BUDGETING AND REPORTING

• Prepare calendar year budget on or before December 15th of each year.

• Provide quarterly operating statements with detail within 20 days following the previous Quarters end.

 

QUARTERLY REPORTS:

• Executive Summary

• Balance Sheet

• Budget Variance

• Rent Roll

 

ANNUAL REPORTS:

• Market Rent Survey

• Insurance

• Maintenance Contracts (Sweeper, Landscape, Dumpster, Window Washing, Pest Control, etc.)

• Property Leasing Plan

• CAM Itemized Report

• Annual Budget for upcoming new year (includes Leasing and Renewal Schedules)

• Annual Review of Leases for Landlord Reimbursement, I.e., CAM, Taxes & Insurance

 

AS NEEDED OR DUE:

• Lease Escalations Adjusted

• Emergency Maintenance Reports

• Accident Reports

• Lease Renewals

• Compute and allocate CAM and tax participation charges for each tenant and invoice monthly estimated payments.

• Collect and maintain records on sales figures for all tenants (when applicable).

• Meet with Owner as necessary to review Investment Portfolio.

 

GENERAL OPERATIONS

• Onsite visit to properties minimum Bi-monthly - A.M. as well as P.M. to check lighting.

• Monthly Property Inspection Report (pass/fail/corrective action)

• Landscape (weed control, adequate watering, mowing, shrubs/trees trimmed, pest control, sprinkler system operation)

• Sweeping/Dumpster Collections

• Parking (unauthorized or abandoned vehicles)

• Lighting Operations (sign bands, tenant signs, marquee, security/ pole lighting)

• Maintain personal contact with tenants; monitor sales, listen closely to complaints, assist with marketing advise where possible.

• Community involvement; Chamber of Commerce, Metro Rotary Club, etc.

• Community awareness:  keep abreast of proposals for roadways or traffic lights in the area, new or closing industries and/or new centers.

• Promptly enforce each violation of use clauses, sign criteria, outside storage or other unacceptable activities to maintain steady control.

 

COLLECTIONS

• Invoice each tenant monthly.

• Collect rental payments in a timely manner.

• Apply late charges when applicable and send letters after the 5th of the month.

• Personal contact and/or default remedy letters immediately after cure period expires.

• Resolve default status w/tenants experiencing financial difficulties, i.e., temporary payment plan.

• Determine economic feasibility of pursuing liability under leases, retain attorney when justified, file suit and appear as witness, make settlement agreement, and/or pursue judgment for rent due.

• Notify tenants of annual percentage rent due, CAM, Taxes & Insurance reimbursement participation and insure timely collection.

 

 

EXPENSE CONTROL

Taxes:

• Compare annually with taxes comparable centers elsewhere in state.
• Compare annually with other improved properties in the same city.
• Render annually.
• Appeal unjust assessments.
• Negotiate adjustments in unfair tax escrow accounts maintained by lenders.
• Ensure all taxes are paid before due date.
• If lender is maintaining an escrow account, ensure tax statements are forwarded for timely payment.

 

Insurance:

 

A. Policies

• Obtain bids and acquire most favorable policies available.
• Ensure that policy issuers have financial capacity and willingness to pay claims.
• Ensure that policy amount is high enough to avoid coinsurance problems and meet lender criteria.
• Ensure that all lenders have current copies of policies and have approved same.

 

B. Claims

• Immediate notification to agent.
• Negotiate claim settlement.
• Obtain necessary lender approvals.
• Execute construction contracts and supervise work.
• Collect proceeds, obtain lien waivers, pay contractors.

 

C. Shell Structure:

• Semiannual inspection of roof, parking lot, HVAC systems and tenant spaces.  Status Report to file.
• Determine intermediate term (3-5 years) maintenance plans (some flexibility necessary).
• Obtain multiple bids and contract for necessary repairs and replacements.
• Supervise work, obtain lien waivers (when ready) and pay contractors.

 

D. CAM:

• Retain and supervise parking lot sweeping service, common area maintenance, landscaping contract service, dumpster, irrigation system, lighting.
• Review common area utility service to ensure economic usage.
• Obtain bids and supervise completion of parking lot power washing/re-striping, as needed.

 

LEASING

• Maintain a list of all uses that are restricted by existing leases so that a negative covenant will not be violated.

• Develop a list of store types that would most complement existing tenants and direct special efforts toward locating and leasing such stores.

• Make courtesy calls on all strong local merchants every 2-3 months to keep the property on their minds.

• Personally, call on strong merchants having stores in similar centers within a 50 mile radius.  Follow up on potential prospects.

• Use existing tenant and Chamber of Commerce as sources.

• Respond to calls from signage and show space.

• Negotiate lease and finish out terms with prospective tenants.

• Negotiate renewals for leases as they expire.

• Anticipate vacancies before they occur by using sales figures and personal tenant contact.

• Consistently use existing tenants regarding expansion in present centers and additional locations in out other centers.