How do you handle a reserve fund that the property manager holds?

My property management company holds $500 for repairs. How would I handle this transaction if I give $500 to the property management company to hold? Then how would I handle it when they use some of this money for a repair?

I did a “Transfer - Owner Contribution” but that doesn’t seem right since it doesn’t show up on the balance sheet.

Now there was a repair under $500 that was paid for out of this reserve and I will have to send money to refill the reserve. What would be the best way to record all of this?

@ehaug87 “Transfers > General Escrows” might be a better spot for these funds. Your PM is essentially escrowing the funds, just like a lender might escrow for property taxes or insurance. You’d want to handle actual expenses paid from the PM account the same way you’d handle a tax or insurance payment from a loan escrow.

Here’s how that works: Split & Categorize Mortgage Payments

Thanks a lot for the help! That makes sense.

I’d assume you would want to handle a security deposit from the tenant that the property manager holds the same way?