By: Megan Jackson

Telecommunications agreements can generate valuable recurring revenue for property owners, but what happens when those payments go unclaimed? Did you know that each year, millions of dollars in payments are reported to state unclaimed property divisions after checks go uncashed or funds remain inactive for a certain period of time? All industries and companies generate items that may become unclaimed property if not resolved within a specified period. This is also sometimes referred to as escheated funds.

RealtyCom Partner’s Accounting team prides itself on collecting and monitoring all agreement compensation outlined in our client’s telecommunications agreements under our Revenue Share Management program. For property owners and management teams, missing or delayed deposits can mean revenue sitting unclaimed with the state. Ask yourself the following questions to see whether researching the nationwide database might be right for you.

  • Are you missing any compensation under a telecommunications agreement?
  • Did your corporation move without notifying all vendors of your address update?
  • Are management teams depositing your funds?
  • Have bank accounts been closed or updated?
  • Have you received any notice directly from the State Comptroller’s Office?
  • Have you received any notices directly from the service providers?

Although timeframes may vary depending on the type of income being reported and individual state regulations, the dormancy period typically ranges from 1 to 7 years—with 3 years being the most typical—without owner activity before funds are reported to the state as unclaimed property. Laws governing these periods are evolving, and it is best to research locally to confirm dormancy periods and compliance.

The  goal is always to identify and resolve any payment discrepancies before funds are reported to the state as unclaimed property. Through our Accounting team’s efforts and diligent communication between providers and clients, we can typically resolve any payment issues before they are reported to the state. However, in some instances, the dormancy period has passed, and we must direct clients to the State Comptroller’s Office to claim these funds. At that point, we unfortunately do not have the capacity to assist with the collection of escheated funds, as they must be claimed directly by the owner.

You may be wondering, “How can RealtyCom Partners help avoid these unclaimed property notices?” Fortunately, there are several proactive steps that can help prevent telecom compensation from being reported as unclaimed property. Working together, these steps can help prevent unclaimed property issues:

  • Alert us immediately about any bank changes affecting ACH payments issued directly from the service providers.
  • Keep us well informed about ownership changes.
  • Advise us of any address updates for check remittances so we can notify the providers.
  • Keep us informed if your corporate office moves.
  • Provide your team with our contact information, accounting@realtycompartners.com. We are happy to answer questions or direct you to the appropriate internal contact.

Taking these proactive steps can help ensure your telecommunications compensation is received, tracked, and properly managed, significantly reducing the risk of funds being reported as unclaimed property.

We welcome the opportunity to review your portfolio to determine whether ongoing Revenue Share Management might be right for you, and we are willing and able to add additional properties to portfolios already established with RealtyCom Partners. We offer a wide range of services, including management of your telecommunications compensation through audits or monthly/quarterly Revenue Share Management. Let’s review your portfolio together—connect with our team today to see how RealtyCom Partners can help protect and maximize your telecommunications compensation.