GOLDSTAR SELECT PROPERTY MANAGEMENT

Transcription

1 GOLDSTAR SELECT PROPERTY MANAGEMENT Last Update: January 1, 2010 Owner/Broker: Bob Ruggieri Direct Line: Office: Fax: WEB:

2 Bob Ruggieri Dear Prospective Client, Over the last fifteen years, we have been actively managing rental properties in many of the surrounding counties of our main office location. Due to the geographic diversity of this property management portfolio, we must be aware of all the various jurisdictional differences for managing these properties on behalf of our clients. We make it our job to understand what is required in each jurisdiction such as property registration, rent court, eviction processes, etc. Our management objective is to return the most rental income with the least cost in a timely manner to our clients while at the same time strictly adhering to all federal, state, and local rules and regulations. We also believe in providing tenants the services that they need in order to promote a harmonious landlord tenant relationship. We have put this information package together for you to review. Contained inside the package is a Summary of Services, a Fee Schedule, a sample Client Statement, and some Frequently Asked Questions. Please do not hesitate to call me directly at if you have any questions regarding our service. All of us at Goldstar Select Property Management hope that you will decide to use our company for all of your property management needs. Sincerely, Bob Ruggieri Broker/Owner Goldstar Select Realty, LLC Page 1 of 8

3 Professional Experience Goldstar Select Realty, LLC 02/2005 to Current Broker/Owner Keller Williams Realty, Coldwell Banker Residential Brokerage, Maryland 09/2001 to 02/2005 Residential Real Estate Sales Teligent, Inc., Reston, Virginia 07/99 05/01 Senior Information Technology Planning Manager MCI Telecommunications, Arlington, Virginia 10/97 07/99 Senior Manager, Global Information Technology 03/96 10/97 Senior Manager, Mass Markets Information Technology 09/90-03/96 Senior Project Manager, Global Systems Planning & Engineering Fannie Mae (Federal National Mortgage Association), Washington, D.C. 09/89-08/90 Senior Business Analyst 08/86-09/89 Senior Applications Analyst Federal Home Loan Bank System, Washington D.C. 02/81-08/86 Computer Systems Analyst Federal Home Loan Bank Board (Office of Thrift Supervision), Washington, D.C. 05/79-08/86 Computer Programmer Educational Background MARYMOUNT UNIVERSITY, Arlington, Virginia Master of Business Administration, M.B.A., May, 1993 UNIVERSITY OF MARYLAND, College Park, Maryland B.S., Information Systems Management, May, 1986 UNIVERSITY OF COLORADO, Colorado Springs, Colorado Graduate Business Studies, 1992 COLORADO TECH UNIVERISTY, Colorado Springs, Colorado Post Graduate Studies Systems Management, ABD Page 2 of 8

4 SUMMARY OF SERVICES: 1. Each prospective tenant must complete a financial information disclosure sheet. This is the standard Maryland Association of Realtor form used by all realtors throughout the state of Maryland. This form contains prospective tenant information such as: Present address/previous Address Work Information/Current and Previous with phone numbers for confirmation Assets/Liabilities Number of dependents, etc. 2. Rental application fee of per adult tenant over the age of 18 years is collected. This is collected from the applicant to cover the costs for the credit report and evaluation. 3. A credit report is requested through a major credit reporting company for each adult prospective tenant. Using the credit report, the prospective tenant s qualifications are evaluated based on the following: Income Determine if the prospective tenant has sufficient income to pay as agreed on a monthly basis based on income to debt ratio reporting. Credit Report Evaluation Determine if they have any liens or judgments for non-payment of rent. Determine if they have a credit history good or bad. Verify Employment Through two pay periods of pay stubs and a copy of the previous years W2s. Copy of license To validate the identity of the applicant. 4. Complete rental lease agreement using the most current Maryland Association of Realtor Lease Agreement. 5. Provide all required state and federal documentation to the tenant. Disclosures such as: The Lead Poisoning Prevention Notice of Tenants Rights Pamphlet (MDE) Protect your family from lead in your home (EPA) Lead Free Certifications 6. Provide the tenant a check list to report existing problems with the rental unit -- must be returned in 30 days. Page 3 of 8

5 7. Collect and hold the security deposit escrow in an interest bearing account that is not co-mingled with other funds. 8. Provide client a statement with check for rental proceeds minus management fee and any other approved costs incurred on behalf of client by the 25 th of each month. A tax reporting summary will be provided by January 31 st of the following year as well as a 1099-MISC. 9. Maintain and provide copies of all pertinent documentation on behalf of client regarding occupancy of designated rental property. Information such as: Ratified Lease Agreement All correspondences sent to tenant and received from tenant. All legal notices received by property manager. 10. Initiate eviction if necessary file required documentation based on jurisdiction and attend court proceedings if necessary. 11. Monitor condition of property on an ongoing basis. This will be accomplished by driving by the property and by semi-annual inspection of condition of property inside and outside. 12. Provide for first line on call for any problems with the property. Owner will be notified prior to any repairs being initiated unless the repair is an emergency and does not exceed the repair reserve amount. 13. Upon termination of the lease agreement complete a thorough walkthrough of the property to determine condition. 14. Process the return of security deposit (minus any repair costs) to tenant. 15. See attached copy of the Rental Management Agreement for various fees for services. Page 4 of 8

6 FEE SCHEDULE SUMMARY* 1. Management Fee - Ten Percent (10%) of monthly rental amount. 2. Late Fees - Paid by tenant depending on jurisdiction normally 5% of monthly rental amount. This fee will be retained by the Property Manager to cover the added costs of collections of delinquent accounts. 3. Credit Reports per tenant over the age of 18 years. Paid by prospective tenant. 4. Advertising Costs Unless the owner has listed the rental property through Goldstar Select Realty, LLC, owner will be responsible for all advertising costs. By listing the rental unit with Goldstar Select Realty, LLC, the property will be entered into the multiple list system and made available to over 30,000 real estate agents state wide. The owner will be charged one month s rent for this service normally this amount will be split with the broker that provides a qualified tenant. 5. Reserves - Minimum of Reserve from owner to be maintained during duration of the property Management Agreement. This is the recommended amount. However, it can be negotiated on a case by case basis. 6. Tenant Renewal per adult tenant paid by owner. 7. Processing Insurance Claim 5% of the gross claim or whichever is higher. 8. Funds Advanced - Any funds advanced by Property Manager shall bear interest at 18% Per Annum -- Compounded Monthly. 9. Early Termination of Property Management Agreement 30% of all gross rents due and unpaid under the lease in effect at the effective date of termination to be paid by owner. 10. Early Termination of Tenant Lease Fee will be split 50/50 between Property Manager and Owner. 11. Other Compensation per hour plus expenses for any attendance by Property Manager for proceedings on behalf of owner, e.g. eviction proceedings, rent court attendance, etc. * The above is intended to provide a high level summary of fees for the Property Management Services of Goldstar Select Realty, LLC. Please refer to the Property Management Agreement to confirm all fees, terms and conditions. Page 5 of 8

7 PROPERTY MGR: Bob Ruggieri PHONE: INVOICE: 1005 CLIENT: John Smith ADDRESS: 100 Main Street Anytown, USA PHONE: (555) Goldstar Select Realty, LLC DATE: January 16, East Patapsco Avenue Baltimore, Maryland DATE: FUNDS COLLECTED: 1/15/2006 January Rent - 25 Elm Street 12/15/2006 Property Management Fee - 25 Elm Street 1/5/2006 January Rent - 30 Oak Street 12/15/2006 Property Management Fee -30 Oak Street (85.00) (90.00) Total: 1, DATE: N/A EXPENSES: Total: 0.00 NOTES: Tenant for 25 Elm Street failed to pay late fee for January -- will collect in February. Water Bill sent to tenant at 25 Elm Street. OTHER: Late fee carried forward - 25 Elm Street Total Payable to John Smith 1, Page 6 of 8

8 Frequently Asked Questions 1. Rental Increases All leases are signed for a twelve (12) month period with an automatic month to month renewal. Once the original lease period is over the property will be subject to annual rent increases. These rent increase are generally based on the most current CPI Index released by the Federal Government on an annual basis. This increase could be higher depending on other factors such as: the average water usage from previous year, tax increases or any other fees that may have affected the net profit margin to the owner. 2. Security Deposits Maryland state law requires that all rental security deposits be held in an interest bearing account which is NOT commingled with other funds. Depending on the length of tenancy, the tenant may or may not be entitled to the interest earned at the time their tenancy is terminated. As part of the property management function, Goldstar Select Realty, LLC will establish such accounts, hold the monies, and distribute to the tenant at the end of their tenancy. The amount distributed will depend on such factors as condition of the property, late fees, unpaid utilities, e.g., water bills % Early Termination Fee - This requirement will be waived for all client relationships of two (2) or more years. 4. Water Bills - Water usage should be built into the rent charged the tenant. Any increases in usage by the tenant, based on the monitoring of the water bills by the Property Manager, should be passed directly on to the tenant. If the tenant fails to pay the difference, the amount will be carried forward and then deducted from the security deposit. At the end of the year, the average for the water bill will calculated and the rent will be adjusted if necessary. 5. Code Violations Code violations are the responsibility of the owner to correct. However, it is the Property Manager s responsibility to ensure that the owner is immediately aware of any code violations since part of the property registration is to provide the Property Manager s name and address code violations will be sent directly to the property manager by the local jurisdiction. All code violations will then be promptly mailed to the owner. A follow-up call will be made to the owner to establish a plan of action for the correction of the violation. Page 7 of 8

9 Frequently Asked Questions 6. Rent Court and Eviction Proceedings Various jurisdictions require different processes for seeking compensation for delinquent rent and for evicting non paying tenants. The property manager can institute the process by completing all required paperwork and by appearing on behalf of the owner at any proceedings. A fee of per hour has been established in the Rental Management agreement for this purpose. The eviction process usually entails court proceedings in addition to the actual physical eviction of the tenant. In most jurisdictions, this process is supervised by the Sheriff s Department. The Property Manager, acting on behalf of the owner, will meet the Sheriff with a crew to execute the eviction. Owner will be responsible for the all costs and expenses incurred during the eviction process. 7. Property Registration Property Registration varies by jurisdiction. For example, Howard County Maryland requires a property registration while Anne Arundel County does not require any type of registration. In Baltimore City, the Baltimore City Code requires every owner of a non-owner occupied residential unit, whether occupied or vacant, whether it is producing revenue or not producing revenue, whether it is habitable or not habitable shall file a registration statement with the Commissioner of Baltimore Housing. This must be done upon any transfer and every September 1 st thereafter. This registration also requires owners to indicate whether they are in compliance with the state lead poisoning prevention laws. 8. Handing Over Properties Upon entering into a property management agreement with Goldstar Select Realty, LLC, the property manager will complete a checklist of required documentation and tasks to be completed such as but not limited to: Current Lease (if not vacant) Copies of all Tenant personal and financial information Lead Free Certifications Property Registration Security Deposit transfer Property Condition Checklist Page 8 of 8