This agreement is made and entered into this {requestedStart} between {name} ("Owner") and Dyad Real Estate and Property Management ("Manager"). The Owner employs the services of Manager to manage, operate, control, rent, and lease the following described property: {propertyAddress}
Term and Termination. This Agreement is effective as of the {requestedStart} and continues on a month-to-month basis with no fixed contract term. Either party may terminate this Agreement at any time by providing thirty (30) days' written notice to the other party, or by mutual written agreement of the parties at any time. Upon termination, Manager will remit any funds held on Owner's behalf, less any outstanding fees, commissions, expenses, or amounts owed to Manager under this Agreement, within a reasonable accounting period. In the event the premises does not rent within a ninety (90) day period after entering into this Agreement, or a vacancy continues for a period longer than ninety (90) days, Owner reserves the right to declare this Agreement void. Termination of this Agreement terminates only the management relationship between Owner and Manager. Any lease or rental agreement executed by Manager on Owner's behalf during the term remains in full force and effect and is the Owner's lease; upon termination, Owner assumes all rights and obligations of the landlord under each such lease. Manager shall have no obligation to Owner or to any tenant under any lease after the effective date of termination.
Responsibilities of Manager. Owner hereby appoints Manager as his lawful agent and attorney in fact with full authority to do any and all lawful things necessary for the fulfillment of this Agreement, including the following:
A. Collection and Disbursement. Manager agrees to collect all rents as they become due; to render to Owner a monthly accounting of rents received and expenses paid; and to remit to Owner all income, less any sums paid out. Manager agrees to collect the rents from the tenant and to disburse funds by ordinary mail or as instructed by the Owner on or before the 10th day of the current month, provided, however, that the rent has been received from the tenant.
B. Late Fees. Owner acknowledges and agrees that all late fees, NSF fees, and other tenant-charged penalties collected by Manager are retained by Dyad Real Estate and Property Management in full as additional compensation for the increased administrative work of collecting delinquent rent. Owner shall have no claim to any portion of late fees collected.
C. Collections (Third-Party Agency). When tenant balances are referred to a third-party collection agency, Owner acknowledges and agrees to the following:
• The third-party collection agency charges a fee of forty percent (40%) on all funds collected.
• Manager (Dyad Real Estate) will withhold its standard eight percent (8%) management fee on any amounts collected through the collection process.
• Owner is entitled to fifty-two percent (52%) of all funds collected through the third-party collection agency.
Owner acknowledges that the collection agency's recovery rate is variable and not guaranteed.
D. Maintenance and Labor. Manager agrees to maintain and repair the property and to hire and supervise all employees and other needed labor at the expense of the Owner.
• Repairs under $500 that are necessary to maintain habitability, preserve the property, or address tenant requests do NOT require Owner approval. Manager may authorize and complete such repairs at its discretion, and the cost will be paid by Dyad Real Estate and deducted from the following month's rent disbursement.
• Repairs over $500 require Owner's prior written approval before work is authorized, with the exception of EMERGENCY MAINTENANCE SERVICES (defined as any condition posing immediate risk to life, health, safety, or substantial property damage — e.g., active water leaks, gas leaks, no heat in winter, no AC in extreme heat, sewage backups, electrical hazards), which Manager may authorize without prior approval and notify Owner as soon as reasonably possible.
All services rendered by Manager-coordinated vendors are subject to the agreed-upon management rate.
E. Advertisement and Legal Proceedings. Manager agrees to advertise for tenants, screen tenants, and select tenants of suitable credit worthiness. Manager will set rents that, in the opinion of the Manager at the time of rent negotiations with the tenant, reflect the market conditions of that time and approximate rents of comparable rental properties. Manager agrees to rent and to lease the property; to sign, renew, and cancel rental agreements and leases for the property or any part thereof; to sue and recover for rent and for loss or damage to any part of the property and/or furnishings thereof; and, when expedient, to compromise, settle, and release any such legal proceedings or lawsuits.
Owner acknowledges and agrees that any rent amount Owner requests, expects, or discusses with Manager (whether in this Agreement, in a listing, or otherwise) is a target only and is not a guaranteed or minimum rent. Manager, in its reasonable discretion, is authorized to advertise, negotiate, and lease the property at the rent Manager determines will secure a qualified tenant under then-current market conditions, including at a rent lower than any amount previously requested or discussed, without further written approval from Owner. Owner shall have no claim against Manager for the difference between any requested or expected rent and the rent at which the property is actually leased. If Owner wishes to impose a firm minimum rent below which the property may not be leased, Owner must provide that minimum to Manager in writing, in which case Manager will not lease below that amount without Owner's further written consent; absent such a written minimum, Manager's rent-setting discretion under this Section governs.
F. Tenant Disclosure (Tenn. Code Ann. § 66-28-302). To satisfy Tenn. Code Ann. § 66-28-302, Manager is authorized to disclose to tenants, in each lease or rental agreement, (i) the name and address of Manager as the agent authorized to manage the premises and to receive service of process, notices, and demands on Owner's behalf, and (ii) the name of Owner as the owner of the premises. The Owner's home or personal address is not disclosed to tenants; Manager's business address serves as the address for service of process, notices, and demands. Owner shall keep Owner's current legal name and a current mailing address or other reliable contact information on file with Manager (for Manager's internal records only) and shall notify Manager in writing of any change within ten (10) days.
Liability of Manager. Owner hereby agrees to hold Manager harmless from, and to defend Manager against, any and all claims, charges, debts, demands, and lawsuits. Owner agrees to pay Manager's attorney's fees related to Manager's management of the herein-described property and any liability for injury on or about the property which may be suffered by any employee, tenant, or guest upon the property. Owner agrees to maintain sufficient and prudent all-risks property insurance and that the Manager shall be an additionally named insured. Owner shall provide a copy of such insurance policy to the Manager for the Manager's records. Provided, however, that Owner's indemnification and hold-harmless obligations under this Agreement shall not extend to any loss, claim, damage, or liability arising from Manager's own gross negligence, willful misconduct, or violation of law.
Compensation of Manager. Owner agrees to compensate Manager as follows. Owner agrees to pay the Manager an amount equal to fifty percent (50%) of the first full month's rent as a fee for acquiring, screening, and renting the premises; and further agrees to eight percent (8%) of all rents collected (minimum $40.00 per month) as a fee for managing the property; which fees, plus any repair expenses, may be deducted by the Manager from rents; and Owner further agrees to abide by the conditions set forth by the Manager to the tenant on the Owner's behalf.
Owner Representations. Owner represents and warrants that Owner holds title to the Property or is otherwise fully authorized to lease and to place it under management; that Owner has full authority to enter into this Agreement; and that, to Owner's knowledge, the Property complies with applicable building, housing, and safety codes at the commencement of management.
Fair Housing. Manager operates in full compliance with the federal Fair Housing Act and all applicable federal, state, and local fair-housing laws. Owner shall not direct Manager to take, or to refrain from taking, any action that would violate any such law, and any instruction to do so is void.
Governing Law; Severability. This Agreement is governed by and construed in accordance with the laws of the State of Tennessee. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Manager and the heirs, administrators, successors, and assigns of the Owner. Notwithstanding the preceding sentence, Manager shall not assign its interest under this Agreement except in connection with the sale of all or substantially all of the assets of its business. In the event of such sale, Manager shall be released from all liability under this Agreement upon the express assumption of such liability by its assignee.
This document represents the entire Agreement between the parties hereto.
IN WITNESS WHEREOF, the parties hereto hereby execute this Agreement on the date first above written.
OWNER: _______________________________ Date: _______________
MANAGER — Dyad Real Estate and Property Management: _______________________________ Date: _______________