Hast & Company got into the management business 30 years ago managing residential properties.Over the years we have managed single family homes, small apartment buildings and apartment complexes as large as 400 units.We have worked for individual homeowners, small local investors, large national investment groups, as well as banks and other financial institutions, and Federal agencies such as the FDIC and the RTC.At this time, we are only taking on management of apartment buildings large enough to support an on-site manager, which is usually a minimum of 15-20 units. We have established a tremendous amount of experience and expertise over the years.During that time we have established really good systems for maximizing investment returns from our residential investment properties. As stated on an earlier page, our primary management goal is to facilitate the accomplishment of ownership objectives through the performance of all the administrative, financial, and maintenance responsibilities for each property we manage. Here is a brief overview of our management approach:
Administration When we first assume management of a new property, our first task is to prepare a preliminary management plan, working together with our client.This includes agreements on initial staffing, rent levels, and maintenance issues.Then, as we learn more about the property, we develop a long-range plan which addresses capital improvements, reserves, and an overall direction for the property in order to achieve agreed upon investment objectives.This is usually done in conjunction with the preparation of the first proforma budget for the complex.We then communicate fully with our client about our progress in meeting these goals.This is done both in our detailed monthly reports, and in phone discussions or periodic meetings. A property manager from our staff will be assigned to have overall responsibility for the administration of the property.This person will supervise and coordinate all operations and personnel of the project, both on-site and in our central office.The property manager is supported by a secretarial and accounting staff in the central office. The property manager will also be responsible for preparation of property proformas, supervision of all maintenance work, obtaining and supervision of bids for all major maintenance and improvements, and regular communication with you.We will work together with you to develop a preliminary management plan and proforma for the property and will be responsible for carrying it out. We establish standard operating procedures for each building including preventative maintenance and emergency procedures.We also conduct an inventory of all personal property on the site when we take over management, which we update on an annual basis or more often if you wish. We determine the necessary on-site staffing, with input and final approval from our client, and then hire, train, supervise, and if necessary fire employees.All on-site personnel are employed directly by Hast & Company, and are paid by, insured, and bonded by us.These costs are, in turn, passed through to the client as operating costs for the property, though the cost of administering the payroll is considered to be part of our management services and is not an additional charge.The property manager directly supervises these employees and is fully responsible for their performance.Our criteria in hiring is based upon developing the maximum possible on-site expertise in the areas of on-site management, leasing, property maintenance, and tenant relations.If appropriate, and with advance owner approval, we like to send our employees to school or special classes to extend their knowledge and develop expertise in these various areas. The on-site staff prepares weekly occupancy, leasing, and delinquency reports which are delivered to or emailed to the property manager.The property manager, with the help of the on-site staff, is responsible for collection of rents and all payables, and for initiating eviction actions in the event of non-payment.All outside contracting will be initiated and supervised by the property manager within the guidelines of the management plan and proforma.Whenever possible, a minimum of three bids are obtained on all major maintenance or capital replacement work and no such contracts are executed unless approved in advance by the client.All outside contractors are required to provide references, evidence of worker's compensation and public liability insurance.Purchasing of supplies and contracting with vendors is also conducted by the property manager.We can use your existing vendors and suppliers or those with whom we have already developed a good relationship.100% of all discounts obtained are passed through to the property. The property manager visits the property at least once per week but will be expected to spend substantially more time there initially.The property manager will be available in case of need at any time, and is on call, via cell phone and/or pager, 24 hours a day, seven days a week.
Leasing and Marketing We believe that it is possible to fully lease a property in almost any market, and that successful leasing is the result of doing the best possible job in three areas.The first is providing a good quality product for lease which includes attractive common areas, good tenant finish, and excellent tenant relations.That is to say, given the basic parameters of the individual property, we make that property appear as attractive to a prospective tenant as possible, both in reputation and in person.The second factor is providing excellent, professional marketing services.This includes effective advertising, spreading word of the building's virtues through the community, and having good, well-trained people showing apartments and negotiating deals.The final factor is setting rents at the proper level.To this end, we undertake extensive market surveys to determine the best rent level.Once the first two areas are improved as much as possible, the only adjustment which can be made to get a property leased and to maximize income is the amount of rent.We adjust rents either up or down on a weekly basis in order to maximize both occupancy and income.
Financial Management Our financial management program is as thorough and complete as any in the business.We currently use Yardi Property Management Software.We open separate bank accounts for each of our clients.Normally we open an operating checking account, a petty cash account, and one or more money market trust accounts to hold security deposits and replacement reserve funds.Thomas D. Hast, the company president, is the only person in the company normally authorized to sign checks on these accounts. We collect rents using detailed rent rolls, prepared for each property, which show both scheduled and collected rents and other receivables.We double-check and pay all project payables.We keep complete books and records of all transactions which are open to inspection by our clients at any time.Each month we prepare a report that details all transactions that have occurred, and that provides a complete and auditable record of the financial activity of the property.Rents are deposited within forty-eight hours of collection, and we normally institute a no cash policy to protect our on-site personnel. Payroll is currently sub-contracted to ADP who provide all checks and records for our twice-monthly payroll.All employees prepare time-sheets which are reviewed and approved by the property manager. We prepare a proforma budget for the project, usually for a one year period, which would be submitted a minimum of 30 days prior to the start of the fiscal year.This budget provides a reasonable expectation of the property's financial performance for the year, and provides us with an agreed upon financial basis for our management of the project.Any substantial deviation from this agreed upon budget would require prior approval by the client.Our monthly reports show both the actual and budgeted income and expenses for both the subject month and the year-to-date as well as the variance between the two.In this way, our performance in achieving the goals planned in the budget may be accurately assessed at any time.These reports can be adapted to the client?s needs as required.We would submit this monthly operating statement to the client by the 15th day following the end of the month reported on.It will include a statement of cash basis income and expenses, a cash flow summary, a budget variance report, a general ledger, a summary of cash disbursements, a rent roll, a reconciled bank statement, and an occupancy and delinquency report.
Quality Control Procedures A detailed procedures manual is developed for each project.All expenses will pass through a chain of approval including the property manager and the accounting department.All expenses will be reviewed in relation to the approved proforma for the property, and performance will be measured by that standard.
Maintenance and Capital Improvements Good property maintenance is one of the most important factors not only in preserving the asset but in adding value.We strive for excellence in this as in all other areas.The more tasks we can perform on-site with existing staff, the more money we save and the better our response to our tenants.We also stress development of a good preventative maintenance program to reduce the long-term costs of maintaining the property by catching little problems before they become big. Maintenance is also critical for good tenant relations.We strive to provide a response, if not a solution, to each maintenance request within twenty-four hours.We are on call twenty-four hours a day, seven days a week in case of emergencies.All maintenance which cannot be accomplished by the on-site staff is contracted out to a maintenance company, or to higher level professionals such as plumbers and electricians. As part of the preliminary and/or final management plan, we develop a comprehensive approach for proposed capital improvements along with costs and projected impact on revenues.We have had great success historically in identifying, designing, and implementing such plans to turn properties around, or to increase rents and value in buildings which are already successful.
Greening the Property As stated elsewhere on this site, Hast & Company has been a pioneer in bringing sustainable green technologies to our managed properties.We continue to look for ways of introducing cost effective technologies for more sustainable operations.Proven approaches include low flow showerheads and faucets and compact fluorescent bulbs which we have been installing for over 20 years in our properties saving tens of thousands of dollars for our clients.During that same period, we have also organized and implemented recycling on our properties, long before it became a routine part of building operations.Organic fertilizers, low emission paints and carpeting, recycled asphalt, xeriscaping, rain detectors for sprinkler systems, and good coordination with public transportation are all ideas which may or may not make sense for a particular property.We continue to track new green technologies which may make sense for our industry.
In Conclusion Over the past thirty years, Hast & Company has demonstrated excellence in our field.We pride ourselves on having met or exceeded the ownership objectives of our many clients.We believe that by our past performance, we have proven that we provide a higher level of service and expertise than our competition in this very competitive field. The final measure of the quality of our services, of course, is the response of our past and present clients.We are pleased to have many property owners and representatives of institutions for whom we have provided management who will attest to the excellence of our work.A complete list of these references is available upon request. We would also be glad to provide a sample proforma, a sample financial report, corporate and personnel information, and our insurance coverage in response to any serious inquiry.Please contact us if you have any additional questions. At this time, we are only taking on management of apartment buildings large enough to support an on-site manager, which is usually a minimum of 15-20 units.
If you are interested in hearing more about our residential investment property management services, please contact Tom Hast at 303-444-7575 or at tdhast@hast.com.
