PROPERTY MANAGEMENT AGREEMENT
This Agreement is made and entered into ___________ between ____________(Owner) and Tahoe Property Management (TPM).
Owner employs the services of TPM to manage, operate, control, rent, and lease the following described property ____________________________________________
Responsibilities of TPM: Owner hereby appoints (TPM) 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. TPM 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. TPM agrees to collect the rents from the tenant and to disburse funds by ordinary mail, electronic transfer, 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. Maintenance and Labor. TPM agrees to maintain, to repair the property, and to hire and supervise all employees and other needed labor. TPM will conduct and pay for any repairs under $200 as necessary and repairs may be completed without contacting owner first. In the event of an emergency (ex: faulty furnace or hot water heater, broken pipes) TPM may approve repairs in excess of $200 in order to prevent further damage to the property. TPM shall notify and obtain approval from owner for any routine maintenance items in excess of $200 that are required or requested. TPM will inspect property at least every 6 months.
C. 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 the rent negotiations with the tenant, reflect the market conditions of that time and approximate rents of comparable rental properties, unless expressly instructed in writing by the Owner to the Manager to the contrary, as to the amount of the initial rent and any subsequent increases as may from time to time be appropriate. Manager agrees to rent and to lease the property; to sign, renew and to 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.
D. Tenant failure to pay rent. In the event the tenant fails to pay rent in a timely manner; TPM will consult with owner prior to serving a 3 day notice to pay rent or quit to the tenant. If the decision is made to serve the tenant and the tenant does NOT satisfy the 3 day notice by paying rent TPM will file an Unlawful detainer with the court to start eviction proceeding. The cost associated with court filings may be covered by the tenant’s deposit as reasonably necessary with owner approval. The tenant deposit may also be used to cure tenant’s default in payment of rent with owner approval. Actions incurring cost above and beyond the tenant’s deposit will be approved by the owner.
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 unless claims, charges, etc., are the result of Manager’s neglect or reckless conduct, in which case Manager shall indemnify owner from such claim. 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 unless injury is a direct result of Management’s neglect or reckless conduct. 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.
Compensation of Manager: Owner agrees to compensate Manager as follows. Owner agrees to pay Manager an amount equal to Twenty (20%) percent of the first full month’s rent for any new tenant placed as a fee for marketing property, presenting property to prospective tenants, fully vetting applicants, and renting the premises; and further agrees to Ten (10%) percent 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 further agrees to abide by the conditions set forth by the Manager to the tenant on the Owner’s behalf.
Term of Agreement: This Agreement shall be effective as of ___________ and shall expire on ______________. Upon expiration of the above initial term, this Agreement shall automatically be renewed and extended for a like period of time unless terminated in writing by either party by providing written notice 60 days prior to the date for such renewal. This Agreement may also be terminated by mutual agreement of the parties at any time. Upon termination Owner shall pay to Manager any fees, commissions and expenses due Manager under terms of this Agreement, which are owing to Manager. In the event the premises does not rent within a 90-day period of entering into this agreement, or of a vacancy continuing for a period of longer than 90 days, Owner reserves the right to declare this agreement void. TPM reserves the right to terminate this agreement with Thirty days written notice to Owner at any time or immediately with written or verbal notice if in the opinion of Agent’s legal counsel, Owner’s actions or inactions are illegal, improper, or jeopardize the safety or welfare of any tenants or persons. TPM may at its option continue to hold Owner liable for any commissions due, fees due, or monies owed TPM if the tenant(s) remain in the property after such termination by TPM.
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, Manger shall be released from all liability under this Agreement upon the express assumption of such liability by its assignee.
WHAT IS NOT COVERED BY THE MANAGEMENT FEE
Owner understands that monthly inspections, representation at court hearings, rent board hearings, depositions, homeowner meetings, property tax assessment appeal hearings, and insurance claim related paperwork and estimates, department of building inspection director hearings and other exceptional building related events are not covered by the monthly management fee. If Agent renders these services, Owner shall reimburse Agent for their time at the rate of $35 per hour, with a (1) hour minimum. A full accounting of billable hours will be provided to Owner
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.
Manager Jerry Williams
Tahoe Property Management
3045 Harrison Avenue
South Lake Tahoe, CA 96150