Deen Properties, Inc. - Management Plan

Management Plan

Policies and Procedures

Long before a property is ever marketed, the professional Certified Property Manager (CPM) has been working to assure the successful implementation of the management program.

Through the years, we found that the only way to achieve this goal was to establish and follow certain policies and procedures that have been proven successful.

We will continually review our policies and procedures to ensure that our services are compatible with our requirements and consistent with ever-changing government regulations.

Tenant Selection

All vacant rental properties are shown to prospective tenants only by our managers. In addition to providing security for your vacant unit by controlling access, this policy allows our managers the opportunity to meet and observe each prospective tenant. For our managers, the selection of a tenant requires much more than taking an application and checking references. It is a combination of observation, obtaining and verifying the tenant’s application and the proper use of subjective evaluations, a skill only acquired through training and experience.

After the selection process is complete, a rental agreement to lease is executed and the tenant is checked into the property.

Leasing

All tenants are required to sign a lease which spells out the conditions of their tenancy. We will not rent on a verbal agreement. Prior to occupancy, at the time the lease is signed, the tenant is required to pay a security deposit equal to one month’s rent and the pro-rated rent due from the start of the lease to the end of that month. The amount of the security deposit collected is the maximum required by law.

Check-in/out

After all papers are signed and all monies are paid, the tenant is checked into the property. The check-in is conducted by our rental manager with the tenant at the property, where a check-in form is completed, listing the condition of the property, room by room, item by item. The completed form is signed and dated by the tenant and the manager. When the tenant vacates the unit, the completed form will be used for comparison, and proof of original condition in the event of any disagreements.

Rental Collection

Our rental collection policy is designed to accomplish one objective: Consistent, on-time rental collection.

For our managers, rental collection begins with the marketing of the property, where careful tenant selection produces reliable tenants. It continues with the signing of the lease where our rental manager carefully explains our policies to the tenant and remains in effect throughout the tenancy of the resident with careful collection recording and prompt action on delinquent accounts.

While most tenants probably will make their rental payments on time, it is a sad but true reality that some may be late. For these people, our policies are clear cut and very rigid, to assure either prompt payment or eviction in order to minimize the owner’s potential loss.

All rents are due, in full, on the first calendar day of the month and are considered delinquent if not received by the fifth day of the month. At that time, the tenant is served with the demand notice which the Hawaii landlord-Tenant code requires as the first step toward eviction. Copies of all pertinent documents are also given to an attorney, specializing in eviction and collection proceedings, so that he may take legal action , if need be, immediately upon notice that the tenant has not paid the rent in the time required. During all of this time, a rental manager keeps close contact with the tenant to determine the reason for non-payment and any actions planned or taken by the tenant.

The rental manager will continue to work with the attorney, appearing as a witness where necessary, until the tenant is vacated and appropriate legal action to collect monies owing is concluded.

Physical Management

The physical management of any investment property entails more than just the occasional inspection and responding to tenant’s requests for repairs. Each individual property requires different management program characteristics. Items such as age, location, and type of structure, all have an influence on the type of program to be implemented.

After obtaining this information, our managers will be able to put their training and experience to use in formulating an effective management program, tailored to preserve your investment.

Two aspects of an effective management program are property inspections and maintenance.

Property Inspections

Property inspections are conducted by our managers on a frequency designated by the property management plan, and are designed to accomplish a variety of goals. Among these, are to assure the property care of the property by the tenants; to judge the quality of maintenance performed; and to discover small problems before they turn into major ones.

In addition to routine inspections, both exterior and interior, good working relationships with various vendors and the resident mangers give our managers another source of reports on anything occurring in the properties.

Maintenance

A conscientious maintenance program, along with the other aspects of your property’s physical management program will make the difference between a mediocre and a quality investment. Regular attention and care, utilizing reliable and competent contractors, results in the well-maintained property necessary to obtain the best possible returns. Each job to be done on your property is first examined to determine its necessity and extent. Only after this has been completed, is the job ordered through a reliable contractor or handyman, who is known to us to give the best possible services for the most reasonable prices for the particular job required.

In the event that work is necessary on your property, we as managing agents, will use our discretion in ordering jobs up to $250.00 in value. Any larger type repairs or maintenance projects will only be ordered after obtaining approval from you. Naturally, in those instances where immediate action is necessary to prevent extensive damage to the property from becoming uninhabitable, and there is no time to contact you for approval, we will have the work done, and contact you as soon as possible to advise you of this fact. Two examples of this situation are the rupturing of a main water line on the property or the total breakdown of a water heater, requiring replacement, or any major appliance.

After completion of any work ordered by our managers, and before invoices are paid, the jobs are inspected for satisfactory completion. Any discrepancies found are ordered corrected prior to approval of the contractor’s invoice. Any discount we derive because of the volume of work ordered from our contractors is passed on to you as an owner.

Fiscal and Administrative Services

Just as a professional physical management program is absolutely necessary for the success of any investment property, equally important is an efficient program to meet the fiscal and administrative needs of the property.

We are able to offer the efficient fiscal and administrative program which is necessary to complement our professional physical management program. In addition to those administrative services already mentioned such as control of invoices, implementation and execution of marketing and advertising programs, collection procedures, and purchase order systems, we also offer the following:

Concerning Tenants

Collection and retention of up-to-date records including leases, applications, check-in-out reports, and any correspondence concerning tenants.

Provide a system of reminders, concerning lease expirations and rent review dates, necessary for the timely rent renegotiations to keep up with the ever-changing rental market.

Collection, safe keeping, and processing of returns of tenant’s security deposits required by law.

Concerning the Property

Control and payment of invoices necessary for the physical management of the property such as repairs, maintenance contracts, and utilities.

Retention of up-to-date records of invoices paid, inspections reports, guarantees and warranties.

For the Owner

Supply monthly income and expense report.

Apply for and file general excise tax returns.

Monthly, disburse rental income to the owner or his agent, or deposit it in a designated checking , savings or any other account.