Management Services Overview
The following narrative outlines the services provided under our standard management agreement. Our standard agreement can be customized to meet the particular needs of the Owner.
1. Collection of the Monthly Rent. Monthly rent will be deposited into the entities operating account and posted to individual resident accounts on a daily basis. Residents that have not paid their rent by the due date (or end of the grace period as outlined in their lease) will be issued a late notice which are sent via certified mail in accordance with Pa. Act 261 of 1976 as amended by PA Act 80 of 2010. Late fees are assessed as outlined in the lease agreement.
2. Marketing and Leasing. Property Management, Inc. will develop a marketing program to attract new residents for available home sites. We will receive and process applications for new residents.
3. Pursuit of Delinquent Accounts. In accordance Pa. Act 261 of 1976 as amended by PA Act 80 of 2010 and the Rules and Regulations of the community, Property Management, Inc. notifies residents of delinquent balances. If a resident has received two certified late notices within a six month period, we will issue a Notice to Quit and file a Landlord/Tenant complaint with the local District Justice. Property Management, Inc. also works with the owner’s legal counsel on accounts requiring additional action.
4. Payment of Invoices. All invoices will be approved and paid on a weekly basis. All contracted work is inspected for accuracy and fulfillment prior to payment.
5. Monthly Deposits into Reserve Accounts. As budgeted, the monthly reserve funding will be deposited into a segregated reserve account.
6. Monthly Financial Reports. Each month we will provide the Owner a Balance Sheet, Budgeted Statement of Operations, General Ledger, and Resident Summary Report. The Budgeted Statement of Operations reflects, by budget line item, the actual amounts paid, the budgeted amount and the variance from the budget both for the current month and for the fiscal year to date. The Balance Sheet lists the current assets, liabilities, and equity of the entity. The General Ledger lists all of the specific invoices paid during the month for each line item, plus all the rent and interest deposits made into the operating account of the community. The Resident Summary lists all unit owners, balances, amounts billed, and amounts paid during the month. Additional reports can be provided at the request of the owner.
7. Preparation of the Annual Budget. We will work closely with the owner in the preparation of an annual budget which meets the objectives of not only the current year goals but also long term goals. Property Management, Inc. will analyze the specific needs of the community including major projects, recurring expenses, contracts and rent amounts while preparing a preliminary budget for owner review. The owner reviews the budget, makes necessary changes, and then the final budget is prepared and distributed.
8. Rules and Regulations Enforcement. As specifically directed by the owner, Property Management, Inc. will enforce and notify residents who are in violation of the communities rules and regulations.
9. Correspondence with Residents. Property Management, Inc. will receive calls, letters and e-mail regarding maintenance issues, accounts balance questions or other concerns daily. Our qualified staff will answer any questions promptly.
10. Contract Negotiation and Performance. Property Management, Inc. has been in business for over thirty-six (36) years and has developed hundreds of working relationships with local and national vendors. We have strong name recognition and a financially strong reputation which allows us quickly obtain bids and negotiate advantageous contracts from a pool of the best subcontractors available. All contractors are required to have liability and workmen’s compensation insurance. We create a scope of work which is approved by the owner and distributed to at least three contractors for bids. The results are summarized and presented to the owner for approval prior to awarding the contract. The contact is awarded and monitored to ensure the work is completed timely and as prescribed.
11. Regular Visits and Walk-Through of the Community. Property Management, Inc. will perform regular inspections of the community.
12. Management Report. Property Management, Inc. will provide a monthly summary of activities to the owner.
13. Contact with Engineers, Attorneys, Etc. Upon the specific direction of the owner, Property Management, Inc. will contact engineers, attorneys or any other consultant regarding matters of the community.
15. Professional Advice to Counsel. Upon the request or need of the Owner, Property Management, Inc. will provide management advice to the Owner regarding procedures, formulation of rules and regulations, feasibility of various projects, contractor reputation and/or performance, etc. The Owner is free to accept or decline such advice in any matter since the decision-making responsibility belongs solely to the Owner.
Property Management, Inc. uses Yardi Systems, a fully-integrated web based information processing system. All management, work orders, preventative maintenance, leasing, administration, budgeting, accounts payable and general accounting information is captured within the system. Our entire company including maintenance, administrative, management 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.
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 servers. We have 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 owner.
• Preparation of year-end financial statements including complete cooperation with any owner-assigned audit organization.
We can simultaneously 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 independent accounting organization annually.
An integral part of internal controls is achieved through client review. We will work closely with the owner to insure that accounting details are understood and that past, present and future financial positions are clearly communicated.