Reserve funds allow you to hold back part of an owner's available balance so there is money available to pay for future property expenses, such as repairs, maintenance, or unexpected bills. Instead of paying the full available balance to the owner, Propra keeps the reserve amount in the property's trust balance until you decide to release it.
How reserve funds work
Think of a reserve fund like putting money into a piggy bank.
Imagine you have $100 and your parents ask you to save $20 in case your bicycle needs a repair. Even though you still have the $100, you only spend $80 because the other $20 is being saved for later.
Reserve funds work the same way in Propra. If an owner has money available for a payout, the reserve amount is held back so it can be used if the property needs to pay a bill in the future.
For example:
An owner has $2,500 available for their monthly payout.
The property has a $500 reserve fund.
Propra will pay the owner $2,000 and keep $500 in the property's balance.
The reserve fund is not a separate transaction. It is simply an amount that is held back from the owner's payout.
Add a reserve fund
Go to the Owner profile.
Select the Property (Asset) you want to update.
Click the three-dot menu beside the property and select Update Asset.
Enter the Reserve Fund amount you want to hold back.
Select Save.
The reserve amount will now be automatically withheld from future owner distributions until the reserve requirement has been met.
Release a reserve fund
If you no longer need to hold back funds—for example, if you are no longer managing the property or the owner no longer requires a reserve—you can remove the reserve amount.
Go to the Owner profile.
Select the Property (Asset).
Click the three-dot menu and select Update Asset.
Change the Reserve Fund amount to $0.
Select Save.
Setting the reserve fund to $0 removes the holdback. Any funds that were previously being reserved will now become available for the owner's next payout.
Note: Releasing a reserve fund does not create a separate line item on owner statements or reports. The reserve was only withholding funds from previous distributions, so when it is removed, the available balance simply becomes part of the owner's next distribution.