| |
Sample Contract - Rental / Investment Properties Dear Property Owner:
Thank you for considering At Home Real Estate Group, Inc. for your property management needs. It would be our pleasure to assist you with the management of your rental property. I would like to take a moment to follow up with you regarding
our property management capabilities.
I hope you will take the time to go over the information provided to you. Many of our services are laid out in the enclosed information letter. One of the great aspects
of our company is that we can tailor our services to meet your individual requirements. Please bear in mind that my job is to provide you with the type of services that best fit your needs.
You will find that our services far outweigh our modest fees and are cost saving to you in time and labor. Youll quickly notice the large discounts in maintenance, renovations, cleaning,
landscaping, and other services due to the many contractors, electricians, carpenters, cleaners, painters and plumbers that we utilize on a regular basis.
We look forward to welcoming you to our At Home team and family of friends!
Sincerely,
Liz Vickerman
Director Property Management
Page Harding
Property Management
Sample Management Agreement between the Property Owner
And At Home Real Estate Group, Inc. (the "Manager")
This document will set forth our understanding regarding the management of your RENTAL PROPERTY at Property Address, MA. In order to facilitate the maintenance, appearance and upkeep of the premises, and to protect the economic value thereof and in consideration of the mutual covenants contained herein, we hereby agree as follows:
1. You shall hereinafter employ the Manager exclusively to care for, manage and operate the premises pursuant to the terms of the Agreement from the date hereof for a period of one year, unless sooner terminated as provided herein. Thereafter the agreement shall automatically be renewed for successive one-year periods unless terminated by either party by thirty (30) days prior written notice of non-renewal. Notwithstanding the foregoing, this Agreement may be terminated at any time upon 30 days prior written notice by either party if the other party materially breaches the terms and conditions hereof or for the good cause described in said notice.
2. The Manager accepts such employment and shall have the following powers and duties:
a. To perform and observe your obligations to, and administer the obligations of, the owner of the premises according to the terms of any agreements, duties or responsibilities.
b. To enforce such rules and regulations as are established for the premises by the landlord as amended from time to time.
c. To collect all rents and other income due to you from leases or other agreements with respect to the premises and to deposit same (less any sums properly deducted hereunder) in the Owners Exchange Account and/or Property Trust Account held at Citizens Bank separate from the Manager's other business account. You agree, however, that the Manager shall not be liable in the event of the bankruptcy or failure of said depository.
d. To make or cause to be made and to supervise repairs and alterations of the Premises and to purchase supplies and pay all bills therefore from the monies in the Management Exchange Account. The Manager agrees, however, to secure your prior approval on any such expenditure in excess of $600 if, in the opinion of the Manager, such repairs are necessary to protect the Premises from damage or to maintain services to the owners/tenants as called for in the lease agreements or other agreements, or required by law.
e. When required, to advertise the availability for rental of the premises, and to negotiate written leases or other tenancy agreements and, on your behalf, to execute and deliver such leases or agreements; provided, however, that all proposals and the final terms of any agreement to let the premises shall be in accordance with the owners directive. The Manager will not be held responsible for any vacancy in the premises.
f. To exercise, in your name and at your expense, any right you may have to terminate any lease or tenancy agreement for the premises and to evict those tenants in possession thereof and to sue for rent and other sums due hereunder.
g. To collect rental fees and other fees due by tenants and to pursue any delinquent accounts and collect any late charges or other fines as required by the individual leases.
g. To render to you quarterly statements (monthly when required) of receipts, repair/maintenance expenses, and charges and remit to you on a regular basis a sum representing receipts for that month less any appropriate disbursements by the Manager, including the management fee described herein. In the event such disbursements shall exceed the monies collected by the Manager, you agree to pay promptly such excess upon the demand of the Manager.
h. The owner agrees to allow the property manager to keep the property in good and safe condition and according to all building codes, city codes, health and sanitary codes or other codes are required by city, state or other government agency.
3. The foregoing powers and duties of the Manager, however, shall exclude any right or obligation to commence on your behalf any legal proceeding (except as provided in Section 2(f) above) with respect to the premises or to make any payments on your behalf due under any mortgage affecting the premises or any payments on account of real estate taxes or other assessments affecting the premises except those that have been predetermined and mutually agreed upon. The Manager will not held responsible if the operating funds in the Trust Account do not meet the debt obligations of the property and the property owner may be required to put additional funds into the account to meet current obligations or they may not be paid.
4. In connection with the services provided by the Manager hereunder, you agree as follows:
a. That the services so performed by the Manager are performed as your agent and all obligations or expenses properly incurred hereunder by the Manager shall be on your behalf and at your expense. The Manager shall not be obligated to make any advance to you or on your account of or to pay any such sum except out of funds in the Trust Account.
b. To save the Manager harmless from all damage suits in connection with the management, operation and leasing of the Premises and from liability from injury suffered by any employee or other person whomsoever, and to carry at your own expense, necessary insurance adequate to protect the Premises and the interests of the parties hereto. The Manager also shall not be liable for any error of judgment or for any mistake of fact or law, or for anything which it may do or refrain from doing hereinafter, except in cases of willful misconduct or gross negligence.
c. That no shareholders, partners, affiliates or officers of the Manager shall be personally liable for the observance or performance of the Manager's obligations hereunder, all such liability being limited to the assets of the Manager.
d. To pay the Manager, as compensation for the performance of the services hereunder, the following amounts:
(i) Our Fees For Property Management:
We strive to keep our management fees as reasonable as possible to have a minimal effect as on your bottom line. Our management fee is small when compared to the services we provide and the cost savings to you and your property.
Our fee structure is as follows:
Rental Investment Property 1-10 units
8% of gross monthly rents
A minimum of $50 per unit or 5% of the previous rent, whichever less, during any period of vacancy.
(ii) Capital Improvements/major repairs:
Capital improvements/major repairs between $1-$999 are included in basic fees
3% of capital improvements/major repairs between $1000-$1999
4% of capital improvements/major repairs between $2000-$2900
5% of capital improvement/major repairs between $3000- Up
(iii) Other Fees and Charges:
Inspections for Section 8 rentals.............................................................................$100
Other Inspections
$100
Housing Court Appearance.........................................................................................$150
Over 3 hours in Court..................................................................................................$150
Standard rental fee is 1 month rent. Managed properties are one at a reduced rate of one half month rent plus $150 administrative fee. (This applies except where the property is a newly managed property established at the time of renting the property).
Start up fees for new accounts (One time charge includes paperwork, establishment of EIN if necessary, opening of banking accounts, etc.)
....$150
(IV) Any work performed to your managed property will be directly billed to your account. We do not take a mark up on any work except as outlined above for capital improvements or major repair projects. We will pay from your funds the agreed upon invoice amount we receive from the contractor, handyman, electrician, plumber, landscaper, painter, cleaner, carpenter or other professional or worker that was hired to perform such work.
(V) For Leasing: One half of the monthly rent provided for in any lease or other tenancy agreement for the premises as negotiated, executed and delivered by the Manager during the term of this agreement or, as market conditions permit, the tenants may pay the entire fee or as negotiated at the time of the agreement.
(VI) Reimbursements for any items as described under Section 2(e) shall be deducted from the remittance check and/or Trust Account on a monthly basis.
(VII) Account Minimum Balances:
Property owners agree to keep a minimum of $500 in the account at all times to cover operating expenses. If the mortgage is being paid from the account the property owners agree to keep a minimum of one months mortgage payment plus $500 in the account at all times.
6. Contacting us and other items.
(I) At Home Real Estate Group will generally staff the administrative office Monday through Friday between the hours of 9am and 4pm. Please understand that at time the property managers may be at the managed properties, attending to banking or other property needs.
(II) We will maintain a 24 emergency phone number for the tenants to be used for emergency purposes only on weekends, holidays and after regular business hours. Non emergencies will be addressed during regular business hours or as scheduled in advance.
(III) At Home Real Estate Property management staff will be available by telephone and/or cell phone during business hours. We will also be available via email, and/or postal mail weekdays. Staff members will be available by cell phone after business hours for emergency purposes only.
Signed,
_________________________
Kenneth Osherow, Director and/or
Liz Vickerman, Property Management Director
At Home Real Estate Group, Inc
Agreed and Accepted:
_____________________________ Date_________
Owner
_____________________________ Date__________
Owner
| |
