A.
It is the general policy of the Town of Barnstable
to manage its real assets in order to maximize the desired return
from a real estate holding over the life of the property through the
implementation of the appropriate strategies. Another important purpose
of property management is to ensure that tenants live in a safe and
clean environment and have their property-related problems resolved
promptly. Property management is structured to generate one or more
of several objectives:
B.
The Town of Barnstable recognizes that the keys to
successful property management are policies on rent collection, income
and expenses, adaptability to the market and attention to the environment.
The underlying purposes of these policies are
to:
This policy becomes effective on December 1,
1993.
Written determination required by this policy
shall be retained in the appropriate official contract file of the
Town Manager's office.
Property information is public information to the extent provided in the Massachusetts General Laws and Section 8-9, Open meeting of the voters, of the Town Charter and shall be available to the public as provided in these statutes and ordinances. The Town shall also disseminate these policies in the following manner:
A.
Distribution. This policy shall be publicized and
distributed to the greatest extent possible; distribution will include
but not be limited to Town employees, the general public, and minority
organizations. Reference to this policy shall be included in all notices
and advertisements for bids distributed by the Town.
B.
Inspection. A copy of this policy shall be available
for inspection and will be maintained by all departments involved
in the management of property. A copy of this policy shall also be
available in the Town Manager's office.
The Town Manager shall appoint the Property
Manager. The Property Manager should be a person with demonstrated
executive and organizational ability. The Property Manager shall be
a full-time employee of the Town and may be removed by the Town Manager
only upon a showing of just cause.
Consistent with the provisions of this policy,
the Property Manager may adopt operational procedures governing the
internal functions of property. Except as otherwise specifically provided
in this policy, the Property Manager shall exercise general supervision
and control over all property inventories belonging to the Town. These
inventories include:
A.
Sandy Neck cottages.
B.
Municipal properties.
C.
Open space and land reserved for conservation purposes.
D.
Village Green; village parks.
E.
Shooting range.
F.
Recreations facilities, lands, playgrounds and parks.
G.
Lombard Trust properties.
H.
Municipal buildings and facilities.
I.
Beaches.
J.
Municipal parking lots.
K.
Municipal leaseholds with private parties.
L.
Municipal easements and rights-of-way.
The Property Manager may delegate authority
to designees or to any department, agency, or official.
A.
Custodial maintenance.
(1)
Custodial maintenance encompasses all day-to-day maintenance
activities. Custodial maintenance includes, but is not limited to,
the following tasks:
(2)
Custodial maintenance will be performed by the Structures
and Grounds Division of the Public Works Department. In addition,
maintenance tasks may be contracted out.
B.
Corrective maintenance. Corrective maintenance is
performed to repair and restore items after problems are identified,
but before major breakdowns or emergencies occur. The following information
should be recorded on all corrective maintenance assignments:
(1)
Name of individual requesting work;
(2)
Location of problems;
(3)
Time and date of service request;
(4)
Phone number where individual requesting service can
be reached;
(5)
Nature of problem and its priority;
(6)
Amount of time spent on repairs and materials used;
and
(7)
Cost of labor and materials.
C.
Preventive maintenance. Preventive maintenance is
performed on a regular basis to keep the level of services at the
property high and to reduce equipment breakdowns and service interruptions.
The preventive maintenance program should address the following areas:
D.
Deferred maintenance. Deferred maintenance is needed
maintenance that is performed at a later date. The reasons for delay
include budget limitations, management plan, or negligence. The Property
Manager should document which large maintenance projects are being
deferred and to estimate, if possible, additional costs that may be
incurred later when repairs are finally made.
The objective of the Town of Barnstable is to
set leases consistent with the marketplace and sensitive to any special
objectives that some properties may contain. The Town shall use appraisals
on a regular basis to assess how current its leases are and should
account for any items that go over budget. The rent schedule should
be reviewed and approved by the Town Manager and should reflect the
Town's income objectives.
The existing lease schedule should be reviewed
once each quarter or at least semiannually. Lease increases should
be reviewed on an annual basis and occur once each year if necessary.
For leases exceeding one year, rent increases should be provided for
in the lease. A lease increase letter shall be used to notify tenants
of a lease payment increase.
These procedures apply to long-term property
leases. Once a satisfied prospect has been identified through a RFP
process, the Town shall follow careful selection procedures as part
of the RFP:
The following information should be obtained
from all prospective lessees for all properties:
A.
Names and ages of all lessors;
B.
Social security numbers;
C.
Premises: unit or space to be leased;
D.
Lease term with start date;
E.
Amount of monthly rent, security deposit and other
charges (e.g., application, credit check, and/or cleaning fees);
F.
Rent adjustment, if any;
G.
Real estate taxes owed, if any;
H.
Responsibility for utilities;
I.
Responsibility for repairs and maintenance;
J.
Responsibility for refuse and disposal;
K.
Procedures for enacting alterations to the property;
L.
Provision for the Town's access;
M.
Commitment to indemnify the Town;
N.
Responsibility and amount for liability and fire insurance;
O.
Provision for subleasing;
P.
Responsibilities in the event of damage and destruction;
Q.
Provision for permission to mortgage, sell premises;
R.
Responsibilities in the event of default by lessee;
S.
Employment history for past three years;
T.
Current address and previous addresses for past three
years;
U.
Name, address, and telephone number of closest relative
(if applicable);
V.
Warranty that information is correct, and permission
to verify; and
W.
Signature of all adult occupants (if applicable).
Lease renewals are encouraged versus advertising
and marketing properties on a recurring basis. A lease renewal option
must be included in the original lease, or the lease must be solicited
through the RFP process as dictated by Chapter 30B of the State Procurement
Laws. The following steps should be followed to ensure renewals are
handled effectively:
A.
A lease expiration report and renewal log. This report
should contain the lease expiration dates for a minimum of three months
in advance.
B.
Review. The rental rates should be reviewed and new
rates set 90 days prior to lease expiration. The lease expiration
report should be reviewed and approved indicating which residents
management would like to renew and which will not be renewed.
C.
Notice. Lease expiration and renewal letters should
be sent 70 days prior to lease expiration. Nonrenewal letters should
be sent no sooner than 45 days prior to lease expiration in order
to minimize nonpayment of rent.
D.
Contact with residents. The Property Manager should
meet with residents not later than 45 days prior to lease expiration
to execute lease renewals. This contact can also be performed by mail.
Applicants must submit a detailed request 30
days prior to the desired use of Town-owned land which shall entail
proposed use; purpose of proposed use; and organization/individual
seeking to use Town-owned property along with address, telephone number,
and contact person. The following steps shall be followed for the
short-term lease/rental of Town-owned land:
A.
Approvals. The Police, Health, Recreation, Planning,
and Public Works Departments must provide their consent for the use
of Town-owned property so that appropriate support services are made
available.
B.
Obtain Town Manager approval;
C.
Distribute the Town policies for trash removal, alcohol,
parking, particular property uses, and other regulations; and
D.
Obtain vehicular access permission from Public Works,
if necessary.
The development and maintenance of a good collection
system requires the establishment of sound collection policies. Policy
statements are required for the following:
A.
Property lease requirements. Depending upon the use
of particular properties, the Town shall ensure appropriate permits
for food, toilet facilities, rubbish disposal, and animal control
are made available.
B.
Rental due date. To reduce the likelihood of conflicts,
rental due dates should be set accordingly.
C.
Date rent is considered delinquent.
D.
Schedule of late penalties/charges and other fees.
Late charges are $10 for each day late. Returned checks are assessed
a charge of $15 for additional administration costs.
E.
Repository of payment (e.g., Tax Collector, Town manager's
office).
F.
Payee (e.g., Town of Barnstable, Lombard Trust).
G.
Acceptable form of payment (cash, check, money order).
Cash collection should be limited to local banking hours, and staff
should be instructed to issue a receipt as proof of payment.
A.
The monthly lease roll serves as a recordkeeping journal
that accounts for each property. Items to be included in the lease
roll include:
B.
Automation of this information is encouraged. Additional
statistical information that might be recorded for comparative and
decision-making purposes includes:
A.
Lessees can be evicted for the following reasons:
(1)
Nonpayment of lease for 10 days, or
(2)
If the lessee shall default in the observance or performance
of any other of the lessee's covenants, agreements or obligations
for 30 days; or
(3)
The lessee is declared bankrupt or insolvent according
to law; and
(4)
Termination of tenancy (i.e., lease expiration or
holdover).
B.
In general, the eviction process begins with the filing
of a complaint for eviction in a court of jurisdiction after a notice
to pay or quit has been served.
A.
Budgeting. Budgeting for property management will
be part of the Town of Barnstable's operating budget process. The
budget will consist of estimating revenues from rents and expenditures
for maintenance and other administrative costs.
B.
Reporting. A system of reporting is essential for
monitoring and controlling operations and is an integral part of the
budgeting process. The reporting system should include an operating
budget and the following items:
(1)
Lease roll. The lease roll is a detailed listing of
properties, residents, lease, and other amounts due and received from
residents.
(2)
Schedule of disbursements. The schedule of disbursements
lists expenses for the reported period and the reason they were incurred.
(3)
Management summary. This summary contains certain
indicators of management effectiveness on a comparative basis. This
may include rent loss and occupancy, etc.
Assets under management of the Town of Barnstable
should be protected against three types of losses: losses form casualty,
losses from theft; and losses from conversion of an asset to another
form (e.g., cash). Safeguarding of assets also includes:
A.
Internal controls. The Town of Barnstable should ensure
the following controls are in place:
B.
Insurance. The Town of Barnstable shall carry the
appropriate insurances for the protection of the Town and the properties
under its control. The Town shall also require tenants to carry the
appropriate insurances depending on use of property.
