This Agreement, made on {{date49}}, by and between, {{name}} ("Owner and/or Landlord"), hereinafter referred to as "Owner and/or Landlord" who represents that Owner has the right to lease the property located at {rentalProperty} ("the Property") and, Anthony Williams d/b/a The Lease Collection, hereinafter referred to as ("Property Management, Property Manager and/or Leasing Agent") located PO Box 674 Oxon Hill, Maryland 20745 which is duly licensed to manage the property as a property manager and/or agent.
The owner will abide by all federal, state, and local laws, ordinances, and regulations governing fair housing rules and practices regarding discrimination, as well as all other pertinent laws.
The Property listed herein shall be shown and made available to all persons without regard to race, color, religion, national origin, ancestry, sex, age, marital status, sexual orientation, presence of children, familial status, age over 62, physical or mental handicaps and all additional classes protected under all applicable local fair housing laws.
NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained, it is hereby agreed by and between Owner and Manager/Agent hereto as follows:
1. DEFINITIONS:
a. Income Paid to Owner ("Owner Income"): all rent and payments due to Owner in excess of management fees or fees due to Manager according to this Agreement, including but not limited to overnight guest fees; lease termination fees; smoking fine(s).
b. Fees Paid to Manager ("Management Fees" ): all fees or receipts in excess of any monies collected from Tenant, and all fees identified within this Agreement as specifically due to Manager and/or Owner, including but not limited to NSF check fees; bank fees; rejected transfer fees; late fees; 3 to 5% surcharge for credit card use; e-check fees; administrative fees; legal fees; lease administrative fees; losses.
c. Rent-to-Own: any transaction in which Owner enters an agreement with Tenant that includes rights or provisions allowing Tenant an "option to purchase" or similar language which would convert a rental/lease agreement to a purchase transaction.
d. Tenant: person(s) or entity(ies) in lawful possession of the property being managed by Owner, provided they are recognized by Owner and Manager as lawful Tenant (s).
2. AGREEMENT TO MANAGE:
a. Engaging the services of Manager: The Owner hereby appoints the Manager as Owner's Agent and property manager, with full authority to engage in such activities or services as are identified within this Agreement. Manager shall not be required to perform any services which are not specifically identified in this Agreement or any modification thereto unless required to do so by any law which supersedes this Agreement.
b. Relationship of Manager to Owner: The relationship of the parties to this Agreement shall be that of principal and Agent, with the Manager serving as the Agent of Owner and an independent contractor of Owner. Nothing in this Agreement shall be construed as creating a partnership, joint venture, or any other relationship other than an agency. The Manager shall not be considered an employee of the Owner.
c. Description of Property: "Property," as used throughout this Agreement, shall be limited to the property or properties described on Exhibit A attached. The Exhibit may be amended or modified to add or reduce the number of properties at any time, provided Owner and Manager agree to the changes in writing.
3. TERM/RENEWAL: The Owner hereby exclusively employs Agent to rent, lease, operate, and manage the Property, upon the terms hereinafter beginning on {date}. Upon expiration of the above initial term, this Agreement shall automatically renew monthly, unless properly terminated according to the terms of this Agreement.
5. MANAGER'S RESPONSIBILITIES: To assist the Owner with the ongoing management of the Property. The manager, by all means, shall not be held liable for Landlord's failure to uphold all duties and responsibilities required to State and Local requirements. Manager shall perform the following:
a. Collection and Disbursement: The manager shall collect all rent due and owing and provide to the Owner all Owner Income. Manager shall remit to Owner all income, less any properly deducted fees/charges, by U.S. Mail, wire, automatic payment, or other arrangements as established by Manager and Owner. Before payment is remitted to Owner, Manager reserves the right to hold rent checks from Tenant with previous NSF or other payment issues until the check has officially cleared Manager's bank. Should payment made by Tenant be refused or returned for any reason, Owner shall refund to Manager any such payment made to Owner within three days from written or verbal request, or the payment will be reversed and drafted from Owner's bank account on file.
b. Late Payments from Tenants: Any Lease with the Tenant shall include a late rent fee in the event Tenant rent is not received by the 5th day of each month. The late fee shall be limited to the maximum amount allowable by law. To the extent, Manager is not involved until the lease has been executed, this fee shall still apply to the Tenant. All late fees shall be paid to management if past due rent is collected by management before scheduled owner disbursement is due. If past due rent is collected after the owner disbursement deadline, management shall pay the Owner 50% of the late fee collected. Management reserves the right to employ additional efforts to pursue and collect past due rent on behalf of the owner/client. In addition, management reserve the right to apply additional fees to the Tenant, and this fee shall be deducted from amounts due to the Owner.
c. Advertising: Manager is hereby authorized to advertise and market the property for rent, using periodicals, web sites or other online media, on-site signs or displays (provided the same comply with applicable law and ordinances), or such other means Manager deems necessary and appropriate; to show the property to prospective tenants, and to cause references of prospective tenants to be investigated. Owner agrees to provide Property Manager with such access to the property as may be necessary for any advertising.
d. Lease negotiations: The Manager will set rents that, in the opinion of the Manager at the time of the rent negotiations with the Tenant, reflect the market conditions of that time and approximate rents of comparable rental properties. The Owner designates the Manager as its Agent to negotiate and sign any and all lease agreements or related addenda on its behalf unless expressly instructed otherwise in a written statement from Owner to Manager. Barring such instruction, the Manager will employ best efforts to pursue lease terms and agreements consistent with the broad terms Owner and Manager have discussed for the property. The manager is not, nor shall it be expected to be, legal counsel or a legal advisor to the Owner. The Owner is advised to seek their own legal counsel for legal issues or legal questions related to the property.
e. Property Inspections: Manager shall complete move-in and move-out inspections. The Owner may request additional Property site visits or inspections per year for an additional charge of $75.00 per inspection. Owner shall also pay all inspection fees, fines, costs, and assessments charged by any governmental authority, and Owner shall indemnify and hold Manager harmless from and against the same unless an act or omission of Manager caused the imposition of such fees, fines, costs or assessments.
6. MANAGEMENT FEES & EXPENSES: As compensation for the services rendered by Manager under this Agreement, exclusive of reimbursements of and in addition to expenses to which Manager is entitled, Owner shall pay Manager as follows:
MONTHLY PLAN, the Manager shall be paid 8% per month/unit ONLY when the unit is OCCUPIED for managing the property. *Price: $200 One-Time Account Set Up Fee, 8% of Monthly Rent, No Cancellation Fee, Month to Month Auto-Renew Agreement
What's Included: Tenant Screening (Credit Check, Income Verification, Background Check, Rental History, Employment Verification, Social Security Verification, Income Verification.), Move-In/Out Inspection, Owner/Tenant Portal, 24/7 Maintenance Coordination, Account Management, Quarterly Visual Property Inspections, Rent Collection, Lease Enforcement, Issue Notices & Reports, Multi-Unit Discount (4+), 24/7 Customer Support
The Owner must maintain an active credit/debit card on file, which will be billed as monthly recurring charges for services rendered. The Owner will receive monthly invoices of all charges associated with ongoing property management services, fees, etc. If the property is a single-family home operating as a multi-unit rental, a management fee will be applied to each unit leased. Separate tenant accounts will be set up by management.
The Manager fee includes 4 hours per year of on-premises time by the Manager for inspection or One (1) hour every three (3) months in-person or virtual inspection at agent discretion considering CDC Covid-19 Guidelines, in addition to the hours necessary to complete Manager Responsibilities. All other time requested of the Manager that does not fall within Management Responsibilities shall be billed at $75.00 per hour/per inspection, payable by Owner. The manager shall identify such excess time for the Owner's advance approval.
7. TERMINATION:
a. BY OWNER, WITHOUT CAUSE: The Owner shall have the right to terminate this Agreement with or without cause. Owner shall notify Management Team in writing of its intention to terminate this Agreement on or before thirty (30) calendar days and upon paying a cancellation fee of $295 in which case this Agreement will be terminated.
If Owner terminates this Agreement without cause, Agent shall be paid by Owner as compensation for its services an amount equal to $295 (cancellation fee) on the effective date of said termination to the end of the term of this Agreement (initial or subsequent anniversary). The Owner must maintain an active credit/debit card on file, which will be billed as monthly recurring charges for services rendered. The Owner will receive monthly invoices of all charges associated with ongoing property management services.
b. TERMINATION BY AGENT: In the event, Owner shall take or fail to take any action as required by law; the terms of this Agreement or the terms of the written lease, Agent, in Agents sole and absolute discretion, shall have the right to terminate this Agreement at any time by written notice to the Owner of the election to do so.
c. TERMINATION DURING VACANCY: In the event that the property remains vacant at any time for more than one-hundred and eighty (180) calendar days, either Owner or Agent may terminate this Agreement upon written notice. If Owner exercises this right to terminate this Agreement, the Owner shall pay Agent the sum of $$295 as compensation for Agent's efforts to lease the property and shall pay the advertising and other costs actually expended by Agent in attempting to lease the property.
If Agent terminates this Agreement, Owner shall pay to Agent only the advertising and other costs actually expended by Agent in attempting to lease the property. Additionally, any leasing or additional leasing fee shall be paid by the Owner to Agent if a tenant has been shown property prior to the termination of this Agreement, even though the execution of the lease occurs after the expiration. The Owner must maintain an active credit/debit card on file, which will be billed as monthly recurring charges. The Owner will receive a monthly invoice of all charges associated with ongoing property management services.
d. NOTICE OF TERMINATION: Termination notice may be served personally, via email, or by registered or certified mail. Termination shall be effective ten (10) days after the same is deposited in the mails or hand-delivered to the Owner. Such cancellation shall not release the indemnities of the Owner set forth in this Agreement and shall not terminate any liability or obligation of the Owner to the Agent for any payment, reimbursement, or other sums of money then due and payable to the Agent hereunder. The Owner must maintain an active credit/debit card on file, which will be billed as monthly recurring charges. The Owner will receive a monthly invoice of all charges associated with ongoing property management services.
e. Owner Responsible for Payments: Upon termination, Owner shall pay Manager any fees, commissions, and expenses due to Manager for services already rendered or payments due through the month of termination. Owner shall assume and satisfy the obligations of any contract or outstanding bill incurred by Manager under this Agreement. The manager may withhold funds for 30 days after the end of the month in which this Agreement is terminated in order to pay bills previously incurred but not yet invoiced and to close accounts. Manager shall deliver to Owner, within 30 days after the end of the month in which this Agreement is terminated, any balance of monies due Owner or Tenant security deposits, or both, which were held by the Manager with respect to the property, as well as a final accounting reflecting the balance of income and expenses with respect to the property as of the date of termination or withdrawal. The security deposit will not be released unless all parties agree in writing to the transfer of the security deposit from the Manager's trust account to the Owner.
f. Termination for Violation of Agreement or Law: The manager reserves the right to terminate this Agreement with 30 days written notice if the Owner is found to have violated the Agreement. Manager reserves the right to terminate this Agreement immediately if Owner acts in a manner which, at the discretion of Manager, creates a hostile or otherwise harmful relationship with Manager, or Owner is found in violation of any federal, state, or local law that may create a liability to Owner, impact the goodwill or public reputation of Manager, or otherwise endanger Manager in any way.
8. ADDITIONAL CHARGES:
a. New Clients: Owners who are new clients with Manager, who also have a Tenant Find/Tenant Placement Agreement with Manager, shall pay Manager a discounted One-time $200.00 set-up charge per unit upon signing this Agreement. Owners who have found their own Tenants without a Tenant Placement Agreement with Manager shall pay a one-time $200.00 set-up charge per unit to Manager upon signing Agreement.
9. LEASING & RENTING:
a. Manager's Authority: The Manager is authorized to negotiate, prepare and sign all leases, including all renewals and extensions of leases and to cancel and modify existing leases for the Owner; however it is expected that the Owner approves and sign all leases, renewals, extensions, and addendum. To the extent, Owner wishes to take this responsibility or wants final approval of such terms, the Owner must identify this to the Manager in writing. Leases are to be written on Manager's preferred lease agreement.
10. LEASING FEE: The Owner agrees to pay Agent a leasing fee which is separate and apart from the property management fee.
In return for advertising vacant Property, Owner shall pay Manager an amount equal to
One full month's rent for all leases up to 17 months
1.5 times a month's rent for all leases from 18-35 months
Two full month's rent for all leases 36 months or longer
Owner shall pay Manager an amount equal to 2 full months' rent for advertising rent-to-own Properties.
Payment shall be due upon the Tenant's signing of a lease at the rental rate agreed to in the lease. In the event the Owner shall procure a tenant on his own, Owner may choose to use The Lease Collection lease forms, addenda, and background check services for a fee of $350.00. The regular commission associated with lease length would no longer be due. In the event Manager showed the Property to Tenant, prior to Owner showing the Property, Manager has procured Tenant for purposes of commission being due from Owner. If the Owner has procured the Tenant, the Manager will not provide a Tenant Warranty otherwise made available under the Tenant Placement Agreement.
It is further agreed that in any instance where Agent is required to negotiate and/or have executed a longer-term or lease renewal or extension, that additional leasing fee shall be paid by Owner to Agent for each year or portion thereof that the lease is renewed or extended.
Owner agrees to pay said leasing fee and/or additional leasing fee when a tenant has been obtained who is ready, willing, and able to lease the property on the terms and conditions set forth herein or any variance from those terms to which Owner may agree. Agent shall be entitled to retain said fees (or portion thereof) from the first full month's rent paid by Tenant.
The Agent is authorized and may decide to place a "For Rent" sign on the property and to advertise the property for rent. The owner may select the option to use additional paid advertising campaigns. Paid advertising campaign costs will be paid by the Owner, and the form, content, and frequency shall be in the sole discretion of the Agent. Agent's obligation to advertise is at Agent's sole discretion.
11. ENFORCEMENT OF THE LEASE AGREEMENT: To the maximum extent permissible by applicable law, the Manager is authorized to institute, in Owner's name, all legal actions or proceedings for the enforcement of any lease term, for the collection of rent or other income from the property, or for the eviction or dispossession of the Tenants or other persons from the property. The manager is authorized to sign and serve such notices, as the Manager deems necessary for lease enforcement, including the collection of rent or other income. If Manager deems it necessary, Manager may retain an attorney of Manager's choice after notice provided to Owner (unless Owner supplies Manager with the name of Owner's attorney). The owner shall pay all attorney's fees and court costs as their actual costs are incurred.
12. EVICTION PROCEEDINGS: In the event eviction proceedings are necessary, Management Team may decide to contact the Owner via phone or email as a courtesy to request permission to proceed with eviction administration services. The owner shall pay Manager a $350.00 fee for completing all administrative tasks required for eviction. This fee is for all costs associated with the eviction proceeding, such as court filing fees, delivering court date documents via in-person process server or certified mail, and attorney fee for the first (1st) day in court in efforts to obtain a court-ordered judgment for possession of the property. Additional attorney fees beyond the first (1st) day in court are priced separately or will cost $350 per hour when using management's preferred attorney.
If the Owner has the Eviction Protection Plan, this fee shall be waived. In the event Owner is a corporation, LLC, or similar entity, Owner may be required to have their own attorney present to represent them at such an eviction hearing. In such an event, the Owner will not be represented by the Manager in the eviction process, and the Owner shall be responsible for hiring his own attorney at the Owner's expense.
The owner agrees to NOT communicate directly with Tenants without notifying the Property Manager. Owner agrees to direct all Tenant communications to Property Manager.
Owner approves Manager to take immediate action towards eviction proceedings in the event of tenant failure to pay rent.
13. LEASE RENEWALS: The manager shall be paid $350.00 for each individual lease renewal due to the Manager at execution of lease renewal. The management fee will increase at $10.00 annually only as a result of securing a 3% to 5% rent increase. If the rent increase is not secure or negotiated by management, management recurring fees will remain.
14. INTEREST ON UNPAID SUMS: Any sums due Manager under the terms of this Agreement and not paid within 30 days after such sums have become due shall bear 8% interest per year on any unpaid balance by Owner.
15. NEGOTIATING WITH VENDOR/CONTRACTORS: The manager maintains business relationships with vendors and/or contractors who may be regularly retained by the Manager for maintenance and other services. Sometimes these services are contracted for and paid in bulk or on a time-spent basis, where Manager is charged for the work performed on several properties rather than on a per-property basis. Due to the ongoing nature of these relationships and the volume or bulk nature in which these services are contracted, the Manager may receive such services at a price that is discounted from the same vendor or contractor's established rates or a comparable market rate for such services.
Therefore, if the Manager negotiates, hires, and manages such a vendor or contractor to perform work on the Property, Manager shall charge the published or market rates for such service, even in circumstances in which the fee ultimately paid by the Manager (on a per-service, per unit basis) are more or less than the market rate.
Therefore, if the Manager negotiates, hires, and manages such a vendor or contractor to perform work on the Property, Manager shall charge the published or market rates for such service, even in circumstances in which the fee ultimately paid by the Manager (on a per-service, per unit basis) are more or less than the market rate.
Any difference between the market rate being charged to the Owner and the rate paid by the Manager (which may be more or less than such market rate) shall be paid by or retained by the Manager.
17. MAINTENANCE/MINIMUM BALANCE:
a. Reasonable Maintenance & Repair: The manager shall coordinate repairs or maintenance reasonably necessary to maintain the quality and habitability of the Property for Property as approved by the Owner and at the Owner's expense.
b. Owner warrants that the electrical, plumbing, heating, and air conditioning and any other mechanical systems and related equipment, including kitchen and laundry appliances included as a part of the leased premises, shall be in good operating condition at the time of Tenant's occupancy. In the event tenant finds equipment not to be in good operating condition, Agent is authorized to have said equipment repaired and deduct the cost from Owner's funds, if sufficient, or Owner will reimburse Agent promptly upon request from Agent.
c. Except as provided herein, Owner authorizes Agent and Agent agrees to perform necessary and proper maintenance, repairs, cleaning, and decorations in and to the property and the purchase of incidental supplies therefore at Owner's expense. The owner agrees to provide a Soft and Hard Budget to be approved as a Minimum Balance for the Agent to make routine repairs and work above and beyond routine property management duties. Costs of repairs or replacement of appliances, hot water heaters, HVAC furnaces, and other repairs, replacements, or improvements shall be billed to Owner at actual contract costs to Manager plus a 10% fee for administrative work and supervision is required.
d. A reasonable charge may be made by Agent for time or charges necessary to comply with all applicable governmental laws or regulations and compliance with such rules or regulations or excessive time spent in protecting Owner's interests in any way, such as legal actions or inspections. The Minimum Balance is to be maintained from the balance of rent monies or by additional funds paid promptly by the Owner upon request from Agent.
18. EMERGENCY MAINTENANCE & REPAIRS:
a. In the event of a request for maintenance which Manager deems to be an emergency issue if the Owner has not responded to the request for permission to address the request within 24 hours, the Manager reserves the right to address and correct all repairs that are immediately necessary for the preservation and safety of the property, at the Owner's expense, to avoid the suspension of any essential service to the property, to avoid the danger of life or property, or to comply with federal, state, or local law. Repair costs shall be paid to the Manager from future rental income, deductible the month following the repair. For extenuating circumstances or emergencies that may threaten the health or safety of Tenant or others or cause additional ongoing damage to the property Manager has authority to use reasonable discretion in taking necessary precautions or timely response to address emerging issues within the Manager's ability to address within the least amount of time necessary to prevent further harm until Owner has an opportunity to respond or intervene.
b. Except in the event of emergencies, expenditures exceeding $500.00 will be made by Agent only after being authorized to do so by the Owner. It is agreed and understood that emergency repairs are those which, in the opinion of Agent, are expedient, desirable, or necessary for the health, comfort, and safety of the Tenant or for the protection of the property; for compliance with housing codes or violation notices; or to maintain services to the Tenant as called for by the lease, which repairs Agent is authorized to make. The decision of Agent will be accepted as final in any of the foregoing instances, and charges for the same shall be billed to Owner.
19. NOTIFICATION & RESPONSE:
The manager will contact the Owner via both email and phone to provide information about maintenance requests placed on the property. Owner is required to respond to requests within 48 hours of initial contact, or Manager may, at its discretion, contract for work to be completed and billed back to Owner.
20. ORDINARY MAINTENANCE & REPAIRS: All expenses associated with regular and ongoing Property maintenance shall require permission from the Owner, which may occur by written or verbal permission, including phone, fax, or email. The manager reserves the right to inspect property randomly at the discretion of the Manager. Owners with Home Warranty or Service Plans shall provide account information to Manager and must list Manager as an additional member on the account. Tenants shall be responsible for maintaining the property as addressed in their lease. Fines assessed by the city, municipality, or state for violations such as snow removal, lawn/tree/landscaping issues, trash, or the like shall be paid first by Tenant (if consistent with terms of the lease) or by Owner if Tenant is unable or unwilling to pay. The owner shall have property and carpets professionally cleaned by a Manager- approved cleaning company prior to moving in.
a. Pre-Move-In Maintenance: In the event Owner and Tenant agreed prior to lease execution that Owner would complete specific repairs, these repairs and their due dates shall be written into and become part of the lease agreement. If the agreed-upon repairs have not been completed by the due date or the move-in date, whichever is later, the Manager reserves the right to hire a Manager-approved contractor to complete the maintenance or repairs. The owner shall be responsible for all maintenance and repair expenses as well as a 15% administrative fee payable to the Manager for the coordination and completion of such repairs.
b. If the Owner requests and authorizes Manager to make payments on the trusts or mortgages secured by the property, the Owner will keep the account funded with the Manager in an amount sufficient to cover the monthly costs of the trusts, mortgages, or expenses on the property. Manager agrees, upon request and authorization by Owner, to make timely payments on any trust or mortgage secured by the said property in accordance with a schedule of payments and account numbers supplied by Owner to Manager; provided, however, that there are sufficient funds immediately available in Owner's account with Manager for such purpose. Manager will not be expected nor obligated to advance or disburse any money, or any money owed as compensation to Manager for services hereunder for such purpose nor shall Manager be liable in any way to Owner for the default or any consequences thereof in terms of any trust or mortgage. Manager in its sole discretion may make payments on said trusts or mortgages in the event that there is a deficiency but is under no obligation to do so. If at any time, for any reason, there is a deficit in Owner's account with Manager, Owner shall reimburse Manager within ten (10) calendar days of notice of said deficit. Owner expressly consents to say payments being advanced and made by Manager without Owner's prior approval. If reimbursement is not made to Agent within the ten (10) calendar day period, then this Agreement may be terminated in the sole discretion of Manager upon written notice to Owner.
c. In the event that Owner, after having been given ten (10) calendar days notice of monies advanced by Manager, fails to reimburse Agent for said monies advanced on Owner's behalf by Manager, Manager in Managers sole election and discretion, shall have the option to charge 12 % per month interest on said unpaid balance, as well as the right to apply any of Owner's monies to pay said advancements and/or to pursue any legal and equitable remedies.
d. Contractors: Owner may select the contractor to perform maintenance and repairs on the property, provided Owner assumes all responsibility for coordinating maintenance and repair work for contractor Owner has selected, including but not limited to supervision, licensure, insurance, and payment of contractor and follows the Owner Completing Maintenance Policies provided. Should the maintenance not be completed within the time allowed by law, the Manager reserves the right to hire a Manager-approved contractor to complete maintenance or repairs originally contracted for by the Owner. The owner shall be responsible for all maintenance and repair expenses.
e. Payment for Repairs: The owner is solely responsible for all maintenance and repair expenses. If repairs are contracted through a Manager-approved contractor, all expenses shall by default be deducted from future monthly rent collected by the Manager. In some instances, a down payment may be required before a Manager-approved contractor will begin repairs. Any such payment shall be made directly to the Manager or Manager-approved contractor.
21. COMPLIANCE WITH CODES:
a. At all times, the property is to be maintained in compliance with all City, County, and municipal housing and property standards codes, including but not limited to maintenance condition and rent control/stabilization laws. If at any time, repairs should become necessary to maintain compliance, the Manager is authorized to cause such repairs to be made and to withhold the cost thereof from Owner's account, if sufficient, or Owner agrees to promptly reimburse Manager, upon request. Should the Owner refuse to permit or to pay for any such repairs, the Manager shall have the right to cancel this Agreement.
b. Except where caused by any negligent act or omission of Manager or Management employees, agents, or contractors, the Manager does not assume and is given no responsibility for the compliance of any building on the Premises or any equipment therein with the requirements of any statute, ordinance, law or regulation of any governmental body of any public authority or official thereof having jurisdiction, except to notify the Owner promptly or forward to the Owner promptly any complaints, warnings, notices or summons received by it relating to such matters. The Owner represents that to the best of his knowledge, the Premises and such equipment comply with all such requirements and authorizes the Manager to disclose the ownership of the Premises to any such officials and agrees to indemnify and hold harmless the Manager, its representatives, servants, and employees, of and from all loss, cost, expense and liability whatsoever which may be imposed on them or any of them by reason of any present or future violation or alleged violation of such laws, ordinances, statutes or regulations, except where caused by any negligent act or omission of Manager or Manager's employees, agents or contractors.
22. WARRANTIES/SERVICE CONTRACTS/SERVICE PROVIDERS: The Owner Agrees to provide the Manager with all current warranties on installed equipment and appliances and the names and phone numbers of any contractor(s)/tradespeople that Owner desires Manager to utilize as needed. Manager will call contractors/tradespeople requested whenever possible, but in no event will Manager be held liable should Manager fail to do so. Owner agrees that no contractor, whether employed by Owner or Manager, shall provide services to the property unless the contractor is properly licensed and first produces an insurance certificate naming Manager as additional insured for liability purposes.
In the event there is a warranty, or the Owner subsequently secures a warranty on the property or any equipment therein, the Manager will endeavor to utilize that warranty for repairs but shall be under no obligation to place service calls through warranty companies. When possible, maintenance calls will be placed to the Owner's warranty provider. If the Manager is unable to reach the warranty provider or the warranty provider cannot perform required work within a reasonable time, which will vary based on the urgency of the task, the Manager shall be free to order repairs through its usual vendors, and the Owner agrees to accept responsibility for payment. Call-back for warranty work will go to non-warranty company vendors.
It shall be the Owner's responsibility to provide the Manager with warranty contact information, account numbers, and/or terms. If there is a service contract that provides for periodic maintenance, the Owner shall advise Manager when that maintenance is due.
Any heating, air conditioning, electrical, or plumbing issues shall be treated as an emergency. Thus, if the Owner's warranty provider or preferred contractor cannot or does not perform within a reasonable time, which may be deemed to be only a few hours, the Manager shall be free to order necessary repairs through its own vendors in order to satisfy emergency needs.
23. ACCOUNTING/DISBURSEMENTS: The Management shall keep accurate records of the receipts and expenditures for the property and shall furnish the Owner with such data from time to time as the Owner may require. Management shall make monthly disbursement of all funds received and maintained for or on behalf of the Owner. Such depository shall be selected by the Manager. The owner must allow management three (3) to four (4) business days as pertaining to banking regulations for any fund received by tenants via electronic transfer funds (ETF) to clear before being disbursed.
The owner is responsible for the interest on security deposits as mandated by state statute. Designated funds relating to the property in such accounts remain the Property of Owner subject to disbursement of expenses by Manager or collection of Management Fees described in this Agreement.
The agent will submit to the Internal Revenue Service at the conclusion of each year a Form 1099 indicating rents received for the lease of the property.
24. COLLECTION OR RENTS/OTHER RECEIPTS:
a. Manager's Authority: Manager shall collect all rents, charges, and other amounts receivable on the Owner's behalf in connection with the management and operation of the property. Such receipts shall be deposited in the Rent Escrow Account maintained by the Manager.
Management shall use best efforts to collect rents as and when the same become due and payable without recourse to legal action. However, management has the right to hire an attorney at the expense of the Owner to institute legal action in the name of Owner or Manager in an effort to collect rental and other expense items due from Tenant and/or for repossession of the property occupied by delinquent tenants or tenants in violation of lease covenants. When expedient and in Owner's best interest, Manager shall settle, compromise and release such actions or lawsuits or reinstate such covenants, including actions not relative to repossession of property. 50% of late charges, returned check fees as permitted by the laws of the state, or other fees collected by management from the Tenant under the lease shall be retained by management as compensation for the additional work, time, and administrative expense involved.
All payments from Tenant shall be applied to Tenant's oldest balance first unless such application is prohibited by law.
b. Security Deposits: The manager shall collect a security deposit from the Tenant and shall deposit it into the Security Deposit Escrow Account.
c. Deposit Disputes: In the event a Tenant challenges the security deposit disposition, it is the Manager's policy to direct the Tenant to address this issue with the Owner, as the Owner is required to determine the disposition of the security deposit. In the event the Tenant brings any suit, claim, or cause of action against or involving Manager in such a dispute, Owner agrees to indemnify and hold Manager harmless, which shall include but not limited, Owner paying Managers attorneys' fees incurred in such matter as well as judgments, liens, or costs assessed.
25. PROMPT DEPOSIT OF FUNDS: The Management is directed to deposit, within thirty (30) calendar days of receipt, all security deposits received under newly executed leases in a federally insured Banking or Savings Institution authorized to conduct business within the state. This account shall be devoted exclusively to security deposits. Management shall not be held liable for any loss caused by the bankruptcy or failure of the bank or institution in which the Owner's funds are deposited.
Upon expiration or termination of any lease, or in the event tenant(s) shall vacate the property prior to the expiration of the lease, management shall inspect the property for damages and shall determine, in the sole and exclusive judgment of management, the amount of deduction for damages to be applied against the rental security and Owner hereby agrees to be bound by such determination made by management.
In the event of a full or partial forfeiture of security deposits by Tenant, Management shall apply such amount to the oldest charge on Tenant's account first, thereby entitling management to any fees earned through the satisfaction of those charges by Tenant, including management fees, late fees, and other fees or charges due to management.
26. DISPURSMENT OF RENTS & OTHER RECEIPTS:
a. Net Proceeds: To the extent that funds are available due to Owner monthly.
b. Paper Check & Statement: Owners who choose to receive their rents via monthly printed- paper check accompanied by a paper statement shall be charged $5.00 per check issued. This fee will be added to the monthly management fee.
c. FastFunds: Owners who wish to avoid the paper check fee may choose to sign up for Fast Funds direct deposit/ACH. FastFunds is the electronic transfer of rental income via ACH, also known as direct deposit or ETF. This service is at no additional charge. With FastFunds, the Owner also agrees to accept an electronic statement known as an "e-statement" instead of a paper statement. FastFunds e-payments are processed each business day.
27. MANAGER IS NOT REQUIRED TO ADVANCE FUNDS: If the balance of funds held on behalf of Owner for disbursement is at any time insufficient to pay disbursements due and payable, Owner shall, not later than ten days after written notice, remit to Manager sufficient funds to cover the deficiency. In no event shall Manager be required to use its own funds to pay such disbursements, nor shall Manager be required to advance any monies to Owner or to the Escrow Account. If Manager elects to advance any monies in connection with the property to pay any Owner expense, Owner shall reimburse Manager, including interest at a rate of 8% per annum, and Manager may deduct such amounts from any monies due Owner.
Any funds paid by the Owner to the Manager that is rejected due to NSF or other similar reasons will incur a $25.00 NSF fee due to the Manager.
28. FINANCIAL & OTHER REPORTS:
a. Owner's Reporting to Internal Revenue Service ("IRS" ): Owner is required to file all required IRS forms and meet all IRS requirements. Owner agrees to furnish Manager with a proper TIN (Taxpayer Identification Number) via an IRS W9 form, or other applicable IRS approved document.
b. Reports: Manager shall furnish the Owner with a statement of cash receipts and disbursements from the operation of the property on a monthly basis. In addition, the Manager shall, on a mutually acceptable schedule, prepare and submit to the Owner such other reports as are agreed on in writing by both parties. The manager shall submit as required by the IRS at the conclusion of each calendar year a Form 1099 indicating the total income received from the property.
32. AGENCY/DUAL AGENCY: The Owner acknowledges that Agent may represent other owners who have similar properties for rent and that Agent may show other available properties to any prospective tenant(s). The owner also acknowledges that Agent may work with or represent Tenant (s) who are looking for similar properties to rent, but that a separate Consent for Dual Agency would be presented to Owner before licensees with Agent's firm may show the Property to Tenant (s) who are represented by Agent.
In the event of Dual Agency and either Owner or Agent declines to consent in writing to Dual Agency, Agent may terminate the agency relationship with the Tenant (s) and continue to represent Owner under the rental listing Agreement. If there is no consent to Dual Agency and Agent elects to continue to represent the Tenant, the rental listing Agreement shall be terminated. In such an event, the Owner must either represent himself or herself or arrange to be represented by a real estate licensee from another real estate company. Compensation to Agent shall be paid in accordance with the terms hereof and as set forth in the written rental listing agreement.
34. DILIGENCE: The Agent covenants and agrees to use diligence in the management of the property during the term of this Agreement until expiration or termination of same, and to perform the services in leasing, rental, operation, and management of the property.
Agent agrees to use best efforts and due diligence to procure a suitable tenant for vacancies as they occur in the property in accordance with a schedule of rentals supplied by Owner to Agent and to endeavor to collect all rentals which become due in accordance with the terms of any lease now in existence on the property, or which might be executed in the future by Agent for the benefit of Owner. Nothing in this Agreement shall be construed as a guarantee or warranty by Agent of the payment of rents or other charges by the Tenant.
35. VISUAL PROPERTY INSPECTIONS: The manager will conduct Visual Property Inspections approximately every three months or annually, by appointment with Tenant, of both the interior and exterior of the property and will report the Property condition to the Owner.
36. MINISTERIAL ACTS: The Owner agrees that Agent may perform ministerial acts for Owner and Tenant. A ministerial act is an act that Agent performs on behalf of Owner or Tenant after the execution of a lease or rental application, which assists the Tenant in completing or fulfilling lease terms; which does not involve discretion or the exercise of Agent's own judgment.
37. INSURANCE:
a. Owner's Insurance: The owner shall obtain and maintain adequate insurance against liability for loss, damage, or injury to property or persons which might arise out of the occupancy, management, use, operation, or maintenance of the property. The deductible required under such insurance policies shall be Owner's expense. Owner shall obtain an Additional Insured Endorsement naming Manager as the Additional Insured under the policy on all liability insurance maintained with respect to the property. The Additional Insured Endorsement shall provide coverage for Manager for any loss caused by any acts or omissions of Manager and/or any losses arising out of Manager's duties, work, or operations under this Agreement. Liability insurance shall be an amount sufficient to protect the interests of both Owner and Manager in form, substance, and amounts reasonably satisfactory to Manager, but not less than $100,000 per event/occurrence. Owner shall provide Manager with proof of hazard and risk insurance policies in force and shall obtain adequate vandalism coverage for the property. Owner shall furnish Manager with a certificate evidencing fire and liability insurance or with duplicate copies of such policies within 15 days after the date of this Agreement. Such policies shall provide that notice of default or cancellation shall be sent to Manager as well as Owner and shall require a minimum of 30 days written notice to Manager before any cancellation of or changes to such policies. Owner's failure to maintain such insurance shall result in Manager's authority to obtain such policies on behalf of Owner and Manager, at Owner's expense, which shall be deemed an additional fee or cost due to Manager. In the event of any loss, investigation, suits, damage, cost, expense (including attorneys' fees), liability, or claims for personal injury or property damage (collectively, "Claims") against Manager that would otherwise be covered under an Additional Insured Endorsement to any insurance policy, and is not covered due to Owner's failure to obtain said Endorsement within the prescribed15-day time period or at all, Owner shall indemnify and hold Manager harmless from said Claims.
Owner's Acknowledgement to Insurance Requirements: I understand that without naming The Lease Collection additionally insured OR notifying my insurance company "in-writing" that The Lease Collection will serve as my property managers to my property insurance policy, my account may be placed on hold, and I may not receive future rent payments until I have done so.
b. Tenant's Insurance: All Tenants procured by Manager are advised that it is recommended that they obtain renters insurance and that Owner's insurance does not cover tenants' personal items or effects. Owner may require Tenants to obtain renters insurance by notifying Manager in writing prior to lease execution.
38. MANAGER ASSUMES NO LIABILITY: The manager assumes no liability for any damages, losses, or acts of omission by the Tenant. Manager assumes no liability for any acts or omissions of Owner, previous Owners, or previous brokers. Manager assumes no liability for default by any Tenant. Manager assumes no liability for violations of environmental or other regulations which may become known during the term of this Agreement. Any such regulatory violations or hazards discovered by the Manager shall be brought to the attention of Owner, and Owner shall promptly cure them. Manager shall not be liable in the event of bankruptcy or failure of the depository bank where Owner's funds are deposited.
39. INDEMNIFICATION & OWNER'S RESPONSIBILITY TO DEFEND:
a. Generally: Owner shall indemnify, defend, and hold Manager harmless from all loss, investigation, suits, damage, cost, expense (including attorneys' fees) liability or claims for personal injury or property damage, including vandalism, incurred or occurring in, on or about the property.
b. Indemnification Survives Termination: All representations and warranties of the parties contained herein, including any provisions of this Agreement that require Owner to have insured or to defend, reimburse, or indemnify Manager, shall survive the termination of this Agreement. If Manager becomes involved in any proceeding or litigation by reason of having been Owner's Manager, such provisions shall apply as if this Agreement were still in effect.
c. Litigation and Compliance Expenses: Owner shall pay all fines, penalties, or other expenses in connection with any claim, proceeding, or suit involving an alleged violation of any law pertaining to fair employment, fair credit reporting, environmental protection, rent control taxes, or fair housing, including illegal discrimination on the basis of race, sex, color, religion, national origin, physical handicap, familial status, public assistance, age, elderliness or all other classes protected by state or federal law; provided, however, that Owner shall not be responsible to Manager for any such expenses if Manager is found in a court of law or tribunal of proper authority to have personally, and not in a representative capacity, violated any such law. Should Owner sue Manager, Owner shall pay the full costs of Manager's attorneys' fees and costs expended in defending itself, in the event Manager prevails in such suit. Nothing contained in this Agreement shall obligate Manager to employ legal counsel to represent the Owner in any such proceeding or suit.
d. Fees for Legal Advice: Owner shall pay reasonable expenses incurred by Manager in obtaining legal advice regarding compliance with any law affecting the property, which shall be requested or required by the Owner.
In the event of unrepresented appearances in court by the Manager, the Owner agrees to pay Manager $150.00 per hour in lieu of attorney's fees. However, it in no way shall be deemed legal advice as The Lease Collection DC officers, staff, and employees are not attorneys.
40. Owner Representations: Owner represents and warrants: that Owner has full power and authority to enter into this affecting the property other than
Disclosed Tenant leases, copies of which have been furnished to Manager; that there are no recorded easements, restrictions, reservations or rights of way which adversely affect the use of the property for the purposes intended under this Agreement; that the property is zoned for the intended use; that all permits for the operation of the property have been secured and are current; that any underlying mortgages or related liens permit rental of the property or proper steps have been taken to ensure the property being used in a manner consistent with how it has been represented to third parties, that the building and its construction and operation do not violate any applicable statutes, laws, ordinances, rules, regulations, orders or the like; that the information supplied by Owner is dependable and accurate; and that any loans, notes, mortgages, dues or trust deeds are fully paid or are currently without defaults.
41. HOLD HARMLESS/INSURANCE: The Owner agrees to indemnify, defend, hold harmless, and save Agent, its officers, directors, partners, employees, and agents, from any and all liability for damages to persons or property arising out of the condition of the premises or the use thereof that is beyond the control of Agent and from any expense in connection with any claim for damages. The owner will provide or otherwise authorize Agent to order, at Owner's expense, an Owner-Landlord-Tenant Liability insurance policy, naming both Owner and Agent as insured parties, with minimum coverage to be $500,000, to save Owner and Agent harmless from any suit involving liability and the party obtaining such insurance shall provide the other party with a Certificate of Insurance for same, naming Agent as "additional insured" under the liability portion. In the event that the insurance certificate is not received by Agent within five (5) calendar days from the execution of this Agreement, Agent may obtain such insurance at Owner's expense. Owner shall obtain, at Owner's expense, a fire and casualty insurance policy to provide for adequate property damage, vandalism, malicious mischief, and extended coverage insurance and Flood Insurance (if required) to protect his/her interest. In the event Owner's insurance provider will not issue any coverage, as provided in this paragraph, it shall be the duty of the Owner to seek alternative coverage which complies. Should Owner fail to obtain and maintain required insurance coverage, Owner shall remain personally liable for damages to the property which may occur.
Owner agrees to defend promptly and diligently, at Owner's expense, any claim, civil or criminal action, proceeding, charge or prosecution made, instituted or maintained against Agent or Agent and Owner, jointly or severally, arising out of the condition, management, or use of the property, or acts or omissions of employees of Owner in connection therewith, or otherwise, and to hold harmless and fully indemnify Agent from any judgment, loss or settlement on account thereof.
42. COMMON OWNERSHIP COMMUNITY RULES: The Owner is responsible for providing Agent and Management with any and all Condominium, Co-op, or Home Owners Association rules and regulations; and Declaration, Covenants, and Bylaws, where applicable.
43. RADON AND OTHER HAZARDS: The owner is responsible for providing the Agent with all information known to the Owner regarding hazardous substances and materials in the property, including but not limited to asbestos, radon, and lead-based paint.
44. PERSONAL PROPERTY: The Owner agrees that the Manager will not be responsible for Owner's personal possessions left on the Property and Owner is strongly urged to remove all personal possessions from the property prior to rental.
45. UTILITIES AND SERVICES:
a. Owner hereby authorizes Manager to enter into contracts, in Owner's name, and at Owner's expense, for electricity, gas, fuel, water, sewer, trash removal, and other services to and for the property, when same is not the responsibility of the Tenant.
The owner also hereby agrees and understands that the Manager will make efforts to encourage tenants to set up utility accounts. The manager is not responsible for unpaid utility bills or is not required to enforce tenants to make payments on utility bills. The manager will provide tenants with all account information provided by Landlord.
b. Owner shall be responsible for all utility hook-ups and contracts for other services as necessary or prudent for the operation of the property and for the payment of all bills for the same unless provided otherwise by the lease as Tenant's responsibility (for separately metered utilities).
c. Authorization to Connect Services: Owner authorizes Manager to sign for and allow professional installation of cable or satellite services using any existing wiring or connections. If any additional connections, mounts, or cabling is needed, Owner authorization must be obtained.
d. Electronic Signatures and Delivery: The Parties agree that the electronic signature of any Party on any document related to this transaction shall constitute a valid, binding signature of such Party.
The Parties further agree that electronic delivery of this Agreement or any documents through email or similar electronic means shall constitute sufficient delivery to the other Party.
46. MISCELLANEOUS:
Rights Cumulative; No Waiver: The exercise of any right or remedy provided in this Agreement shall not be an election of remedies, and each right and remedy shall be cumulative. The failure of either party to this Agreement to insist at any time upon the strict observance or performance of any of the provisions of this Agreement, or to exercise any right or remedy provided in this Agreement, shall not be construed as a waiver of such right or remedy with respect to subsequent defaults. Every right and remedy provided in this Agreement may be exercised from time to time and as often as may be deemed expedient by the party exercising such right or remedy.
Applicable Law and Partial Invalidity: The interpretation of this Agreement shall be governed by the state laws.
Consent to Communicate: By signing this Agreement, you have given express written permission to allow the Manager to communicate with you using phone, email, text, fax, and instant messaging for the following purposes: contact necessary regarding the fulfillment of this Agreement, marketing and advertising purposes deemed appropriate by Manager, and cross-branding efforts or initiatives between the companies with the same or common ownership structure as Manager. The manager will not be allowed to sell your personal contact information.
The owner also agrees not to directly communicate with tenants via phone, email, text, fax, social media messaging, or instant messaging without Manager's knowledge during the term of the Management Agreement. The owner agrees to direct all tenant communications to property managers.
47. RENTAL LICENSE: The owner is responsible for applying for, obtaining, and timely renewing all licenses, permits, and other approvals necessary for renting the property.
To the extent, Owner fails to obtain or maintain any applicable authorization or permitting necessary to rent the property (including but not limited to permits from the city or municipality, authorization from a common interest community, and the like), the Owner agrees to indemnify and hold Agent harmless from any liability for damages or loss arising out of Owner's failure to maintain any required rental facility licenses. The owner will provide the Agent with a copy of the current rental facility license at the time of execution of this Agreement or as soon as the license is obtained, whichever first occurs.
The owner acknowledges they have reviewed all state and local laws and/or penalties as a result of failing to comply with rental housing laws.
48. EMPLOYEES (Agent Agrees:) Owner covenants and agrees that any and all personnel required for the operation and maintenance of the property shall be deemed independent contractors or employees of Owner and not Manager/Agent; that Manager/Agent may perform any of its duties through Owner's attorney, agents, or employees or an attorney obtained by Manager/Agent; and that Manager/Agent shall not be responsible for the acts, defaults or negligence of the Tenant and/or employees or agents of Owner, or any employees of independent contractors.
49. FINAL ACCOUNTING/REMITTANCE: Until expiration or termination of this Agreement for any reason whatsoever, Manager agrees to remit to Owner an accounting and all monies due to Owner as soon as all obligations regarding the property are satisfied. Owner agrees to remit immediately to Manager all monies due Manager in accordance with the terms of this Agreement upon demand by Manager.
50. ADVANCED NOTICE OF DISBURSEMENTS: The Owner agrees to furnish advanced notice of any property taxes, special assessments, insurance, or other charges against the Property if Manager is to remit such payments, and it shall be Owner's responsibility to ensure that Manager has sufficient funds with which to disburse these payments in a timely manner. The manager shall have no obligation to advance funds for said payments but shall promptly give written notification to the Owner if there are not sufficient funds available.
51. SMOKE DETECTORS/CO DETECTORS:
a. Owner has been advised that the state require, by law, that smoke detectors and CO Detectors be installed and in operating condition in accordance with such laws. The owner may contact the State or County Department of Fire and Rescue Service, Division of Fire Protection, or local municipal governments for information regarding the specific requirement of the Smoke Detector/CO Detector ordinances and agrees to comply with these requirements.
b. At the Owner's expense, smoke detectors and carbon monoxide detectors will be installed on the property in accordance with the law prior to the Tenant's occupancy. During the occupancy, it shall be the Tenant's responsibility to maintain all smoke detectors and carbon monoxide detectors.
52. SURVIVAL: The terms of this Property Management and Exclusive Rental Agreement shall survive the execution and delivery of any lease herein referenced and shall not be merged therein and further, shall survive the expiration and/or termination of this Agreement.
53. MANAGEMENT INFORMATION: The Owner shall complete and return Agent all Residential Property Information via Form or Online during on-boarding, which shall be made a part of this Agreement; and expressly incorporated by reference herein.
54. LEAD-BASED PAINT
a. Lead-Based Paint Hazard: The owner acknowledges that the property if constructed before 1978, is subject to Federal law (Title X) as to the presence of lead-based paint and/or lead-based paint hazards.
If the Owner is uncertain as to the date the property was constructed, Owner agrees that, for the purpose of the lease contemplated by this Agreement, the property will be treated as though it had been constructed prior to 1978. If Title X applies to the Property, the Owner agrees to comply fully with the requirements as set forth in the EPA and HUD Real Estate Notification and Disclosure Rule. Accordingly, if applicable, the Owner is required to disclose to Tenant, based upon Owner's actual knowledge, all known lead-based paint hazards in the property and provide the Tenant with any available reports in Owner's possession relating to lead-based paint or lead-based paint hazards applicable to the property. Additionally, the Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards shall be attached and made a part of the lease. For detailed information regarding the EPA and HUD Real Estate Notification and Disclosure Rule, the Owner should visit http://www.epa.gov/region1/enforcement/leadpaint/section1018.html
b. Renovation, Repair, and Painting of Property: In accordance with the Lead Renovation, Repair and Painting Rule ("RRP") as adopted by the Environmental Protection Agency (the "EPA"), effective April 22, 2010, if the improvements on the prop