1/25/2010

Professional Real Estate Management Service (PREMS)


This Professional Real Estate Management Service (PREMS) that I offer is for absentee owners of Condominium Unit, Residential House, Commercial Space, Warehouse, Resort Property, and Vacant Lot in Metro Manila. This is also ideal for properties being offered for sale at Put Option that requires a Broker.
RESPONSIBILITIES OF OWNING A PROPERTY
Owning a property has set of expenses, which includes electricity, water, association dues, real property taxes, improvement, repainting, renovation, repairs, television cable, telephone, internet, installation of security lock systems, clean-up, acquisition of furniture and fixtures, and even prevent squatters in case of vacant lot. Taking care of these responsibilities needs time and it is a lot of hassle on the part of the absentee Property Owner. To avoid the hassle, absentee owners usually delegate these responsibilities to their trusted relatives, friends, or to a Professional Property Manager.
STANDARD DUTIES OF THE PROPERTY MANAGER
The basic duties of the Property Manager are:
1. Inspect the wellness of the property periodically and make arrangement with the occupant to ensure that it continues to be secured, clean, inhabitable, tenantable, in good shape, and in compliance to environmental restrictions.
2. Coordinate with contractor if installation or major repair is needed and coordinate permissions to construct an improvement on the property.

3. Attend important Homeowners Meetings and Vote as proxy in the absence of the Property Owner.

4. Keep oneself updated of the rules and regulation of the Homeowners Association.

5. Ensure that the Utility Bills are current and cleared.

6. Coordinate the errand of paying the Real Estate Property Tax and other government duties.

7. Coordinate with Building Security on the prevention any possible unauthorized occupants.

8. Report to the absentee owner all relevant new information, event or policy regarding the property.

EXPENSES

The Property Owner will shoulder all cost of major repairs, real property taxes fines and penalties. Should there be other major expenses in the execution of the Property Manager's duties that is already beyond the scope of compensation, such as constructing improvements, installing additional security instruments, fencing in case of vacant lot, and acquisition of fixtures, the Property Owner will decide on funding it on a case to case basis.

User-Fees. The expenses for minor repairs, association dues (including VAT on association dues), utilities, and preferential subscriptions are to be paid by the Property Owner if the property is unoccupied. These user-fees will be paid by the occupant/tenant in case of lease.

Property Management Fee. The retainer of the Licensed Professional Property Manager for these basic services is P20,000 per year (plus VAT if the manager is VATable, meaning he earns more than P1.5M per annum), regardless of size and type of property. It is paid in advance by the Property Owner at signing of Property Management Contract. The renewal may be taken by the Property Manager from the leasing income of property.

SPECIAL DUTIES OF PROPERTY MANAGER IN CASE OWNER WANTS THE PROPERTY TO EARN FROM LEASING OPERATION

If the unit owner wants to earn from leasing, the Property Manager will have the following special duties.

1. Determine the rent based on fair market value.

2. Offer and advertise the Property for Lease.

3. Present the property to interested Lessees.

4. Select the best Lessee if more than one applicant.

5. Negotiate and re-negotiate Lease Agreements.

6. Execute the closing, renewal, and termination Lease Agreement.

7. Keep a neat record of rent payment and profile of regular occupants and make it available to the owner or any person of authority upon inspection.

8. Provide instruction to the Tenant on the procedure of direct deposit of rent to a bank account that the Property Owner will nominate.

9. Coordinate the ejection the Lessee in case of breach of contract.

10. Keep the Lessee’s deposits in an Escrow Account and return the balance to the Lessee upon termination of contract after all damages are accounted and paid.

Finder’s Fee. The Finder’s Fee or Referral Fee is a customary incentive given to any informant who helped in finding/referring tenant. It is an out-of-the-pocket expense on the account of the Property Owner, just like a waiter’s tip. This Finder’s Fee is an expense that is separate from the Property Management Fee, and is sourced from the actual payment of rent. The rate of Finder’s Fee is ONE MONTH RENT if at least one year lease, or EIGHT PERCENT (8.0%) of a month’s rent if less than one year. Finder’s Fee can be a monthly payment as a fraction of rent or one-time payment if the rent of the entire lease period is paid in advance cash.

SUMMARY OF EXPENSES on the account of Property Owner in case of Managed Leasing

Property Management Fee: P20,000/yr + 12% VAT.

12% VAT of Income from Rent if over P12,800/month.

Tenant Finder’s Fee (8% of rent).

Real Property Tax (est. 0.4% of property value).

Major Repairs (on the need basis).

SUMMARY OF EXPENSES on the account of Tenant in case of Managed Leasing

Ingress—Property Manager Appearance Fee (P1,000).

Security Deposit (refundable net of arrears/damage).

Monthly Rent (always advance payment).

Utilities (Water, Electricity, Cable TV, Telephone, WiFi).

Monthly Homeowners Association Dues.

Minor scratch repairs and replacement of light bulbs.

Egress—Property Manager Appearance Fee (P1,000).

SAMPLE COMPUTATION OF RETURN OF INVESTMENT OF A CONDO UNIT

Investment

Cost of Unit: P1,700,000
Cost of Interior Design (furnitures and fixtures): P300,000
Total Investment: P2,000,000

Income

Total Income from Rent: P200,000
(assuming you get very lucky with a 10 months occupancy at P20,000 rent)

Expenses

Professional Manager Fee: P20,000
+VAT of Prof'l Mgt Fee: P2,400
+VAT of Income from Rent: P24,000
Finders Fee (8% of Income): P16,000
Real Property Tax: P8,000
Major Repair: P10,000
Total Expenses: P80,400

Net Income: P119,600

Annual Return of Investment (P119,600 / P2,000,000): 6 Percent (6%). The calculation above assumes that you were fortunate to have evaded the BIR Tax imposed on Passive Income (20%). Again and again, I would say that this assumes that this is your lucky year. You might also want to read my commentary about the blog of a seller agent on "Calculating Return-On-Investment For Condo Units".
DISTINGUISH TRANSIENT from LONG-TERM TENANT
For residential properties, long-term Tenants and Transients are both under Lease Contract and have the same "base rate of rent" per month. However, since transients are short-term occupants who just want to come and go without doing the actual paying of the utilities and association dues to the payment centers, the user-fees are added to the rent.

ASSIGNMENT OF SPECIFIC RIGHTS

In Property Management Agreement (PMA), the Property Owner assigns two basic rights to the Property Manager, (1) right to access the property, and (2) right to sign lease agreement. The Property manager will have access to the property and its common amenities without prejudice to the rules and regulations of the Homeowners Associations or the Building Administration. It is the Property Manager who will negotiate and sign the lease agreement in behalf of the Property Owner. In PMA, the Property Owner does not assign the Right to Sell to the Property Manager.

THIRD PART CONTROL

The Building Administrator or Homeowners Association shall be given copy of the Property Management Agreement (PMA). The PMA may be terminated by either party (Property Owner or Property Manager) in writing, addressed to each other and to the Building Administrator, either through personal delivery, fax, email, or postal mail.

TIPS FOR CONDO INVESTORS AND VACANT LOT OWNERS

The quick estimate of the maximum monthly Base Rent of a condominium unit is one percent (1.0%) of the total cost of acquisition and furnishing. For residential house and lots, the quick estimate is point five percent (0.5%) of the current fair market value of the property.

The most profitable type of real estate for leasing is condominium. It is best if the Property Owner will get the Property manager involved in determining the furnishing of the units to ensure that the unit can meet the basic needs of tenants in general.

It is much easier to lease out a condominium unit if it has parking, full-furnishing, and ready telephone, cable, and internet connection. For Metro Manila, parking is a must.

Absentee owners of vacant lots in Metro Manila, especially those that have area of over 1,000 square meters, are best if entered into Professional Property Management to prevent/repel squatters. The cost of removing a small group of squatters is worth at least 20 years services of a Professional Property Manager, plus the legal hassles.


CONTACT*

Rltr. JOHN R. PETALCORIN
Property Manager, Metro Manila Operation
SMART 0921-7172040
PLDT LL+ 02-5830858
Email: JohnPetalcorin@Gmail.Com
Real Estate Broker Lic#: 0010105


*NOTE: My Professional Real Estate Management Services (PREMS) can be requested by unit owners of the following condominiums or any condominium projects of Ayala, DMCI, Federal Land, SMDC, Eton, Century, Megaworld, Crown Asia, etc.:





MRT TAFT

Park Avenue Mansions Condo
Antel Seaview Towers Condo
Harrison Mansions Condo
Bay Garden Condo


MRT MAGALLANES

Oriental Gardens (Orchids and Lotus Towers) Condo
Cityland Pasong Tamo Condo
Cityland Dela Rosa Condo
Cityland Makati Executive Tower 1 Condo
Cityland Makati Executive Tower 2 Condo
San Lorenzo Village Subd
Magallanes Village Subd
Dasmarinas Village Subd


MRT AYALA

The Columns Condo
West of Ayala Condo
Cityland 10 Tower 1 Condo
Cityland 10 Tower 2 Condo


MRT BUENDIA

Avida Condominiums
Salcedo Park Tower Condo
Classica Tower Condo
Westgate Plaza Condo
Manhattan Square Condo
Paseo Parkview Tower 1 & 2 Condo
Antel Platinum Tower Condo
Urdaneta Village Subd
Forbes Park Subd
Bel-Air Village Subd


MRT GUADALUPE

Joya Lofts and Towers Condo
Rizal Tower Condo
Hidalgo Place Condo
The Manansala Condo
Guadalupe Nuevo Village
Pinagkaisahan Village


MRT BONI

GA Towers 1 Condominium Condo
Cityland Pioneer Tower Condo
Pioneer Pointe Condo
Dansalan Gardens Condo
One Gateway Place Condo
Globe Telecom Plaza 1 Condo
Globe Telecom Plaza 2 Condo
Paragon Plaza Condo


MRT SHAW

Cityland Shaw Tower Condo
The Crescent Condominium Condo
Rennaissance 3000 Condo
Alexandra Tower D Condo
Alexandra Tower A Condo
Cityland Wack Wack Royal Mansion Condo
Lee Gardens Condo
California Garden Square Condo
Crisanta Tower Codominium Condo
Phoenix Heights Condominium Condo
Skyway Towers Condo
Valle Verde Tarraces Condo
San Antonio Village Subd
Kapitoyo Village Subd
Pleasant Hills Village
Highway Hills Village
Wack-Wack Subd


MRT ORTIGAS

AIC Grande Tower Condo
Cityland Mega Plaza Condo
Corinthian Executive Regency Condo
The Malayan Plaza Condo
Parc Chateau Condominium Condo
Parc Royale Condominium Condo
AIC Gold Tower Condo
Emerald Mansion Condo
Corinthian Gardens


MRT ANAPOLIS

One Beverly Place Condo
Tiffany Mansions Condo
LPL Greenhills Condo
Goldland Tower Condo
Goldland Plaza Condo
Avida Towers Condo
Platinum 1000 Condo
Annapolis Wilshire Plaza Condo
Greenhills Garden Square Condo
Platinum 2000 Condo
La Primera Casita Condo
White Plains Village
St. Ignatious Village
Greenhills Villages


MRT CUBAO

PYP Mansions II Condo
Theresa Condominium Condo
Regalla Tower Suites Condo
Prince Gregory Condominium
Manhattan Garden City Condo


MRT GMA KAMUNING

Atherton Place Condo
FSS Building 2 Condo
Prince Jun Condominium Condo
24K Mansion Condo
Mission Garden Condominium Condo
Lansberg Place Condo
Kamias Village
Pinagkaisahan Village
Timog-Morato Area Villages


MRT QUEZON AVE

Delsa Mansion Crystal Mansion Condo
Future Point Plaza 2 Condo
The Heart of the City Condominium Condo
Lourdes Condominium Condo
Lansdale Towers Condo
SJB Centro Plaza Condo
SJB Condominium Condo
Victoria Towers Condo
The Columbia Garden Residences Condo


MRT NORTH AVE

E&E Building Condo
Northridge Mansion Condo
Millionaire's Suite Condo
Kassel Residences Condo


LRT1 MONUMENTO

LRT1 5TH AVENUE

First Amiji Mansion Condo
Howard Tower Condo

LRT1 BAMBANG

YTL Tower Condo
Broadview Tower Condo
Cathay Mansions Condo
Diamond Plaza Condo
S Tower Condo
Dynasty Tower Condo


LRT1 CARRIEDO


Regina Towers 1 & 2 Condo
Mandarin Mansion Condo
Galleria de Binondo Condo
Escolta Twin Towers Condo
UniverCity Convenience Flats Condo


LRT1 CENTRAL

Gotesco Tower A Condo


LRT1 UNITED NATIONS

Alpha Grand View Tower A Condo
1322 Golden Empire Tower Condo
Mayfair Tower Condo
Sunview Palace Condominium Condo
Royal Bay Condo
Ermita Area


LRT1 QUIRINO

Malate Crown Plaza Condo
Astral Tower Condo
Standford Tower Condo
Ocean Tower Condo
Le Mirage Condo
Boulevard Mansion Condo
Echelon Tower Condo


LRT1 PEDRO GIL

Malate Adriatico Grand Residences Condo
One Adriatico Place Condo
Two Adriatico Place Condo
The Providence Tower Condo
Alpha Grand View Tower B Condo
Malate Area


LRT1 VITO CRUZ

Asiawealth Tower Condo
Cityland VitoCruz Towers Condo
Torre Lorenzo Condo
Balagtas Villas Condominium Condo
Burgundy West Bay Tower Condo
Burgundy Transpacific Place Condo
Pacific Regency Condo
Ivy Hill Residences Condo
Grand Tower Condo


LRT1 BUENDIA (GIL PUYAT)

Bay Gardens Towers (Palawan, Mactan, Crystal, Anchor) Condo
IPI Buendia Tower Condo
Monaco Garden Tower Condo
Cityland 8 Condo
Somerset Mansion Condo
One Rockefeller Condo
Boardwalk Tower Condo


LRT1 LIBERTAD

LRT1 BACLARAN

Diplomat Condominium

LRT2 SANTOLAN

Marquinton Residences Condo

LRT2 KATIPUNAN

One Beatriz Tower Condo
Xanland Place Condo
One Burgundy Plaza Condo
Burgundy Place Condo
Residencia de Regina Condo
Prince David Condo
Loyola Heights Subd
Xavierville Subd
La Vista Subd


LRT2 ANONAS

Project 2 Subd
Project 3 Subd
Sikatuna Village Subd
Teacher's Village Subd


LRT2 GILMORE

Gilmore Heights Condo
Xavier Hills Condo
Golden Plaza Condo
Golden Tower Condo
Le Gran Condominium Condo
The Eisenhower Condo
Valencia Hills Condo
Swire Elan Condo
New Manila Village
Horseshoe Village
Green Haven Park Homes Subd


LRT2 J. RUIZ

Asia Crest Mansion Condo
Quadrillon Mansion Condo
One Wilson Place Condo
Royal View Mansion Condo


LRT2 V MAPA

Hamstead Gardens Condo
Mezza Residences Condo


LRT2 LEGARDA

Casa de Aviles Condo
CEV Mansion Condo
Oblamco Building Condo
University Tower Condo


C5 ROAD

Eastwood Lafayette 2 Condo
Eastwood Lafayette 3 Condo
Eastwood Excelsior Condo
Eastwood Palazzo Residence Condo
Eastwood One Orchard Condominium Condo
Eastwood Olympic Heights Condo
Cypress Towers Condo
Rosewood Pointe
Bonifacio Heights Condo
Mahogany Place Condo-Subd Mix
Royal Palm Residences Condo


FORT BONIFACIO (GLOBAL CITY) TAGUIG CITY

Fifth Avenue Place Condo
Fairways Tower Condo
Essensa Towers (Cameron & Lawton) Condo
Regent Parkway Condo
One McKinley Place Condo
Pacific Towers Condo
Serendra Towers (1,B,C,D,E,F,G) Condo


SOUTH SUPER-HIGHWAY ALABANG

Studio One & Two Condo
Burch Tower Condo
West Cedar Condo
La Vie Flats Condo
West Parc Alder Condo
Ohana Place Condo







1 comment:

Manila Bay Condos said...

Your mode of explaining everything in this piece of writing is genuinely pleasant, 
every one be capable of without difficulty be aware of it, Thanks a lot.