Real Estate Management Case Study
Future System

New and revised processes are described below. Modify the context diagram, processes, and files as necessary and add whatever files and processes that are required.


ADD NEW PROPERTY. [Unchanged] When management purchases a new property, it provides all the necessary information to add the property to the properties file. The next available property number is obtained from the properties file and is assigned to the new property. All property data is edited as much as possible, and the new property record is added to the properties file.

ADD NEW RENTER. When a new renter inquires about a property, he or she will fill out an application, listing such information as name, address, telephone number, social security number, drivers license number, date of birth, references, and credit history. Before applicants are accepted a personal interview must be conducted, references must be contacted, and a credit check must be performed. If the applicant is acceptable, then a lease agreement is signed and the applicant is provided with a copy of the property restrictions. If an applicant refuses to sign the lease agreement and/or does not agree to the restrictions, then the applicant is rejected. If the lease is signed then the applicant is required to provide a deposit equivalent to the sum of the first and last month's rent. A renter record is compiled by obtaining the next available renter number from the renter file and then editing all renter data from the application (renter number, property number, unit number, name, deposit amount, and effective date) as much as possible, and the new renter record is added to the renter file. The renter number, property number, and unit number are recorded on the lease agreement before it is stored in the lease file. Finally, the properties file is updated by recording the new renter number and changing the property status to occupied. A hard copy of the application is filed.

APPLY RENT PAYMENT. When a rent check is received, the renter number on the check is verified against the renter file to make sure it is valid. If the renter number is not valid then the renter name must be manually matched up with the correct property and unit number. When the check can be associated with a unit the amount of the payment is subtracted from the balance due, and added to the amount paid for the current month. If the payment is a partial payment only, then a notice of balance due is sent to the renter and to management. The renter record in the renter file is updated to reflect the payment.

POST MONTHLY RENT CHARGE TO RENTERS. [Unchanged] On the first day of the month, the rent charge (as determined by the appropriate property unit) for the new month is added to the renter's balance due. The rent charge is also used to create a payment detail for the new month.

PERFORM PROPERTY MAINTENANCE. Maintenance is performed on properties on a regularly scheduled basis as well as in response to requests by renters. Regularly scheduled maintenance, such as heating and cooling maintenance, painting, and carpet cleaning, is performed according to a schedule stored in the maintenance file. The urgency of each renter request is assessed and assigned a status (cosmetic, functional, critical) and a scheduled date, and then the maintenance is recorded in the maintenance file. A weekly maintenance schedule is generated and provided to the maintenance workers. When maintenance is performed a work order is filled out and signed by the maintenance worker (property number, unit number, complaint, cost, etc.) and stored in the maintenance file.

PREPARE PROPERTY FOR RENTER. When a property is vacated it must be prepared for a new renter. First the maintenance needs are evaluated, scheduled and performed. Next, the property must be thoroughly cleaned. Finally, the status of the unit must be changed from vacant to available in the property file and management must be notified of the change.

EVICT RENTER. A renter can be evicted for failure to pay their rent in a timely manner or for failure to abide by the restrictions. If a renter is evicted the renter is served notice, law enforcement is contacted if necessary, and legal counsel is notified. Renter belongings are removed if necessary and placed in storage pending payment of overdue amount. The renter is also removed by law enforcement officials if necessary. The renter record is removed from the property management system following the process described elsewhere, and credit agencies are notified about the delinquent account.

REMOVE RENTER. When a renter is evicted or decides not to renew the lease agreement, the status of the deposit must be determined. If the renter was evicted then the deposit is forfeited. If the lease is not renewed then the deposit status is determined by first assessing any repair needs. If repairs are necessary then the cost is deducted from the deposit amount and the remainder is returned to the renter. If no repairs are necessary then the complete amount of the deposit is returned to the renter. The lease is moved from the lease file to the inactive lease file, and the renter record is moved from the renter file to an inactive renter file. That renter file is updated to reflect the renter status (non-renewal, eviction), the departure reason, the amount of deposit returned, and justification of deductions from the deposit. The property file is updated to change the status from occupied to vacant, and the property is then prepared for a new renter as described elsewhere.

PRODUCE DELINQUENCY AND EVICTION NOTICES. On the first day of the month, before posting the monthly rent charges as detailed above, all renters with overdue rents (a balance due greater than zero) are extracted from the file. Those who owe less than six months' rent (as compared with the monthly rent in the current payment detail) are sent a delinquency notice using the address from the appropriate property record. Those who owe six months rent or more are sent an eviction notice. As notices are produced a Delinquency and Eviction Report is generated and sent to management.

PRODUCE LEASE RENEWAL NOTICES. On the first day of the month, renters with leases that have an expiration date during the following month are extracted from the file and sent a renewal notice.

PRODUCE MAINTENANCE REPORT. On the first day of the month, all maintenance records indicating maintenance performed during the preceding month are extracted from the maintenance file and included in a report which is sent to management.

PRODUCE VACANCY REPORT. At any time management may request a vacancy report. This lists each property that has one or more vacancies. For each property, the report lists the property address, the total number of units in the property, the number of vacant or available units, and the unit number, monthly rent, and status (vacant or available) for each vacant unit.

PRODUCE CASH FLOW REPORT. On the first day of the month, before posting the monthly rent charges as detailed above, a cash flow report which includes all payments and costs posted during the previous month is prepared for management.