Commercial Industrial & Retail Management

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1 Commercial Industrial & Retail Management

2 it s the experience that matters Raine & Horne Commercial has long and proven expertise in all aspects of commercial, industrial and retail property management ensuring efficient management of your property for optimum return. Our accounting & reporting will keep you fully informed on the current performance of your asset. The following pages demonstrate our extensive knowledge of the tasks needed to maintain your investment and our well founded experience in the local market. With more than (750) commercial tenancies under management, a commercial management and leasing team of (17) highly qualified employees means you are placing your property with highly experienced people. Our agency provides management services to organisations such as Commonwealth Bank, Suncorp, Westpac Bank, National Australia Bank, RMS, KFC, Centrelink, NDIS, Pacific Brands, Coles and various government departments, just to name a few.

3 what you need to know about our property management duties Transition Management & Establishment Critical to the implementation of the property management contract is the success of the Transition and Establishment phase. Raine & Horne Commercial Newcastle has been involved with the successful transition of hundreds of properties and is acutely aware of the importance of diligent preparation & attention to detail to achieve an effective establishment hand-over. Transition is the point of maximum risk when engaging a new service provider. Risks include loss of information during transfer, disruption to on-going operations, business interruptions, and tenant & contractor relations. Our transition plan focuses on the following key areas: Risk identification Tenant relations Building familiarisation/building Service audit Service contractor review Lease audit/tenant setup Review of charges and arrears Initial tenant invoice disbursement and instructions Budget review Transfer of financial data into our Commercial Management System Taking ownership of current leasing and operational matters

4 what you need to know about our property management duties Tenancy Administration Rental Collection We will issue a tax invoice each month for the rent and outgoings due by each individual tenancy. Each tenant is responsible to make rental payments in advance. Should any account remain unpaid for more than (7) days, action is taken to ensure that monies are recovered immediately and the Landlord s position is not prejudiced in anyway. Should a rental debt remain outstanding, it will be the subject of a separate report and recommendation to the owner. Disbursement of Collections Owner s statements are submitted electronically on the last day of the calendar month and a hard copy posted that day - if required. Advances of available funds can be made during the month if required and remaining funds remitted at the end of each month. Outgoings Payments All payments are approved for payment by the Property Manager who will ensure that work carried out, was as per quotation and to an acceptable standard. These are then checked before final approval by the Manager. Observance of Lease Covenants We exercise close supervision of tenants to ensure that they act in accordance with their leases and check that all actions required of them by the lease agreement are in fact, being carried out.

5 what you need to know about our property management duties Rental Reviews Prior to lease review dates we will submit for your approval our recommendations on revised rental. We will support our recommendations with market evidence and any other relevant information. Lease Renewals Well in advance of lease termination dates we will liaise with tenants to establish their intentions regarding their tenancy. In the case of lease options if the lessee has not exercised their option as per the requirements of the lease, we will with your approval offer them a new lease over the premises. Outgoing Budgets We are totally conversant with the preparation of Annual Outgoing Budgets and billing tenants on a monthly basis with a reconciliation at the end of the period. Assignment of Lease When a request for an assignment of lease is received, we notify you and on your behalf interview the proposed assignee in the first instance and request trade and business references. We will endeavour to establish the assignee s financial situation and that of its director s if appropriate. Once we are satisfied that the proposed tenant is able to meet their obligations only then will we recommend your approval of the assignment. Leasing of Vacant Space Whilst this should not occur for some time, when we become aware that a presently leased space will become available we liaise with the outgoing tenant to make arrangements for prospective new tenants to inspect the premises.

6 our objective is to achieve an occupancy rate as high as possible in the prevailing conditions, and where possible maintain full occupancy of the building which will ensure maximum return to our owner.

7 what you can expect from us at the commencement of every tenancy Physical Administration Building Services We will ensure that the approved and qualified contractors carry out services and maintenance on mechanised services within the building at the appropriate intervals. i.e. lift maintenance, air conditioning, security, lighting, waste, cranage, electrical maintenance and anything else required within your property. implemented when lift services are interrupted and we will ensure all tenants are aware of the alternative arrangements. Other Services We will administer all agreements in force for regular maintenance of the building services. i.e. Pest control, waste removal, gardening, etc. Fire Services We will ensure that the relevant contractors carry out required services and tests all fire safety equipment within the building. Repairs and Maintenance The building will be inspected on a regular basis and any items requiring attention will be attended to immediately. Lift Services We will ensure that the lift maintenance contractor carries out services in accordance with Australian Standards and that annual registration is renewed. Additionally, if there is no central stairwell, procedures must be We would discuss with you our authority to disburse funds on repairs and maintenance up to a limit without reference to you. Subject to your approval, we recommend a $1000 limit to be agreed on.

8 what you can expect from us at the commencement of every tenancy Professional Advice On matters beyond our area of responsibility, we will in accordance with your instructions consult with your advisors. Insurances Ensuring that appropriate insurances are effected for your property is paramount. We shall discuss with you and make recommendations if requested in regards to insurance requirements. Lease covenants also require tenants to maintain specific insurances which we will keep on record. We may also recommend from time to time that other technical consultants be appointed to carry out specific work if required. Reporting The object of our property management system is to provide a skilled service enabling the maximum return to the lessor. Our experience, professional service and size of commercial management portfolios is such that we are constantly aware of current trends likely to affect your investments. We place particular emphasis on promoting good public and tenant relations ensuring our owner s position or investment is not prejudiced.

9 a guide to fees & charges Management Fee This page is a guide only and all Management Fees are subject to negotiation and reflection of the services provided based around various aspects of the property and tenancy. Gross Income Collected Single Tenancy Multiple Tenancies Up to $20,000pa 7% + GST 8% + GST $20,001 to $35,000pa 6% + GST 7% + GST $35,001 to $65,000pa 5% + GST 6% + GST $65,001 to $200,000pa 4% + GST 5% + GST $200,001 to $300,000pa 3% + GST 4% + GST Above $300,000pa Fee on Application Fee on Application Letting Fee There is no letting fee payable if the property is leased at the time of transfer of the property. If the property is vacant at the commencement or during the management, the following amount is payable: Lease for (3) Years or less Lease above (3) Years Lease or Option Renewals 12% + GST 12% + 1.0% (for each year or part thereof + GST) 50% of the above mentioned fee + GST Administration Fee A monthly statement and accounting fee per statement Dependant upon the complexity of the property

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