When disbursements exceed receipts for a certain month, usually the manager can do what?

When disbursements exceed receipts for a certain month, the property manager can pay costs from reserve funds. Reserve funds are typically set aside for unforeseen expenses or emergencies, ensuring that the property can cover operational costs even when cash flow is tight. By utilizing these reserves, the property manager can maintain smooth operations and fulfill financial obligations without immediate disruption.

Utilizing reserve funds is a strategic decision that allows for continuity in property management while addressing temporary cash flow challenges. It’s crucial for managers to keep adequate reserves to cover such situations, and drawing from these funds can be a pragmatic approach to ensuring financial stability until cash flow improves.

Other options might not be practical or beneficial. For instance, seeking additional funding could involve lengthy processes or costs, increasing rental rates might not be feasible on short notice, and delaying payments to vendors could harm relationships and lead to potential service disruptions. Thus, accessing reserve funds is often the most viable and responsible choice during a month when expenditures surpass income.