Condominium, Co-Operative and Rental Property Management Program

Monticello Management provides comprehensive property services including monthly or weekly 

physical site inspections; recommendations for preventative maintenance; capital repairs; staffing

and compliance.  Our program is a commitment to both the goals and concerns of the owners and residents.

                                  Accounting Services and Reporting 

All accounts are computerized to provide numerous current-to-date financial operating data reports

including but not limited to:

• Daily cash position

• Accounts receivable

• Accounts payable

• Budget vs. Actual

• Monthly financial statements

• Custom reporting upon request

Monthly analysis and reviews are performed to assure data integrity.

                                     Cash Management and Collection

Monticello Management's Cash and Collection Division is responsible for the collection of rents,

assessments and other charges.  The Cash and Collection Division will bill for rents, assessments

and other charges as well as pursue non-paying accounts on behalf of the board.

                                           Rents and Assessments

Collecting rents and assessments is perhaps the single most important financial activity required of a

property manager outside of the investment and preservation of reserve funds. The collection process

needs to be tightly scripted to comply with the requirements of the governing documents, legal statutes,

and the Fair Debt Collection Act.

Maintenance bills are mailed to unit owners ten (10) days prior to the beginning of each month unless

coupon books have been issued. Payments are deposited in the Association's designated bank or

trust company and recorded on a daily basis to reflect current balances.

                                                    Arrears

An arrears summary is routinely provided on the fifteenth (15^th) of each month. At the direction of the

Board of Directors, a copy will be sent to Counsel for appropriate action.

                       Disbursements      

Monticello Management assumes responsibility for all disbursements based on a procedure approved

by the Board of Directors.  Monticello Management, Inc. will distribute payments of utility, insurance

and iother vendor payments. Whenever possible, Monticello Management will negotiate additional pricing

or payment terms in favor of the Association.

                                                  Budgets 

The budget is the financial expression of the service goals of the Association. Monticello Management

will present the budget in three segments:

 I.  Operating Segment,

 II. Deferred Maintenance Segment,

 II. Capital Reserve Segment.

Monticello Management, Inc. will prepare an annual budget in conjunction with the Board's Treasurer

and or Budget Committee and present a complete budget to the Board of Directors between thirty to

sixty days prior to the end of the fiscal year.

                           Reserves or Replacement Funds     

Closely related to developing a budget is creating reserves for the long-term care and replacement

of common property. Reserves are those funds the association sets aside on a regular basis for the

maintenance and repair of major property components such as the structure, amenities and other

general common elements. Reserves may also be accumulated for new capital additions to the property

such as the construction of carports or playgrounds. Monticello Management will work closely with the

Board of Directors to explain the Capital Reserve Study, its elements and timing issues. Monticello

Management will work with the Board of Directors to implement the Capital Reserve Assessments,

and or assist the Board of Directors and the Association in securing financing by working with

management's numerous banking and financial relationships.

            Meetings   

Management can arrange to be in attendance at all meetings including the Annual Election meeting,

working and budget sessions.

                                            Correspondence

Management will respond to all general correspondence pertaining to the Associatio.

                                                 Reports

Management will complete all reports on behalf of the Association as required by Local, State and

Federal Laws when in possession of such information.  Management will also assist outside auditors

in completing similar requirements.

                                                 Notices

Management will prepare and distribute all notices of annual, special and monthly Board of Directors

meetings.

                                             Sales of Units

Management will coordinate the sale and transfer of Units from seller to buyer. Working with the

closing attorneys, management will confirm that unpaid balances are reported and that, when

applicable, working capital, reserve collection and move-in/out fees are collected.

                                              Unit Rentals

Management can collect and maintain all properly executed Leases on Rentals.

                           Risk Management  

All associations face exposure to loss in four areas: property, liability, net income, and personnel

(whether staff, contractors, or volunteers). Many associations rely solely on basic insurance

requirements to deal with the possible adverse consequences of loss in these four areas which may

not provide adequate coverage.

Key elements of an association insurance program include:

• Property insurance: full insurable replacement cost if available, waiver of coinsurance,

          building ordinance protection, and mechanical breakdown protection;

• Liability insurance: commercial general liability, hired and non-owned auto, directors and

          officers (D&O) liability, and commercial liability umbrella coverage;

• Income insurance: business income and extra expense, loss assessment protection;

• Personnel insurance: workers compensation and employers liability fidelity insurance.

Management will obtain annual insurance bids for the Board of Directors to compare with current

policy pricing prior to renewals.

                                     Property Asset Management

Maintaining buildings and grounds is never easy. In community associations, there is the added

complexity of determining and evaluating the responsibility for the three segments of property:

• General Common Elements

• Limited Common Elements

• Owner's Unit/Property

Further, once those three types of property have been identified, four questions arise:

• Who owns the property?

• Who maintains it?

• Who replaces it?

• Who insures it?

                              Visitation and Inspection

Management will visit and inspect the property based on a schedule set by the association . 

Generally, visitations are at least once a month.   Inspection of the property is used to note

any deficiencies, which will then be addressed.

             Maintenance               

Most community associations are faced with four types of maintenance:

• Routine maintenance

• Preventive maintenance

• Emergency services maintenance

• Requested or corrective maintenance

Routine and preventive maintenance are those regularly scheduled activities such as changing

of filters, lights, paint touch up, boiler treatment, etc. Emergency Services are unscheduled events;

generally of such a nature that time is of the essence. Monticello Management has the contractor

resources at its disposal to address emergency situation regardless of the time of day, night or season.

Requested or corrective maintenance are general and ordinary services requested by homeowners.

Depending on the association's size and staffing, work orders may be issued to track the course of

the maintenance work.

                     Working with Contractors  

All communities work with contractors. When a contractor is needed, the request for a proposal

(RFP) must be prepared for distribution to the Board of Directors as soon as possible. Once the Board

selects a contractor, then the exact language in the contract must be crafted. Since risk is created

with any contractor, the transfer and control of that risk must be managed.

• Management will provide competitive sealed bids from a minimum of three contractors and

          present them to the Board for consideration;

• Management will then schedule interviews at the Board's request;

• Upon the final selection of contractor by the Board, Management, working closely with counsel,

          will make sure that the proper contracts are drafted to protect the Association and have the

          Association named as an additional insured on the contractor's commercial general liability

          insurance and worker's compensation insurance.

 

           Management Transition Plan    

The transition from one management company to another is always less disruptive with a well-defined

transition plan. Our management transition plan is constructed in the spirit of minimizing the disturbance

to the owners while assuring that all relevant data is properly transferred.  In order to assure a smooth

and orderly transition from your current property manager, we propose the following schedule of events.

• Submit transition checklist to the Board of Directors for review;

• Review all data and materials received from resigning property manager for completeness,

          accuracy and status of pending assignments

                                                       Financial            
                                                  

• Request and review, for accuracy, complete financial information including general ledger detail,

          cash receipts detail and disbursements detail;

• Coordinate compilation/audit with the Association's accountant for the current fiscal year;

• Establish and maintain an owner database including a history of accounts, current monthly

          assessments and parking assignments (if any);

• Establish a complete vendor database including recurring and contractual obligations. Perform

          a verification of current account status with each vendor;

• Review owner accounts, particularly those in delinquency status and identify those accounts

          which have received and or will require legal action;

• Review current operating budget for adequacy and evaluate the possible need to reclassify

          certain expense categories;

• Establish a complete chart of accounts and integrate current year-to-date information into our

          computerized accounting system.

                                                       Administrative

• Management will notify Unit Owners/Shareholders of the change in management fifteen (15)

          days prior to commencement of engagement;

• Monticello Management, Inc. will distribute its information packages, at least fifteen (15) days

          subsequent to engagement;

• Monticello Management will notify all vendors, contractors, attorneys etc., of the change in

          management and request current status reports of matters being handled by each party.

                           Emergencies  

• Monticello Management Inc. maintains a twenty-four (24) hour, seven (7) day per week

          emergency contact program;

• Your property manager may be reached directly on his/her cellular telephone at any time