PROPERTY MANAGEMENT SERVICES Over the past 14 years, Nester Property Management Corp. has helped many people like you realize strong financial rewards in the lucrative field of "small" and "large" investment properties. We are experts in our field. We give each client and each property the individual attention and care that makes us unique. The following sections explain the many benefits and advantages of a full service, professional Property Management Company. PROPERTY PRESENTATION We present your property to the largest available rental market. We always are aware of current market conditions. This allows us to rent your property at the highest value. Our computer system enables us to maintain an exhaustive list of all the features that make your property desirable and special. We minimize your rent loss by advertising your property before it is vacant. We cooperate with the local rental associations and share our vacancy listings with other members, along with military housing offices. We are members of the National Association of Residential Property Managers. We list vacancies with home-finder agencies and independent leasing agents. We advertise in the Board of Realtors "for Rent" multiple listings section. We lease only to qualified, responsible tenants. We are experienced in determining credit worthiness. TENANT SCREENING We do a thorough credit and reference check before the lease is signed. This includes verifying employment and checking all appropriate references including past landlords. We take the time with each new tenant to explain the benefits and responsibilities of leasing a home from us. We provide you with protection through the use of proper lease agreements, deposit forms, late notices, and other applicable legal documents. We are members of Tenant Credit Reporting Agency, and do credit checks on prospective tenants with the three major credit bureaus. Telephone: 719-380-7300 Fax: 719-380-7112 E-Mail: npmcorp@aol.com
INVESTMENT ASSISTANCE We have a large pool of willing, potential investors, including other property owners and our tenants. This will be a great help if you find you would like to sell your property. We keep abreast of current market conditions and active investors at all times. We share this information by phone, letter and newspaper. We can help minimize your selling costs by arranging for an exchange of properties. ACCOUNTING SERVICES We pride ourselves on our thorough, accurate record keeping. Our computer system allows us to provide services that would otherwise be difficult or impossible with a conventional manual system. Every transaction affecting your account balance is recorded and explained in detail. Accounting is done on double-entry cash basis with an income and expense ledger maintained for each property, just as if your property had its own checking account. If we manage more than one property for you, we open another income and expense ledger in your name (in addition to the property ledgers). This enables us to transfer funds among your properties without intermixing accounting transactions from different properties. Each property always has its own separate and complete accounting records. Copies of all work orders and receipts are kept on file throughout the year. We will be happy to provide duplicate copies of this information at the end of the year to help you with your tax preparations. In addition to the monthly statements described in the next section, we also provide a complete summary of account at the end of the year. This shows you each accounting transaction posted on your property during the year as well as a summary of all transactions by specific accounting code (total rent received, total mortgage payments made, total plumbing expenses and so on). These statements have been specifically designed to simplify the year-end tax preparation for you or your accountant. Our computer system enables us to get this vital information to you immediately at the end of the year. As required by Internal Revenue Service regulations, we prepare and submit a 1099 MISC. form showing the total gross rent income that we collected on your behalf during the year. A copy of this form will be sent with your year-end statement. ACCOUNTING STATEMENTS Our computer system enables us to provide you with a concise, accurate, and understandable statement of account. Plus, it allows us to get your statement and any rent proceeds due you quickly. Statements are normally sent by the 10th of each month. Occasionally, a statement will be held up for a few extra days because of a late rent payment, in order to send your full monthly rent proceeds. Your statement will include a check for any funds due you above your minimum balance, unless the amount is less than $5.00. Your statement shows every transaction we have posted to your account. Please report any discrepancies you find within 15 days from the time you receive your statement. RENT COLLECTION
All rent is due on the 1st of the month and is considered late if received after the 3rd of the month. In an effort to help curb late rent payments Nester Property Management Corp. offers all of our tenants the option to pay their rent electronically with an EFT. Late notices are sent on the 4th and late rents are subject to late fees and penalties. All late fees are split equally between the owner and manager. Eviction proceedings are initiated if the tenant does not make immediate arrangements for rent payment. If you have your own attorney and would like to use his services, please provide us with his/her name. Otherwise, we will designate an attorney to handle the eviction proceedings. MANAGEMENT FEES Our monthly management fee is payable when the rent payment is received. It is automatically deducted from your account at the time the rent payment is posted. However, since our job is keeping your property occupied, we will not take our management fee as long as the property remains vacant. Vacancies are expensive for all of us. We make every effort to keep our vacancies to a minimum. We cooperate with the local rental associations and we use various leasing agencies. We maintain an extensive computer database of the features that make your property special. This enables us to quickly produce an attractive listing of your property to be given to prospective tenants and local personnel. Our computer system enables us to monitor our lease expiration dates carefully. We do not allow our leases to lapse into an automatic month-to-month extension unless directed to do so by the owner. This also gives us the opportunity to re-negotiate the rent on a renewal lease. Approximately 60 days before a tenant's lease agreement is due to expire, we send a lease renewal letter. This letter explains our lease renewal procedures. If the new lease is declined, the tenant is required to give us 30 days prior written notice. This prevents unexpected vacancies and gives us adequate time to prepare the property and advertise and show it. It also helps prevent needless loss of revenue. If a tenant chooses to vacate, the property must pass a thorough checkout inspections before the tenant is released from the Lease Agreement and the security deposit is returned. This minimizes the preparation and turn-around time before your property is re-leased. The inspection will not be made until the tenant has removed all furnishings and other personal belongings. The tenant is not allowed to re-enter the property once the inspection is complete. Vacancies are advertised in local newspapers, the MLS System and neighborhood papers. We use all available media-signs, flyers and classified listings. We maintain careful control of your property while it is vacant. Only one key (for a showing) is issued at a time. Leasing agents must present a business card to sign out a key. We will not issue keys to properties that are still occupied unless we are authorized to do so by the tenant. LEASING We want good tenants just as much as you do. We pride ourselves on the quality of tenants we are able to attract. Our extensive tenant screening and lease procedures help to ensure this. Applicants are required to complete a Rental Application and to provide credit information and references. An in-file credit report is made of every prospective tenant. After these pieces of material are considered, applicants are interviewed. We explain to all applicants that prompt rent payment will help maintain their good credit rating.
Once a tenant's rental application has been approved, an appointment is made with the property manager to sign the actual Lease Agreement. We have found that his extra personal attention to the tenant's needs greatly reduces misunderstandings and eliminates many potential problems. This also gives us a chance to answer any questions and to carefully explain the tenant's responsibilities as well as our company policies and procedures. Before your property is released to the tenant, we make a thorough move-in inspection using the property condition report. This is done with the tenant present. We find that this helps develop a good working relationship with the new tenant. At the same time, it gives us more chance to encourage our tenants to take pride in their leased home. SECURITY DEPOSITS As an additional protection, a prospective tenant always collects appropriate security deposits upon approval of the Rental Application. The amount of deposit is based on the monthly rental rate and the credit worthiness of the tenant application. Applicants with pets are required to pay an additional pet deposit. All security deposits are kept in a special escrow account, as required by state real estate regulations. They are either refunded to the tenant upon the successful checkout inspection of your property or are forfeited to cover damages caused by lease violations. PROPERTY INSPECTIONS Our main job is to protect your investment properly. We do this in two different ways. Our property managers make frequent driving tours by the various properties we mange. Exterior inspections are very important, because a property that is well maintained on the outside is normally being taken care of on the inside also. In addition, we make maintenance inspections of the interior the property. The right for us to make routine, announced inspections is part of the tenant's Lease Agreement. Tenants are always notified of a pending property inspection. The inspection is conducted with the tenant present. We use the same property condition report that was used when the tenant checked in. We compare carefully for discrepancies, missing items, and additional damage. At the same time, we check for preventive maintenance items that are your responsibility. Tenants who are doing a good job receive a special letter congratulating them on the pride and care taken in their home. Tenants who are doing a poor job are also notified in writing. The Inspection Failure Report lists the conditions that must be corrected by the tenant immediately. We follow up with a second inspection within 10 days after the tenant has received the Failure Report. If the tenant has not shown good faith by providing proper maintenance or making requested repairs, we will begin proceedings to correct the problem at the tenant's expense. REPAIR AND MAINTENANCE Timely, competent maintenance is the key to protecting your investment. Our goal is to provide you with this important service at a reasonable price using only the most qualified personnel. In addition, it is our aim to prevent major repair bills. We accomplish this through constant supervision, routine inspection, and regularly scheduled maintenance and by selecting those tenants who will take pride in their leased home. Independent vendors and contractors perform all of our repair and maintenance services. Each has been selected because of his/her ability to provide you the best possible service. Our intent is to provide quality service contractors at a low cost.
The Property Management Agreement defines our maintenance responsibilities. You may reserve the right to control all, or a particular part of the repair or maintenance responsibilities if your desire. We require that a minimum balance of $100.00 be kept in your account to cover routine repairs. However, true emergency repairs (a broken water heater for example) will never be delayed because of a lack of covering funds. Before any repair or maintenance work is performed, the job request is carefully reviewed. The job is assigned and a work order completed, only after the property manager has approved the request. Our maintenance personnel will not perform unauthorized jobs requested by a tenant. In addition, requests for maintenance work that is the tenant's responsibility, or of repairs caused by tenant negligence, will be charged to the tenant. We ensure the quality of the work performed by making spot checks and follow-up inspections. You are further protected because each job is fully documented in writing and backed with receipts by our comprehensive accounting system. Routine repair and maintenance will be performed as needed and will be based on urgency and importance. For any major job we will obtain written estimates from three different companies and notify you before we proceed. REFERENCES We are members of the Pikes Peak Association of Realtors and National Association of Residential Property Managers. Business references are available upon request. Thank you for your interest. Sincerely, Carol A. Nester Broker/Owner Nester Property Management Corporation 3715 Parkmoor Village Dr, #105 Colorado Springs, Co. 80917 DIRECT LINE: (719) 380-7300 FAX: (719) 380-7112 E-MAIL carolnester@aol.com