SCOPE AND RESPONSIBILITIES OF EACH PARTY
INTRODUCTION
Property management typically involves the managing of property that is owned by another party or entity. The property manager acts on behalf of the owner to preserve the value of the property while generating income. Homeland Real Estate’s mission is to maximize the client’s income by applying exceptional Real Estate Property Management skills, while ensuring Tenants satisfaction by providing first class property maintenance services. In order to maximize the net return while preserving and enhancing the capital value of properties managed by HOMELAND REAL ESTATE LTD, the following services and responsibilities shall be provided and undertaken as follows:
- PROPERTY ADMINISTRATION
This part will be focusing on all issues regarding tenants and the rental income, by setting the initial rent level, collecting rent from tenants and adjusting the rent, managing tenants. Assigned by the Property Owner, Homeland Real Estate will be responsible to undertake the following:
Setting Rent-Both parties will agree on rental prices that are appropriate and attractive based on the market prices and the location of the property. Prices will also be reasonably set in line with similar and comparable properties in the area.
Collecting Rent– Homeland Real Estate will ensure optimal cash flow by confirming the date to collect rent each month and strictly enforcing late penalties as appropriate. Homeland Real Estate will establish the rental schedule that will bring the best yield through the use of software that will be used to mitigate delayed rentals and facilitate the efficient monitoring of rent revenues collection.
Adjusting Rent– In agreement with the Property Owner, changes (increase or decrease) in rent amount. Will be effected based on the incremental 10% per year and in accordance with real estate HOMELAND REAL ESTATE LTD.and housing regulations in Rwanda. Both parties will agree on the appropriateness and timing of decreasing the rent if he deems necessary.
Finding Tenants– Homeland Real Estate will be responsible for marketing the property to fill vacancies. They will be responsible of advertising and preparing ads. Homeland Real Estate understands what attracts tenants, and will suggests appropriate and necessary to run cosmetic improvements to help makeover the property.
Screening Tenants– Homeland Real Estate will be responsible for selecting and recommending prospective tenant applications to find the tenant that is the best fit for the property. Homeland Real Estate will carry out necessary due diligence to establish loyalty levels for security assurance and sustainability purposes.
Handling Leases (long and short term leases)-Homeland Real Estate and the Property Owner will be responsible of setting the duration/period of the lease and ensuring that the rental agreement has all the necessary provisions to protect the owner. This includes determining the amount of security deposit required.
Handling Move Out or eviction– upon the receipt or issuance of termination notice of agreement, a notice of 30 days is issued to the outgoing tenant. During the notice period, Homeland Real Estate Manager is responsible of inspecting the unit, checking for damages and determining what portion of the security deposit will be returned to the tenant. After the tenant has moved out, the outgoing tenant is responsible for cleaning the unit, repairing any damages and finding a new tenant. Failure to do so will require Homeland Real Estate to deduct cleaning and repair amount from the deposit.
Dealing with Evictions– Homeland Real Estate will be responsible of establishing status and reasons for noncompliance including refusal or delays in paying rent or honoring other obligations as per the contract. They will be responsible of providing contract termination notice and handling the eviction process as per the contract. The property Manager will be informed as and when required.
Develop a tenant / resident relation policy– In collaboration with the Property Owner, Homeland Real Estate will design and enforce occupancy policies as stated in Housing Regulations. Where and as when necessary, Homeland Real Estate will engage with non-compliant tenants and/or facilitate engagement with legal services on behalf of the owner to address the problem.Reports to the owner: Homeland Real Estate will submit monthly reports to the property owner that are easily understandable about the level of occupancy
2.OPERATIONS
This part will be dealing with the physical management of the property, including regular maintenance and emergency repairs and supervision of other employees;
Maintenance- Homeland Real Estate will be in charge of performing preventative property maintenance to ensure that the property is kept in good condition. This will entail assigning a regular service provider to ensure that the property is clean, the garden is well kept and that timely inspections are done to ensure that might that are no leakages or other malfunctioning tools around the property. This maintenance aims to keep current tenants happy and attract new tenants.Homeland Real Estate will create and supervise maintenance schedule and repairs: through planned,preventive and emergency maintenance to preserve and to increase the value of the property.
Repairs– Homeland Real Estate will provide clear details regards to any repair that needs to be done and who should do it. The property manager must attend to it themselves or must hire someone to attend to it. The Property Owner will assign or delegate Homeland Real Estate to supervise the works if necessary. Both parties will agree on the scope of work, and will source manpower from the existing network of reliable plumbers, electricians, carpenters and other contractors. Regular inspection of the property: Homeland Real Estate will provide regular updates about the physical condition of the property, advising on any renovations and maintenance required and make all financial arrangements to address maintenance items as identified
Other Employees– if there are other employees in the property, such as a concierge or security personnel, the property manager is responsible for making sure they are doing their job. The property manager can set their salaries and even fire them if they are not able of doing their jobs.
Vacant Properties- Homeland Real Estate will ensure that vacant properties are occupied within the shortest delay to avoid risks of vandalism. Homeland Security will perform routine inspection and maintenance. They also make sure contractors and other repairmen are completing their work in a timely manner
Reports to the owner: Homeland Real Estate will provide monthly report with proper analysis of tenants commitment or failure to adhere to contractual agreements reports to the owner should be comprehensive, concise and easily understandable
3.FINANCE
The allocation, organization and management of all outgoings will be handled in this department to ensure that the company does not exceed the sated budget. The property manager will be responsible for managing the budget for the building and maintaining all important records.
Rental revenues: Homeland Real Estate will ensure monthly rentals are deposited bank account. This entails collecting bank slips from tenants on a monthly basis and recording all the details into the revenue register.
Managing Budget- Homeland Real Estate will operate within the set budget for the building including payment of waste collection fees, security contribution, and water bills In certain emergency situations when the occupants (tenants) or physical structure (investment property) are in danger, we may use their discretion to order repairs or likewise without concern for the budget
Maintaining Records-Homeland Real Estate preserve all records regarding the property. This will include all income and expenses; deposit slips or evidence, list of all inspections, signed leases, maintenance requests, any complaints, records of repairs, costs of repairs, maintenance costs, record of rent collection and insurance costs.
Audit and pay bills– Homeland Real Estate will pay on behalf of the Property Owner, all outgoings such as water, cleaning and security bills and insurance fees.
Planning and preparing an annual budget- Homeland Real Estate will prepare and submit to the Property Owner annual budget and plan. These documents will be submitted at the beginning of the year. Annual financial reports at the end of that year.
Homeland real estate Ltd.’s compensation
Payment will be made within the time specified in the formal agreement to be signed between Homeland real estate Ltd and the Property Owner.Management fees will entail percentage of the gross rents collected (10% of the gross rent). for more clarification contact us at 0788984878