Collection of Income:
Hutchins Commercial Realty, Inc. (HCR)
will have primary responsibility for the collection
of rental income in accordance with the terms
of the related leases and contracts. Any delinquent
income will be identified in a prompt manner and
collected. Any uncollectible income will be identified
and brought to the attention of the owner with
recommendations for added actions.
establish a single bank account to be used for
the daily operations of the property. All rental
income and other income collected from property
operations will be deposited into this bank
Operating Expense Disbursements:
All normal, recurring operating expenses will
be disbursed in a prudent and cost effective
manner. In cases where goods or services exceed
$1,000.00 or are not recurring, HCR will contact
the owner for approval prior to engaging the
All existing lease agreements will be compared
to the appropriate standard lease (Owner’s
lease or a standard commercial lease) to note
contrasts and to assure compliance by tenants
and the management company to the lease terms.
The existing leases will be converted to the
standard lease at the earliest practical time.
HCR will register any and all prospects. HCR
will handle all negotiations in accordance with
predetermined guidelines as agreed to with the
owner. For residential property, leases will
be executed by HCR as agent for owner under
Recommendation and Supervision of Capital
Capital improvements for a property include
tenant improvements, property improvements to
maintain values, and those to enhance values.
HCR’s recommendation for such improvements
will include a cost/benefit analysis to justify
spending the capital dollars with sufficient
evidence to substantiate the estimated cost.
With owner approval, HCR will oversee the progress
of the contractors to assure quality and timeliness
of work. Any “change orders” will
be submitted to the owner for approval.
Engagement of Vendors / Maintenance
Hutchins Commercial Realty will review all vendor
contracts in place and evaluate the cost and
content of the agreements. If possible, all
vendor assignments will be converted to HCR
Standard Service Contract.
The following property maintenance information
will be developed and updated by HCR:
- Work Order Log which lists all of the work
order requests, the status of the work and
length of time to respond to the request.
- Preventive Maintenance Program which details
the maintenance staff procedures regarding
the grounds, parking lot, parking garage and
- On residential properties, a Make-Ready
Status Report, will be provided concerning
the condition of all vacant units, and will
be posted in the manager’s office.
- All vacant space in each property shall
be kept clean. HCR will see that all trash
and debris are removed, floors vacuumed, tile
floors cleaned, windows washed and other general
Insurance / Incident Reporting:
Hutchins Commercial Realty will notify the owner
of any significant insurance or injury related
activities which involve the property.
Damage to Real Property:
Any damage to the property will be communicated
to the owner. HCR will assist in obtaining any
and all information.
HCR will advise the owner of any accident that
involves actual or possible bodily injury to
a tenant or other third party.
If any incident occurs on the property that
results in property damage, physical injury,
theft or reasonably warrants being reported,
HCR will complete an Incident Report. The completed
report will be submitted to the owner.
Management Fee Structure:
HCR proposes to offer its management services,
as presented in the previous pages, to the owner
for a monthly fee calculated as follows:
Five Percent (5%) of the total income collected
$500.00 per month minimum during the term of
the Management Agreement
Six Percent (6%) of the total value
of initial lease term
Three Percent (3%) of all renewals
What to Expect When Hutchins Commercial
Realty, Inc. Assumes management of a Property:
Upon execution of the management agreement,
Hutchins Commercial Realty, Inc. will perform
an in-depth inspection of the property and assume
control of operations and accounting. This inspection
will be documented on the Takeover Procedures
Checklist. A completed copy will be
sent to the owner.
HCR addresses the following activities
during the property takeover:
- Notify tenants or residents and vendors
of the change in property management.
- Review and refine procedures for the security
of the property including:
- Issuance of keys
- Night patrolling of the property
- Access to the parking lot/garage
- After hours access to the property
- Parking lot lighting
- Review building access hours as established
in the existing tenants’ leases.
- Inventory all building materials and other
assets that are on-site, if any. (List will
be submitted to owner.)
- Review rules and regulations for the building
as detailed in the lease agreements and tenant
- Create a project file containing copies
of all key documents related to the property.
- Notify the owner of any lease violations
by existing tenants.
- Verify building insurance coverage.
- Locate all plans, blueprints, site plans,
and warranties that are available for the
- Enter all tenant and financial information
into property management system.
- Develop a marketing plan for the project.
- Verify that all systems are compliant to
reasonable guidelines, including HVAC, energy
management, sprinkler system monitoring.
- Prepare market study to compare the rental
rates and amenities offered by competing properties.
- Provide leasing activity reports.
- Repaint or erect outdoor signs with the
name of the property, space available, and
HCR logo and phone number.
- Design property brochure.
- Commercial properties would be added to
the HCR Advertising and other publications,
and sent to prospective tenants. HCR cooperates
with all Brokers.