Information About Management

Thank you for downloading our information package. We take pleasure in providing you details of our
property management services. As soon as we receive your written authorization to act as your property
managers we will:

1. Inspect the property to establish a rental value. Rental market value changes over time. We monitor the market changes and advise the owner of rental conditions annually in order to both maximize returns and maintain a steady income stream.
2. Suggest any upgrading or repairs that may be done, both at the initiation of the property management agreement and throughout the life of the asset under management.
3. Advertise for tenants in local papers, the internet or other media, all at our expense.
4. Screen prospective tenants, investigate references and conduct credit checks to establish tenant suitability.
5. Negotiate rental agreements. Our tenancy agreements are drafted to protect and maximize the ongoing value of the owner’s asset.
6. Make a checklist of all deficiencies and the general condition of the premises at the date of occupancy.
7. Collect damage deposit and rents, provide monthly statements and, prior to February 28th each year, and provide an annual summary of income and expenses for tax purposes.
8. Attend to any repairs or maintenance necessary. Our contract provides for repairs of up to $200.00 at our discretion, however we generally check with the owner, depending on the nature of the repairs. We maintain a 24-hour answering service in order to respond to emergency situations at any time of the day or night.
9. Inspect the property from time to time to ensure that it is being properly cared for and to provide you with suggestions for upgrading. We will also, from time to time, provide you with a property valuation in order to assist you in maximizing the return on your investment.
10. Provide and file Non-Resident Tax forms on your behalf with Canada Customs and Revenue Agency for non-resident owners.
11. Pay mortgages, insurance, strata fees and other recurring property expenses as the owner may from time to time direct.

Coronet Realty Ltd. has been in business since 1969. We currently manage approximately 250 individual
rental properties throughout the Lower Mainland, both single family homes and individually owned
condominium units. Our business is truly global, with clients all over the world, from Hong Kong to the Persian
Gulf to Europe and the USA. Our staff includes English, Spanish and Cantonese speakers and consists of
four people. Robert Chipman is the Owner | Broker, he has been a licensed Realtor® since 1988. Aaron
Best joined our company as a Realtor® in 2003. Aaron acquired his Property Management license in 2009.
Ms. Ka Man Chan, our administrative and accounting assistant, has been with us for eight years. Her
attention to detail is a great asset, and is complimented by Chan Tao, our Office Administrator(s).

You can contact us 24 hours a day by phone (604-298-3235), fax (604-298-4003), toll-free anywhere out of
B.C. in Canada and U.S.A. (1-888-643-2299), cellular phone (604-230-4225 – Rob Chipman, 604-790-1295 –
Aaron) and e-mail (address: admin@coronetrealtyltd.com) if you need information regarding your property.
You may also browse our website at www.coronetrealtyltd.com.

While our fees are negotiable, we normally charge 20% of the 1st month’s rent as a fee for finding the tenant
and doing all the screening, and 10% of the rents collected. If the property already has a suitable tenant in
place, there is no initial start up fee. If you already have a tenant we do not charge the 20% start-up fee, so
you pay only the 10% per month. We also have an alternate fee package of 8% monthly with a $350.00 startup fee.

Effective property management consists of four fundamental parts: tenant relations, physical property
maintenance, complete accounting, and asset management advice.

TENANT RELATIONS: As property managers we place ourselves between the owner and the tenants. The
tenants do not normally even know the owner’s name and would have no contact with the owner. We
maintain the tenancy on a businesslike foothold, free from emotional considerations. All too often, tenancies
go awry because the tenancy agreement was not enforced as written, a repair was not followed up on, a rent
increase was not properly served or not served at all, an important date was missed, a breach was ignored.
Being fully computerized, having an in-depth understanding of the Residential Tenancy Act, and having
developed standardized response systems after years of experience, we avoid these pitfalls. Our Residential
Tenancy Agreements contain clauses that completely outline the duties and responsibilities of each party, and
they are upgraded annually to reflect the changes the Act, the Regulations to the Act, the Interpretation
Guidelines to the Act and Regulations, and the Interpretations and Guidelines for Arbitration the Residential
Tenancy Branch.

PHYSICAL PROPERTY MAINTENANCE: a residential property is an organic thing. Over time parts of it wear
out, systems fail, appliances break. Different properties need different levels of care. We advise the owner on
prudent maintenance to maximize the performance of the asset. We confer with the owner on the level of care
that is appropriate. In the case of condominiums, we deal with the strata managers and the strata council on
the owner’s behalf. We discuss with the owner whether we repair now or at a later date. We discuss with the
owner any contemplated upgrades to the property and advise whether upgrades are warranted to maximize
the value of the asset. We maintain a full list of qualified and dependable tradesmen to select from for each
job. We supply estimates before proceeding, except in the case of an emergency. Emergencies can be
traumatic for an owner, and an owner may not be in a position to respond in a timely manner, but we deal with
broken appliances, leaking roofs, flooded basements, and broken water tanks all the time. For us, it is just part
of the job. We maintain complete records of all repairs, purchases, warrantees, guarantees, etc. As a property
is an organic thing, the day will eventually come when it is no longer worth maintaining, and that the
underlying land has a greater value than the structure upon it. We will advise the owner when that day comes
as well.

COMPLETE ACCOUNTING: When rent money comes in to the office, it is deposited “in trust”. From there it
is dispersed as our owner has directed. Some of our owners have us pay virtually everything, including
mortgage payments, strata fees, insurance renewals, property taxes and repair and maintenance. Other
owners have us only pay emergency repairs and have all the proceeds sent on to them or to their bank. Every
month there is a full accounting of what transpired in the account, and every year there is a consolidated
statement. Our service with non-resident taxes allows the owner to travel extensively as we look after the day
to day running of the property.

ASSET MANAGEMENT: Many property owners do not think of themselves as investors, but in fact, as soon
as a property is put out to rent, the owner is an investor. Once the property is rented, every month the owner’s
equity is increasing. Over time the property rises in value and over time the tenant pays off a portion of any
mortgage principle. We review the property from time to time, check mortgage rates, analyze the rise and fall
of the property market, compare rent to value ratios, and provide the owner with ideas to maximize the return
on investment in a manner that meets the owner’s long term goals. We keep an eye out for potential
improvements to the property’s value and advise of possible additions to the owner’s real estate investment
portfolio. Often we find that, because of the rise in property values and the rise in rents over time, an owner
can purchase other properties with no additional cash outlay. We also advise owners when to sell a property
either because the property is too old to support a decent cash flow stream or because a property has
become so valuable that the rent to value ratio no longer makes sense. As licensed realtors, we can assist
owners in all their property transactions.

We trust this letter outlines the level of service we provide. Please call us for answers to any further questions
or queries you may have.

We enclose a sample contract for your information. Should you care to proceed, please contact us by fax or
telephone.

Yours truly,
Rob Chipman & Aaron Best
Owners | Brokers
Coronet Realty Ltd.