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PROPERTY MANAGEMENT SERVICES
I. ACCOUNTING
Income
Rent statements are sent to the tenants at least one week prior to the first of
the month to assure timely and correct receipts. Rents are collected at the
management offices for the properties and deposited the day they are received.
In order to assure the integrity of the collection system, all rents are
deposited directly into the owners bank account. Monies are never commingled
between properties or clients.
Expenses
All invoices are directed to the Property Manager for review, acceptance,
approval and coding. They are forwarded to the Project Staff Bookkeeper for
daily posting. Checks are processed twice monthly for each project. Checks are
sent directly to the vendors. Non recurring expenses over two thousand dollars
($2,000.00) shall require prior approval by owner.
Accounting
Responsibility for data entry, tenant accounting, property accounting and
report generation lies with the Project Staff Accountant. The Staff Accountant
is familiar with the project and works closely with the Property Manager to
assure accuracy of reporting. The Staff Accountant manages cash flow,
reconciles bank statements and prepares the monthly accounting reports. Our
management/accounting software has the compatibility to design and customize
your reporting needs.
Reporting
Monthly financial documentation will be generated on a timely basis. Our
monthly financial reports typically include a balance sheet, comparative
statement of income and expenses, partners capital schedule if applicable, and
other supporting schedules as necessary such as detailed accounts receivables
and tenant lease abstracts.
In addition we can prepare annual tax returns including K-1 reporting, budgets,
and cash flow projections.
II. OPERATIONS AND MAINTENANCE
The area of operations and maintenance comprises a significant majority of our
Company's involvement in a project. These tasks are performed or directed by
the Property Manager and include:
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Hire and supervise a management office staff;
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Hire and supervise all contract services;
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Contract for and supervise quality of repairs and refurbishment;
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Inspect premises and schedule work as required;
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Purchase equipment and supplies;
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Implement preventive maintenance program for plant facility and equipment;
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Monitor warranty services;
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Contract for and supervise tenant improvements;
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Engage legal or professional services as necessary;
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Maintain tenant and property files;
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Maintain accurate abstracts on all leases;
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Administer lease terms: rent escalations, options, tenant requirements,
landlord responsibilities, expirations, CAM recoveries, tax and insurance
reimbursements;
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Collect rent;
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Pursue delinquencies;
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Initiate legal proceedings;
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Review, code, approve and pay invoices;
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Prepare operating budget; and
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Prepare management reports, variance reports and leasing status reports.
III. LEASING SERVICES
We provide leasing services for those properties on which we have a management
contract.
Based on the needs of an individual property, a decision will be made as to
whether we will market the properties through an open listing or whether an
exclusive listing will be given to a brokerage firm. This decision may be based
on tenant mix, lease-up status, the specific market area or other interests.
Even with exclusive broker participation we are closely involved with the
marketing and leasing activities.
A leasing program can be considered a success only when leases are executed at
acceptable terms and tenants are in possession and satisfied as a result of an
effective leasing and management effort. If we have the responsibility for the
leasing effort (through a separate listing agreement), we actively solicit help
from the brokerage community. We do not consider ourselves to be in competition
with brokers. Contact with existing tenants is frequent in an effort to
identify those who may be candidates for expansion.
All available resources such as advertising, brochure development, broker/user
mailings, newsletters, tenant reciprocity programs, on-site signs, open houses,
promotions and cold calling are used to create leasing activity.
IV. TENANT RELATIONS
Excellent tenant relations are necessary to keep investment real estate
successful. We deal with our tenants in an honest and forthright manner and are
recognized as professional, whatever the issue. Occassionally tenants require a
firm approach when the interests of owner and tenant do not coincide.
Principle areas affecting tenant relations are:
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Equitable application of lease provisions;
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Effective implementation of operating policies;
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Anticipation and resolution of problems;
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Prompt response to tenant requests; and
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Qualified and reliable project employees and contractors.
Tenant relationships are based on cooperation and mutual respect. Positive
tenant attitudes at time of lease renewal is extremely important. We consider
our lease renewal effort to begin when our tenant relationships are initially
established.
Our involvement with each new tenant begins with the coordination of the
tenant's move into the property. We utilize this opportunity to establish
rapport and mutual respect through our understanding and professional
assistance, insuring that the move-in is a smooth one.
We will take great care to make certain that the interests of both the owner
and its tenant are properly served.
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