PROPERTY MANAGEMENT PROGRAM
We at Prime Management Group, Inc. (PRIME) pay close attention to detail in the everyday operation of the rental properties. We work to provide the best and most complete management services available to residential property owners. We work closely with the owner to align our expertise in the industry and the owner’s objectives to produce stellar returns on your assets.

We differentiate ourselves from the competition with the high level of service provided to the property owner and our carefully selected customers, the residents. We use a very proactive management approach in reducing the property’s operating expenses. We also try to service all maintenance requests the same day or at least by the next business day. Happy tenants tend to live in our units for a long time.

PREPARING TO RENT THE PROPERTY
When prospective tenants view your vacancy, PRIME wants the property to look its best and compete with area rentals. A property maintenance report and rental market survey is completed. The PRIME management team will contact you to discuss the details of your vacant property and any necessary maintenance.

SETTING THE RENT
Supply and demand determines rent. If there are multiple rentals available in the area of your property, it is necessary to be very competitive. If very few are “for rent” in the same area, it can make it easier to rent the property. Markets change and PRIME advises owners on the “current rental market.”

HOW LONG WILL THE PROPERTY BE VACANT?
This is the most commonly asked question PRIME receives from owners. Unfortunately, there is no way to predict how long a property will remain on the market, even in the best market conditions. However, PRIME works diligently to rent the property as quickly as possible. What is important to remember is that the most important objective is to have “a quality tenant.” PRIME, or any other property management company, can rent properties “quickly” if they do not have standards for obtaining good tenancy. However, bad tenants will only create more expense and another unwanted vacancy; therefore, waiting for the “right tenant” is worth the additional time it can take to rent the property.

PUBLICATIONS / NEWSPAPERS
PRIME wants the greatest exposure for your property and places advertising in various listing services.

INTERNET / WEBSITE
PRIME has found that the Internet and the PRIME website, www.primemgnt.com receives tremendous exposure, as well as using a few online listing services.

SIGNAGE
PRIME displays “For Rent” signs prominently, and each sign carries the appropriate extension for the property. Signs promote calls.

SHOWINGS AND APPLICATIONS
The PRIME property managers conduct showings for each vacant unit. We arrange showing times for your property in advance through our voice messaging system, and appointments by contacting the PRIME office directly. When prospective tenants see the property, the management team answers questions and distributes applications. Applications are available in the PRIME office, at the property showings, and on the PRIME website.

TENANT SCREENING
Thorough screening is crucial to successful Property Management. PRIME requires all applicants to fill out a detailed application and submit it for processing/approval. A credit check is NOT enough! Our company conducts a careful review of their credit, income, criminal record, and tenant history or ownership.

All applicants must submit verifiable information on their income to show they can support the property. Rental history or previous home ownership is carefully checked. Cross-referencing all three areas – credit, tenant history, and income - provides the answers to qualify or disqualify prospective applicants. If a pet is allowed on the property, the screening includes the pet (please review the upcoming pet policies).

COSIGNERS
PRIME normally does not accept cosigners. PRIME policy is that the applicants should have the ability to rent on their own merits. However, there are sometimes conditions that may warrant taking a cosigner on a property. If this is the case, PRIME will require that the cosigners are property owners.

PETS
If an owner authorizes a pet, PRIME increases the deposit even more. PRIME does not use the term “pet deposit.” By avoiding this terminology, PRIME can use the amount of the entire security deposit when there is animal/pet damage. Although the PRIME policy is to increase the security deposit, the amount cannot exceed California landlord/tenant law, which is currently 2x the monthly rent. Many tenants have or want pets. It is legal for property owners to discriminate against pets. You may wish to do so. However, whether you have or have not decided to allow a pet in your property, the PRIME application has a place for prospective tenants to list pets and how many. It is important NOT to discourage full disclosure on pets while taking an application. If you do allow a pet, PRIME does not place inappropriate pets in a property. PRIME recommends to owners that when the property is on the market, that pets are “negotiable.” This can solve two problems.

• First, this encourages prospective applicant to disclose any pets. Then, based on the owner preference on pets, PRIME can automatically notify the applicant that the owner does not allow pets.
• Second, by listing pets as negotiable, it avoids eliminating an excellent tenant that does care for their pet, has an excellent tenant history, and owns a pet that is suitable to your property.

SERVICE ANIMALS
Special note: “Service animals” for handicapped/disabled persons are NOT pets by Federal law, and owners cannot discriminate against handicapped/disabled persons with a service animal. Fair Housing legislation does NOT allow owners or property managers to collect deposits of any kind for service animals.

However, Landlords can still process applicants who are handicapped or disabled on the same criteria as other applicants: income, credit, and tenant history. If they fail to qualify in these areas, the landlord/manager can still deny the application, handicapped or not.        

RENT AND SECURITY DEPOSITS
PRIME does not accept personal checks prior to renting the property and does not allow “payments” on security deposits – we require all funds paid in full prior to renting the property. This eliminates prospective tenants who really do NOT have the necessary funds for renting.

Once approved, all applicants must pay in full, the first month’s rent, and a security deposit, in certified funds. It is normally PRIME policy to require a lower security deposit than the rent. However, PRIME does not exceed the maximum-security deposit allowed by the California landlord/tenant laws.

RENT / LEASE AGREEMENTS
Once PRIME receives funds, a thorough rental/lease agreement with the applicant is completed. The PRIME five-page maintenance addendum and all necessary addendums are included with this documentation. All persons 18 and over, including adult children, are required to read and sign all rental/lease agreements. If the accepted applicants are a foreign nationality and cannot read and understand the documentation, they must supply an interpreter of legal age for signing the rental/lease agreements.

WALK-THROUGH
A vital part of the rental agreement is a detailed walk-though addendum performed with the tenant, documenting the condition of the property when they move in. Unless extenuating circumstances prevail, the PRIME team completes the walk-through with the tenant before the tenant takes possession of the property. The walk-through documents the condition of the property. When the tenant moves out of the property, there is a sound basis for the security deposit refund. PRIME also documents the move in with digital photos.

TENANT HANDBOOK
Tenants immediately receive the “PRIME Tenant Handbook.” This detailed booklet gives them additional information on how to care for the property, report repairs, maintain the property, make timely payments, how to give proper notice to vacate, leave the property in good condition, and more.

TENANT EDUCATION AND PREPARATION
Taking the time to prepare tenants for their residency is another step toward a successful tenant/landlord relationship. Additional forms that the tenants may need are included with the “PRIME Tenant Handbook.” PRIME wants both owners and tenants well informed

COLLECTING RENT
Rents are due on the 1st day of the month and late if not received in the PRIME office by the 3rd of the month.

PRIME recognizes that many things can happen where it concerns rent; rent can really be lost “in the mail”; employers can delay the tenant’s paycheck, there are real tenant emergencies, and more. Therefore, we make a serious effort to determine why the tenant is having a problem. If PRIME receives the rent prior to issuing owner funds, PRIME does not contact the owner unless the PRIME management team determines there is an ongoing rent issue.

NOTICE TO PAY OR QUIT
If PRIME does not receive rent by the due date, PRIME prepares and delivers a timely notice to pay or quit, as the law allows. PRIME makes every effort to mail and post notices properly should legal action be required. If PRIME determines the tenant is not going to pay the rent during the notice to pay or quit period, or shortly thereafter, PRIME contacts the property owner and works out a plan of action.

Other notices There are other notices that may be involved with tenants. PRIME serves notices as situations warrant, such as a notice to clean up the landscape, a notice to enter the property, a notice to perform survey/inspections, a notice regarding an illegal pet, illegal tenants, etc. These tenant violations may be in the form of a letter or a legal Notice “form.” Often, these notices are simply to correct minor tenant problems and most tenants comply. However, if necessary, PRIME contacts the owner with the information to discuss the situation.

TENANT PROBLEMS
PRIME has years of experience handling the myriad of tenant difficulties that can occur. The PRIME policy is to obtain good tenants, eliminating many tenant problems. However, even good tenants have problems. PRIME treats each problem with common sense approach, follows landlord/tenant law, and uses the appropriate documentation. If the situation is serious, PRIME contacts the owner, and works to find a solution for the problem. Our company policy is to take a “what if” approach. PRIME documents tenant problems in the event that it becomes a legal problem. One of the reasons you hired a property manager is for “peace of mind.” This is what PRIME recognizes and works to prevent legal issues from arising.

LEGAL ACTION
Although PRIME works diligently to avoid the necessity to begin an action, such as an unlawful detainer or eviction proceeding, it can happen. In the event any legal action is required, PRIME will contact the owner prior to taking action, discuss what is needed, and obtain owner authorization.

PREVENTATIVE MAINTENANCE
The best approach to maintenance is “preventative maintenance,” and this is the PRIME policy.

First, PRIME has already started with educating the tenant by:

• Completing a detailed PRIME Rental Agreement, which includes the five-page maintenance addendum that outlines what are tenant responsibilities regarding maintenance as well as owner obligations
• Completing a walk-through documenting the condition of the property before the tenant takes possession
• Supplying tenants with the “PRIME Tenant Handbook,” which provides additional instructions on the care of the property and how to report maintenance

We want the tenant to know from the beginning of their tenancy that the PRIME/landlord expectations are to “care for the property.” This approach can prevent costly maintenance. Next, we use “preventative maintenance” techniques when work is required and utilize competent contractors. Often the minor expenditures save the most money such as doorstops, new filters, checking appliances, testing smoke alarms, adjusting doors, window latches, deadbolts, and more. Many small repair items can prevent maintenance that is more expensive. Consider the cost of repairs like holes behind doors, clogged heaters and air-conditioners, appliance problems, dry rot, safety issue and more. Then of course, there are the major issues in a home such as the roof, the exterior condition of the building, carpeting, interior, and exterior paint, etc. When left to deteriorate, it usually means the owner will have to spend more in the future. It is equally important to keep up with maintenance while the tenant occupies the property. Often people think no news is good news; this can be just the opposite. Instead, “delayed news can become very bad news.” This is why, in our tenant instructions, we require them to report maintenance. For example, what is worse than finding out dry rot could have been prevented or discoloration of the linoleum if the tenant had reported the leaking toilet in the bathroom? Avoiding major maintenance costs are certainly more favorable in such cases. The PRIME management teams contact owners regarding maintenance above the $500.00 minimum that is listed in the PRIME Management contract, unless the situation is an emergency. This amount can vary and is predetermined by the owner.

EMERGENCY DISASTER
When an emergency and/or disaster strikes, PRIME has policies in place for the property and tenants. PRIME notifies the property owner as soon as practical. The nature of the emergency and/or disaster determines the action needed by PRIME. There are times when a property manager must “act” in order to prevent great financial risk to the owner. For example, when a property is flooding, action is necessary, particularly if the property owner is not immediately available.

NOTICE TO VACATE
When there is a notice to vacate, the move out procedures with tenants are as critical as when PRIME moves in a tenant. The preparation for this really began when the tenant moved in with a detailed rental agreement, maintenance addendum, walk-through, and PRIME Tenant Handbook. All of these documents gave instructions to the tenant on how to move out.

COMMUNICATION WITH OWNERS AND TENANTS
PRIME notifies the owner in writing with a three-page letter giving details on how they will proceed with the tenant and re-renting the property. PRIME immediately places the property on the market to rent unless the owner notifies PRIME to take other measures. PRIME also responds to the tenant notice with a detailed three-page letter detailing the steps to complete a successful move. Rent is required until the end of the notice unless otherwise stated in the rental/lease agreement.

TENANT MOVE OUT
PRIME conducts a walk-through similar to the one performed when the tenant moved into the property. PRIME records any maintenance required and discloses a list of damages to the vacating tenant. Digital photographs are taken when the tenant move out to document the condition of the property and support any deductions from the security deposit.

After assessment of the tenant move out, PRIME advises owners of any tenant damages or any maintenance required to re-rent the property.

SECURITY DEPOSIT REFUNDS
Proper handling of the security deposit refund is crucial. Any tenant deductions are determined in a timely manner, and a security deposit transmittal is prepared in accordance with state laws. If the tenant charges are more than $125.00, state law requires that copies of invoices are included in the final transmittal. Owners receive a copy of the transmittal with their monthly statement, showing any deductions and monies refunded.

COLLECTIONS
If collecting damages is required, PRIME will refer the matter to a qualified consumer collection service at the instruction and authorization of the owner. PRIME management does not include recovering tenant damages, but leaves this to companies with expertise in debt collection. PRIME will supply consumer collection companies with the necessary documentation needed.

MONTHLY REPORTS
Monthly management reports will be prepared and delivered to owners on or before the tenth (10th) day of each following month. Included in the report will be the total monthly expenses for the maintenance of the property and your monthly check. Maintenance issues will be documented with the monthly management report. Maintenance repairs performed will be reported in a narrative format describing the repairs and offering recommendations for any future repairs needs.

YEAR END REPORTS
A year-end income statement along with schedules (exhibits) will be provided to you at the end of each business year. Additional reports can be provided when needed.

Why us? With our hands on approach, our local footprint, our comprehensive financial analysis and increased operating efficiencies we are able to boost the properties potential, increase cash flow and maximize value. Our services can generally add enough value to offset our management fees. GOOD MANAGEMENT DOESN’T COST, IT PAYS!