Dear Prospective Client,

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Thank you for contacting us for information regarding the services we provide. Enclosed you will find our new client management package which will provide you with all the information you need about our company and the services we offer.

Houston Management Company is a full service Property Management and Real Estate company which has been serving Orange County, Riverside County, Los Angeles County and Coachella Valley for over 24 years. We currently manage a variety of property types throughout Southern California.

As a full service property management company, we offer complete property management services. All of our services are provided at one low monthly fee based on gross receipts with no hidden costs or charges.

Each of our Property Managers are licensed Real Estate Agents who are knowledgeable, professional, prompt and courteous. As experienced real estate professionals we understand that your property is a valuable

investment. With that in mind, our primary goals are to:

Maximize Cash Flow – We are committed to maximizing your income by obtaining the maximum amount of rent possible according to current market conditions.

Minimize Vacancy Period – We are committed to minimizing the time that your rental is not generating income by creating and implementing a marketing plan that will focus on getting your property rented as quickly as possible. In addition, we do not charge for periods of vacancy.

Protect Your Investment – We are committed to protecting your investment by conduction thorough tenant screenings and vendor verifications.

Do The Work for You – We are committed to providing you with full service management by handling everything on your behalf so you can spend more time doing the things you enjoy!

Please review the enclosed management package and call us at 714-278-1855 if you have any questions or concerns. We hope that we can be of service to you and we look forward to hearing from you in the near future.

Sincerely,

Houston Management Company

1105 E. Commonwealth Avenue Suite G Fullerton, CA 92831 (714) 278-1855 Fax: (714) 278-1893

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Houston Management Company is committed to fulfilling all of your property management needs. Below is a list of services included in our full service management package. If there is a service you are interested in but cannot find it listed below, please call us at 714-278-1855. Our services can be tailored to fit any owner’s needs. Prompt, Courteous and Professional Service

As experienced real estate professionals, we strive to provide each of our clients and their tenants with professional, prompt and courteous service. Each of our licensed staff members treat all clients and tenants with dignity and respect.

Rental Preparation

Your Property Manager will visit the property to evaluate and make recommendations regarding the preparation of your property for the rental market.

Your Property Manager will coordinate and oversee the completion of all maintenance and repairs using our network of qualified vendors to ensure that all work is completed in a timely and professional manner.

Your Property Manager will focus on obtaining monthly rental amounts. Determine the Optimal Monthly Rental Amount

Your Property Manager will complete a detailed market analysis to determine the optimal rental amount for your property. This determination will be based on the current market value for like kind properties in the same geographical location as the subject property.

Create a Marketing Plan

Your Property Manager will discuss with you the variety of marketing options available to quickly rent your property and minimize vacancy periods.

Your Property Manager will plan and execute your personalized marketing plan by utilizing the Internet, Multiple Listing Services, local newspapers, circulars, flyers and property signs.

Your Property Manager will promptly pursue all leads and inquiries and schedule showings of your property during the week, evenings and weekends depending on the needs of the potential tenants. Applicant Screening Process

All applicants 18+ must submit a rental application and provide current picture identification in order to be considered as a potential tenant.

A professional screening company will be used to screen each applicant. This will ensure that all State and Federal Laws including Fair Housing Laws will be enforced. The applicant’s credit history, rental history including evictions, employment, income and criminal background will be reviewed. An approval, approval with requirements (such as co-signer or full deposit) or denial will be determined based on the results of the screening process.

All application fees (currently $35 per applicant) must be paid upfront directly by the applicant. The owner will not incur any expenses related to tenant screening.

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New Tenant Move-Ins

Your Property Manager will prepare all rental and lease agreements utilizing California Association of Realtors approved forms.

Your Property Manager will discuss the expectations regarding rent payment and rules and regulations. Your Property Manager will meet with your new tenants and ensure all agreements have been properly reviewed and executed prior to his or her move-in.

Your Property Manager will collect the first month’s rent and security deposit in the form of a cashier’s check or money order prior to your tenant’s move-in.

Your Property Manager will perform a Pre Move-In Condition Inspection. This will document your property’s condition prior to move-in. Digital photography may also be used. This information can later be compared to the property condition at the end of the tenancy by utilizing the Move-Out Condition Inspection. Tenants are required to sign these forms for documentation and verification purposes. Your Property Manager will prepare a separate pet policy and pet addendum if pets are allowed. Some large breed dogs and other animals which are considered uninsurable under home owners insurance policies will not be permitted. All pet owners are required to submit proof current city registration, rabies and vaccine records and a photo of the animal.

Existing Tenant Move-Outs

Your Property Manager will insure that when a move-out occurs, that all necessary paperwork is completed.

Your Property Manager will provide your tenants with the opportunity to elect a Pre Move-Out

Inspection up to 14 days prior to the end of their tenancy. This will give the tenant an idea of what needs to be done in order to avoid deposit deductions and to help return the unit in its original condition. Your Property Manager will collect pro-rated rents for any partial months of tenancy.

Your Property Manager will make sure that all keys and remotes are returned and that a forwarding address is received.

Your Property Manager will schedule maintenance and make deductions to the vacating tenant’s security deposit according to state laws.

Your Property Manager will provide the vacating tenant with an itemized security deposit report along with copies of the receipts for repairs and a check or bill for the difference.

Rent Collection and Follow-Up

Your Property Manager will promptly collect your rental income at the beginning of each month. Your Property Manager will serve three day notices to “Pay Rent of Quit” if rent is not received by the end of the grace period outlined on the tenant’s rental or lease agreement.

Your Property Manager will coordinate the start of unlawful detainer actions to evict your tenant in the event there rent is not paid.

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Payments of Your Monthly Expenses

Our Accounting Department will pay all reoccurring monthly expenses on your behalf such as: - Mortgages - Home Owners Association Dues - Property Taxes - Utilities

- Home Owners Insurance - Gardening and Pool Services Management fees are directly deducted from rental income prior to any other expenses. Detailed Monthly Accounting Reports

Our Accounting Department will provide you with monthly itemized statements showing income and expenses related to your property. Copies of all invoices will be provided.

Our Accounting Department will provide you with a year-end accounting summary of your income and expenses.

Our Accounting Department will disburse the rental proceeds in the manner instructed by you on a monthly basis. Funds can be mailed to your or directly deposited into a local financial institution of your choice.

Maintenance Services

We provide our clients with 24-hour emergency repair services.

We minimize the cost of repairs and maintenance using our experienced network of contractors, vendors and handymen.

We do not mark up the cost of maintenance. Copies of all invoices are provided to you monthly. We log and coordinate all maintenance including property reconditioning such as painting, window coverings, carpet cleaning and replacement, etc.

We research and coordinate all necessary services such as utilities, gardening and pool service. Property Management Fees

All property management packages are based on a percentage of gross receipts. This percentage is determined by the number of units, location, condition and marketability and rent ability of the property. Our fee schedules range from 4%-10% of monthly gross receipts. Maintenance, advertising and legal fees (if any) are paid separately.

There are no additional charges for lease renewals, notice generation and delivery, postage and supplies. Property management fees are generally deductable as a direct expense item. A tax advisor can be recommended for more information.

Additional Services

Additional services can be added on a case by case basis. Please call for details.

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FREQUENTLY ASKED QUESTIONS

Below are a few of the most frequently asked questions that are most commonly asked by new clients. If you have a question that is not answered below, please contact us at 714-278-1855 for personal assistance.

Q: What is typically involved in preparing a property to be rented?

A: Generally, you should expect to make the property move-in ready for a tenant. This may involve painting or patch work, carpet cleaning or replacement, minor repairs, etc. Your property will rent quicker and demand a higher rental value if it is in good condition.

Q: What determines the optimal rental rate for my property?

A: Your Property Manager will complete a detailed market analysis to determine the optimal rental amount for your property. This determination will be based on the current market value for like kind properties in the same geographical location as the subject property. Property condition and marketability also plays a role in determining the optimal rental amount.

Q: Who pays for maintenance and repairs to my property?

A: The owner is responsible for maintenance and repairs, unless the tenant has caused damage outside of normal wear and tear. In that case, we will seek reimbursement on your behalf from the tenant. Because we deal with a large volume of properties, we can normally contract at considerable savings to you for repairs and maintenance. We save you money whenever possible and we do not mark up the cost of repairs and maintenance.

Q: Who pays for the marketing of my property?

A: Houston Management Company pays for all signage and labor costs related to marketing your property for rent. The owner pays for the cost of advertising the property for rent in local periodicals and the Multiple Listing Service (if chosen). For more information, please see the Advertising Options section in this management package.

Q: Are management fees deductable?

A: Generally, as a direct expense item. However, you should confirm this with your tax advisor as your specific situation may be different. A tax advisor can be recommended upon request.

Q: How are tenants selected?

A: All applicants 18+ must submit a rental application and provide current picture identification in order to be considered as a potential tenant. A professional screening company will be used to screen each applicant. This will ensure that all State and Federal Laws including Fair Housing Laws will be enforced. The applicant’s credit history, rental history including evictions, employment, income and criminal background will be reviewed. An approval, approval with requirements (such as co-signer or full deposit) or denial will be determined based on the results of the screening process.

Q: Do I pay for the processing of tenant applications?

A: All application fees (currently $35 per applicant) must be paid upfront directly by the applicant. The owner will not incur any expenses related to tenant screening.

Q: How are security deposits handled?

A: All security deposits are forwarded to the owner with that months income statement. When a notice to vacate is received, the last month’s rent will be held on file to be used for tenant deposit reimbursement. By law, all security deposit money due to the tenant must be refunded within twenty-one (21) days from the date of move out and receipts for repairs must be provided.

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NEW CLIENT MANAGEMENT APPLICATION 5

NEW CLIENT MANAGEMENT APPLICATION

CLIENT INFORMATION

LAST NAME FIRST NAME MIDDLE NAME

PRESENT ADDRESS CITY STATE ZIP CODE

DATE OF BIRTH DRIVER’S LICENSE NUMBER STATE SOCIAL SECURITY NUMBER

HOME PHONE WORK PHONE CELL PHONE

EMAIL ADDRESS

SPOUSE OR PARTNER INFORMATION

LAST NAME FIRST NAME MIDDLE NAME

DATE OF BIRTH DRIVER’S LICENSE NUMBER STATE SOCIAL SECURITY NUMBER

PRESENT ADDRESS CITY STATE ZIP CODE

HOME PHONE WORK PHONE CELL PHONE

EMAIL ADDRESS

TAXPAYER IDENTIFICATION INFORMATION

LEGAL NAME OF ENTITY

LEGAL ADDRESS CITY STATE ZIP CODE

CONTACT NUMBER FEDERAL TAXPAYER IDENTIFICATION NUMBER (TIN)

MONTHLY ACCOUNT STATEMENT

PLEASE MAIL A PAPER COPY OF MY STATEMENT TO THE FOLLOWING STREET ADDRESS:

NOTE: IF YOU HAVE AN INVESTMENT PARTNER(S) WHO REQUIRES A SEPARATE MONTHLY PROPERTY STATEMENT AND IS ENTITLED TO RECEIVE A PROTION OF THE OWNER PROCEEDS, PLEASE CHECK THIS BOX AND FILL OUT SEPARATE FORMS FOR EACH PARTNER.

OWNER DEPOSIT OPTIONS – PROCEEDS DEPOSITED DIRECTLY INTO YOUR BANK ACCOUNT

NO – DO NOT SEND OWNER PROCEEDS TO MY BANK. SEND THEM TO THE ADDRESS LISTED ABOVE

YES – PLEASE SEND OWNER PROCEEDS TO MY BANK (FILL IN THE BLANKS BELOW). REPORT ANY CHANGES IMMEDIATELY

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DISPURSEMENT INFORMATION

HOUSTON MANAGEMENT COMPANY WILL PAY YOUR REOCCURING BILLS ON YOUR BEHALF. BELOW IS A LIST OF THE MOST COMMON OF THESE BILLS. PLEASE REVIEW EACH ITEM AND INDICATE WHEATHER YOU WANT TO PAY THE BILLS YOURSELF OR PREFER US TO PAY THE BILLS ON YOUR BEHALF.

1. MORTGAGE PAYMENT

OWNER WILL CONTINUE TO PAY DIRECTLY – PROOF OF PAYMENT MUST BE PROVIDED TO MANAGEMENT.

HOUSTON MANAGEMENT CO. WILL PAY ON OWNER’S BEHALF FROM FUNDS IN THE TRUST ACCOUNT. PAYMENT ADDRESS:

PAYMENT AMOUNT PAYMENT DUE DATE LOAN NUMBER

2. SECOND TRUST DEED PAYMENT

PAYMENT AMOUNT PAYMENT DUE DATE APN NUMBER

3. PROPERTY TAX PAYMENTS

$ _____________________ 1ST_{INSTALLMENT IS DUE ON THE 1}ST_{DAY OF NOVEMBER – LATE IF RECEIVED AFTER THE 10}TH_{DAY OF DECEMBER.}

$ _____________________ 2ND_{INSTALLMENT IS DUE ON THE 1}ST_{DAY OF FEBRUARY – LATE IF RECEIVED AFTER THE 10}TH_{DAY OF APRIL.}

PAYMENT AMOUNT NEXT PREMIUM DATE INSURANCE POLICY NUMBER

4. INSURANCE PREMIUMS

HOUSTON MANAGEMENT CO. WILL PAY ON OWNER’S BEHALF FROM FUNDS IN THE TRUST ACCOUNT. NAME OF AGENCY:

PAYMENT ADDRESS:

PAYMENT AMOUNT PAYMENT DUE DATE ACCOUNT NUMBER

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OWNER WILL CONTINUE TO PAY DIRECTLY

6. GARDENER OR POOL SERVICE

TENANTS RESPONSIBILITY/TENANT PAYS

7. UTILITIES: WATER

8. UTILITIES: ELECTRICITY

9. UTILITIES: GAS

10. UTILITIES: TRASH OR TRASH BIN RENTAL

11. OTHER:

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RENTAL PROPERTY INFORMATION

RENTAL ADDRESS CITY STATE ZIP CODE

NEAREST CROSS STREETS

DETACHED

HOW MANY STORIES IS THIS HOME/UNIT

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1

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2

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3

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OWNER

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TENANT

OUTDOOR AREAS

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AMENITIES

YES

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NO

TENANT

MTM

WHAT DAY IS THE PROPERTY AVAILABLE FOR SHOWINGS? ____/_____/_____

WHAT IS THE PROPERTY AVAILABLE FOR MOVE IN? ____/_____/_____

MONTHLY RENT: $ _________________ SECURITY DEPOSIT: $ _________________ PET DEPOSIT: $ _________________

PROPERTY DESCRIPTION

HIGHLIGHT ANY SPECIAL FEATURES OR DETAILS OF YOUR PROPERTY. THIS INFORMATION WILL HELP US ADVERTISE YOUR PROPERTY WHEN IT IS AVAILABLE: __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________ SPECIAL INSTRUCTIONS

HIGHLIGHT ANY INFORMATION THAT YOU FEEL IS INPORTANT, SO THAT WE CAN BETTER MANAGE YOUR PROPERTY:

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HOME OWNER INSURANCE VERIFICATION FORM

Dear Owner,

It is required of our company that our property owners name Houston Management Company as an additional insured party on your Liability Insurance Policy. The required amounts are as follows:

 $300,000.00 for a Condo or PUD.

 $500,000.00 for a Single Family Residence.

 $1,000,000.00 for a Single Family Residence with a pool or spa. Please complete this form and return it with the management package.

SUBJECT PROPERTY: _______________________________________________________________ _______________________________________________________________

OWNER(S): _____________________________ ___________________________

Print Name Print Name

_____________________________ ___________________________ Signature Date Signature Date

MY INSURANCE INFORMATION

_________________________________________ ________________________________________ Name of Insurance Company Street Address or PO Box

________________________________________ ________________________________________

Name of Agent City, State and Zip

_______________________________________ ________________________________________

Policy Number Phone Number

_______________________________________ ________________________________________ Extent of Liability Insurance Fax Number

HOME OWNERS INSURANCE VERIFICATION FORM 11

Dear Prospective Client,

TABLE OF CONTENTS

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Property Management Services ……….. 1

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Frequently Asked Questions ………... 4

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New Client Application ………... 5

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Home Owner Insurance Verification Form ………. 11

PROPERTY MANAGEMENT SERVICES

FREQUENTLY ASKED QUESTIONS

NEW CLIENT MANAGEMENT APPLICATION

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