proposal for management of your upcoming city view flats along kipande road final

8/3/2019 Proposal for Management of Your Upcoming City View Flats Along Kipande Road Final

http://slidepdf.com/reader/full/proposal-for-management-of-your-upcoming-city-view-flats-along-kipande-road 1/17 Trendsetters Properties Ltd – Comfort is not aprivilege but a right.

TO: SUAN HOLDINGS LTD,

P.O BOX 4593-00506 NYAYO STADIUM,

NAIROBI.

ATT: SIR/MADAM.

RE: PROPOSAL FOR LETTING/MANAGEMENT OF YOUR

UPCOMING FLATS ON LR/NO/209/2759, MUSINDI ROAD,

NGARA.

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TRENDSETTERS

PROPERTIES LIMITED

Registered Property Managers, Valuers, RealEstate Consultants

CITY VIEW APARTMENTS- NGARA, GROUND

FLOOR SUIT NO.2

P.O. Box 52428—00100 Nairobi, Kenya Tel;

020-8050868

Cell; +254 722-635 915 .

Email: [email protected]



INTRODUCTION

Trendsetters properties limited, is a limited company, registered under the

company`s act, offering a variety of services i.e. property letting, property

management, valuation, real estate consultation and sale of plots/land. Our

services are tailored for property owners/companies to be offered the

services named above in the most professional, honesty, dedicated way, and

at all times ensuring that efficiency and persistent returns are yielded. This

leads to peace of mind to property owners concerning their investment,

hence concentrate on their other endeavors.

1. SCOPE OF SERVICES

QUALITY MANAGEMENT TO QUALITY DEVELOPMENT

Our scope of services takes into consideration the development of your flats

which comprises of the following.

• 34 GROUND FLOOR AND BASEMENT SHOPS/ GODOWNS.

• 76units (bedsitters) - which will cost a rent of between 10,000-25,000

per month.

• Common amenities include:

o On site Care Taker

o Daily cleaning

o Garbage collection (twice a week)

o 24 Hour security services that include security Guards control of

entry/exit at main gate.

o Provision of security lights

PROBLEMS ENCOUNTERED BY PROPERTY DEVELOPERS:

In order to enhance property value and avoid future headaches, management

system correctly established by property developers/owners avoids the

following common problems.

• Service Providers

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o Time mismanagement

o Financial mismanagement

o Routine maintenances

o Ineffective services

• Rent and Service charges

o Unauthorised deductions

o Late bills

o Disputes over rent

o Late rent payments

o Rent petitions

• Security

o Underpayment/Late payments

o Poor working conditions

o Car Park thefts

o Control of third parties

• Tenants

o Failure to follow/adhere to terms and condition of the lease

agreement

o Noise

o Extensive repairs

o Poor hygiene

o Unauthorized parking

o Illegal structure in common areas – satellite dishes and clothes

lines etc

REMEDIES

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To provide services to you and your tenants, we recommend the following

• Weekly inspection of the property by the agent.

• Bills should be timely paid.

• Tenants should be informed in writing about any changes regarding theproperty.

• Provide effective caretaker services for common areas- All caretakers

need to be effectively trained and regularly supervised to ensure proper

provision of services.

• Outsource key services to professionals –these will include maintenance of

electric fence, garbage collection, security etc.

• Establish the bank accounts and collect Rent and service charge into the

same.

• Set up Notice boards in each block – this will act as an effective tool for

communicating with all residents.

2. SUGGESTIONS

For all the problems encountered by property owners/developers we suggest

solutions in the following ways;

I. RENT PAYMENTS

Rent and service charge payment are deposited to the landlord/property

account .

• Rents and service charge deposited to landlord/Property`s Account:

o We ensure that tenants deposit all receivables in rents, deposits

and service charges in the landlord (property Account) not later

than 5

th

of each month.

o Tenants submit the deposit slips to us at our offices or safe locks

provided to the care takers.

o Every month in advance we do a budget for the expected

service charge costs of the property and send it to the property

owner covering payments to all service providers: - security,

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garbage, common electricity, water, internet, management

company etc)

o The property owner draws one cheque to Trendsetters

properties limited for the payment of service charges or can

handle these matters one by one him/herself.

o We release statements (via post, hand delivery or email) of the

monthly transactions with evidence of all the payables, together

with the next month`s budget.

II. Security

o Registration Logs of all vehicles in and out of the compound.

o 1 day( caretaker) and 1 night guards.

o Provision of panic buttons at easily accessible areas on the blockand at the main entry gate

o Provision of audible alarm system linked to electric fence and

Security Company.(where applicable)

o Communication with tenants about guests and staff on entry at

the main gate- Done through intercom system if provided.

o Disallow entry of guests of any staff.

o Accessing cards for domestic servants on entry in the

compound. These cards should indicate the flat number and

each card should be subsequently numbered. 2 cards per

Apartment/Flat should be issued.

• Electric fence (where applicable)

o Should be switched on 24/7

o Routine maintenance

o Ad hoc emergency maintenance – contract must stipulate

maximum time within which service will be provided.

III. CARETAKER SERVICES

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Trendsetter’s properties limited can assist the landlord in recruiting the

care taker upon request, and inducting him/her to work by giving a clearly

written job description.

We recommend that the landlord employs one on-site caretaker for the

upkeep of all common areas. On a day basis the care taker will carry outthe tasks of all cleaning (and gardening where applicable), and will

directly report all issues to our office and field manager for liaison with the

landlord.

IV. SET UP OF COMMON NOTICE BOARDS

The notice Boards in the block provide an effective communication tool.

Our experience is also that by posting names all service charge defaulters

for example on the Notice Board results in faster collection of service

charge.

V. GARBAGE COLLECTION SOLUTION

Rental units that cost 10,000-25,000 per month will attract a class of

people who are fussy. To keep them convinced to pay this amount of rent

depends on the kind of services offered by the property owners/managing

agents. Failure to offer these services will lead to vacancy of your

investment, hence low returns.

To eliminate these problem of garbage collection, we outsource

professionals who carry their duties with distinction in all the properties

we are managing, they have ensured that drums with seals not less than

five are provided and placed at certain point of reach by every tenant.

The waste/garbage from tenant houses is dropped by tenants into the

drums and sealed. This ensures that the bad smell does not spread.

Tenants do not have special time/days to drop the waste since the drums

are not allowed to fill to the brim.

The waste in the drum is collected twice in a week. This as a service

charge cost to tenants costs a mere 500-1,000 /= a month.

3. OUR DELIVERIES

We work with unity of purpose with the property owner and in close

consultation and communication. Trendsetter’s properties limited

ensures full and detailed professional, honesty and integrity

management to your property aimed at sustainability of the property

value and profitability. The package comprises the following tasks.

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a. Letting service

Letting is aimed at filling the vacant units with tenants, capable of paying

the given amount of rent per month.

I. We offer letting services to companies, landlords and Landladies, once

their property/ properties are ready for occupation. This is done in themost professional Way through thorough advertising of the premises.

II. Letting is done through the use of a lease agreement, drawn by thecompany advocate. In the lease agreement, all the loopholes that bringdisagreement between the tenants and the property owners have beentaken care of; and the tenant has to sign the agreement, to show that he/she will adhere to the terms and conditions of the property owners. Thelease agreement is also given to the property owners, to go though andapprove it, the rules and the regulations that govern the tenants in theirproperty, making additions before letting starts.

Benefits;

1. Company’s and property owners’ money goes directly to their accounts,since the tenants are advised to bank the cash in the property owners’accounts, given to us together with the name of the account.

2. Time-factor. We have all the time to devote in respect of Property letting,which may be lacking on your part.

3. We ensure that the tenant understands the lease agreement, beforesigning it. We also ensure proper administration of the lease agreement.

4. We have a dedicated, honesty and strong workforce who will at all timesensure that efficiency and persistent returns are yielded.

5. Unlimited escort viewing of the property by respective clients.6. Ensure payments deposits required before occupation.

7. Focus and timely advertising of the unit as available using varied avenues

b. Rent and service charge

a. Collection of rent, deposits and service charges and ensuring timely

rent payments (not exceeding 5th of each month).

b. Issue Rent and Service Charge invoices to all tenants

c. management

a. Minor maintenance appraisals, costing and repairs.

b. Administration of lease and tenancy agreement to new tenants.

c. Administration of service charge expenditures (sourcing of services

vendors and supervision of service delivery – caretaker, security,

garbage, common electricity, water, internet, parking control,

shared satellite TV, etc)

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d. Monitoring delinquencies and control, including seeking for legal

intervention.

e. Tenant liaison (tenancy applications, vetting and screening of

potential tenant credentials.)Address tenant issues as and when

they arise.

f. Through inspection and supervising repairs and maintenance of

vacated units.

d. Financial management

We provide the following accounting services;

I. Monthly payroll

II. Monthly reconciliation and payments to the property owner(s) and

all service providers:- security, garbage, common electricity, water,internet, management company)

III. Preparation of income statements

IV. Collection and recording receivables in rents, deposits and service

charges.

V. Monthly budgets preparation.

VI. Determining the cost of services and spreading the cost among

users.

VII. Payment of annual costs – site value tax, insurance, audit fees, land

rates and rents.

VIII. Balance sheet preparations

The objective of managing each property as a business is to maximize

returns and minimizing cost thereby optimizing profitability.

4. ESTIMATES OF SERVICE CHARGES

Our estimate of service charge takes into account the following assumptions;

• We give monthly report of account with evidence for the service charge

paid and a budget for the following month before the subsequent cheque

is issued.

• V.A.T will be claimed to ensure that tax returns on the property are done

on time.

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• Estimate of annual contracts are based on indicative rates, these may be

higher or lower than estimated.

• A service charge of kshs 500 – 1000 /= per unit to cater for the services.

This amount is payable together with the rent due per month in to the

property bank account. The landlord in turn issues one cheque.Alternatively the landlord can meet the service providers in person or

draw a cheque to each of them.

5. FEES

According to the laws of estate agent Act we are required to charge

7.5% of rent collected for management. We propose 6% which is a fair

rate and negotiable.

a. Our management fees are competitive, flexible and reasonable.

They differ depending on several factors.

I. Number of units and users

II. Management requirement- onsite staff or from remote office.

III. Rent turn over

On this basis our proposed fees as follows:

• Monthly management commission (including accounting fee) 6% of

rent turnover instead of 7.5%, as demanded by the estate agents

act, NEGOTIABLE.

• Fees for letting

services…………………………………………………………………………

50%, instead of first month rent according to estate agents act ,NEGOTIABLE.

• Fees for initial setting up of

services……………………………………………………..No charge

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Our management agreements are tailor-made for different owners and

property.

6. RESTRICTION

Our fees do not include:

• Cost of filling of annual returns, tax returns and payment of

installation tax.

• Costs for the annual audit of the accounts.

• Debt recovery costs where advocates/professional debt collectors

are used to recover the debts.

SUMMARY.

• Rent collection. We make sure that rent is paid

promptly by the tenants, and undertake to have it credited at

the earliest, and in any case not later than 5th of every month

in advance. This is especially important where you may be

servicing a mortgage, and regular repayments are required.

• Property maintenance. We handle on

behalf of the landlord any repairs to the property. We usually

inspect and make quotations of the works to be done. This is

send to the landlord for approval before commencing our

work with our contractors, whom we have used over along

period, thus ensuring quality work at reasonable costs. This

will include paint works, plumbing, electrical and general

works in the property to ensure it is habitable before a tenant

moves in.

• Bills payments. We pay bills on behalf of the

landlord, bills payable from the property. These are: paymentof the ground rent and rates, insurance, management of the

service charge accounts (where applicable) and any other

outgoings. We also ensure that the bills payable by the

tenants like electricity and water are promptly paid, so as to

avoid accruing and become a cost to the landlord once the

premises fall vacant.

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• Lease and property in ventory . We also

take an inventory of the condition of the house when a

tenant is moving in/ out. We refer to the same inventory, so

that if they have damaged anything, then the repairs will be

done at tenant’s expense. This ensures that the lease

conditions are clearly spelt out and agreed between the

parties.

• Rent review. Since we double up as valuers, we are

able to do rental assessments of the property at no cost to

yourself and ensure that you get competitive rent rates at al

times.

• Letting the property . Once a tenant moves

out, we make the property for whoever would be the tenant,

and take the most competitive, which we sign a lease. Of-

course the property will be decorated by the moving tenants

cost, back to its original state, this ensuring that the landlord

does not incur extra charges.

7. ABOUT US

Trendsetters properties limited is a professional firm duly incorporated

under the companies act cap 486 laws of Kenya. The firm specializes in

offering services of letting and managing real estates, and sale of residential and commercial properties in Kenya.

At present we have over 1200 tenants for over 25 property owners in

Nairobi and its suburbs.

Vision

To provide real estate solution to property owners hence may be preferred

real estate agents who uphold highest level of professionalism and

integrity.

Mission

To deliver and provide quality services through professionalism, based on

integrity, honesty, expertise and customer satisfaction.

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We are diversified in Nairobi and its suburbs.

8. CLIENTS

The following are some of our clients who can be contacted on services we

offer.

I. CYWA HEIGHTS – Kileleshwa

• Full property management for common area, repairs etc

• Presentation of the management accounts to the owner at

the end of every quarter as well as the end of year statistics.

• Managing financial flow i.e service charge and payment of

other common services.

• Enjoys 100% occupancy all the year.

• Miss Mercy Mwangi (0722 832 987)

II. BERTA HOLDINGS – safari park Gardens

• Managing financial flow i.e service charge and payment of

other common services


• Enjoys 100% occupancy all the year.

• WILSON KAMAU3)

III. PILLAR LITE APARTMENTS – South C


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association of the company, details of company and the

secretary.

Care Takers

• Name and copy of ID

• Contacts and references

• Employment start date

• Salary and Bank Account

Property management

• Contact details and copy of contracts for security , garbage

collection etc

• Contact details of all tenants

• Copies of last NCC rates land and rent paid.

9. HANDING OVER/APPOINTMENT

An appointment with us will lead to an agreement for us to your managingagent.

You will need to sign a management agreement with us. We will then

submit on monthly basis release statement showing;

• Copy of bank slip and payable receipts/vouchers

• Income statements.

• Summary of any key issues

Our meeting with you will produce a management agreement for your

property.

10. CUSTOMER SERVICE

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Please do not hesitate to contact us on the following address, or visit us at

our office:

Trendsetters properties limited

CITY VIEW APARTMENTS- NGARA KIPANDE ROAD, GROUND FLOOR SUIT

NO. 2.

P.o. Box 52428 – 00100. Nairobi

Tel 020-8050868, +254 722-635915,.

Email: [email protected]

HOUSE INSPECTION CHECKLIST –

House No……………………………………………………………………………………

Our Ref: SRE/M/…………………………………………………………………………

Tenant name……………………………………………………………………………..

Lease period……………………………………………………………………………..

Move in Date…………………………………………………………………………….

Move Out Date…………………………………………………………………………

1. Entrance

Details Move In Move OutEntrance VerandahEntrance doorDoor bell switchLight SwitchLamp Holder

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mailto:[email protected]

mailto:[email protected]



2. Hallway

Details Move In Move OutStorage cabinetsRoof bulb holderFloor

WallSocketsLamp holdersLamp switches

3. Sitting Room

Details Move In Move OutFloorDoor

WindowCeilingLamp switchesWallLight switchesSockets

Tenant Information and Payment Details

Landlord/Company Name:

………………………………………………………………………………

Estate/Court:

…………………………………………………………………………………………………

…

Location/Road:

…………………………………………………………………………………………………

For properties in the same location, please separate courts/properties with

a blank line .

Use a different page if property in different locations. Form should be filled

and handed to Trend setters before the handling over.

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TENANTS(S) DETAILS & PAYMENTS INFORMATION

HSE

NO.

TENANTS

NAME

RENTPAYAB

LE

OUTSTANDING

ARREAS

HOUSE

DEPOSIT

ELECTRICITY

DEPOSIT

WATER

DEPOSIT

TOTAL

Yours faithfully

JAMES N. NG’ANG’A

0722635915

VALUER AND TREND SETTERS PROPERTIES LTD, DIRECTOR.

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proposal for management of your upcoming city view flats along kipande road final

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