Management Services Overview
PMI’s long-standing history of practical experience in achieving the goals of the owner is distinguished in numerous successful apartment communities throughout Pennsylvania. Each of our clients’ unique goals are taken into account in the overall management of the property. We then apply our professional experience, real estate knowledge, and market expertise in order to achieve our clients’ goals. Whether it is twenty units or five hundred and twenty, we have the people, the systems and the proven ability to help the residential real estate investor:
• Improve the overall market position of the property by enhancing advertising and public relations
• Provide professional market analysis to determine optimum rents which will maximize cash flow
• Maximize lease-up by improving the closing ratio of prospective residents
• Maximize stable occupancy by utilizing appropriate tenant selection criteria, and by satisfying our tenant-customers with quality professional service on a consistent basis
• Reduce operating expenses utilizing proven alternatives and PMI’s extensive resources
• Establish the proper maintenance level for the property and consistently achieve this objective
• Successfully handle tenant relations, billings, and collections
• Provide regular detailed accounting services, reports, and cash flow statements
• Improve property value
Overall, let PMI put its’ experience to work for you, the real estate investor. Our proven knowledge of residential management will show in the success of your investment.
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 Owner.
1. Collection of Monthly Rent & Delinquent Accounts. All rents will be deposited into a separate bank account and credited to the individual resident accounts on a daily workday 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. Late charges are assessed in accordance with the lease agreement. Management will handle all legal proceedings including district justice hearings regarding unpaid rent and unit repossessions.
2. Marketing and Leasing. With due respect to the operating budget we will work to develop an advertising and marketing program with the intent to increase traffic and to minimize vacancy loss. We will receive and process applications for residency. Leases will be prepared for all approved applicants using tenant selection guidelines which conform to fair housing requirements.
3. Payment of Invoices. Property Management, Inc. will pay all approved invoices for the community from the operating account. Vouchers for payment are prepared and checks are sent on a weekly basis.
4. Monthly Deposits into Reserve Accounts. As budgeted, Property Management, Inc. will deposit the monthly reserve allotment into the segregated reserve account.
5. Monthly Financial Reports. On a monthly basis, Property Management, Inc. will provide to 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 in each budget line item, the budgeted amount for the particular budget line item, 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 residents, balances, amounts billed, and amounts paid during the month. Additional reports can be provided upon request.
6. Preparation of the Annual Budget. Property Management, Inc. will work closely with the Owner in the preparation of the annual budget. Property Management, Inc. will advise the owner of the anticipated project needs. Property Management, Inc. will prepare a preliminary budget for the Owner's review and adopt the operating budget approved by the Owner.7. Enforcement of Rules and Regulations. In accordance with the Lease Agreement, Property Management, Inc. will correspond with residents who are in violation of the lease and Community Rules. Management personnel will handle all telephone calls concerning violations and complaints, such as parking, pet or noise violations, exterior damage, vandalism, etc.
8. Maintenance Calls. Management personnel will receive calls and letters concerning maintenance problems and will correct maintenance problems in a timely manner with respect to the budget, keeping tenant satisfaction with service in the forefront. We offer a 24-hour answering service for calls after normal business hours, weekends and holidays.
9. Contract Negotiations. Property Management, Inc. will request proposals for various services and work that needs to be done. An approved contractor list will be developed, references checked, and a certificate of insurance obtained. Bid specifications will be provided by or approved by the Owner prior to solicitation. Once the bids are received, they will be sent to the Owner for review and approval.
10. Contract Performance. Once the various contracts are awarded, Property Management, Inc. will oversee the completion of those projects to the satisfaction of the Owner.
11. Contract with Engineers, Attorneys, Etc. At the specific direction of the Owner, Property Management, Inc. will contact professional engineers, the Owner’s attorney, or any other professional consultant regarding matters of the Community.
12. Regular Visits and Inspection of the Community. Property Management, Inc. will schedule regular inspections of the community to assess work that may need to be done and to check for compliance in various areas. If residents have contacted Property Management, Inc. for non-emergency work or other problems, those items may also be investigated during the inspection. PMI representatives work closely with the site staff to assist in problem solving and to monitor the operation.
13. 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 regulation, feasibility of various projects, contractor reputation and/or performance, etc.
Property Managment, Inc. uses Yardi Systems, a fully integrated web based information processing system. All managment, 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 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 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 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 will work closely with you to insure that accounting details are understood and that past, present and future financial positions are clearly communicated.