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TRENDSETTERS PROPERTIES LIMITED

Registered Property Managers, Valuers, Real Estate Consultants CITY VIEW APARTMENTS- NGARA, GROUND FLOOR SUIT NO.2 P.O. Box 5242800100 Nairobi, Kenya Tel; 020-8050868 Cell; +254 722-635 915 . Email: setters.trend15@gmail.com

TO: SUAN HOLDINGS LTD, P.O BOX 4593-00506 NYAYO STADIUM, NAIROBI.

ATT: SIR/MADAM.

RE:

PROPOSAL FOR LETTING/MANAGEMENT OF YOUR

UPCOMING FLATS ON LR/NO/209/2759, MUSINDI ROAD, NGARA.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

INTRODUCTION Trendsetters properties limited, is a limited company, registered under the company`s act, offering a variety of services i.e. property letting, property management, valuation, real estate consultation and sale of plots/land. Our services are tailored for property owners/companies to be offered the services named above in the most professional, honesty, dedicated way, and at all times ensuring that efficiency and persistent returns are yielded. This leads to peace of mind to property owners concerning their investment, hence concentrate on their other endeavors. 1. SCOPE OF SERVICES QUALITY MANAGEMENT TO QUALITY DEVELOPMENT Our scope of services takes into consideration the development of your flats which comprises of the following. 34 GROUND FLOOR AND BASEMENT SHOPS/ GODOWNS. 76units (bedsitters) - which will cost a rent of between 10,000-25,000 per month. Common amenities include: o o o o On site Care Taker Daily cleaning Garbage collection (twice a week) 24 Hour security services that include security Guards control of entry/exit at main gate. Provision of security lights

PROBLEMS ENCOUNTERED BY PROPERTY DEVELOPERS: In order to enhance property value and avoid future headaches, management system correctly established by property developers/owners avoids the following common problems. Service Providers

Trendsetters Properties Ltd Comfort is not a privilege but a right.

3 o o o o Time mismanagement Financial mismanagement Routine maintenances Ineffective services

Rent and Service charges o o o o o Unauthorised deductions Late bills Disputes over rent Late rent payments Rent petitions

Security o o o o Underpayment/Late payments Poor working conditions Car Park thefts Control of third parties

Tenants o Failure to follow/adhere to terms and condition of the lease agreement Noise Extensive repairs Poor hygiene Unauthorized parking Illegal structure in common areas satellite dishes and clothes lines etc

o o o o o REMEDIES

Trendsetters Properties Ltd Comfort is not a privilege but a right.

4 To provide services to you and your tenants, we recommend the following Weekly inspection of the property by the agent. Bills should be timely paid. Tenants should be informed in writing about any changes regarding the property. Provide effective caretaker services for common areas- All caretakers need to be effectively trained and regularly supervised to ensure proper provision of services. Outsource key services to professionals these will include maintenance of electric fence, garbage collection, security etc. Establish the bank accounts and collect Rent and service charge into the same. Set up Notice boards in each block this will act as an effective tool for communicating with all residents.

2. SUGGESTIONS For all the problems encountered by property owners/developers we suggest solutions in the following ways; I. RENT PAYMENTS Rent and service charge payment are deposited to the landlord/property account .

Rents and service charge deposited to landlord/Property`s Account: o We ensure that tenants deposit all receivables in rents, deposits and service charges in the landlord (property Account) not later than 5th of each month. Tenants submit the deposit slips to us at our offices or safe locks provided to the care takers. Every month in advance we do a budget for the expected service charge costs of the property and send it to the property owner covering payments to all service providers: - security,

Trendsetters Properties Ltd Comfort is not a privilege but a right.

5 garbage, common electricity, water, internet, management company etc) o The property owner draws one cheque to Trendsetters properties limited for the payment of service charges or can handle these matters one by one him/herself. We release statements (via post, hand delivery or email) of the monthly transactions with evidence of all the payables, together with the next month`s budget.

II.

Security o o o Registration Logs of all vehicles in and out of the compound. 1 day( caretaker) and 1 night guards. Provision of panic buttons at easily accessible areas on the block and at the main entry gate Provision of audible alarm system linked to electric fence and Security Company.(where applicable) Communication with tenants about guests and staff on entry at the main gate- Done through intercom system if provided. Disallow entry of guests of any staff. Accessing cards for domestic servants on entry in the compound. These cards should indicate the flat number and each card should be subsequently numbered. 2 cards per Apartment/Flat should be issued.

o o

Electric fence (where applicable) o o o Should be switched on 24/7 Routine maintenance Ad hoc emergency maintenance contract must stipulate maximum time within which service will be provided.

III.

CARETAKER SERVICES

Trendsetters Properties Ltd Comfort is not a privilege but a right.

6 Trendsetters properties limited can assist the landlord in recruiting the care taker upon request, and inducting him/her to work by giving a clearly written job description. We recommend that the landlord employs one on-site caretaker for the upkeep of all common areas. On a day basis the care taker will carry out the tasks of all cleaning (and gardening where applicable), and will directly report all issues to our office and field manager for liaison with the landlord. IV. SET UP OF COMMON NOTICE BOARDS The notice Boards in the block provide an effective communication tool. Our experience is also that by posting names all service charge defaulters for example on the Notice Board results in faster collection of service charge. V. GARBAGE COLLECTION SOLUTION Rental units that cost 10,000-25,000 per month will attract a class of people who are fussy. To keep them convinced to pay this amount of rent depends on the kind of services offered by the property owners/managing agents. Failure to offer these services will lead to vacancy of your investment, hence low returns. To eliminate these problem of garbage collection, we outsource professionals who carry their duties with distinction in all the properties we are managing, they have ensured that drums with seals not less than five are provided and placed at certain point of reach by every tenant. The waste/garbage from tenant houses is dropped by tenants into the drums and sealed. This ensures that the bad smell does not spread. Tenants do not have special time/days to drop the waste since the drums are not allowed to fill to the brim. The waste in the drum is collected twice in a week. This as a service charge cost to tenants costs a mere 500-1,000 /= a month.

3. OUR DELIVERIES
We work with unity of purpose with the property owner and in close consultation and communication. Trendsetters properties limited ensures full and detailed professional, honesty and integrity management to your property aimed at sustainability of the property value and profitability. The package comprises the following tasks.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

7 a. Letting service Letting is aimed at filling the vacant units with tenants, capable of paying the given amount of rent per month. I. We offer letting services to companies, landlords and Landladies, once their property/ properties are ready for occupation. This is done in the most professional Way through thorough advertising of the premises. Letting is done through the use of a lease agreement, drawn by the company advocate. In the lease agreement, all the loopholes that bring disagreement between the tenants and the property owners have been taken care of; and the tenant has to sign the agreement, to show that he/ she will adhere to the terms and conditions of the property owners. The lease agreement is also given to the property owners, to go though and approve it, the rules and the regulations that govern the tenants in their property, making additions before letting starts. Benefits; 1. Companys and property owners money goes directly to their accounts, since the tenants are advised to bank the cash in the property owners accounts, given to us together with the name of the account. 2. Time-factor. We have all the time to devote in respect of Property letting, which may be lacking on your part. 3. We ensure that the tenant understands the lease agreement, before signing it. We also ensure proper administration of the lease agreement. 4. We have a dedicated, honesty and strong workforce who will at all times ensure that efficiency and persistent returns are yielded. 5. Unlimited escort viewing of the property by respective clients. 6. Ensure payments deposits required before occupation. 7. Focus and timely advertising of the unit as available using varied avenues

II.

b. Rent and service charge

a. Collection of rent, deposits and service charges and ensuring timely rent payments (not exceeding 5th of each month). b. Issue Rent and Service Charge invoices to all tenants

c. management
a. Minor maintenance appraisals, costing and repairs. b. Administration of lease and tenancy agreement to new tenants. c. Administration of service charge expenditures (sourcing of services vendors and supervision of service delivery caretaker, security, garbage, common electricity, water, internet, parking control, shared satellite TV, etc)

Trendsetters Properties Ltd Comfort is not a privilege but a right.

8 d. Monitoring delinquencies and control, including seeking for legal intervention. e. Tenant liaison (tenancy applications, vetting and screening of potential tenant credentials.)Address tenant issues as and when they arise. f. Through inspection and supervising repairs and maintenance of vacated units.

d. Financial management
We provide the following accounting services; I. II. Monthly payroll Monthly reconciliation and payments to the property owner(s) and all service providers:- security, garbage, common electricity, water, internet, management company) Preparation of income statements Collection and recording receivables in rents, deposits and service charges. Monthly budgets preparation. Determining the cost of services and spreading the cost among users. Payment of annual costs site value tax, insurance, audit fees, land rates and rents. Balance sheet preparations The objective of managing each property as a business is to maximize returns and minimizing cost thereby optimizing profitability. 4. ESTIMATES OF SERVICE CHARGES Our estimate of service charge takes into account the following assumptions; We give monthly report of account with evidence for the service charge paid and a budget for the following month before the subsequent cheque is issued. V.A.T will be claimed to ensure that tax returns on the property are done on time.

III. IV. V. VI. VII. VIII.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

9 Estimate of annual contracts are based on indicative rates, these may be higher or lower than estimated. A service charge of kshs 500 1000 /= per unit to cater for the services. This amount is payable together with the rent due per month in to the property bank account. The landlord in turn issues one cheque. Alternatively the landlord can meet the service providers in person or draw a cheque to each of them.

5. FEES According to the laws of estate agent Act we are required to charge 7.5% of rent collected for management. We propose 6% which is a fair rate and negotiable. a. Our management fees are competitive, flexible and reasonable. They differ depending on several factors. I. II. III. Number of units and users Management requirement- onsite staff or from remote office. Rent turn over

On this basis our proposed fees as follows: Monthly management commission (including accounting fee) 6% of rent turnover instead of 7.5%, as demanded by the estate agents act, NEGOTIABLE. Fees for letting services 50%, instead of first month rent according to estate agents act, NEGOTIABLE. Fees for initial setting up of services..No charge

Trendsetters Properties Ltd Comfort is not a privilege but a right.

10 Our management agreements are tailor-made for different owners and property.

6. RESTRICTION Our fees do not include: Cost of filling of annual returns, tax returns and payment of installation tax. Costs for the annual audit of the accounts. Debt recovery costs where advocates/professional debt collectors are used to recover the debts.

SUMMARY.

Rent collection. We make sure that rent is paid

promptly by the tenants, and undertake to have it credited at the earliest, and in any case not later than 5th of every month in advance. This is especially important where you may be servicing a mortgage, and regular repayments are required.

Property maintenance. We handle on

behalf of the landlord any repairs to the property. We usually inspect and make quotations of the works to be done. This is send to the landlord for approval before commencing our work with our contractors, whom we have used over along period, thus ensuring quality work at reasonable costs. This will include paint works, plumbing, electrical and general works in the property to ensure it is habitable before a tenant moves in.

Bills payments. We pay bills on behalf of the

landlord, bills payable from the property. These are: payment of the ground rent and rates, insurance, management of the service charge accounts (where applicable) and any other outgoings. We also ensure that the bills payable by the tenants like electricity and water are promptly paid, so as to avoid accruing and become a cost to the landlord once the premises fall vacant.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

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Lease and property inventory. We also

take an inventory of the condition of the house when a tenant is moving in/ out. We refer to the same inventory, so that if they have damaged anything, then the repairs will be done at tenants expense. This ensures that the lease conditions are clearly spelt out and agreed between the parties.

Rent review. Since we double up as valuers, we are

able to do rental assessments of the property at no cost to yourself and ensure that you get competitive rent rates at al times.

Letting the property. Once a tenant moves

out, we make the property for whoever would be the tenant, and take the most competitive, which we sign a lease. Ofcourse the property will be decorated by the moving tenants cost, back to its original state, this ensuring that the landlord does not incur extra charges.

7. ABOUT US Trendsetters properties limited is a professional firm duly incorporated under the companies act cap 486 laws of Kenya. The firm specializes in offering services of letting and managing real estates, and sale of residential and commercial properties in Kenya. At present we have over 1200 tenants for over 25 property owners in Nairobi and its suburbs.

Vision To provide real estate solution to property owners hence may be preferred real estate agents who uphold highest level of professionalism and integrity.

Mission To deliver and provide quality services through professionalism, based on integrity, honesty, expertise and customer satisfaction.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

12 We are diversified in Nairobi and its suburbs.

8. CLIENTS The following are some of our clients who can be contacted on services we offer. I. CYWA HEIGHTS Kileleshwa Full property management for common area, repairs etc Presentation of the management accounts to the owner at the end of every quarter as well as the end of year statistics. Managing financial flow i.e service charge and payment of other common services. Enjoys 100% occupancy all the year. Miss Mercy Mwangi (0722 832 987)

II.

BERTA HOLDINGS safari park Gardens Managing financial flow i.e service charge and payment of other common services Full property management for common area, repairs etc Enjoys 100% occupancy all the year. WILSON KAMAU3)

III.

PILLAR LITE APARTMENTS South C Full property management for common area, repairs etc

Trendsetters Properties Ltd Comfort is not a privilege but a right.

13 Handling all tenants liason and lease agreement administration Management of financial flows e.g rent and service charge where applicable. Handling minor repairs and maintenance needs. Preparation of financial statements on monthly basis for the property owners. Enjoys 100% occupancy all the year. John Marete (0724 809 753)

IV.

CITY VIEW APARTMENTS- NGARA KIPANDE ROAD Preparation of financial statements on monthly basis for the property owners. Handling all tenants liaison and lease agreement administration Management of financial flows e.g rent and service charge where applicable MR. BEDAD MWANGI ( 0734 981 475)

V.

Current letting BEZALEL CASTLE safari park high-rise, JAM PLAZA safari park view estate, KIRIGWI HEIGHTS ruaraka, GARDEN ESTATE, VALICHE HEIGHTS kileleshwa and Pangani.

Upon appointment we would like to the following from you. Dos and Donts by the tenants allowed at the premises. Is the property registered as company, if so, copy of certificate of incorporation, memorandum, articles of

Trendsetters Properties Ltd Comfort is not a privilege but a right.

14 association of the company, details of company and the secretary. Care Takers Name and copy of ID Contacts and references Employment start date Salary and Bank Account

Property management Contact details and copy of contracts for security , garbage collection etc Contact details of all tenants Copies of last NCC rates land and rent paid.

9. HANDING OVER/APPOINTMENT An appointment with us will lead to an agreement for us to your managing agent. You will need to sign a management agreement with us. We will then submit on monthly basis release statement showing; Copy of bank slip and payable receipts/vouchers Income statements. Summary of any key issues

Our meeting with you will produce a management agreement for your property.

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CUSTOMER SERVICE

Trendsetters Properties Ltd Comfort is not a privilege but a right.

15 Please do not hesitate to contact us on the following address, or visit us at our office:

Trendsetters properties limited CITY VIEW APARTMENTS- NGARA KIPANDE ROAD, GROUND FLOOR SUIT NO. 2. P.o. Box 52428 00100. Nairobi Tel 020-8050868, +254 722-635915,. Email: setters.trend15@gmail.com

HOUSE INSPECTION CHECKLIST House No Our Ref: SRE/M/ Tenant name.. Lease period.. Move in Date. Move Out Date 1. Entrance

Details Entrance Verandah Entrance door Door bell switch Light Switch Lamp Holder

Move In

Move Out

Trendsetters Properties Ltd Comfort is not a privilege but a right.

16 2. Hallway Details Storage cabinets Roof bulb holder Floor Wall Sockets Lamp holders Lamp switches 3. Sitting Room Details Floor Door Window Ceiling Lamp switches Wall Light switches Sockets Move In Move Out Move In Move Out

Tenant Information and Payment Details

Landlord/Company Name: Estate/Court: Location/Road:

For properties in the same location, please separate courts/properties with a blank line . Use a different page if property in different locations. Form should be filled and handed to Trend setters before the handling over.

Trendsetters Properties Ltd Comfort is not a privilege but a right.

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TENANTS(S) DETAILS & PAYMENTS INFORMATION HS E NO . TENAN TS NAME RENT OUTSTAND PAYAB ING LE ARREAS HOUS E DEPO SIT ELECTRI CITY DEPOSIT WATE R DEPO SIT TOT AL

Yours faithfully

JAMES N. NGANGA 0722635915 VALUER AND TREND SETTERS PROPERTIES LTD, DIRECTOR.

Trendsetters Properties Ltd Comfort is not a privilege but a right.