PROPOSAL FOR MANAGEMENT & LEASING SERVICES
This proposal is to introduce you to Dennis and Lori Pruitt, and to thank you for considering our company to manage your real estate investment property. In business since 1980, we specialize in residential property management. After ten years as Associate Broker's at Realty Executives we formed Pruitt Management Corporation in 1990.
For many years we ran our business from commercial office space with a support staff and a much higher property management account portfolio. A few years ago we decided to scale back to a business we could run from our home without the distraction of running an office, staff, etc.
Subsequently we consider new accounts to replace accounts lost through attrition. With the recent upturn in the real estate market, some of our clients have sold properties and we currently have time to take on new clients.
The big advantage to our clients today is everything is handled by us personally, not delegated to a staff member that may, or may not have the experience necessary to handle every situation.
In addition to being a licensed Real Estate Broker, I am the "qualified party" for our sister corporation's contractor's license. Precision Home Maintenance, Inc. is a licensed, bonded and insured residential repair company. This organization is capable of taking care of your residential property maintenance and repair needs along with many other vendors we work with.
Full accounting will be provided; including depositing receipts from rental and deposit income, payment of operational expenses such as repair and maintenance invoices, utilities, management and leasing fees, and monthly disbursements to you, the owner. Along with your monthly disbursement, you will receive an operating statement accompanied by any paid invoices to support the statement. At the end of each year you will receive a year end summary statement to aid you in preparing your tax return.
Owner disbursements are usually sent out within seven business days of receiving rent from your tenant. An amount equal to the security deposit and non-refundable fees or monthly rent, whichever is greater, is kept in the broker trust account along with any pre-paid rent.
We will follow up on collections of late rent payments and issue a five-day notice of eviction within a few days of rent being past due. Additionally, we will handle the administration of court actions and evictions should it become necessary. There will be process service fees, court costs and attorney fees which would be the owner expense.
Maintenance and Repairs
We will receive all repair requests from your tenant and log the work requested in our office. Review major repairs with you and schedule a proper contractor for the work. In addition, we supervise routine maintenance and restoration work necessary to get your new vacancy cleaned up and ready to be re-rented.
Tenant Deposit Statement
Upon your tenant vacating the property, we inspect and document the property condition. Within the time prescribed by law, we provide the tenant with a billing statement or deposit refund based on the records made when the tenant took possession.
If your property is governed by a HOA, we will assist you in informing your tenant of the rules and follow up on complaint letters. Our rental agreement requires the tenant to follow HOA rules and holds them responsible for fines resulting from failure to do so. It is the owner's responsibility to pay HOA dues along with mortgage payments, if any, taxes and insurance.
General Marketing of Vacancies
Sign placement, Multiple Listing Service, lockbox placement, other internet advertising and our own website is among the many marketing sources we employ to find your next tenant.
Prospective Tenant Screening
Our screening process includes checking public records for previous evictions, judgements, repossessions, foreclosures and/or criminal records, reviewing credit reports, verifying employment and income, calling past rental references and identification verification. An application fee is charged to the prospective tenant. We will review the results of the background check with you and you will have the final decision on the acceptance of a prospective tenant.
After an acceptable tenant is approved, we will prepare and execute the Rental Agreement with the tenant. At that time we collect the security deposit in certified funds. The rent is collected at or before the move-in inspection when keys are given to the tenant. This rent payment is also in the form of certified funds.
At the time keys are given to the new tenant, I will meet them at the property to do a written Property Condition Report detailing the property condition at move in. This document is signed by the tenant and management. A copy is provided to the tenant and the tenant has seven days, as prescribed by law, to add anything they feel necessary to the report. The original document is kept in our file to be used when the tenant vacates and the deposit refund status needs to be addressed. Should it be necessary to bring in professional services to instruct your new tenant on certain equipment, this service would be at the owner’s expense.
Please keep in mind that this proposal is of general information and is not to be considered a contract for services. Information contained herein is subject to change at any time without notice. A copy of our management and leasing agreement is available for your inspection upon request. I would be happy to discuss the information contained herein or any other questions which you may have about our services. Please feel free to call me at (623) 933-9131.