Property Management Owners Handbook

Transcription

1 Prperty Management Owners Handbk This handbk is designed t help familiarize yu with ur cmpany's administrative prcesses. It is ur sincere belief we can better serve yu if yu have all the infrmatin yu need t make qualified and knwledgeable decisins abut ur services. A Step Abve Real Estate & Management, Inc. has helped many hundreds f peple like yu realize strng financial rewards in the lucrative field f investment prperties. We are experts in ur field. We have grwn frm managing several dzen hmes t managing hundreds, and we still give each client and each prperty the individual attentin and care that makes us unique. All relatinships are established by written cntract. The items in this handbk are representative f the services prvided. Hwever, each client relatinship can be different. All terms, cnditins and prvisins utlined in this handbk are subject t change, withut ntice. Yur prperty management services agreement is the dcument which gverns the services prvided. The fllwing index utlines the benefits, services and what yu as ur client can expect frm A Step Abve Real Estate & Management, Inc. Prperty Presentatin... Page 2 Renting & Leasing..Page 2 Tenant Screening...Page 3 Rent Cllectin... Page 5 Prperty Prtectin Page 5 Accunting... Page 6 Maintenance & Repair.. Page 7 Inspectins.. Page 9 Insurance Page 9 Security Depsit. Page 10 Vacancies Page 10 Sales. Page 11 Guarantee. Page 11 What yu can Expect frm us.. Page 12 Cmmunicatin.. Page 13 Rates... Page 14 Why Chse Us. Page 15 What t lk fr in a Prperty Mgmt Cmpany. Page 17 FAQ s.. Page Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 1 f 21

2 Prperty Presentatin We wrk extremely hard t present yur prperty t the largest available market. We start by ding a walkthrugh f yur prperty and will advise yu n certain items we feel need t be addressed befre we lk fr a tenant. These items, in ur pinin, may be the difference between a higher rent, a better quality f tenant, r a mre successful advertising and marketing plan. After we phtgraph yur huse, we begin with a MLS listing, internet advertisement, psitining f a "Fr Rent" sign (if allwed) n yur prperty and listing the prperty with the RentSarasta.net website. In additin t ther in-huse websites and feeder sites we yur prperty infrmatin t ther prperty management cmpanies and real estate agents. We have additinal pay per listing websites that we will utilize if yu s desire. Since we use these high end sites ften, we d get a discunt n the marketing and will pass that savings alng t yu. T minimize the lss f rent, we begin marketing effrts as sn as the prperty is listed with ur cmpany. Fr existing clients, these marketing effrts will begin as sn as vacating ntice is received. Key Pints: We present yur prperty t the largest available rental market. We are always aware f current market cnditins. This allws us t rent yur prperty at its highest value. Our cmputer system enables us t maintain an exhaustive list f all the features that make yur prperty desirable and special. We minimize yur rent lss by advertising a vacant prperty glbally ver the wrld wide web, certain large businesses thrughut the area, thrugh the Assciatin f REALTORS Multiple Listing Service, n ur web sites n the Internet, Realtr.cm, the Virtual Listing Service and, in sme cases, Rent.cm, Rentals.cm, Rentalhmes.cm and HmeRentals.net. We use a brad range f advertising media, including signs, flyers, classifieds and the Internet. We share ur vacancy listings with ther Real Estate ffices. We pay a referral fee prmptly t agents wh shw and rent ur hmes. Rental and Leasing Services We will assist ur clients in evaluating the prperty t be rented and we can suggest ways t prepare yur prperty fr maximum shwing appeal and tenancy. We will als prvide a cmparative market analysis f ther rentals in the surrunding area. Once yu are ready t rent the prperty, A Step Abve Real Estate & Management, Inc. will enter it int the Reginal Multiple Listing service (MLS) where it can be viewed by all Realtr members in Sarasta, Manatee, Charltte, Pinellas, Hillsbr and surrunding cunties AND the general public, thru realtr.cm. If allwed in the cmmunity and apprved by the client, we will als place ur cmpany sign in the yard t attract drive-by traffic. Shuld a client desire specialized advertising, that can be arranged als. All calls and shwings are handled by ur ffice staff. When a perspective tenant is identified, they are required t cmplete an extensive applicatin and prvide emplyment and tenancy references. All applicants ver the age f 18 are screened carefully; the fllwing investigatins are made prir t apprval: Credit Cunty recrds (Criminal, Sex Offender) Emplyment Ownership/Rental histry (Evictins Reprt) 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 2 f 21

3 Once a perspective tenant has been qualified, they prvide a depsit and sign a cntract t lease. The mve-in date is determined at that time, dependent upn any HOA r Cnd Assc. applicatins and apprvals. Our lease is prepared by an attrney and includes all items and disclsures required by law. During the lease signing, we review each sectin f the lease with the tenants and prvide them with keys t the hme and an 'A Step Abve' Tenant Handbk that cvers all aspects f their tenancy, as well as wrk rder requests and ther frms. The interir and exterir cnditin f the hme is dcumented and signed ff by all adult tenants within three days f mve-in. We strive t establish a psitive relatinship with the tenant and prvide them with all the infrmatin they require fr a successful tenancy initially, s it reduces the issues and phne calls later. Resident/Tenant Screening & Selectin Criteria Once we have received an applicatin fr renting yur prperty, we begin the screening prcess. We utilize an Internet based screening service. This service prvides us with a cmplete credit histry, a criminal backgrund check, a check f public recrds fr evictins, bankruptcy, liens, als a check f the Terrrist database and the Natinal Sexual Offenders database. This screening service then evaluates the applicant using this infrmatin and prvides us with tw numerical scres. First is the "Beacn" scre that is a reflectin f credit wrthiness. Secnd is the "Predicatr" scre which is a scre that reflects the ability f the applicant t fulfill the prvisins f the lease based n credit, past rental histry and ther items. Unless authrized in writing by the prperty wner, we will nt rent a prperty t any adult applicant wh des nt meet the fllwing criteria. Financial: 1. N recrd f "skipping" r breaking f a lease. 2. N recrd f evictin. 3. N recrd f mre than five (05) late payments t any f their creditrs, medical bills will nt be included in this list. 4. N recrd f bankruptcy in last seven years, unless gd credit has been established since the bankruptcy. 5. Ability shwn thrugh emplyment verificatin f financial means t pay rent. Backgrund: 1. N dergatry landlrd reference 2. N cnvictin fr a felny within the last 10 years. 3. N cnvictin fr a felny invlving physical vilence r prperty destructin (n time limit) 4. N cnvictin fr any drug related ffence within the last 10 years. 5. N cnvictin fr any financial related ffence (ie: bunced checks, ID fraud etc.) 6. N listing n the Flrida State Sexual Offenders Database** (Fair Husing may apply) 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 3 f 21

4 Once these reprts are received, we will advise yu f ur recmmendatin which usually fall int ne f the fllwing categries: Apprve with nrmal security depsit Apprve with additinal security depsit Apprve with csigner Reject Based n ur recmmendatin t either apprve r reject the applicatin, yu then make the final decisin. We feel the best manner t handle applicatins is t be based n the data assciated with the prperty mnetary requirements as well as the applicant's histry. We, f curse, may ffer ther suggestins depending n additinal data that may r may nt shw up n any f the required data. Yu will have the ultimate say-s in placing a tenant in yur hme. TENANT SCREENING Key Pints: We lease nly t qualified, respnsible tenants. We are experienced in judging credit wrthiness. We d a thrugh credit and reference check befre the lease is signed. This includes checking credit histry with the credit bureau, verifying emplyment, checking all apprpriate references including past landlrds, and an evictin histry. We take time with each new tenant t explain the benefits and respnsibilities f leasing a hme frm us. We prvide yu with prtectin thrugh the use f prper lease agreements, depsit frms, late ntices, and ther legal dcuments. We take fair and apprpriate security depsits. LEASING Key Pints: We want gd tenants just as much as yu d. We pride urselves n the quality f tenants we are able t attract. Our extensive tenant screening and lease prcedures help t ensure this. The security depsit is taken nly after the applicatin has been apprved. This is an act f gd faith n the tenants part, and shuld the tenant nt mve int the rental unit, the depsit is frfeited t yu as liquidated damages. Once a tenant Rental Applicatin has been apprved, an appintment is made with the prperty manager t sign the actual Lease Agreement and prceed t a lease clsing. We have fund that this extra persnal attentin t the tenant's needs greatly reduces misunderstandings and eliminates many ptential prblems. Als, this gives us a chance t answer any questins and t carefully explain the tenant's respnsibilities as well as ur cmpany plicies and prcedures. Befre yur prperty is released t the tenant, we make a thrugh mve in inspectin, using the Prperty Cnditin Reprt. This is dne with the tenant. We find this helps develp a gd wrking relatinship with the new tenant. At the same time, it gives us ne mre chance t encurage ur tenants t take pride in their new hme. We require ur wners t maintain the hme in as gd a cnditin as if they were living there. This includes interir and exterir painting, tree trimming and upkeep f the appliances Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 4 f 21

5 Rent Cllectin All rent is due n either the 1st r 15 th f each mnth and is cnsidered late if received after the 3rd business day after the due date. Late ntices are sent n the 5th day and remval prceedings are initiated if the tenant des nt make immediate arrangements fr rent payment. Ntice f nn-payment (3 day ntice) will be sent t any tenant n the 7th late day f each rental mnth. If n arrangements are made after the nn-payment ntice, r if the full rent is nt received by the 10 th day after rent is due, the legal paperwrk fr remval f the tenant will be prcessed. At A Step Abve we d nt tlerate the delinquent payment f rents. We are careful t explain this plicy t new residents in rder t avid any misunderstandings that might arise later. Our rent cllectins & delinquencies plicies are as fllws: RENT COLLECTIONS & DELINQUENCIES Key Pints: A. Yu can expect that we will make every effrt t cllect rents timely and when due each mnth. B. Yu can expect that we will mail yur resident a "Friendly Reminder" if rents are nt cllected in a timely manner each mnth. We als will attempt t phne the tenant. C. Yu can expect that we will "Hand Deliver" a 3-day ntice, (Flrida's legal prerequisite t an evictin), between the 10 th and 15 th late day. D. Yu can expect that we will turn delinquent residents ver fr an evictin t be filed n r shrtly after the 15th late day f the mnth. Mnthly Statements: Yur nline statement shws every transactin we've psted t yur accunt since the beginning f the year. Each transactin is described in detail. If yu find a discrepancy, please submit a request nline t have it reviewed. We will be happy t answer any questins yu have abut yur accunt. Prperty Prtectin: Can we make sure that yur prperty is nt damaged? N, there are n guarantees, hwever by prperly screening applicants we can cut dwn n the risk f that happening. Our main jb is t prtect yur investment prperty. We d this in tw different ways. Our prperty manager makes frequent driving turs by the varius prperties we manage. Exterir inspectins are very imprtant, because a prperty that is well maintained n the utside is nrmally being taken care f n the inside, t. In additin, we make regular preventive maintenance inspectins f the interir f the prperty quarterly. Every six mnths, we will make an annunced preventive maintenance inspectin with the tenant. Any items needing repair will be fixed (at the tenant's expense, if warranted). PROPERTY PROTECTION & INSPECTION Key Pints: Our cmprehensive screening prcedures assure yu f desirable tenants. We maintain and update an inventry f all the persnal items that are part f yur prperty. We cnstantly perfrm spt checks and annunced rutine inspectins. Our key-cntrl prcedures prtect yu and the tenant against unauthrized entry Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 5 f 21

6 Accunting and Recrd Keeping A Step Abve Real Estate & Management, Inc. has state-f-the-art cmputer sftware that maintains cmplete and accurate recrds n each prperty. This database tracks all wrk rders, bill payments, rental payments, management fees, special ntes, and any ther incme r expenses assciated with yur prperty. Yu will be able t lg in and review each prperty we manage fr yu. Our cmputerized system keeps cmplete and accurate recrds. Each expense r incme item is lgged and filed as sn as pssible. A cpy f all repairs and expenses are kept in yur prperty binder. Yu may request t review yur binder at any time. At the end f the year, a statement is prepared and frwarded t simplify the jb f tax preparatin. At the end f the year, if requested, we will als prepare and send yu a cpy f the INS Frm 1099 (MISC) shwing the ttal grss rent incme we cllected fr yu. ACCOUNTING SERVICES Key Pints: We pride urselves n ur thrugh, accurate recrd keeping. Our cmputer system allws us t prvide services that wuld be difficult r impssible with a cnventinal manual accunting system We d all the bkkeeping chres fr yu. Our cmputer system keeps cmplete, accurate recrds f every incme and expense that affects yur prperty. Our cnvenient nline system prvides yu with a full, itemized recrd f all transactins. Our end-f-year statements simplify the jb f tax preparatins fr yu and yur accuntant. Because we are cmputerized, we can meet yur individual needs, including budgeting, itemized summaries fr tax preparatin, and ther unique services. Every transactin affecting yur accunt balance is recrded and explained in detail. Accunting is dne n single-entry cash basis. Each prperty always has its wn separate and cmplete accunting recrd and binder. Cpies f all wrk rders and receipts are kept n file thrughut the year. In additin t the nline statements, we als prvide a cmplete summary f accunt at the end f the year. These statements have been specially designed t simplify the year-end tax preparatin jb fr yu r yur accuntant. Our cmputer system enables us t get this vital infrmatin t yu in a timely manner at the end f the year. As required by Internal Revenue Service regulatins, we prepare and submit a 1099 MISC frm shwing the ttal grss rent incme that we cllected n yur behalf during the year. A cpy f this frm will be sent with yur year-end statement. RENT PROCESSING & ACCOUNTING Expectatins: At A Step Abve Real Estate & Management, Inc., ur prperty management sftware is ne f the tp prperty management sftware slutins in the industry. A. Yu can expect the ability t lg in t review a mnthly cmputerized reprt shwing all incme and expenses f yur rental prperty. B. Yu can expect t receive a year end summary statement fr yur tax purpses shwing all f yur yearly incme and expenses and categrizing said incme and expenses, alng with yur C. Our single prperty wners can expect that we will prcess yur rental payments t yu within 8 t 12 days f ur receipt f the rent. Our multiple prperty wners can expect that we will prcess all f yur rents n later than the 20th f each mnth. Flrida Law requires that we nt disburse funds t an wner until we knw they have cleared the bank. D. Yur can expect that we will make yur mrtgage payments and/r hmewners assciatin payments, if yu s direct (additinal fee may apply) and prvided that adequate funds are available in yur prperty trust accunt. Yu can expect that we will nt make these payments if adequate funds are nt available in yur trust accunt. We require, at all times, ne mnth s payment be held in trust Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 6 f 21

7 E. Yu can expect that in the last mnth payable f a tenants lease, we will hld funds in yur trust accunt t prtect yu by ensuring that adequate funds are available t make yur rental hme "rent-ready", thereby ensuring faster lease ups and less vacancy time. Maintenance and Repairs Over the years it has been prven that the majr headache fr mst prperty wners is maintenance requests frm tenants. By using ur cmpany, yu avid that headache. Maintenance requests will nly be accepted in writing frm the tenant. Our use f the Buildium Online Prperty Management Sftware allws tenants t lgin t their accunt 24 hurs a day/7 days a week t request a maintenance call. We will then ascertain whether the repair can be handled by the tenant, by ur cmpany, r if we will have t call in a licensed cntractr. Any repair (nt charged t the tenant) ver $500 will nly be cmpleted after receiving permissin frm yu, the wner. Nte that emergency repairs r repairs t bring the prperty t cde will be handled immediately. If a cntractr is required, we have a pl f tradesmen; all licensed, bnded and insured wh will be cmpleting any repair beynd the scpe f ur persnnel r the tenant. We prtect the value f yur investment by keeping the prperty t the standards yu expect. MAINTENANCE Key Pints: We prvide qualified, reasnably priced persnnel wh will get the jb dne right. We are maintenance experts. Since we deal with this daily, we knw what repairs shuld cst and hw lng they will take t cmplete. Because f the large vlume f wrk we give lcal firms, we have the necessary recurse t crrect pr perfrmance. We help avid cstly repairs thrugh rutine preventive maintenance inspectins. We prtect the value f yur investment by maintaining yur prperty at current neighbrhd standards. REPAIR SERVICE Timely, cmpetent maintenance is the key t prtecting yur investment. Our gal is t prvide yu with this imprtant service at a reasnable price using nly the best qualified persnnel. In additin, it is ur aim t prevent majr repair bills. We accmplish this thrugh cnstant supervisin, rutine inspectins, regularly scheduled maintenance, and by selecting thse tenants wh will take pride in their leased hme. At A Step Abve Real Estate & Management, Inc. we believe that it is a cnflict f interest fr us t prfit frm the misfrtunes f thers. Therefre, we will nt assess a surcharge t ur prperty wners fr maintenance & repairs t their prperties. T ensure quality service and perhaps reduce the amunt f maintenance requested, we require ur tenants t submit all maintenance requests in writing. We believe this will encurage residents t make their wn repairs. This allws us nt t increase ur management fees and will keep yur maintenance csts dwn by invlving the tenants in the repair expenses Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 7 f 21

8 Hwever, rental hmes must be prperly maintained in rder t preserve the value f the prperty and maintain a psitive relatinship with the residents. Flrida als has laws that require landlrds t cmply with certain basic maintenance and repair items. All ur repair and maintenance services are perfrmed by independent, utside vendrs and cntractrs. What yu can expect: A. Yu can expect that A Step Abve Real Estate & Management, Inc.. will nt effect repairs t yur prperty in excess f $500.00, withut first btaining yur apprval. NOTE: This excludes emergencies and repairs that are required by law (city, cunty, state r federal) r by deed (hmewners and cnd assciatins) t be effected t yur prperty. B. Yu can expect that if yur prperty is vacant, we will effect items necessary t imprve the prperty's shwability t prspective renters. This means faster lease ups and less vacancy fr yu. Examples wuld include: lawn service, carpet cleaning, maid service, pl service, utilities and painting when necessary. In the event that any f these repairs were due t the frmer rental residents tenancy, yu can expect that we will spend all f their security depsit first (nt yur mney) t put yur prperty back int it's pre-rented cnditin. C. Yu can expect that we will institute minr maintenance & repair items ($ r less) as requested by rental applicants t secure a lease t quality residents fr yur rental prperty. T avid the pssibility f majr liability t yu we als request authrizatin t change the lcks between each tenancy. D. Yu can expect that during the residents tenancy, we will institute minr maintenance & repairs ($ r less) when deemed by us t be necessary fr the preservatin f yur prperty and/r the cntinuatin f the residents tenancy, usually ccurring at the renewal f their lease. E. Yu can expect that we will nly use repairmen, vendrs and tradesmen that are prperly licensed and insured t handle the type f wrk being perfrmed n yur prperty. REPAIR Key Pints: Our maintenance respnsibilities are defined in detail by the Prperty Management cntract. Yu may reserve the right t schedule and cntrl all, r a particular part f, the repair r maintenance respnsibilities if yu desire. Befre any wrk is perfrmed, the jb request is reviewed. The jb is assigned and a wrk rder issued after the request has been apprved by the prperty manager. Our maintenance persnnel will nt perfrm unauthrized jbs requested by a tenant. In additin, requests fr maintenance wrk that is the tenant's respnsibility, r fr repairs caused by tenant negligence, will be charged t the tenant. We ensure the quality f the wrk perfrmed by making spt checks and fllw-up inspectins. Yu are further prtected because each jb is fully dcumented in writing and backed with receipts by ur cmprehensive wrk rder accunting system. Rutine repair and maintenance will be perfrmed as needed in ur judgment and will be based n urgency and imprtance. Fr any majr jb, we will btain written estimates frm three different cmpanies and ntify yu befre we prceed Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 8 f 21

9 MANAGEMENT PROPERTY INSPECTIONS Our main jb is t prtect yur investment prperty. We d this in tw different ways. Our prperty manager makes frequent driving turs by the varius prperties we manage. Exterir inspectins are very imprtant, because a prperty that is well maintained n the utside is nrmally being taken care f n the inside, t. In additin, we make regular preventive maintenance inspectins f the interir f the prperty quarterly. MANAGEMENT Key Pints: The right fr us t make rutine, annunced inspectins is part f the tenant's Lease Agreement. Tenants are ntified in writing f a pending prperty inspectin. The inspectin is dne with the tenant present. Tenant's wh are ding a gd jb receive a letter cngratulating them. Thse wh are nt receive an Inspectin Failure Reprt listing the cnditins that must be crrected within 10 days. If nt, we begin making the crrectins at the tenants expense. Insurance THIS SECTION EXPLAINS THE POLICES AND PROCEDURES WE HAVE IMPLEMENTED TO PROTECT YOUR PROPERTY INVESTMENT AND TO PROVIDE YOU WITH THE BEST POSSIBLE SERVICE. In additin t yur nrmal hme-wners Fire and Extended Cverage insurance plicy, we request yu maintain an "Owner, Landlrd and Tenant" (OL&T) liability plicy as well. This cverage prtects the tenant, yu, and us against a wide range f lsses caused by unintentinal hazards r unsafe cnditins n yur prperty. In additin. A Step Abve Real Estate & Management, Inc. must be listed as a c-insured n yur liability plicy, with minimum limits f $100, We must have prf f insurance cverage befre we can manage yur prperty. If yu d nt currently have OL&T cverage, we can arrange t purchase a cmpetitively-priced plicy fr yu. We will als recmmend strngly t the tenant t have renters insurance t prtect their belngings in case f catastrphe. MORTGAGE PAYMENTS If yu wish, we will make the mrtgage payment n yur prperty fr yu. This additinal service is ffered fr a small service fee. If yu chse fr us t d this fr yu, we require yu t maintain, at all times, ne mnth s mrtgage payment in the escrw accunt. Mrtgage Payments will be deducted frm the accunt n the first f the mnth. This is nt cntingent n the tenant's rent payment. If there are insufficient funds in yur accunt, Flrida law prhibits us frm making the payments Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 9 f 21

10 Security Depsit As an additinal prtectin, apprpriate security depsits are always cllected upn apprval f a Rental Applicatin by a prspective tenant. The amunt f depsit is based n the mnthly rental rate. We suggest $50.00 less than the rent. The reasning is that if the depsit is the same as the rent, sme tenants have a tendency t try and use it as the last mnths rent. Under n circumstances will we allw the depsit t be used as rent. All depsits are kept in a fully insured, nn-interest bearing accunt in the state f Flrida. All depsits are kept in accrdance with Flrida Real Estate Cmmissin regulatins. Once the tenant mves ut, the cnditin f the prperty will determine hw much f the depsit will be returned t the tenant, and hw much will be frfeited t pay fr damages abve and beynd nrmal wear and tear. Management Fees (see rate sheet fr leasing and management fees) Our mnthly management fee is payable when the rent payment is received. It is autmatically deducted frm yur accunt at the time the rent payment is psted. Hwever, since ne f ur jbs is keeping yur prperty ccupied, we will nt take ur management fee as lng as yur prperty remains vacant, hwever, if yu wish us t d drive-bys and/r check the huse during these perids, there will be a 50. fee per mnth. Vacancies Vacancies are expensive fr bth f us. We make every effrt t keep ur vacancies t a minimum. We are members f the lcal rental assciatin within ur Assciatin f REALTORS. We maintain an extensive cmputer database f the features that make yur prperty special. This enables us t quickly prduce an attractive listing f yur prperty t be given t prspective tenants and lcal leasing persnnel. We are als members f the Natinal Assciatin f Residential Prperty Managers. VACANCY Key Pints: Our cmputer system enables us t mnitr ur lease expiratin dates carefully. We never allw ur leases t lapse int an autmatic mnth-t-mnth extensin unless there are extenuating circumstances. This als gives us the pprtunity t renegtiate the rent n a renewal lease. Apprximately 45 days befre a tenant's Lease Agreement is due t expire we send a Lease Renewal Ntice. This ntice explains ur lease renewal prcedures and the necessary rent increase. If the new lease is declined, the tenant is required t give us 30 days prir written ntice. This prevents unexpected vacancies and gives us adequate time t prepare the prperty and t advertise and shw it. It als helps prevent needless lss f revenue. If the tenant pts t g mnth-t-mnth, there is an autmatic 10% increase in the rent. If a tenant chses t vacate, the prperty must pass a thrugh check-ut inspectin befre the tenant is released frm the Lease Agreement and the security depsit is returned. This minimizes the preparatin and turn-arund time befre yur prperty is re-leased. The inspectin will nt be made until the tenant has remved all furnishings and ther persnal belngings, and the tenant is nt allwed t re-enter the prperty nce the inspectin is cmplete. We maintain careful cntrl f yur prperty while it is vacant. Only ne key fr a shwing is issued at a time. We will als use a lckbx n mst prperties. Leasing agents must be a licensed real estate agent and present a business card t sign ut a key r acquire the cmbinatin t the lckbx. All prspective tenants must be accmpanied t the huse by an agent. We d nt give keys ut t prspective tenants Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 10 f 21

11 Sales When it is time t increase r sell yur investment prtfli, we can als assist yu! All agents at A Step Abve Management, Inc. are licensed real estate prfessinals that can take care f the transactin, We have certain agents that specialize in investment purchases and 1031 exchanges thrughut Flrida. INVESTMENT ASSISTANCE We have a large pl f willing, ptential investrs, including ther prperty wners and ur tenants. This will be a great help if yu find yu must quickly dispse f a prperty fr tax purpses. We keep abreast f current market cnditins and active investrs at all times. We share this infrmatin by phne, letter and newsletters. We can help yu spt undervalued prperties, ften with a mrtgage payment lwer than the rent, fr an immediate psitive cash flw. Our extensive resurces let us help yu select an investment prperty that will meet yur exact gals f the highest pssible return and tax advantages. Guarantees prvided t ur investment clients signing a prperty management agreement: We will enfrce all lease terms such as thse regarding pets, maintenance and/r prperty damage. Respnd immediately t any emergency issues When a tenant is in residence, we will enfrce n-time rental payments and address any checks returned fr insufficient funds. Pst late ntices Initiate evictin actins, if required Hld security depsit in an escrw accunt Prepare and deliver ntice f claim n security depsit when tenant vacates, if necessary Prvide prper disbursement f security depsit fllwing the tenant mve-ut 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 11 f 21

12 PROPERTY OWNERS EXPECTATIONS What Yu Can Expect Frm A Step Abve Real Estate & Management, Inc.. The purpse f this sectin is t present the benefits ur prperty wners can expect t receive frm A Step Abve Real Estate & Management, Inc. In establishing a persnal relatinship with ur custmers, it is imprtant that each party understands exactly what is expected f the ther. Our primary bjective is t attain the gals and bjectives f ur custmers and their rental prperties. We believe that by familiarizing yu with the administrative prcess f hw we lease and manage yur rental prperty, we can avid surprises that culd ccur later n. It is imprtant that yu realize that we will mve frward with ur administrative prperty management prcess as utlined herein, unless yu therwise direct us in writing. Therefre it is t yur benefit t review and understand the fllwing services that are autmatically prvided and instituted by A Step Abve Real Estate & Management, Inc. fr the benefit f yu and yur prperty. The fllwing is an utline f sme f these benefits and services that yu as ur custmer can expect us t autmatically prvide and institute n yur behalf: LEASING A. Yu can expect that we will place ur attractive "Hme fr Rent" yard sign n yur prperty, (if allwed) at least tw weeks prir t any knwn vacancy, r immediately if yu have just listed yur rental hme with us. In additin we will use a lckbx fr ease f shwing. B. Yu can expect that we will place yur vacant prperty in ur main web site " in FL. Virtual Listing Service, and in the West Flrida Multiple Listing Service. C. Yu can expect that we may place yur vacant prperty in the Sarasta Herald Tribune, if we deem it necessary. Nte: All advertising csts are included as a service A Step Abve Real Estate & Management, Inc.. D. Yu can expect that ur agents will schedule shwings f yur prperty 7 days a week t all prspective renters until yur rental hme is leased. E. Yur can expect that all rental applicants will be subjected t: 1. A credit reprt n each adult rental applicant. 2. An evictin search f the Flrida public recrds t ensure that the applicant has nt been evicted in the preceding 7 years. 3. A verificatin f applicant's frmer landlrd's references. 4. A verificatin f the applicant's emplyment r incme. F. Yu can expect that we will lease yur prperty at the asking amunt f rent, (as utlined in yur management agreement with us) r higher. Yu can expect that we will nt lease yur prperty at a lwer amunt, withut first btaining yur permissin. G. Yu can expect that nce the rental applicant prcess is apprved, we will cmplete and execute the lease agreement and give the residents pssessin f yur rental hme. H. Yu can expect that we will cnduct a "Mve-In" prperty inspectin and cmplete ur detailed prperty inspectin data sheets f yur prperty. I. Yu can expect t be ntified by ur cmpany that yur prperty has been leased. A cpy f the lease agreement will be sent t yu, nce all parties have prperly executed it and the residents have taken pssessin Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 12 f 21

13 LEASE RENEWALS A. Yu can expect that we will attempt t renew the residents lease at least 45 days prir t the expiratin f their lease agreement. B. Yur can expect that we will renew the tenants lease fr anther year at the same r at a slightly higher amunt f rent, if pssible. We will nt renew the lease at a lwer amunt, withut yur specific permissin. C. Yu can expect that we will place ur hme fr rent sign and begin shwing the prperty fr lease as utlined in the leasing sectin abve, in the event that the current tenants are nt renewing their lease. D. Yu can expect that we will renew the residents lease agreement, r re-rent the prperty t new residents, unless we have a written directive frm yu nt t renew the lease r re-rent the prperty. PROPERTY INSPECTIONS Yu can expect that we will cnduct the fllwing prperty inspectins n yur prperty: A. When yur prperty is vacant, we inspect it each week. B. We cnduct quarterly interir inspectins. C. We will cnduct a "Mve-In" inspectin prir t new residents mving int the prperty. D. Within 90 days after the residents mve in, we cntact the residents t ensure that all is well with yur prperty and yur residents. E. Between the 10th & 11th mnth f the residents lease we discuss their desire t renew their lease. F. When the residents mve ut f yur prperty, we d a "Mve-Out" inspectin and dcument the cnditin f the prperty. COMMUNICATIONS At A Step Abve Real Estate & Management, Inc. we believe that cmmunicatins are the essential element in the success f ur cmpany. That is the underlying reasn fr the creatin f this "Prperty Owners Handbk" and ur "Tenants Handbk" fr all f ur tenants. In tday's business envirnment, n ne can assume t knw r read the mind f anther, r be certain f their gals and bjectives. T this end, we at A Step Abve Real Estate & Managment, Inc. have gne t great lengths t be accessible t ur residents and prperty wners. Please select frm the fllwing list f ways t cmmunicate with us: A. By Yu can expect that ur phnes are answered by a live persn, n autmated answering system during nrmal business hurs 9 AM - 5 PM Mnday thrugh Friday. After hurs ur phnes are usually frwarded t a live answering service r ne f ur agents, which in the event f a maintenance emergency autmatically pages the prperty manager n call.. B. By rentals@rentsarasta r Kim@AStepAbveRealEstate.cm r C. By U.S. Pstal 4411 Bee Ridge Rad, Suite 603, Sarasta FL Yu can expect t receive virtually any answer regarding ur cmpany plicies frm ur web site Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 13 f 21

14 Leasing and Management Rates: 8% Leasing Fee. This equals apprximately ne mnth's rent. This fee is charged whenever yur prperty is leased t a new tenant. 10% Management Fee. This amunt is deducted frm each mnths rent as we cllect it. Please cntact us fr custm pricing n High End hmes, discunts fr multiple unit, and seasnal rentals services. (discunted rate f 5% when paid in advance) 5% Lease Renewal Fee. This equals apprximately 1/3 f a mnths rent. This fee is charged whenever we are able t renew a lease with yur tenant. Annual Prperty Review. We want yu t KNOW the cnditin f yur prperty, and send a licensed hme inspectr ut each year t make sure yur investment is prtected! This reprt is always available t yu nline! Current price fr this service is $145. Yu will be ntified in advance f the inspectin each year, and may pt ut. OPTIONAL $249 Start-up Fee. Why? T Start ut strnger. Yu benefit frm increased incredible marketing! Our additinal marketing services include: A vide taped inspectin t dcument the cnditin prir t mve-in. A custm Virtual Tur f yur prperty is taken fr use in all f ur nline advertising! A cmplete pht marketing package is prepared A sign is placed at the prperty (if allwed) Yur prperty is placed int the MLS, ur website, and n several ther paid websites including the Virtual Listing Service. We want yu t feel cmfrtable when becming ur client, s this ptinal start up cmes with a limited 60 day mney back guarantee Our fees are very cmpetitive and we certainly are nt the mst expensive management cmpany in twn. When all fees are cnsidered, fr all the extra benefits received, we are actually less expensive than mst cmpanies arund, and have a strng fundatin f tp f the line business ethics and high standards f prfessinalism. It seems there is a new prperty management cmpany starting ut every day, trying t beat everyne else's prices. Over the years we've seen mre than 15 new cmpanies start and fail, s chse wisely - yur real estate investment is wrth EXCELLENT management! We manage slid prtfli f hmes We set the standard fr gd, ld fashined persnal service tgether with "cutting edge" internet technlgy and superir custmer satisfactin. CONCLUSION Thank yu fr taking the time t review ur "Prperty Owners Handbk"! We believe it is time well spent, especially fr ur newer clients. We trust that yur experience with ur firm will cntinue t be a pleasant experience and lk frward t wrking with yu and yur prperty in the future. Please d nt hesitate t cntact us directly any time we may be f service! 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 14 f 21

15 Why Chse Us? Our Peple Make the Difference - Persnal relatinships, experience and knw hw. We shw rental prperties 7 Days a Week = Cnvenience. Superir Tenant Screening = Guaranteed Savings. Attrney Prepared Leases. Cmputerized Accunting = Accuracy. Guaranteed Tenant - If ur tenants break lease (first 3 mnths), we'll re-rent yur prperty FOR FREE!! The mst qualified residential prperty managers in the area. Never a surcharge t prperty wners fr maintenance and repairs. FREE - NO OBLIGATION CONSULTATION. Our services are tax deductible = yu can d the wrk yurself, r yu can have us d the wrk fr yu and deduct it frm yur taxes. We save yu time, mney and aggravatin in dealing with yur rental prperty. Yur hme is n the WWW (Internet). We shw rental prperties 7 days a week. A Step Abve Real Estate & Management, Inc. is pen fr yur cnvenience 7 days a week, (excluding natinal hlidays). We realize that ften times renters seeking quality rental hmes must have after hur r weekend appintments. We als realize that the management f rental prperties desn't stp n Friday's at 5:00 PM. We have prperty managers n call 24 hurs a day t handle any situatin fr ur custmers. Superir Tenant Screening In selecting the right residents fr yur rental prperty, we believe that an unce f preventin is wrth 10,000 punds f cure. We want t ensure that ur prperty wners get the caliber f renters they deserve. That's why we utilize a 4 step screening prcess n each and every adult rental applicant. We pull a natinal credit reprt n each and every adult rental applicant. We d an "Evictin Search" thrughut Nrth East Flrida t ensure that ur applicant hasn't been evicted in the preceding 7 years. We d a verificatin f frmer landlrd references. We d a verificatin f the applicant's emplyment r incme. Because f ur Superir Tenant Screening Prcess, mst "rent-jumping" tenants (the nes wh dn't pay rent, damage prperties and mve ut in the middle f the night) prefer t apply directly t prperty wners, wh may nt knw until it's t late. We hpe this hasn't happened t yu. Thrw yur aspirin away and call us. Cmputerized Accunting At A Step Abve Real Estate & Management, Inc.. we use the tp prperty management sftware in the industry. In mst cases, we prcess rents the same day we cllect them. Our prperty wners have access t a detailed mnthly statement each mnth shwing all rental incmes and disbursements. We als prvide ur prperty wners with a year end summary statement at the end f each year, t give t their tax accuntant. Our accunting system als allws us t make recurring mnthly payments fr ur wners, such as mrtgage payments, hmewners assciatin payments r any ther recurring mnthly bligatin, prvided adequate funds are available in yur accunt. We make prperty management E-Z fr ur custmers. Guaranteed Tenants! We are s careful as t whm we rent t, that we prvide ur prperty wners with the fllwing guarantee. Any tenant placed by ur firm wh breaks their lease fr any reasn, during the first 3 mnths, we will waive ur custmary leasing fee and re-rent yur prperty t new residents FOR FREE! 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 15 f 21

16 Mst Qualified Managers T prvide the best available service t ur clients and t maintain ur unsurpassed reputatin within the residential prperty management prfessin, the wners f A Step Abve Real Estate & Management, Inc. set ut a number f years ag t seek the best prperty management training within the industry. Few ther prperty managers r prperty management cmpany in the Sarasta area has cmbined prperty management, knwledge and achievements as thse held by Kimberly Kay. We are cmpletely unsurpassed in prperty management achievements in ur marketplace. This level f dedicatin is als reflected in hw we treat ur custmers as well. The Agents at A Step Abve Real Estate & Management, Inc.. have been serving the needs f prperty wners and residential tenants with many satisfied custmers. At A Step Abve Real Estate & Management, Inc., prperty management is ur career, nt a sideline. We ffer ur custmers stability in the marketplace! Cnstant Cmmunicatin We believe that the key t ur success is in the persnal relatinships that we have develped with ur custmers ver the past years. Wrking fr wners f rental hmes and with their residents requires cnstant cmmunicatin. At A Step Abve Real Estate & Management, Inc.. we believe that cmmunicatin is the key t the success f any rganizatin. T these ends, all f ur prperty managers are equipped with cellular phnes, cmputers and . We als are available 7 days a week t cmmunicate with the needs f ur custmers. N Surcharge T Prperty Owners Fr Maintenance and Repairs At A Step Abve Real Estate & Management, Inc. we assist ur prperty wners and residents by having independent qualified maintenance technicians effect any necessary maintenance and repairs. T avid a cnflict f interest with ur prperty wners, we will never assess a surcharge t ur prperty wners n any maintenance r repair items, as we believe in passing these savings alng t ur custmers. We require that ur tenants request all maintenance in writing and we assess the residents an administrative fee fr maintenance and repairs when necessary. We believe this will encurage the residents t make their wn repairs and keep yur csts dwn Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 16 f 21

17 What T Lk Fr In Selecting A Gd Prperty Management Firm A Firm That Has Established A Cmmendable Reputatin By: Rigidly adhering t a strict cde f ethics Prtecting the wner's interests at all times Dealing fairly with wners and tenants Maintaining and training prperty management staff Prgressive leadership in management techniques Actively engaging in cmmunity betterment prgrams Many years f successful experience Will Maintain The Highest Pssible Net Incme Frm the Prperty By: Planning highest and best use f the prperty Obtaining suitable tenants Effective savings n maintenance, repairs, and insurance Keeping cllectin lsses t an abslute minimum Thrughly checking ut prspective tenants Will Relieve Owner f Tenant And Operating Wrries By: Handling tenant requests and cmplaints Negtiating new and renewal leases Obtaining prmpt rental payments Preparing mnthly statements f incme and expenses Directing all maintenance and repairs and paying bills Regularly inspecting prperties Preparing Annual 1099's 24 hur agent and maintenance staff n duty Will Apply Every Skill T Increase Prperty Value By: Analyzing prperty and neighbrhd Selecting tenants wh can pay highest rents Maintaining highest pssible ccupancy Maintaining gd appearance and repair Obtaining highest pssible net incme 4411 Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 17 f 21

18 FREQUENTLY ASKED QUESTIONS 1. Hw lng des it take t lease my prperty? 2. When yu find residents fr my rental hme, hw d yu qualify them? 3. Hw quickly des A Step Abve Management prcess the mnthly rents and statements t prperty wners? 4. Hw ften and hw are prperty inspectins cnducted? 5. What if I want t sell my prperty, can A Step Abve Real Estate & Management, Inc. help? 6. Hw are rental cllectins handled? 7. D yu guarantee the residents that yu place in my rental hme? 8. Are yu the cheapest cmpany in twn? 9. Wh handles prblems late at night? 10. Why shuld I chse A Step Abve Management 1. Hw lng des it take t lease my prperty? At A Step Abve Management, ur average time t lease yur hme n the rental market (based n 2009/2010 averages) is less than a mnth! This is because we begin marketing yur rental hme the mment it becmes rent ready, r as sn as the current residents give us their 30 day ntice f their intent t mve ut. We average numerus prspective tenant calls each week and we shw yur rentals 7 days a week. In additin t ur attractive yard signs, we als immediately place yur rental prperty int ur wrld wide web site, and int the Virtual Listing Service. All advertising csts are the expense f A Step Abve Management. We strive t be a step abve the ther leasing/management cmpanies in West Central Flrida! 2. When yu find residents fr my rental hme, hw d yu qualify them? We strive t prvide yu with the caliber f residents that yu want in yur rental prperty. This includes: A cmplete natinal credit reprt n each adult resident. A Flrida curt search t see if the applicants have ever been evicted in the past 7 years. Verificatin frm their frmer landlrds. Verificatin f their emplyment. In additin t the nrmal financial qualificatins, we always try t accmmdate the husing needs f ur residents t ensure that the hme they rent is cnvenient t their wrk, shpping and desired schl district. This will help t ensure that they will remain happy residents and remain lnger in yur rental prperty. At A Step Abve Real Estate & Managment, Inc., we believe that gd residents are wrth waiting fr! 3. Hw quickly des A Step Abve Management. prcess the mnthly rents and statements t prperty wners? We pride urselves n quick turnarund f yur rents and statements. We generally prcess the rents 8 t 12 days after receipt f the rent. Our multiple prperty wners can expect that we will prcess their rents n later than the 20th f each mnth. Flrida law requires that we nt disburse funds until we knw that they have cleared the Bank Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 18 f 21

19 4. Hw ften and hw are prperty inspectins cnducted? When yur prperty is vacant, we generally inspect it each week. The next inspectin is dne prir t the residents mving in. This is knwn as the "mve in" inspectin, where we detail the cnditin f yur prperty n ur mve-in inspectin frm. We inspect the exterir f ur prperties n a mnthly basis and we als cnduct interir inspectins quarterly r if we determine that checking the prperty ut is warranted. Within 90 days after the residents mve in, we cntact the residents t ensure that all is well with yur prperty and yur residents. Between the 10th and 11th mnth f the residents lease, we discuss with the residents their intent t renew their lease fr anther year. If they are nt renewing, then we advise the prperty wner and ur leasing staff t ensure that we are able t get the hme re-rented quickly with little r n vacancy. When the residents mve ur f yur prperty we d anther detailed inspectin knwn as the "mve ut" inspectin. The mve ur inspectin is dne t ensure that the residents return the rental hme back t us in the same cnditin as when they first rented it. If damage is fund, then we impse a claim n the Tenants security depsit as required by the Flrida Landlrd/Tenant Laws, (F.S. 83), if n damage is fund, then we prmptly return the security depsit t the frmer residents. Here is a cpy f ur mve ut instructins given t each tenant at the lease clsing: A Step Abve Real Estate & Management, Inc. CHECK OUT INSPECTION REQUIREMENTS Check ut inspectins f hmes are made between the hurs f 9:00 A.M. and 4:30 P.M., Mnday thrugh Friday. Please call and make an appintment with ur ffice after everything n this list is dne. All f yur furniture and persnal items must be remved frm the huse and yard befre an inspectin can be made. Yu may nt stay in the huse after the inspectin is cmpleted. T get a refund f yur security depsit yu must: 1. Remve all persnal items and trash frm the huse and yard. 2. Clean all appliances thrughly. Replace stve pans and rings with new nes, aluminum fil is nt allwed. 3. Clean and disinfect the sink and kitchen cabinets. 4. Have the carpets prfessinally steam cleaned and save the receipt as we will need it fr ur files. The cmpany used must be apprved by Prperty Management, please call ahead fr apprval befre having the carpets cleaned. The carpets shuld be the last item cleaned in the hme befre the inspectin is made. 5. Strip tile flrs built up wax. Remve stains and marks. Finish flrs apprpriately with wax. 6. Wash walls carefully; pay special attentin t areas arund light switches, hallways, and drways. Remve all fingerprints and dirt. All light fixtures must have light bulbs installed. 7. Clean all windws inside and ut and secure all screens. 8. Make needed repairs t screens and screen drs. 9. Clean and disinfect the bathrm(s) thrughly. 10. Mw, trim, edge, rake and water the yard day f check ut. 11. Repair r have repaired any damage yu r yur pets have caused. 12. Discntinue telephne, electric and water service after we have made ur inspectin. These must be n fr ur final inspectin. 13. Make arrangements t have all the trash hauled away. N depsits can be refunded until this is dne. 14. Have the pl clean and chemically balanced if yu have ne. 15. Have the premises fumigated fr fleas by a licensed exterminatr, if yu have had a pet. Save the receipt. 16. Prf f yur paid water bill is als required befre the security depsit can be returned. SECURITY DEPOSITS WILL BE DISBURSED WITHIN 15 DAYS OF CHECKOUT. THANK YOU FOR YOUR COOPERATION A cpy f these requirements have been prvided at the time a lease is signed, and will be prvided again when I give ntice f vacating the premises Bee Ridge Rad, #603 Sarasta, FL Office: (941) rentals@rentsarasta.net Page 19 f 21