1. “DOING BUSINESS THE RIGHT WAY....” Basic Introduction to Residential Property Management 2011 PRO LEASING AND PROPERTY MANAGEMENT COUNCIL PRESENTS...

2. What is it all about? New Owner Sign Ups Sign-up Tenants Marketing the Property Move-In Managing the Money Managing the Owners Managing the Tenants Managing the Property Move-Out Terminations Legal Pursuits SalesMarketing for owners The Property Management Cycle

3. Licensed and Unlicensed Activity What’s the Difference? Florida Real Estate Commission (FREC) http://www.myfloridalicense.com/dbpr/re/d ocuments/Permissibleactivitiesrev092009. pdfhttp://www.myfloridalicense.com/dbpr/re/d ocuments/Permissibleactivitiesrev092009. pdf

4. What is it all about? New Owner Sign Ups Sign-up Tenants Marketing the Property Move-In Managing the Money Managing the Owners Managing the Tenants Managing the Property Move-Out Terminations Legal Pursuits SalesMarketing for owners The Property Management Cycle

5. Managing the Property What are you managing? What local jurisdiction rental occupancy license is required, if any? Is the property governed by an association? Who do you call for repairs? What do you need to consider when screening vendors?

6. Managing the Property What is the age of the property? How will you handle emergency repairs...and what is an emergency? Who is responsible for turning on and off utilities? Routine inspections

7. What is it all about? New Owner Sign Ups Sign-up Tenants Marketing the Property Move-In Managing the Money Managing the Owners Managing the Tenants Managing the Property Move-Out Terminations Legal Pursuits SalesMarketing for owners The Property Management Cycle

8. Managing the Tenants Tenant Relations Utilize the Lease Repair Orders Notices Renewals Move Out

9. What is it all about? New Owner Sign Ups Sign-up Tenants Marketing the Property Move-In Managing the Money Managing the Owners Managing the Tenants Managing the Property Move-Out Terminations Legal Pursuits SalesMarketing for owners The Property Management Cycle

10. Managing the Owners OWNERS PROFILE – BEHAVIORAL/PERSONALITY STYLE NOTE: ATTITUDE COUNTS! Analytical/Demanding/Driving/Decisive/Logical/Inquisitive Evasive/Worrisome/Cautious/Suspicious/Impulsive/Critical/ Impatient/Calculating Cooperative/Low Key/Flexible/Trusting/Patient/Diplomatic/ Predictable/Consistent/Conservative

11. Managing the Owners OWNERS COOPERATION Indemnify & Hold Harmless Property Condition to Good Working Standards Maintenance and Repairs/Repair Authorization Reserve Funds for Normal Maintenance Owners Refusal to Repair Emergency or Urgent Situation Written Notification of: Address Change/Phone or Email Change/Condo Rules or Fee Change Authority for Approval of Applicant - New Tenant Owners Authorization to Rent Letter Security Deposit Claim Letter to Owner Late Rents - Eviction Hold Off Letter

12. Managing the Owners OWNERS COMMUNICATION One Owner/Partner Designated as Main Communicator Home/Work/Fax/Cell/Email Emergency Contact and Relationship Do Not Contact Tenant!

13. Managing the Owners OWNERS SOLVENCY DISCLOSURES Current on Mortgage Payments Current on Real Estate Taxes Current on Homeowners Assoc Dues Current on Condo Association Fees Current on Assessments

14. Managing the Owners OWNERS INSURANCE Rental Dwelling Policy, Liability & Compensation (Minimum 100K per person/300K per occurrence) Request for Owner to Name your Company as an Additional Insured, or Certificate of Insurance Holder DISTRESSED OWNERS – DISTRESSED PROPERTIES Not Recommended For New Listing Property Foreclosure Disclosure Agreement Foreclosure Information to Tenant Owner Agreement and Authorization to Release Tenant Due to Foreclosure Filing Owner Escrow Disbursement Agreement in the Event of Foreclosure Filing

15. What is it all about? New Owner Sign Ups Sign-up Tenants Marketing the Property Move-In Managing the Money Managing the Owners Managing the Tenants Managing the Property Move-Out Terminations Legal Pursuits SalesMarketing for owners The Property Management Cycle

16. Managing the Money FREC Audit Checklist FLORIDA ASSOCIATION OF REALTORS® OFFICE INSPECTION Copies of all licenses: broker, brokerage, branch offices Office entrance sign Agency disclosures ESCROW/TRUST ACCOUNTS REVIEW Monthly reconciliation statements (minimum 6 months) Bank statements and canceled checks (minimum 6 months) Checkbook, deposit book and bank deposit receipts Ledger books and/or computer printout of sales and/or property management records, liability lists FILES Pending sales contracts Pending leasing contracts Voided contracts with escrow funds presently being held Earnest money deposit disputes Property Management files, contracts, agreements and leases

17. Managing the Money Escrow/Trust Accounts What is an escrow or trust account? Generally, for the purposes of the real estate licensee, an escrow account or trust account is one in which none of the broker’s, sales associate’s or brokerage firm’s own funds are maintained. In other words, an escrow account is maintained by a broker to hold funds belonging to persons other than the broker. Such funds include rents, rental and sales deposits, monies held by a broker to cover things like maintenance, taxes, mortgage payments, for others. What do I have to do to have an interest-bearing escrow account? You need written permission from all interested parties in the transaction. The account must be insured and maintained in Florida. Additionally, it must be clearly understood who is to be the designated person receiving the interest. When it comes time to disburse the principal amount being held in escrow, it must be transferred into a non-interest bearing account before disbursement can be made. Is it permissible to keep extra funds in one’s escrow account? A broker may place and maintain up to $5,000 of personal or brokerage funds in the broker's property management escrow account and up to $1,000 of personal or brokerage funds in the broker's sales escrow account. However, when preparing the monthly reconciliation statement, you must specifically mention the overage amount and purpose.

18. Managing the Money Collecting and depositing Owner funds to begin a new account Set up fee if any and Owner operating account funds Collecting and depositing application fees from prospective tenants How much do you charge per adult resident?

19. Managing the Money Collection of Pre- Move in Funds Security Deposit Last Month Rent Pro-rated Rent if lease doesn't start on the first of the month First full Month of Rent Pet Fee and Pet Application fee if Applicable

20. Managing the Money Collection and disbursement of Rental income monthly When do you disburse to owners? How do you disburse to owners? By Check with printed statement how long after receipt from tenant? Your software provides for E- payments and online statements?

21. Managing the Money Payment of Vendor invoices from Owner funds What is you repair authority limit? How much do you keep in each Owner's operating account? What Vendor files do you require and how do keep these required forms up to date? Vendor agreement with your company License Insurance for liability ( 500 thousand to 1 Million is common) and Workers Comp W-9 with same name as the company or person you are paying

22. Managing the Money Trust accounts Owner Operating Accounting Security Escrow account Company's operating account may not hold other peoples money! Release if Security or Last Month Rent procedures Mutual Agreement to use funds before due date or before claim Claim letter after vacancy.

23. Questions? Thank you for attending!!!