Premier Management Services, Inc. provides the complete complement of services needed to effectively manage your condominium, co-op, or townhouse development.
First Organizational Meeting
The detailed agenda covering the topics which would be covered in the first organizational meeting with your Board.
Premier Management Services, Inc. would come as a listener – to absorb inputs from your Board on its goals, ambitions, and strategies for the property; to clarify any questions about Rules and Regulations; to learn which systems and procedures have worked in the past and which have not; and to receive a clear vision of Board expectations.
Premier Management Services, Inc. – represented by the Company’s owners and Property Manager(s) – would bring examples of the approaches it has found effective.
The outcome of this meeting would be a set of systems and procedures to handle your Association’s primary needs.
ACCOUNTING AND FINANCE
Accounting and finance are at the heart of Property Management. Premier Management Services, Inc. uses an accounting package called Tops 2000, which was developed by Property Management Systems, Inc. It was developed specifically for the Association industry by former Property Management professionals. We believe that you will find that the reports are very easy to understand, even if you do not have a financial background.
If the management transition occurs at some point other than the end of the year, the existing budget will be reviewed, updated and reconciled. Remaining budget items will be spread to anticipate the actual timing of expenditures, and the simplified and clarified Premier Management Services, Inc. format brought into play.
Approximately three months before the end of your fiscal year, a preliminary annual budget – based on encountered expenditures and known plans – will be prepared and reviewed with the Board at a separate budget meeting.
The budget will be carefully spread to anticipate, as accurately as possible, the actual timing of expenditures.
After Board input and adjustment, the finalized annual budget will be sent to all owners with any needed notes of clarification and explanation.
We will then make ourselves available to explain and discuss the budget with any interested owners on an individual basis.
A monthly financial statement will be prepared and delivered to all Board members within 10-working days after the end of the month. (See appended example)
The statement will include:
- An overall summary of the Association’s cash position,
- A summary of income and expenses for the preceding month;
- Disbursement details for the preceding month,
- A monthly breakdown of the current year actual income and expenses,
- A comparison of disbursements to budget for the preceding month and year-to-date,
- A detailed delinquency report.
Accounting is normally done on a cash basis since all bills are routinely paid on a regular and timely basis, and a delinquency report is contemporaneously available, so adjustments are minimal and evident. If desired, the annual report can be adjusted to accrual basis.
Annual Report and Audit
The Illinois Condominium Act requires that an annual report be sent to all owners. Premier Management Services, Inc. will provide all of the data that your outside auditor will require on a timely basis so that they can prepare the audit and annual tax returns.
Prior to disseminating the report, we will review the report along with your Treasurer to ensure that the Association’s financial condition has been accurately reflected. Upon your approval, we will then distribute the report to all unit owners.
Premier Management Services, Inc. will mail monthly assessments and receive payments directly from unit owners via US Mail. Premier Management Services, Inc. also provides for direct debit of Assessments from Owner’s accounts.
The statements will include the billing for all charges, including the regular assessment, special assessments, parking, legal fees, unit specific repairs, late fees, and any other unit charges.
Premier Management Services policy is to collect and process funds on the 15th of the month and immediately process late fees and then process monthly statements. This practice has proven to be effective in reducing the amount of delinquency by putting statements into Owners hands a full week before they typically arrive.
Records will be maintained on all accounts, and unit owner inquiries will be satisfied on a timely basis.
We will work with you to implement an effective system for dealing with delinquent owners.
Premier Management Services, Inc. has developed specific procedures which work well.
The Property Manager will keep the Board updated on the status of delinquent accounts, will work with the Association’s attorney on legal actions, and will coordinate activities of the Sheriff’s office in the event of an eviction.
Delinquencies and Arrearages
In today’s economic environment, delinquencies and arrearages have become more of a problem for many Associations.
Premier Management Services, Inc. has found that the key to keeping this problem within manageable bounds is to stay on top of it and to treat it as a serious matter. It is not fair to the other residents not to, because in the long run costs are obviously just shifted to them.
A fair, consistent and reasonable, no-nonsense attitude can be quickly communicated. Prompt follow-up can demonstrate serious resolve. Often the difference between collecting what is due and sliding into the no-win legal arena is simply a matter of staying alert to potential problems and then acting quickly and decisively.
Premier Management Services, Inc. will be glad to review the options which are available with your Board and suggest an appropriate plan of action. TOPS, has an option to automatically generate delinquency letters to be sent with the monthly statements to gently remind people that they are past due. This is sometimes effective in getting Owners to pay before having to send the account to Collections. Note that we are not attorneys and, as 3rd party agents, we are very careful to make sure we do not violate Fair Credit Collection laws.
Premier Management Services, Inc. will pay the Association’s bills and invoices, maintaining complete records and documentation.
Your Property Manager will review and approve all invoices, with consulation of building employees as needed.
Your Board and the Association’s governing douments (Declaration, By-laws and Rules and Regulations) will set the limits on non-recurring expenses to be incurred and paid without special approval, thus allowing us to effectively manage the property without burdening the Board with the minutia of managing the property.
Security of Funds
Under the Illinois Condominium Act all management companies are required to be bonded -- Premier Management Services, Inc. is, up to $250,000, with a triple A rated carrier.
Additionally, Premier Management Services, Inc. carries professional negligence coverage and general liability insurance.
All operating funds for each Association that we manage are held in separate accounts in the name of each Association. Premier Management Services, Inc. is then given limited signature authority on those accounts. Therefore, there is no co-mingling of funds and any interest on those funds accrues to you. Our primary accounts are at Barrington Bank & Trust Company, which is where we generally establish operating accounts for our clients. If you require that your account be placed at another institution, then we will be happy to do so.
We provide complete accounting of your funds, and our systems and procedures are always open to your scrutiny or to the scrutiny of any auditor you may wish to retain.
We recognize that our financial integrity must be beyond reproach – and it is. You have the same responsibility to your owners, and we will help make certain there is never a concern in this area.
Premier Management Services, Inc. can bring substantial expertise in the area of insurance to help your Association obtain the best and most appropriate coverage at the least cost.
Premier Management Services, Inc. utilizes the services of an outside insurance consultant and broker, who remains totally current on developments in this important area.
Your Property Manager will review options with your Board, prepare specifications, and let them out for bid to a minimum of three A+ insurance companies several months prior to renewal dates. In addition, Premier Management Services makes every attempt to make all of your insurance policies coterminous. This ensures that all are renewed and nothing is missed.
We consider insurance expertise a part of the basic service we deliver and don’t regard it as ethical to accept commissions or fees for insurance placements.
Your Property Manager will file all insurance claims on behalf of the Association, and will work with adjusters and contractors to expedite settlements and repairs.
We will work with the Board to clarify issues of unit owner versus Association responsibility, and will coordinate and expedite claim filing and repairs.
Premier Management Services, Inc. has a good deal of experience in minimizing the cost of utility purchases.
Companies offering natural gas and electric purchasing programs in competition with Peoples Gas, Nicor and ComEd, have proliferated over the past several years, spurring competition and resulting in increased savings and better service.
Premier Management Services, Inc. will solicit appropriate proposals and bids for Associations that would benefit from this service.
Again, Premier Management Services, Inc. feels this is part of the expertise you are paying for through the management agreement, and believes it is unethical to accept commissions or fees from the vendors.
It is anticipated that your Board will meet on at least a quarterly basis.
Premier Management Services, Inc. will prepare and deliver to Board members a monthly financial statement and detailed agenda, and will present a management report and financial review at these meetings.
The Property Manager will coordinate and conduct the Association’s annual meeting. Preparatory to the Association’s annual meeting, Premier Management Services, Inc. will disseminate all nominating and election materials, all appropriate notices, and such reports and statements as the Board wishes to have issued. If desired, the Property Manager will develop the program for the annual meeting and supervise the election.
Premier Management Services, Inc. will prepare and mail all notices, correspondence, and reports to unit owners. The Association will be responsible for the cost of mailings. Only actual postage, messenger costs and copy costs will be charged back to the Association.
Your Property Manager will work with your architects, attorneys, contractors, consultants, and vendors on behalf of the Board to coordinate communication and correspondence, and provide supervision on any projects that the Association undertakes.
Management from Premier Management Services, Inc. will provide supervision of all staff (if any) – handling hiring, discipline, and dismissal as directed by the Board, and providing annual performance reviews and salary recommendations when requested. Additionally we will maintain compliance with any Union or private contracts which your property participates in.
We will prepare detailed maintenance schedules and an annual calendar with all relevant contract dates.
Premier Management Services, Inc. is intimately familiar with all tax, insurance, and union issues surrounding on-site and off-site staff.
We will dispense payroll checks, maintain all employee records, and have all appropriate tax forms related to payroll prepared by our payroll contractor.
Sales and Leases
Premier Management Services, Inc. will provide both buyer and seller with information on the requirements for the sale or lease of a unit.
We will provide required purchase applications and contracts for Board approval in a timely fashion. Additionally, we will provide the buyer and seller with the financial information about the Association required by the mortgage lenders.
New owners or tenants will be provided with Rules and Regulations, and other pertinent information on the policies and procedures of the Association.
Premier Management Services, Inc. will maintain complete files of leases, contracts, credit reports (if required by the Association), and the like.
In consultation with the Board, Premier Management Services, Inc. will develop a maintenance schedule and detailed weekly checklist clarifying precise expectations from the property staff (if any).
Premier Management Services, Inc. will coordinate regular, on-going services such as landscape maintenance, security, and window washing – working with the Board to set specifications, securing bids, negotiating contracts, and monitoring the contractors’ activities.
Where appropriate, the Property Manager will meet with the maintenance staff or head engineer on a regular basis to inspect the property, review checklist performance, and discuss any noted shortcomings.
Any special problems or repair needs will be brought to the Board’s attention.
We take personal pride in the properties we manage, and will do everything possible to assure that yours is maintained the way you would like it to be.
Our guiding credo is a variation of the golden rule . . . “Treat the property as if it were your own.”
Long-Range Maintenance Plan
Premier Management Services, Inc. has had a good deal of experience in the development and implementation of long-range maintenance plans.
A well founded long-range plan can be of inestimable value in guiding the Board’s efforts, providing continuity, reducing owner concerns, maximizing unit values, and simplifying property management.
Premier Management Services, Inc. can provide the framework for a detailed long-term maintenance plan. Working with the Board or a duly appointed committee, we will develop a plan that will address the property’s long term maintenance needs.
If desired, we can design a resident feedback survey to help determine the perceptions and priorities of all owners.
Where appropriate, we can arrange for other relevant architectural or engineering consultation.
Depending on the scope of anticipated repairs, the plan can be turned over to an outside construction expert for costing, or Premier Management Services, Inc. can develop approximate budget figures.
Coordination of Long-Range Maintenance Plan
Premier Management Services, Inc. is familiar with quality contractors in virtually every area of construction and maintenance.
We can suggest sources that can be relied upon to perform and live up to their commitments.
We will coordinate the development of specifications, sourcing, bidding, and contract negotiations; will assure proper bonding and insurance coverage; and will supervise the actual completion of the project.
Reserve Analysis and Recommendations
There are no ready rules-of-thumb for arriving at a “responsible” number for your reserve fund. Each property and each group of residents is a story unto itself. But the best starting point for arriving at a realistic number is a solid long-range maintenance plan. By incorporating the major capital expenditure items, a macro cash flow analysis can be prepared which will give a clear picture of the major “bumps” which have to be prepared for the future.
Taking into account unit owner attitudes, the feelings toward special assessments, and the ability to absorb financial surprises, a realistic plan can be developed for the necessary reserve accumulation.
Premier Management Services, Inc. will be glad to work with you on the formulation of your reserve plan and the communication of the reserve philosophy to owners.
If desired, we can recommend several outside consultants who can bring an expert third party perspective to the analysis.
Premier Management Services, Inc. will handle all resident calls
- Answering questions,
- Interpreting and clarifying the Association’s Rules and Regulations,
- Assisting with maintenance or repair problems,
- Acting as an ombudsman for all Association related matters.
All relevant correspondence to unit owners will be prepared and mailed by Premier Management Services, Inc..
Premier Management Services, Inc. has emergency phone coverage on (847) 432-1600 x4. In an emergency, your call will be forwarded directly to the mobile phone of the on-call personnel.
An “emergency sheet” will be prepared for your property, in consultation with the Board, giving numbers to be called in the event a problem or crisis..
This will provide residents, guards, doormen, janitors, etc. with quick access to the appropriate help.
Premier Management Services, Inc. will prepare Board communications, to the extent desired, to assist in positively communicating plans, activities, and achievements.
It is normally best if the Board Secretary prepares the minutes of the monthly meetings. The Secretary is an owner of the property and intimately familiar with the concerns of the other unit owners.
Premier Management Services, Inc. will be glad to provide counsel on the preparation of concise, effective minutes.
If desired, Premier Management Services, Inc. can audio tape the Board meetings.
The actual preparation of minutes is beyond the scope of the normal management agreement. If you wish, this service can be provided but it would entail a time-of-staff charge.