Responsibilities of Manager
Owner hereby appoints Manager as his fiduciary with full authority to do any and all lawful things necessary for the fulfillment of this Agreement, including the following:
1. Collect all rents due and as they become due, giving receipts therefore; to provide to Owner a monthly accounting of rents received and expenses paid out; and to remit to the Owner all income, less any sums paid out or commission retained.
2. Service or cause to be serviced all decorating, maintenance, alterations and repairs to described property and to hire and supervise all needed employees and/or other labor for the accomplishment of service.
3. Other general obligations: (a) advertise the property and display signs; (b) rent and lease the property; (c) sign, renew and cancel rental agreements and leases for the property; (d) sue and recover for rent and for loss of or damage to any part of the property and/or furnishings; and (e), when practical, compromise, settle, and release any such legal proceedings or lawsuits.
4. Manager agrees to secure the prior approval of the Owner on all expenditures in excess of ($475.00) for any one item, except emergency repairs. It is agreed that emergency repairs are those determined by the Agent to be necessary for the protection of the property, maintenance of services to tenants, or required to save Agent and/or Owner harmless from any claim whatsoever.
5. RESERVES: Upon execution of this agreement, Owner will deposit ($475.00) with Property Manager to be held in a trust account as a reserve for Owner. Property Manager may use the reserve to pay any expense related to the leasing and management of said property.
6. Owner agrees that the Security Deposit, paid by the tenant, will be put into an insured interest-bearing account by First Providence Reality. The interest will accrue to the tenant, as required by law. Further, any interest earned over and above the required amount, as well as returned check fees, will accrue to First Providence Realty as reimbursement for additional services required.
7. Owners agrees to obtain an Owners-Landlord-Tenants Liability Policy with minimum liability insurance coverage of $100,000.
8. Record Keeping: Property Manager will:
A. Maintain accurate records related to the Property and retain such records for not less than 3 years;
B. File reports with the Internal Revenue Service related to funds received on behalf of Owner (e.g.Form 1099);
C. Remit, each month, the following items to Owner: a) funds collected by Property Manager under this agreement, less authorized deductions; and b) a statement of receipts, disbursements, and charges;
9. Inability to Contact Owner: If Property Manager is unable to contact Owner for 7 days, Property Manager is authorized to contact the person below for the sole purpose of attempting to reestablish contact with Owner.
10. Owner agrees to pay Agent a commission for management of 10% of the gross rents collected monthly. Owner further agrees to allow the advertising/administration charge of 50% of first month’s rent to be deducted when property is rented to new tenants.
A. Note: All Payment billing for owners occur on the 10th of each month.
11. Owners gives the Agent authority to place FOR RENT signs on the premises, and if Owner decides to sell this property, Owner agrees to list same agent, and will give Agent written exclusive right to sell for ninety (90) days. If owner sells or conveys the property to a tenant procured by Agent, the Owner shall pay Agent a 3 % commission on the gross sale price.
Liability of Manager
Owner hereby agrees to hold Manager harmless from any and all claims, charges, debts, demands and lawsuits, including reasonable attorney's fees related to management of the described property, and from any liability for injury on or about the property which may be suffered by any employee, tenant, or guest upon the property.
Compensation to Property Manager with MULTIPLE PROPERTIES
* $95 Monthly Management Fee
* 50% Admim. Fee (1st Month Rent)
* $475 Reserves (1st Month Rent)
* $125 Annual Inspection
* For owners with 6 properties or more
*Annual Fee for (Annual Inspection) Smoke detectors, safety issues and house upkeep- $125
*Inspection Readiness Checklist - $125 (waived to first-time property owners)
Terms of Agreement
The term of this Agreement shall commence on date of seller's signed agreement. Expiration Date is one year from seller's signed agreement.
This Agreement shall automatically be renewed and extended annually unless terminated in writing by either party 30 days prior to the date of renewal.
This Agreement may also be terminated by mutual agreement at any time. At such time payment to Manager of all fees, commissions and expenses due under terms of this Agreement.
Compliance with Law: Owner and Property Manager shall comply with all law as relating to the property and the management thereof, including without limitation, the obligation to offer the property for rent to any person without regard to age, race, color, religion, sex, handicap, marital status, familial status, or national origin.
Effective Services: If Property Manager determines that Property Manager cannot continue to effectively provide leasing and management services to Owner for any reason at any time during this agreement Property Manager may terminate this agreement by providing at least 30 days written notice.
FEES UPON TERMINATION: At the time this agreement ends, Owner must pay property manager:
A. All amounts due Property Manager under this agreement: and
B. if the Property is leased to a tenant on the date the agreement ends and Owner terminates this agreement, an amount equal to the lesser of:
a) the management fees that would accrue over the remainder of the term of the lease.