Management Services Overview

The following narrative outlines the services provided under our standard management and leasing agreement. Our standard agreement can be customized to meet the particular needs of the building owner.

Building Administration

Property Management, Inc. Commercial Maintenance

Property Management, Inc. maintains a crew of qualified, motivated and well-trained maintenance personnel to insure building safety and the optimum performance of building equipment. Preventive maintenance is monitored and performed as necessary to insure the long life and efficient operation of building systems. Routine electrical, heating, air conditioning, and plumbing repairs are made as needed. Buildings are inspected regularly for cleanliness and safety. Full-time on-site personnel can be provided upon request. Tenant maintenance requests are received in Property Management, Inc.’s office, captured electronically and assigned to maintenance staff. This history of work order requests and resolutions allow us to detect trends in maintenance issues and resolve any problems with a proactive approach. These services are billed on a time and material basis as a building operating expense.

24-Hour Coverage

Incoming calls to Property Management, Inc. are answered 24 hours per day, seven days per week, including holidays. Calls during normal business hours are answered by the Property Management, Inc. receptionist and transferred to the appropriate party. Calls after normal business hours are answered by an answering service and handled according to pre-determined guidelines. Maintenance personnel are on call after normal business hours to respond to emergencies.

Outside Vendors

As necessary, outside vendors may be utilized to perform specialized work in the building. Property Management, Inc. coordinates the use of and monitors the performance of outside vendors when required in accordance with the building owner’s guidelines. These services are billed as a building operating expense.

Expense Payments

Invoices are received in Property Management, Inc.’s office on a daily (workday) basis and processed for payment. Invoices are checked against purchase orders, packing slips, vendor contracts, etc. for accuracy. Invoices are coded to the proper general ledger account number and scheduled for payment by the due date.

Marketing & Leasing

Marketing of Available Office Space

Property Management, Inc. markets available office space a variety of ways.

1. Newspapers. Property Management, Inc. advertises available office suites in the local newspaper utilizing a combination of line and display ads targeting the days of highest circulation. The cost of newspaper advertising is an operating expense of the building.

2. Internet. Property Management, Inc. maintains a Web Page accessible at www.rentpmi.com. Under the Commercial Division section, available office space is listed regionally including location, square footage, rental rate, availability, lease terms, amenities, floor plans, and building pictures. Viewers are afforded the ability to contact Property Management, Inc.’s leasing department via email directly from the web page. Additionally, Property Management, Inc. lists the same information on Loopnet, an internet service available to other commercial real estate brokers and agents throughout the country. Finally, all available spaces are listed on Costar, a nation wide commercial real estate web site. This service is offered free to the building owner.

3. Listing Sheets. Listing sheets containing all pertinent information, floor plans, and pictures are prepared and available upon request to any prospective tenant or broker or agent. This service is offered free to the building owner.

4. Monthly Office Update. A detailed listing of available office space is mailed monthly to a list of over 100 commercial agents in the central Pennsylvania area.

5. Brochures. Property Management, Inc.’s marketing department will develop and distribute a full-color brochure for the building upon request.

6. Business Fairs. Several times per year, Property Management, Inc. participates in regional business fairs showcasing the properties it manages.

7. Co-Brokerage. Property Management, Inc. works within a network of area brokers and agents who provide referrals of prospective tenants.

Leasing of Available Office Space

Property Management, Inc. employs a team of leasing agents to receive inquiries, provide information, and show available office space. Subject to building policy and established market rates, Property Management, Inc. handles lease negotiations to optimize the building’s performance and level of quality tenants. Prospective tenants are screened for reliability and financial responsibility.

Property Management, Inc. prepares all documents required in the leasing process. Building owners may utilize Property Management, Inc.’s standard lease agreement or provide a building-standard lease agreement. Property Management, Inc. prepares and administers any other necessary documents for amending, renewing, expanding, extending, or terminating any lease agreement.

Tenant Relations and Retention

Our company is well known for providing excellent service to all of our tenants. We have in excess of 282 tenants. Our staff responds immediately to any questions and concerns. We have a designated "maintenance hotline telephone number" which is provided to all tenants. Additionally, we provide 24-hour emergency maintenance service.

Tenant Improvements

Property Management, Inc. negotiates and handles all tenant improvements including soliciting bids, awarding contracts, and monitoring the work through completion.

Lease Administration

Rent Rolls

Rent rolls are updated on a daily basis showing current vacancy and market rates, current tenants, square footage leased, current rent, rental rate per square foot, type of rent escalation, renewal options, lease beginning date, lease ending date, and security deposits held.

Lease Renewals

Leasing ending dates are tracked and renewal leases, extensions, or exercise of renewal options negotiated as per the lease document when appropriate. Property Management, Inc. prepares all necessary documentation and provides the building owner with a fully-executed copy if necessary.

Rent Escalations

Rent escalations are calculated in accordance with the lease document and tenants are notified accordingly.

Tenant Billings

Tenant’s are billed as needed for any charges over and above rent as may be required by the lease document or building policy.

Taxes & Utilities

Real estate taxes and monthly utility bills are recorded and billed to the tenants as may be required. Where possible, utility accounts are kept in the tenant’s name and monitored for non-payment and any change in status due to vacancy.

Rent Collection

1. Depositing of Rent Checks. Rent checks are received, deposited, and credited to tenants’ accounts on a daily (workday) basis. Rents are deposited into the bank of the building owner’s choosing. Electronic transfer of funds are also accepted from tenants. No cash payments are accepted. If required by tenant, rent invoices are sent on the fifteenth of each prior month.

2. Delinquent Rents. Delinquent tenants are contacted by letter when rent payments have not been received by the due date and late charges are assessed if applicable. If payment is not made within ten (10) days, collection efforts are continued by certified letter, telephone call, and/or whatever other method is necessary until collection is made. If rent still has not been collected by the end of the month, a notice of default is sent via certified mail in accordance with the lease.

3. Eviction & Bad Debt Collection. If rent still has not been collected at the end of the default period, then eviction proceedings are started on the district justice level. If a tenant leaves voluntarily before the end of the lease or for non-payment of rent, collection proceedings are initiated either at the district justice level or through an attorney, whichever method is most appropriate.

Security Deposits

Security deposits are collected in accordance with the lease document when signed and held in an interest-bearing escrow account in the name of the building owner. Security deposits are refunded to tenants at the end of the lease term if all financial obligations of the lease have been met and if the space is returned in an acceptable condition. Any amounts due to the building owner are deducted from the security deposit, if necessary, before a refund is made to the tenant.


Information Systems

Property Managment, Inc. uses Yardi Systems, a fully integrated web based information processing system. All managment functions, work orders, preventative maintenance, leasing, administration, budgeting, accounts payable and general accounting is captured within the system. Our entire company including maintenance, administrative, managment and accounting personnel share real time data. Yardi operates in a true web environment allowing us or our clients to access the system from any computer with internet access. All the information is contained within one database which allows us to prepare extremely flexible reports specific to an owner's needs or our entire portfolio.

In addition to the Yardi system, we use Microsoft Office, Outlook, AutoCAD (space design), Exact (payroll and human resources), Best (depreciation software) and a variety of publishing products.

The entire system is contained on five (5) servers. We utilize a documented backup strategy to ensure data integrity.

Accounting Services and Reporting

Using the Yardi system, we perform the entire accounting cycle. In addition we provide the following services:
• Complete, concise and timely financial reports delivered via mail or e-mail.
• Preparation of annual and capital operating budgets.
• Cash flow analysis.
• Special accounting projects as needed by the owner.
• Preparation of year end financial statements including complete cooperation with any owner-assigned audit organization.

We can simultaniously provide reports in cash and accrual accounting methods.

Our management team has access to financial data to ensure a proactive approach to identifying potential issues.

Our accounting department has been designed to provide for the segregation of duties. This internal control insures that no one person handles all aspects of a transaction. The financial statements of Property Management, Inc. are audited by a certified, independant accounting organization annually.

An integral part of internal controls is achieved through client review. We work closely with owners to insure that accounting details are understood and the past, present and future financial positions are clearly communicated.