Commercial/Industrial Property Management
The following are highlights of Dirigo’s property management services:
- 24 hour on-call maintenance service; full time, radio dispatched maintenance crew, emergency service
- Computerized, full line accounting
- Negotiation and supervision of contract services
- Purchase of supplies and materials
- Cost control, price shopping, competitive bidding
- Rent collection
- Tenant billing
- Tenant relations
- Monthly property / financial reports
- Emergency Service
- Lease renewals
Although Dirigo approaches every property as unique and every owner as an individual client with specific management requirements there are, nonetheless, some common property management task that apply to all full service management contracts. Below is a summary of the basic services provided by Dirigo Management Company:
I. SCOPE OF RESPONSIBILITIES
A. FISCAL RESPONSIBILITIES
1) Prepare and recommend an operating budget to the Owner. Establish a segregated banking account for receipt of all income and payment of all property related bills. Establish a separate security deposit account for the property.
2) Collect all rent and assessments – i.e. bill, receive, record, and deposit all revenue, as well as follow up on delinquent payments. Review all leases to ensure proper billing of rent, CAMS, parking, utilities and other services that may be provided to tenant. Complete all CAM reconciliation at the end of each fiscal year and bill/credit tenants appropriately.
3) Implement late assessments for overdue accounts. Dirigo’s property management software can automatically assess a late fee after any date specified by the Lease Agreement – i.e. 15 days, 30 days, etc.
4) Purchase supplies and materials for the property.
5) Review, process, and pay expenses.
6) Affect Cost Control Management, which entails price shopping, bulk purchasing, and volume discounts. Specific areas to include: snow plowing, grounds keeping, painting, insurance, etc.
7) Invoice tenants for purchased services and/or charge backs.
8) Recommend appropriate Replacement and Contingency Reserves and assist the Owner in all aspects of reporting and administration.
9) Prepare Monthly Financial Statements (25th of each month)
a) DIRIGO utilizes either cash or the accrual method of accounting.
b) A monthly Statement of Income and Expense will be prepared for the Owner’s review.
c) Other monthly reports include:
- Balance sheet
- Receivables report
- General ledger
- Other reports as requested
d) DIRIGO will work with the Owner to ensure that the format/presentation of the financial report meets with his/her approval.
10) Keep and maintain the books and provide accounting services, following Generally Accepted Accounting Principles. All DIRIGO staff is appropriately bonded.
B. PHYSICAL RESPONSIBILITIES
1) Dirigo accepts responsibility for maintaining and repairing the physical plant according to the established standards of the Owner.
Dirigo will be pro-active in its physical plan management. For example, DIRIGO will be constantly looking at ways to improve the physical appearance, reducing operating and maintenance costs, and extend the useful life of all building components.
2) Dirigo will prepare an annual operating plan for maintenance and repair to be scheduled weekly, monthly or other basis and include provisions to meet nonscheduled and emergency needs. This annual plan of operation will include a schedule of staff work and contractor evaluations. The operating plan is part of the preparation of the annual operating budget.
3) To implement operations plan, Dirigo will utilize a dedicated on site facility/maintenance technician as well as outside contractors. Outside contractors will be required to provide proof of adequate insurance coverage. All Dirigo personnel (management and/or maintenance) are covered by Dirigo’s General Liability Insurance Policy.
4) Dirigo will designate a Partner in Charge for each commercial and residential property within its managed portfolio. The Partner In Charge will oversee the management of the property and will meet the selected property manager as a means of monitoring the operation of the property as well as evaluating personnel assigned to the property.
Property inspections by the selected manager will be conducted on a recurring basis (sometimes weekly other times monthly). Such inspections are helpful to Dirigo in preparing short and long term property improvement recommendations, ensuring adherence to the integrity of the architectural and landscaping design of the property, and evaluating major maintenance needs.
5) Dirigo will assist in preparing maintenance service contracts and supervising the work of contractors. The maintenance management entails the following tasks:
a) Preparation of bid specifications, evaluation of bids, preparation of contractor recommendations.
b) Discussion with contractors about scope of work, how to resolve problems discovered in the field.
c) Preparation of service contracts for review by Partner in Charge.
d) Maintain list of qualified contractors/vendors for the property (i.e. proof of insurance, etc.)
C. ADMINISTRATIVE RESPONSIBILITIES
1) Preparation of Monthly Property Reports. A narrative report, which identifies major issues confronting the property, is prepared monthly for the Owner. The report also includes commentary on the line item budget – explaining why under or over budget.
The Monthly Property Report shall be submitted to the Owner by the 25th of every month.
2) Maintain property files, such as: tenant files, copies of contracts, copies of insurance policies, and etc.
3) Administer and implement the provisions of the various Lease Agreements. DIRIGO will represent the Owner in all communication and discussions with building tenants and contractors.
4) Implement a mutually agreed upon management transition plan.
A. Property Management
Competitive fees to be negotiated.
B. Maintenance (2018 Rates)
$56.00 per hour during normal business hours; $84.00 per hour for overtime.
$65.00 per hour for skilled carpentry.
$85.00 per hour for HVAC.
$35.00 per hour for cleaning.
Competitive fees to be negotiated.