to you.
What is the Reserve fund for repair?
The Reserve fund for repair is set up to prepare for the future payment of maintaining and repairing the buildings of your property. Instead of one-time payment, each property owner is asked to contribute to the reserve fund every month. The amount of contribution is decided by the building management association.