Question for the PMs out there

[Corina Eufinger]

Hello Fellow PMs,

For years I have operated under the following parameters with owner draws from our RETA: 1) One only draw per month 2) Reserve amounts of $300 per property (dupes and SFH). I'm beginning to feel like these standards which I learned in the 90s maybe aren't as applicable anymore. It was explained to me way back when I was an intern at a PM company that it was based on needing money to pay expenses without having to wait for checks from tenants (or owner contribution) to come in and as well as the time it took to issue manual statements and checks. Now that rents are exclusively done ACH and owners are paid that way as well as statements being emailed (or available immediately for preview) it seems rather old school. Am I correct in that?

If you do bi-monthly owner draws, how do you handle how much $ to disperse independently of the reserve?  Do you issue only a % on the first draw, then the remainder at the 2nd one?  

When are you typically doing bi-monthly owner draws?  I was thinking the 10th and then obviously the last one would fall after the month was closed.

What reserve do you require? I know this varies by property size but speaking for duplexes and SFHs, what reserves are you maintaining?  Do you ever cap it?  Say if a client has 9 SFHs with you do you cut off the reserves at...$1100?

Thank you!