PROPERTY MANAGEMENT AGREEMENT

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PROPERTY MANAGEMENT AGREEMENT

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BETWEEN

1. ____________________________________________________

 (THE “MANAGER”)

AND

2. ______________________________________________________

(THE “OWNER”)

THIS AGREEMENT is made on the …………..day of………….20……., (hereinafter, “Effective Date”) entered into by the Property Manager, hereinafter “Manager”  and the Property Owner, hereinafter “Owner” (Manager and Owner collectively referred to as the “Parties” or individually as the “Party”) and includes that Party’s successors and assigns.

WHEREAS:

In consideration of covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt of which is hereby acknowledged, Parties agree to the following terms and conditions and to be bound thereby:

1. 1.    COMMENCEMENT AND DURATION

This Agreement shall be valid from the Effective Date until termination.

• TERM

2.1. This Agreement shall be valid and binding upon the Parties for a duration of One year (12 Months) after which it shall lapse and terminate automatically.

2.2. The Parties have an option of renewing the Contract upon its lapse through a mutual written consent under similar or varied terms as may be agreed upon.

• SERVICES

3.1. The Manager shall be in charge of handling all aspects of the Owner’s Property, that is:

1. Renting;
2. Leasing;
3. Operating;
4. Managing;
5. Repairs;
6.  Maintenance; and
7. General upkeep (landscaping, snow removal, etc.)

3.2. The Manager shall use reasonable good faith efforts in providing the Services.

3.3. They shall perform the Services faithfully, diligently, and to the reasonable satisfaction of the Owner.

• THE PROPERTY

This Agreement is entered into with respect to the following properties, which properties shall forthwith be referred to in this Contract as “The Property”:

1. Property title registration number/parcel number-_________________

Property Address-_________________

Plot size-_______________

• Property title registration number/parcel number-_________________

Property Address-_________________

Plot size-_______________

• Property title registration number/parcel number-_________________

Property Address-_________________

Plot size-_______________

• FEES

The Owner will pay the Manager the following agreed upon fees for the outlined services:

1. Management Fee: $_______________ per Month.
2. New Lease: $ _____________ per Month.
3. Renewal of Lease: $______________per Month.
4. Eviction: $____________ per Month.
5. Preparing the Property for Leasing: ___________ per Month.
6. Other Compensation: ___________per Month.

• DISTRIBUTION TO OWNER

6.1. The Parties agree that the Manager shall, with each payment made by a tenant of the Property, remit the full sum of the payments to the Owner from which the Owner shall deduct the Manager’s fees as prescribed in this Agreement and promptly remit the same.

6.2. The Manager shall be obligated to remit the aforementioned sums to the Owner within 24 hours, failing which he shall be in breach of this Contract and liable to a suit for damages.

6.3. Remittance of all the aforementioned amounts shall be made to the Owner’s Bank account which is __________________________________.

• LEASING

7.1. The Owner hereby grants the Manager power to create rental agreements related to the Property for month-to-month rental arrangements in accordance with Governing Law.

7.2. Rental agreements entered into by the Manager in relation to the Property shall be at a rate no lower than $______________ per ___________________.

• SECURITY DEPOSITS

8.1. The Owner hereby grants the Manager power to collect security deposits from the tenants on the Property, upon whose collection shall be promptly furnished in full to the Owner.

8.2. Returning said security deposit shall be the responsibility of the Owner.

• REPAIRS AND MAINTENANCE

9.1. The Owner hereby gives power to the Manager to supervise repairs, improvements, alterations, and decorations to the Property as well as purchase and pay bills for services and supplies.

9.2. This shall however be subject to obtain prior approval of the Owner for all expenditures over $______________.

9.3. Expenditures below this amount and recurring operating charges may be incurred without the Owner’s consent provided notice of the same is promptly given to the Owner within 24 hours.

9.4. The Manager may incur expenses above the amount stipulated in 9.2. in case of emergency expenditures or if in the Manager’s opinion, the expenditure is necessary to protect the Property from damage, prevent injury to persons, avoid suspension of necessary services, avoid penalties or fines, or suspension of services to tenants required by a lease or rental agreement or by law, including, but not limited to, maintaining the Property in a condition fit for human habitation as required by applicable law. However, even in such cases, the Manager shall be expected to make all reasonable efforts to notify the Owner of the same before proceeding to incur the expenditure.

1. EVICTIONS

The Owner hereby gives power to the Manager to sign and serve notices on the Owner’s behalf and prosecute actions to evict tenants; recover possession of the Property; recover rents and other sums due; and, when expedient, settle, compromise and release claims, actions, and suits and/or reinstate tenancies.

1. LEASE ALTERATIONS

The Owner hereby gives power to the Manager to initiate, sign, renew, modify, or cancel rental agreements and leases for the Property, or any part thereof and collect and give receipts for rents, other fees, charges, and security deposits.

1. ADVERTISING

The Owner grants the Manager the right to display “For Rent / Lease” and similar signage on the Property and advertise the availability of space through publications and online marketing methods.

1. SALE OF THE PREMISES

In the event the Property is marketed to be sold by the Owner during the Term of this Agreement, the Manager shall not have any rights to sell the Property under any circumstance, terms, or conditions unless the Parties agree otherwise in a separate written agreement duly executed by both Parties.

1. FINANCIAL STATEMENTS TO OWNER

The Manager shall render statements of receipts, expenses, and other charges for the Property as requested by the Owner with no more than one (1) statement per month.

1. OTHER COMPENSATION

Unless otherwise stated, this Agreement does not include the Manager’s service of preparing the Property for sale or refinance, modernization, fire or major damage restoration, rehabilitation, financial accounting or legal advice, representation before public agencies, advising on proposed new construction, debt collection, counseling, attending any Association or Condominium meetings, and any other obligation not listed as a Service. If the Owner requests the Manager to perform services not included in this Agreement, a fee shall be agreed upon before such services are performed.

1. EQUAL HOUSING OPPORTUNITY

The Property is offered in compliance with Federal, State, and local anti-discrimination laws.

1. DUTIES OF THE OWNER

The Owner agrees to:

1. Provide all documentation, records, and disclosures as required by law or required by the Manager to manage and operate the Property, and immediately notify the Manager if the Owner becomes aware of any change in such documentation, records or disclosures, or any matter affecting the habitability of the Property;
2. Pay all interest on Tenants’ security deposits if required by applicable laws;
3. Carry and pay for public and premises liability insurance.
4. Carry and pay for property damage and worker’s compensation insurance adequate to protect the interests of the Owner and the Manager.
5. Pay any late charges, penalties and/or interest imposed by government agencies.

1. DUTIES OF THE MANAGER

The Manager agrees to:

1. Find new tenants/leasing.
2. Undertake repairs and general maintenance.
3. Undertake the necessary upkeep for the Property.
4. Market and advertise the Property when vacant.
5. Screen new tenants.
6. Communicating the status of affairs in the Property.
7. Handle complaints from tenants.
8. Coordinate tenant turnover.
9. Setting, collecting and adjusting rents in accordance to the terms of this Agreement.
10. Securing the Property.
11. Overall supervision.
12. Prepare for and attend to tribunal proceedings, if any.
13. Staying up-to-date and enforcing landlord-tenant laws.
14. Any other duties imposed under this Agreement.

1.  ACCORDANCE WITH FEDERAL AND STATE LAW.

All services provided by the Manager shall comply with federal, State, or local law requiring the delivery of agreements, reports, notices, and/or the posting of signage or notices.

• DISCLAIMERS.
• The Owner may use the Property at any time but must notify the Manager two weeks in advance to allow for planning..
• At the end of each month, the Owner will receive Deposit Receipts through an email showing their revenue, expenses, and net income.
• To track reservations and revenues/expenses in real-time, the Manager will share a Google calendar and Google sheets with the Owner.

• EXCLUSIVITY

Except as otherwise provided in this Agreement, this Agreement is exclusive, and the Manager may not retain the services of any other property owners.

• INDEMNIFICATION

The Manager shall indemnify, defend and hold the Owner harmless from all claims, demands, causes of action, losses, damages, fines, penalties, liabilities, costs, and expenses, including reasonable attorneys’ fees and court costs, sustained or incurred by or asserted against the Owner because of the gross negligence, willful misconduct or fraud in operation, management, and maintenance of the Property by the Manager.

• INDEPENDENT CONTRACTOR

The relationship of the Parties hereto is that of an independent contractor. Accordingly, the Parties hereto are not deemed agents, partners, or joint venturers of the others for any purpose due to this Agreement or the transactions contemplated thereby. The Owner is not required to pay or make any contributions to any social security, local, state, or federal tax, unemployment compensation, workers compensation, insurance premium, profit-sharing, pension, or any other employee benefit for the Manager during the term. The Manager is responsible for paying and complying with reporting requirements for all local, state, and federal taxes related to payments made to the Manager under this Agreement.

• NON-ASSIGNMENT

Neither Party shall transfer or assign this Agreement without the other Party’s consent which consent shall not be unreasonably withheld or delayed.

• DISPUTE RESOLUTION

Dispute resolution: Parties agree to settle disputes under this Agreement through (select one)

☐Negotiation                                 ☐Mediation                                   ☐Arbitration                                      ☐Litigation

• TERMINATION

26.1. Either Party may terminate this Agreement at any time upon giving the other Party no less than thirty days’ notice in writing. If a Party wishes to terminate the Contract with less than these stated days, the other Party reserves the right to charge costs they have already paid in advance or incurred.

26.2. The termination of this Agreement shall not discharge the liabilities accumulated by either Party.

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• CONFIDENTIALITY AND RETURN OF PROPERTY

27.1. All non-public, confidential, or proprietary information of the Owner (Disclosing Party), whether disclosed orally or disclosed or accessed in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as “confidential” in connection with this Contract is confidential, solely for the use of performing this Contract and may not be disclosed or copied unless authorized in advance by the Owner in writing.

27.2. Upon the Owner’s request, the Manager shall promptly return all documents and other confidential materials received from the Owner.

27.3. The Owner shall be entitled to injunctive relief for any violation of this Section.

27.4. This Section does not apply to information that is: (a) in the public domain; (b) known to Manager at the time of disclosure, or (c) rightfully obtained by the Manager on a non-confidential basis from a third party.

27.5. In addition, this Agreement is confidential and cannot be divulged to third parties by a Party, unless as provided by law, without the written consent of the other Party.

• FURTHER ASSURANCES

Each Party hereto agrees to perform any further acts and to execute and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement.

• FORCE MAJEURE

For this Agreement, “Force Majeure” means an event which a diligent party could not have reasonably avoided in the circumstances, which is beyond the control of a party and includes, but is not limited to, war, riots, civil disorder, earthquake, storm, flood or adverse weather conditions, strikes, lockouts or other industrial action, terrorist acts, confiscation or any other action by government agencies. A Party’s failure to fulfill its obligations due to Force Majeure shall not be considered a breach of this Agreement, provided that the Party has taken all reasonable precautions, due care, reasonable alternative measures, and minimal delay all to carry out the terms of this Agreement.

• CHANGES TO THE AGREEMENT

Either Party may request changes to the Agreement, but they will only be effective if agreed in writing, signed by all Parties, and recorded. If any ambiguity is found in the Agreement or various documents forming this Agreement, the Parties shall issue any necessary clarification or instruction.

• NO WAIVER

Failure by either Party to enforce any of the terms or conditions of this Agreement shall not be a waiver of their right to enforce the terms and conditions of this Agreement. No waiver by either Party of any breach of, or of compliance with, any condition or provision of this Agreement by the other Party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

• SEVERABILITY

The provisions of this Agreement are severable. If any provision is held to be invalid or unenforceable, it shall not affect the validity or enforceability of any other provision.

• COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one instrument.

• ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement between the parties. It supersedes all prior oral or written agreements or understandings between the Parties concerning the subject matter of this Agreement. All documents annexed to this Agreement shall be subject to the terms under this Agreement, provided that the Parties append their signatures on the documents. The Parties will exercise utmost good faith in this Agreement.

• headings

The article and section headings in this Agreement are for convenience; they form in no part of this Agreement and shall not affect its interpretation.

• PRONOUNS

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the identity of the person or entity may require. As used in this Agreement: words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender, and words in the singular shall mean and include the plural and vice versa.

• NOTICES

Any notice required to be given between the Parties pursuant to the provisions of this Agreement shall be in writing and shall be deemed to have been given at the time when actually received as a consequence of any effective method of delivery at the following addresses (including email) or such changed address as the Party shall have specified by written notice, provided that any notice of change of address shall be effective only upon actual receipt.

Manager: ___________________________________________________________________

Owner: ____________________________________________________________________

• PARTIES’ ACKNOWLEDGMENTS

The Parties acknowledge that they have been provided with the opportunity to negotiate this Agreement and to seek legal counsel before signing this Agreement. In addition, they acknowledge that they have the capacity to contract and enter into this Agreement and that further, they have entered into this Agreement freely and voluntarily.

• GOVERNING LAW

This Agreement shall be governed in all respects by the laws of the State of Florida and its Courts without regard to its conflict of law provisions.

IN WITNESS WHEREOF, each of the Parties has executed this Agreement, as of the day and year set forth below.

Signed by the duly authorized representative of the MANAGER   Signature: …………………………………………….. Name: ………………………………………………….. Designation: ………………………………………….. Date:…………………………………………

Signed by the OWNER   Signature: …………………………………………….. Name: ………………………………………………….. Designation: ………………………………………….. Date:………………………………………………….