Because of this, our expectation was that we would be reimbursing the seller for prorated amount of property taxes from our point of purchase.However, when we reviewed the closing statement and the balance sheet, we realized that no where on the closing statement were we reimbursing the seller for prepaid property taxes for after we took possession. 

No reimbursement other than keeping her security deposit.Here is a recent one (we took 3 of these out) & if it wasn't for the tree roots the socks & toys would have flushed all the way through.

Hi Rueben,I think @Rob Beeman and @Zach Westerfield provided some great insights, and I'll just add one more with regards to the rehab loan experience.At least with regards to the hard money lender space, the way that rehab (or purchase + rehab) loans are structured are on a reimbursement basis. 

the top PMs that I know make the owner keep 2k in their escrow account.. and allow for 500.00 in unilateral decisions.. once 2k gets lower they have to fill the tank back up.. the PM's that don't require any kind of slush money end up in bad positions when owners refuse to reimburse and they they go down the tubes.. seen it happen a lot of times many times in fact. 

Pay the bill yourself, then reimburse yourself by charging the tenants based on a formula.

Some landlords will send the bill to the tenants for them to reimburse split by the number of units in the building.

because its the government's money and goddamn they will get it.In that situation, you are ultimately responsible for the water bill, with the ability to seek reimbursement from the tenant on your own.

I could reimburse her for purchases.

The agreement I made with the tenant is I would pay for the job up front, but he would pay me an extra per month fee until the total reimbursement was achieved.

When you file a claim for a rental property and receive loss of rent reimbursement, is your property manager entitled to their percentage of share?