PROPERTY MANAGEMENT AGREEMENT
THIS PROPERTY MANAGEMENT AGREEMENT (herein “Agreement”) is made and entered into this date of _______________ (herein “Effective date”) by and between ________________________ (hereinafter referred to as “Property Owner/ Owner”) and _______________________ (hereinafter referred to as “Manager” and/or “Agent”).
- The purpose of this document is to set out clearly & concisely the extent of the leasing and management service offered and the scale of fees charged.
- The Owner desires to retain the Agent, a licensed and Insured Georgia real estate broker, as the agent to exclusively rent, lease, operate, and manage Owner’s premises for and on behalf of the Owner in accordance with the terms of this Agreement;
IN CONSIDERATION OF the premises, and of the mutual promises and undertakings herein contained, the parties, intending to be legally bound, do agree as follows:
- PROPERTY DETAILS
The Property Owner is the owner of _______________________ which consists of _______ units located at ___________________ (address) and more particularly described in “Exhibit B” attached hereto.
The Pricing is divided into 3 packages. The packages are more particularly described in “Exhibit A” attached hereto.
The Property Owner confirms that he is the sole or joint owner of the real estate and has the right to delegate authority to the Manager to supervise, manage, lease, operate and maintain the property under the terms of this agreement.
The Manager confirms that he is an Insured licensed Agent
- The Manager and the Owner agree that maintenance shall be the responsibility of the Agent. The Owner will however compensate the Manager for such services according to the terms herein.
- Manager agrees to make the Owner aware of any ongoing maintenance problems. Retained maximum expenditure limit means that the Manager has authority to spend up to this amount _________ (or other amount as individually agreed) on reasonable improvements or repairs in any single monthly accounting period without prior reference to the Landlord.
- It is agreed that in an emergency or for reasons of contractual or legal necessity the Agency may reasonably exceed the limits specified, where reasonable endeavors have been made to contact the Owner.
- The Manager endeavors to select competent tradesmen at reasonable prices but is unable to personally guarantee the standard of workmanship or any liability arising thereof, although the Owner retains the right to pursue any claim against appointed tradesmen for substandard work.
- By law, it is necessary to carry out an annual inspection and service for the central heating and any gas appliances. The Manager will carry this out on the Landlord’s behalf and administer the necessary inspection and maintenance records. The costs involved will be debited to the Landlord’s account.
- AGENT DISCLOSURES
- Agent employs licensed real estate professionals in accordance with Georgia state real estate laws.
- Agent may have an ownership interest in 3rd party vendors who perform services for Agent.
- By signing this agreement the owner(s) hereby agree to receive an electronic IRS Form 1099-MISC.
- OBLIGATIONS OF OWNER
- Owner certifies that unless provided otherwise herein, all systems and furnished appliances are in good working order and repair.
- Owner certifies that Property is in good and habitable condition and Owner, will at all times, be responsible for the maintenance of Property in:
- a good habitable condition; and
- Compliance with all applicable laws, ordinances and regulations of all government authorities.
- Upon the execution of this agreement, Owner will provide to Manager Keys for Property and ensure that Property is clean and the grounds are in good condition.
- Owner shall maintain adequate fire and extended coverage insurance on Property, and will, at all times, maintain landlord’s liability insurance for Owner and will cause Manager to be named as additional insured under such liability insurance.
- Owner will provide Manager with evidence of such insurance coverage prior to date of occupancy by tenant and thereafter, within seven (7) days of Manager requesting the same.
- Owner further certifies to Manager that Owner is unaware of any environmental contamination, or hazardous, toxic, dangerous or unsafe conditions or products on or in Property.
- Owner shall keep current in all mortgage obligations, property taxes, association fees, or any other obligations which could lead to a foreclosure action against the Property.
- Owner and Manager agree that the tenant is not a third-party beneficiary and nothing in this paragraph shall limit Manager’s other legal remedies to collect from Owner any unpaid fees due to Manager.
- Owner hereby specifically authorizes Agent and all cooperating agents to disclose to prospective tenants all defects, latent or otherwise known to them. Owner acknowledges that Agent does not have the responsibility to discover latent defects in the Property.
- If Agent receives notice of the Owner’s delinquency in the payment of: (1) any mortgage or other encumbrance secured by the Property; (2) property taxes; (3) property insurance; or (4) owners’ association fees, Agent may give Owner 15 days to cure the delinquency during which period Owner authorizes Agent to freeze any funds held by Agent and no disbursements will be made to Owner related to this agreement or the Property. If after the 15-day period, the delinquency is not cured and the foreclosure process is initiated, Owner authorizes Agent to deduct from any other funds being held by Agent for Owner any remaining Fees or funds due to Agent related to services performed under this agreement. Additionally, Owner authorizes Agent to return any security deposit being held by Agent to a tenant of the Property in addition to any prorated amount of rent being held by Agent and Agent may terminate this agreement. This paragraph does not preclude the Agent from seeking any other remedies under this agreement or at law that may be available to the Agent.
- If the Property was built before 1978, Owner will complete and attach to this agreement an addendum regarding lead-based paint and lead-based paint hazards that will be made part of any lease of the Property. If the Property was built before 1978, federal law requires the Owner (before a tenant is obligated under a lease) to: (1) provide the tenant with the federally approved pamphlet on lead poisoning prevention; (2) disclose the presence of any known lead-based paint or hazards in the Property; and (3) deliver all records and reports to the tenant related to such paint or hazards.
- Owner hereby agrees to carry, at his own expense, general liability insurance in an amount not less than Three Hundred Thousand Dollars ($300,000.00), which policy shall be so written as to protect the Agent in the same manner and to the same extent they protect the Owner and will name the Agent as co-insured.
- TERM AND TERMINATION
- This Agreement shall be effective as of the Effective Date and shall have an initial term of ____________________years.
- After the lapse of the initial term, upon mutual agreement of both Parties, the Parties shall renew the contract thereafter on a _______________ basis. (Yearly/monthly etc)
- In the event either party decides not to renew this contract, a 30-day written notice shall be given to the other party expressing intention not to renew the contract.
- In the event f termination caused by the Owner’s default, Owner shall immediately pay Manager all fees and commissions they would have earned had this Agreement not been terminated but instead had been in effect for the entire term set forth above. Manager may deduct the full amount of such fees and commissions from any monies being held coming to Manager which would be due Owner.
- LEASING TERMS
- Tenants shall lease premises for a term of no more than _________________ months and not less than __________________________ months.
- A tenant shall sign a lease agreement form upon occupancy. At least 3 (three) copies of the lease form shall be made by which the tenant, the Property Owner and manager shall each have a copy of the form.
- The Owner and/ or the Manager shall have discretion to either approve a tenant or disapprove a tenant. The reason for disapproval shall not contravene any written law, whether federal, state or local.
- Monthly rental shall be at least $____________ or such other amount as may be acceptable to Owner.
- The lease form shall form part of this agreement and is labeled “Exhibit C”
- SECURITY DEPOSIT
With respect to any security deposit to be paid by tenant pursuant to the Lease of Property, Owner authorizes Manager to hold such security deposit in Manager’s trust account and all interest earned on said account is the property of the Manager. If Manager is holding the security deposit of tenant on Property, which is being managed by Manager and the management agreement is terminated, Owner shall designate another real estate broker in Georgia to hold the security deposit and shall give notice to tenant and Manager of the same. Upon such notice being given, Manager shall within thirty (30) days thereafter transfer the security deposit to the newly designated Manager. Owner does hereby consent to such a transfer and agree that Manager shall thereafter be relieved of any and all responsibility and liability for the same. If Owner does not designate a new Manager to hold the security deposit within thirty (30) days of the date of termination of the management agreement with manager, then the Owner shall be obligated to pay Manager a monthly fee of $20 for each month thereafter during which Manager acts as the escrow agent with respect to the security deposit.
- Agent agrees to use reasonable efforts in marketing the Property in accordance with the terms of the Agreement. Owner gives Agent the exclusive right to place a “For Rent” or other appropriate signs on the Property and to advertise the Property on the Agent’s Internet website, or any other Internet website which the Agent may deem appropriate. Agent shall also advertise the Property through circulars and other forms of advertising, all subject to the approval of the Owner and at the expense of the Owner. Owner gives Agent permission to photograph and/or video the Property and to use such photographs and videos in its marketing efforts described above. Owner also agrees to refer all inquiries regarding the Property to Agent promptly, furnish Agent with keys to the Property, allow the use of Owner’s name and Owner Information Sheets in marketing the Property, and make the Property available for showing during reasonable hours to prospective tenants. Any negotiations connected therewith shall be conducted solely by or under the direction of Agent.
- Owner gives permission for a lockbox to be placed on its Property. In giving permission for a lockbox to be used, Owner hereby releases and holds harmless the Agent and their agents from all responsibility for any loss, and damage or theft that might occur while the Property is listed except as caused by Agent’s gross negligence or intentional acts. Owner also acknowledges that a lockbox is intended only as an aid to market the Property. It is not intended or designed as a security device.
- General Disclaimer
- Manager shall not be responsible for uncovering within the Property and disclaims expertise with respect to:
- Violations of building, subdivision, zoning, fire or other codes; or
- Materials or substances that is toxic, hazardous or potentially harmful to the health.
- Manager disclaims any expertise with respect to protecting the Property and any person residing therein against crime. Manager shall have no responsibility to provide security to the Property and Owner agrees to consult a security professional if such matters are important to Owner.
- Manager shall have no responsibility for the debts and liabilities of Owner, including debts and liabilities incurred by Manager on behalf of Owner, pursuant to this Agreement.
- PAYMENT TERMS
For services provided by the Manager, the Owner agrees to pay the manager:
- Leasing commission of ___________________ upon a new tenant moving into the property
- A renewal commission of ______________ upon a tenant remaining beyond initial term of lease
- Management payment of ______________.
- In the event Tenant purchases or contracts to purchase the Property either during the lease term or within _____ years after the end of the lease term, Owner agrees to pay Manager upon the closing of the sale of the Property a real estate commission of _________________________________.
- PAYMENT OF PROPERTY FUNDS
- Manager has authorization to charge and collect from the tenant all rent, additional rent, late charges, fees for returned checks and credit reports and such other fees and charges as Manager may reasonably deem appropriate. Other than rent, which shall belong to Owner, these charges shall be the property of the Property Manager.
- Funds received on behalf of owner shall be deposited in trust Account(s) of the Owner. The account(s) shall be maintained in a federally insured banking institution with offices in Georgia.
- Details of the Account: _______________________________________________
- Deposits shall be made every _________ day of every ________________(week/month etc)
- MANAGER’S RIGHT TO DEBIT TRUST ACCOUNT
Manager has the Authority to deduct from Owner’s funds amount used to cater for expenses such as management fees, commissions and other amounts owing to Manager; Manager’s out-of-pocket expenses associated with managing the Property including, without limitation, copying costs, postage, mileage expenses at the IRS maximum rate, costs to conduct credit checks, costs associated with evicting tenants, etc.; all costs to maintain, repair and improve the Property including emergency repairs to the extent approved in writing by Owner or to the extent the same have been approved elsewhere herein; and all amounts needed to pay bills for which Manager is responsible for paying under the lease of the Property.
- NON-DISCLOSURE OF CONFIDENTIAL INFORMATION
Neither Party will use, copy, adapt, alter or part with possession of any information of the other which is disclosed or otherwise comes into its possession under or in relation to this Agreement and which is of a confidential nature. This obligation will not apply to information which the recipient can prove was in its possession at the date it was received or obtained or which the recipient obtains from some other person with good legal title to it or which is in or comes into the public domain otherwise than through the default or negligence of the recipient or which is independently developed by or for the recipient.
The Parties acknowledge and agree that the relationship between the Property Owner and Property Manager shall be deemed to constitute an agency relationship between the parties. Owner acknowledges that Manager is not a licensed general contractor and does not have special expertise to determine if any work performed by third party contractors on the Property has been performed in accordance with building code requirements or building industry standards. If there is a reported need for a repair or replacement of any portion of the Property, Manager shall contact repair personnel and obtain cost of repairing or replacing the same. Under the approval of the repair or replacement by Owner (except in emergencies) Manager shall authorize the work to be performed on behalf of Owner. Upon the completion of the work, Manager shall conduct a visible inspection of the work as a non-expert in the area, to determine if the work appears to have been fully completed. Owner agrees to indemnify and hold Manager harmless from any and all claims, causes of action, suits and damages arising out of or relating to the selection of a vendor to perform the work and the performance of the work itself.
Time is of essence in this agreement. Delay in time without prior communication or reasonable justification may result to a breach of this contract.
The property Owner hereby agrees to indemnify, defend and save harmless the Manager from and against all claims, liabilities, losses, damages, costs, expenses, judgments, fines and penalties arising out of or in connection with the leasing and management of the Property except in the case of negligent actions, errors, omissions, willful misconduct and/or fraud by the Property Manager in connection with the property management.
Parties to this contract agree to comply with all state and federal fair housing laws and regulations and shall not unlawfully discriminate on the basis of race, color, creed, national origin, sex, age, handicap, familial status, sexual orientation or gender identity.
- NOTICES AND COMMUNICATIONS
All notices, requests, demands or any other communications between Property owner and Manager shall be in writing and shall be addressed at the following addresses:
Fort Knox Property Management, LLC
11720 Amber Park Dr. Suite 160 PMB, Alpharetta, Ga 30009 TN# 678-606-9333
- WAIVER AND DISCLAIMER OF WARRANTIES
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, OWNER PROVIDES THE PROPERTY “AS IS” AND WITH ALL FAULTS, AND HEREBY DISCLAIMS WITH RESPECT TO THE PROPERTY ALL WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND/OR LACK OF NEGLIGENCE. THE ENTIRE RISK AS TO THE QUALITY, OR ARISING OUT OF PARTICIPATION IN OR THE USE OF, THE SERVICES AND THE PREMISES, REMAINS WITH MANAGER AND MANAGER HEREBY WAIVES ALL RIGHTS OF RECOVERY FOR ANY LOSS RELATED TO ACCESS TO, PARTICIPATION IN OR USE OF THE PREMISES.
- LIMIT ON BROKER’S LIABILITY.
OWNER ACKNOWLEDGES THAT BROKER:
- SHALL, UNDER NO CIRCUMSTANCES, HAVE ANY LIABILITY GREATER THAN A SUM EQUAL TO SIX (6) MONTHS WORTH OF RECURRING BASE MANAGEMENT FEES UNDER THIS AGREEMENT OR, IF THIS AGREEMENT IS TERMINATED PRIOR TO MANAGER WORKING FOR SIX (6) MONTHS, THEN MANAGER SHALL ONLY BE LIABLE FOR A SUM EQUAL TO THE RECURRING BASE MANAGEMENT FEES PAID PRIOR TO THE TERMINATION OF THE CONTRACT. ALL PARTIES AGREE THAT THIS IS INTENDED AS A LIMITATION OF THE MANAGER’S LIABILITY; AND
- NOTWITHSTANDING THE ABOVE, SHALL HAVE NO LIABILITY IN EXCESS OF $100 FOR ANY LOSS OF FUNDS AS THE RESULT OF WIRE OR CYBER FRAUD.
- STATUTE OF LIMITATION
All claims of any nature whatsoever against the Broker(s) and/or their affiliated licensees, whether asserted in litigation or arbitration and sounding in breach of contract and/or tort, must be brought within two (2) years from the date any claim or cause of action arises. Such actions shall thereafter be time-barred.
- ENTIRETY AND MODIFICATION
This contract, in addition to any other addendums and exhibits, shall represent the entire agreement between the Property Owner and Manager, and supersedes any previous written or oral agreement. This agreement may be modified at any time, provided there is written consent of both parties to this contract.
The parties agree that if any portion of this contract is found to be void or unenforceable, it shall be struck from the record and the remaining provisions will retain their full force and effect.
- APPLICABLE LAW
This Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of ________________ and subject to the exclusive jurisdiction of the federal and state courts located in that State.
Exhibit A- Package Pricing
Exhibit B- Property Details
Exhibit C- Lease Agreement Form
- SPECIAL STIPULATIONS
The following Special Stipulations, if conflicting with any exhibit, addendum, or preceding paragraph, shall control:
IN WITNESS WHEREOF, the parties hereto have executed this agreement, or have caused this Agreement to be duly executed on their respective behalf by their respective officers thereunto duly authorized, as of as of the dates below:
Property Owner (Landlord):
Property Manager (Agent):
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