IP
S
“IPS” Property Management
PO Box #28157 ♦ Fresno, CA 93729-8157 ♦ 559/ 440-1300 office ♦ 559/ 440-1305 fax
Subject Property:
Property Management Proposal
OBJECTIVE: Maximize the net income from the property, while maintaining comfortable Tenant
housing accommodations to preserve / increase property value, thus allowing a profitable return on
investment for Owners over the life of property. “IPS” Brokers & their Agents ensure full coverage;
dedicated to you are Linda Koleen (Administration) & Ed Koleen (Tenant Services).
Option # 1
Low Monthly Fee – Hassle-free Rental Investment to Owners.
We ensure Vacancy is at a minimum - Our fee depends on it!
Acceptance
initials
$75.00 per month/unit – on rental rate up to $1000
$100.00 per month/unit – on rental rate up to $1500 (individually negotiated
above $1500)
(Payable on the first of each month, Reported & Cash disbursed to Owner by 20th of each month)
ADDITIONALLY: Whenever vacancy occurs, Owner shall pay Agent $250 + Advertising –
this charge is to compensate Agent for the extra services associated with tenant installation.
A Total Management concept whereby your property is managed on a day to day, month to month - all
inclusive system - We pay all management / administrative expenses (excluding eviction processing,
billed at $50/hour). Additional property management services billed at $50/hr. Ask about Multiple Rental
Property discount @ $5 per unit.
After Tenant Installation = Service Fee to be a minimum of 1 year - Property Management
Contract shall renew annually commencing with the 13th Month of Lease Renewal and upon
expiration of each 12 months thereafter. Either party may terminate the Contract by giving
written notice to the other at least 30 days prior to the Last Renewal Lease termination date.
Applicable to either Program
 Upon Hiring - Owner shall deposit $400 in Trust Account as pre-payment for expenses.
 Prior to Tenant Occupancy - minimum Cancellation Service fee = $250 paid to IPS
 Services begin when property is ready for tenancy (including, but not limited to: Carpets
shampoo’d, Locks changed, home professionally cleaned & disinfected, repairs complete.)
Acceptance
initials
Option # 2
Fully coordinate new Tenant in residence - Owner to manage after Move-In.
Half of 1 Month’s Rent ($750 minimum) + expenses (ad’s, promotional material, travel, etc.)
Includes: Recommend any work necessary to Rent. Assist in designation of rental rate & security deposit,
create marketing material, coordinate advertising, screen prospective tenant calls and necessary followup, analyze submitted applications, coordinate tenant preview of property, perform credit check, make
recommendation to Owner of individual best qualified for tenancy, negotiate rental agreement, oversee
the move-in inspection report, etc. Additional property management services billed at $50/hr.
 Full package (all Tenancy Doc’s and reconciliation of Owners Funds (Owner Deposit + Rent/Security Deposit
collected LESS Management fee & expenses) mailed to Owner within 15 days of Tenant installation. Section 8
processing at additional $75/hour
Respectfully submitted for your consideration:
___________________________
Ed Koleen, BROKER
date
Comments / Addendum’s:
OR
_______________________
Linda Koleen, BROKER date
Gardener included?_______
Pets Allowed?___________
Please acknowledge acceptance and agreement to terms: (Option #1 chosen, continue
to Page 2)
Mailbox #?_____________
_________________________
____________
Rental Rate?____________
Owner
Date
Security Deposit?________
2014
2014
OPTION #1 = Summary of Services:
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Owner shall initially prepare property for Rental, before Property Management services begin – “IPS” may offer suggestions.
“IPS” to ensure monthly Rental & Deposit amount are in line with market demand; review annually & adjust accordingly.
Post ‘For Rent’ sign on property, Advertise in local Newspaper (expense paid separately by Owner), show the property (after
hours & Weekend showings by appointment), credit check potential Renters (including Court record search of evictions &
criminal background check, investigate past rental history to expose current problems & verify most data supplied by Tenant)
& negotiate terms of Lease for Owners final approval – contingent upon positive response from Reference Check.
Pre-Rental walkthrough of Move-In Condition and report irregularity on Inspection Report to review again at final
walkthrough to reconcile security deposit.
Prepare contracts for occupancy; including annual renewals as needed.
Collect monies (security deposits + 1st Month’s Rent, continuing monthly rents, delinquencies, etc.).
Assess delinquent penalties to all rental clients as outlined in the Lease and/or prescribed by Owner.
Monthly records of income and expenditures; report issued monthly (by the 20th of the following month) to Owner with YearTo-Date results (Expense receipts provided upon request by Owner) – Funds Disbursed via check or B of A account transfer.
Monthly physical inspection review; reported quarterly to file.
Ensure property is maintained in good working order and initiate repair orders when necessary with credible service
contractors, approved by Owners. Including submission of claims to Insurance Companies, where applicable. Requests are
handled on a ‘Gotta Have’ basis VERSUS a “Nice to Have”, excepting all safety/legal issues are handled immediately!
As directed, capable to disburse monies (financial coordination required) to respective Vendors (bills need to be forwarded to
us) as a result of property expenses, to ensure Owner paid expenses are included in Year-End Schedule E Reporting.
If directed, preparation of Annual Budget estimate; submitted for approval 60 days prior to start of calendar year. Property
will be maintained in accordance with approved budget; any unbudgeted expenditures will require consent of Owner prior.
Net monies maintained as instructed (held in trust account or issued as directed).
Year-End Annual Report (Schedule E) issued within 30 days of year-end close for tax prep.
Major renovations required, preventing unit from rent income, shall be coordinated by “IPS” at a monthly expense to Owner
of approximately $100 (negotiable).
Have general business meetings (via telephone) with Owner as required or requested.
Term = 1 year; thereafter annually upon agreement.
After Tenant Installation – With 60 days Notice, Owner & “IPS” may opt to cancel Prop Mgmt Contract, for Cause.
If any Legal proceedings (Eviction processing, etc.) are required and Broker is requested to represent (alongside) Owner,
Broker’s time is not included in any of the Property Management compensation Options. Broker’s time to be billed at $50 per
hour plus travel time & expenses – all Court processing costs to be billed to Owner.
Property Management Implementation Plan
Responsible
IPS
Owner
Owner
“IPS” /
Owner
“IPS”
Owner
“IPS”
“IPS”
TASK
Review Programs with Owner & Customize based on Owner’s wishes – Owner is Boss (within legal constraints)
Advise “IPS” of both short & long term Goals / Interests regarding property (for supportive management)
Sign Contracts & Program Agreement and deposit $200 Retainer funds with “IPS”
Obtain direction on handling finances of property - income, disbursements, expenses, etc.
If Tenants currently installed - Notice issued to Renters to direct all handling of property activities to “IPS”.
Provide “IPS” with current files / list of all Vendors (bills paid on a regular basis and/or are due for payment).
Establish Market Value Rental Rate & draft AD & create Promotional Flyer
Recommend necessary repairs - establish financing, timing and plan.
EXPENSE PROCEDURE
Individual
Tenant
Ed
Ed
Ed
Owner
Contractor
“IPS”
“IPS”
ACTION
Contacts Ed Koleen (mostly verbally) to discuss Issue
Reviews detail of complaint and takes appropriate corrective action
If Expense to Owner is involved, Owner is advised and direction requested for “Move Forward” Action
Bids are obtained (mostly verbally) and reviewed with Owner (verbally)
Review Estimates & advise Contractor approval
Hired to coordinate scheduling with Tenant & complete work as authorized – then Invoice “IPS” accordingly
Payment of Expense Invoice from Owner’s Trust Account, filed accordingly – if needed, Reimbursed by Owner
Expense noted on Owner’s Monthly Financial Report as a deduction from Trust Account
Owner’s initials