Residential Property Management Agreement Template - Idaho Home Tending - Idaho

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RESIDENTIAL PROPERTY MANAGEMENT AGREEMENT
This PROPERTY MANAGEMENT AGREEMENT (hereinafter referred to as the “Agreement”), entered into this ________ day of
_______________, 20___ by and between __________________________________________________________________
(hereinafter referred to as “Owner”) of the property or properties described below (hereinafter referred to as the “Property”) and
the Property. In consideration of the mutual terms of this Agreement the parties agree as follows:
1.
NOTICES: Any notices, demands, consents and report necessary or provided for under this Agreement shall be in writing
and shall be addressed as follows.
TO OWNER:
TO BROKER:
Name: __________________________________
Name: ________________________________________
Address: __________________________________
Address: ________________________________________
__________________________________
________________________________________
Phone: __________________________________
Phone: ________________________________________
Fax:
__________________________________
Fax:
________________________________________
Email:
__________________________________
Email:
________________________________________
All notices shall be faxed, emailed or sent by regular mail. Notices shall be effective as of the date the notice is faxed,
mailed or emailed. (whichever is later).
2. EMPLOYEMENT OF MANAGING BROKER
(A) Employment and Acceptance. Owner employs Broker as the sole exclusive Agent of Owner to manage the Property
upon the terms and conditions provided herein. Broker accepts the employment and shall furnish the services of the
organization for the management of the Property. Owner shall pay all of the expenses in connection with this service
described herein.
(B) Relationship of Broker to Owner. The relationship of the parties to this Agreement shall be that of principal and
Agent, and all duties to be performed by Broker under this Agreement shall be on behalf of Owner, in Owner’s name
and for Owner’s account. In taking any action under this Agreement, Broker shall be acting only as Agent for Owner,
and nothing in this Agreement shall be construed as creating a partnership, joint venture or any other relationship
between the parties or as requiring Broker to bear any portion of losses arising out of or connected with the ownership
or operation of the Property. Broker shall not at any time during the period of this Agreement be considered a direct
employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in
this Agreement, except that Broker is authorized to act with such additional power as may be necessary to carry out
the spirit and intent of this Agreement. Broker, under this Agreement, shall not be responsible for delays in the
performance of any obligation unless there is an intentional delay caused by Broker or its employees.
(C) Description of the Property. The properties to be managed by Broker under this Agreement are described on Exhibits
_________ through ___________ attached hereto (hereinafter jointly referred to as “the Property”).
(D) Term. The term of this Agreement shall be for an initial period of _______ years (the “initial term”) beginning on
______________________, 20___ and ending __________________________, 20___; and thereafter shall then renew
for a like term unless terminated by either party.
Owner ______
Agent _______
Owner ______
Agent _______
RESIDENTIAL PROPERTY MANAGEMENT AGREEMENT
This PROPERTY MANAGEMENT AGREEMENT (hereinafter referred to as the “Agreement”), entered into this ________ day of
_______________, 20___ by and between __________________________________________________________________
(hereinafter referred to as “Owner”) of the property or properties described below (hereinafter referred to as the “Property”) and
the Property. In consideration of the mutual terms of this Agreement the parties agree as follows:
1.
NOTICES: Any notices, demands, consents and report necessary or provided for under this Agreement shall be in writing
and shall be addressed as follows.
TO OWNER:
TO BROKER:
Name: __________________________________
Name: ________________________________________
Address: __________________________________
Address: ________________________________________
__________________________________
________________________________________
Phone: __________________________________
Phone: ________________________________________
Fax:
__________________________________
Fax:
________________________________________
Email:
__________________________________
Email:
________________________________________
All notices shall be faxed, emailed or sent by regular mail. Notices shall be effective as of the date the notice is faxed,
mailed or emailed. (whichever is later).
2. EMPLOYEMENT OF MANAGING BROKER
(A) Employment and Acceptance. Owner employs Broker as the sole exclusive Agent of Owner to manage the Property
upon the terms and conditions provided herein. Broker accepts the employment and shall furnish the services of the
organization for the management of the Property. Owner shall pay all of the expenses in connection with this service
described herein.
(B) Relationship of Broker to Owner. The relationship of the parties to this Agreement shall be that of principal and
Agent, and all duties to be performed by Broker under this Agreement shall be on behalf of Owner, in Owner’s name
and for Owner’s account. In taking any action under this Agreement, Broker shall be acting only as Agent for Owner,
and nothing in this Agreement shall be construed as creating a partnership, joint venture or any other relationship
between the parties or as requiring Broker to bear any portion of losses arising out of or connected with the ownership
or operation of the Property. Broker shall not at any time during the period of this Agreement be considered a direct
employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in
this Agreement, except that Broker is authorized to act with such additional power as may be necessary to carry out
the spirit and intent of this Agreement. Broker, under this Agreement, shall not be responsible for delays in the
performance of any obligation unless there is an intentional delay caused by Broker or its employees.
(C) Description of the Property. The properties to be managed by Broker under this Agreement are described on Exhibits
_________ through ___________ attached hereto (hereinafter jointly referred to as “the Property”).
(D) Term. The term of this Agreement shall be for an initial period of _______ years (the “initial term”) beginning on
______________________, 20___ and ending __________________________, 20___; and thereafter shall then renew
for a like term unless terminated by either party.
Owner ______
Agent _______
Owner ______
Agent _______
3. BROKER COMPENSATION AND EXPENSES. As compensation for the services rendered by Broker under this Agreement
(and exclusive of reimbursement of the expenses to which Broker is entitled hereunder), Owner shall pay Broker as follows:
(A) Management Services. Broker shall be paid the greater of $____________ per month or __________% of the monthly
gross collected rents. Payments due Broker for periods of less than the scheduled rental periods shall be prorated.
(B) Leasing. For the procurement of a Tenant(s) for whom a lease is signed, Broker shall be paid a leasing fee as follows:
$________________ - OR-__________% of the monthly rent –OR- ___________% of the annual rent. Owner also
authorizes payment of an MLS referral commission to the referring Broker not to exceed $______________.
(C) Lease Renewals. For Lease renewals, Broker shall be paid a leasing fee of $_______________ -OR- ______________%
of the monthly rent –OR- ____________% of the annual scheduled rent.
(D) Advertising. Owner agrees to pay in advance for all newspaper classified advertisements placed on Owner’s behalf and
to pay the Multiple Listing Service real estate commission to any real estate Broker including Broker’s leasing staff, who
brings a qualified tenant that results in a signed lease. Free Craigslist ads will be place by the leasing staff at no charge.
(E) Selling Commission. If, within the term of this Agreement or within 180 days thereafter, a tenant shall enter into a
purchase agreement or lease/option to purchase the Property, Broker shall be deemed the procuring cause of the sale,
and Owner shall pay Broker a fee of ______%. If within the term of this Agreement, Owner shall decide to sell the
Property on the market, Owner shall list the Property with Broker for a Fee of _______%
(F) Interest on Unpaid Sums. Any sums due Broker under the terms of this Agreement, and not paid within 30 days after
such sums have become due, shall bear interest at the rate of 12% per annum.
(G) Extraordinary Services. An hourly fee of $______________ per hour shall be paid to Broker for all necessary or
requested tasks not considered normal management duties.
4. BANK ACCOUNTS
(A) Trust Accounts. Broker shall establish a separate Account apart from any company or corporate account, for the
deposit of collected receipts in an institution whose deposits are insured by the federal government. Such depository
shall be selected by Broker. Designated funds relating to the Property in the Account remain the property of Owner
subject to disbursement of expenses by Broker described in this Agreement. Any interest accrued on this account will
be retained by Broker. Broker shall notify Owner if a new reserve amount is required.
(B) Initial Deposit and Reserve. Immediately upon commencement of this Agreement, Owner shall remit to Broker the
sum of $___________________ as a reserve. Owner shall maintain the reserve stated above at all times in the Account
to enable Broker to pay the obligations of Owner under this Agreement as they become due. Broker shall notify Owner
if additional funds are required.
(C) Security Deposit Trust Account. Broker
shall
shall not maintain a separate Security Deposit Account for security
deposits, cleaning, pet and key and other deposits.
5. COLLECTION OF RENTS AND OTHER RECEIPTS
(A) Broker’s Authority. Broker shall collect all rents, charges and other amounts receivable on Owner’s account in
connection with the management and operation of the Property. Such receipts shall be deposited in the Account
maintained by Broker for the Property.
(B) Special Charges. If permitted by applicable law, Broker may collect from the tenants and retain any and or all, but not
limited to the following: an administrative charge for late payment of rent, a charge for returned or non-negotiated
checks, interest and a rental application fee.
Owner ______
Agent _______
Owner ______
Agent _______
(C) Security Deposits. Broker shall collect a security deposit and deposit it into the Account and disburse it in accordance
with Idaho Code Title 6-321. Any interest earned on tenant security deposits shall be retained by Broker.
6. DISPURSEMENT OF RENTS OTHER RECEIPTS
(A) Operating Expense. From the Account, Broker is hereby authorized to pay or reimburse itself for all expenses and cost
of operating the Property and for all other sums due Broker under this Agreement, including Broker compensation.
(B) Debt Service. Owner shall give Broker advance written notice of at least 30 days to make any additional monthly or
recurring payments (such as mortgage indebtedness, general taxes, special assessments or insurance premiums) out of
Owner’s proceeds from the Property. If the Owner notifies Broker to make such payments after the beginning of the
term of this Agreement, Broker shall have the authority to name a new contingency reserve amount, and Owner shall
maintain this new contingency reserve amount at all times in the Account.
(C) Net Proceeds. To the extent that funds are available and after maintaining the cash contingency reserve amount as
specified in Paragraph 3(B), Broker shall transmit the cash balances to Owner monthly.
7. BROKER IS NOT REQUIRED TO ADVANCE FUNDS. If the balance of the Account is at any time insufficient to pay
disbursements due and payable, Owner shall, not later than 10 days after notice, remit to Broker sufficient funds to cover
the deficiency and replenish the contingency reserve. In no event shall Broker be required to use its own funds to pay such
disbursements, nor shall Broker be required to advance any monies to Owner or to the Account. If Broker advances any
monies in connection with the Property to pay any Owner expense, Owner shall reimburse Broker, including interest at a
rate of 12% per annum, and Broker may deduct such amounts from any monies due Owner.
8. FINANCIAL AND OTHER REPORTS
(A) Owner/IRS Relationship. Owner is required to file all required Internal Revenue Service (IRS) forms and meet all IRS
requirements.
(B) Reports. Broker shall furnish Owner with a statement of cash receipts and disbursements from the operation of the
Property monthly. In addition, Broker shall, on a mutually acceptable schedule, prepare and submit to Owner such
other reports as are agreed on by both parties. Broker shall submit as required by the IRS at the conclusion of each
calendar year a Form 1099 including the total income received from the Property.
9. LEASING AND RENTING
(A) Broker’s Authority. Broker is authorized to negotiate, prepare and sign all leases, including all renewals and extensions
of leases and to cancel and modify existing leases for Owner. All cost of leasing shall be paid out the Property Account.
Leases are to be written on Broker’s standard lease form.
(B) Enforcement of the Leases. Broker is authorized to institute, in Owner’s name, all legal actions or proceedings for the
enforcement of any lease term, for the collection of rent or other income from the Property, or for the eviction or
dispossession of the tenants or other persons from the Property. Broker is authorized to sign and serve such notices as
Broker deems necessary for lease enforcement, including the collection of rent or other income. If Broker deems it
necessary, Broker may retain an attorney of Broker’s choice (unless Owner supplies Broker with the name of Owner’s
attorney). Owner shall pay all attorneys fees and court cost.
(C) Management/Maintenance Review. Broker shall make management/maintenance reviews of the Property at the time
of occupancy, when the tenant vacates and at such other times as Broker feels necessary or advisable and report
matters concerning the condition of the Property to owner. In the event of Vacancy, Broker will take reasonable
precautions to secure the Property.
10. REASONABLE MAINTENANCE AND REPAIR
Owner ______
Agent _______
Owner ______
Agent _______
(A) Ordinary/Emergency Maintenance Repair. Broker shall make or cause to be made, through contracted services,
employees or otherwise, all ordinary repairs and replacements reasonably necessary to preserve the Property in a
habitable condition and for the operating efficiency of the Property, and all alterations required to comply with lease
requirements, governmental regulations or insurance requirements. Any cost exceeding $________________ must be
approved by Owner in advance except that in an emergency where repairs are immediately necessary for the
preservation and safety of the Property, to avoid danger or life of Property, or to comply with federal, state or local
law, such emergency repairs shall be made by Broker at Owner’s expense without prior approval.
(B) Smoke Detectors. At Owner’s expense, smoke detectors will be installed on the Property in working condition in
accordance with the law prior to the tenant’s occupancy. During the occupancy, it shall be the tenant’s responsibility
to maintain all smoke detectors.
11. UTILITIES AND SERVICES. Broker shall, in Owner’s name and at Owner’s expense, make contracts for electricity, gas or
water and such other services as necessary or prudent for the operation of the Property. All utility charges and deposits
shall be Owner’s responsibility.
12. INSURANCE
(A) Owner’s Insurance. Owner shall obtain and keep in force adequate insurance against damage and against liability for
loss, damage or injury to property or persons which might arise out of the occupancy, management, operation or
maintenance of the Property. The deductible required under such insurance policies shall be Owner’s expense. Broker
shall be covered as an additional insured on all liability insurance maintained with respect to the Property. Liability
insurance shall be adequate to protect the interests of both Owner and Broker and in form, substance and amounts
reasonably satisfactory to Broker, but not less than $200,000 (two hundred thousand dollars). Owner shall provide
Broker with proof of fire insurance policies in force and shall obtain adequate vandalism coverage for the Property.
Owner shall furnish Broker with certificate evidencing fire and liability insurance or with duplicate copies of such
policies within 15 days after the date of this Agreement. Such policies shall provide that notice of default or
cancellation shall be sent to Broker as well as Owner and shall require a minimum of 30 days written notice to Broker
before any cancellation of or changes to such policies.
(B) Tenant’s Insurance. Tenants
shall
shall not be required to obtain renter’s insurance.
13. SAVE HARMLESS. Owner shall indemnify, defend and save Broker harmless from all loss, investigation, suits, damage, cost,
expense (including attorneys fees) liability or claims for personal injury or property damage incurred or occurring in, on or
about the Property.
14. BROKER ASSUMES NO LIABILTY. Broker assumes no liability for any damages, losses, or acts of omission by Tenant. Broker
assumes no liability for any acts or omissions of Owner or previous Owners or previous brokers. Broker assumes no liability
for default by any tenant. Broker assumes no liability for violations of environmental or other regulations which may
become known during the term of this Agreement. Any such regulatory violations or hazards discovered by Broker shall be
brought to the attention of Owner, and Owner shall promptly cure them. Broker shall not be liable in the event of
bankruptcy or failure of the depository bank where Owner’s funds are deposited.
15. OWNER’S RESPONSIBILITY FOR EXPENSES OF LITIGATION.
(A) Litigation and Compliance Expenses. Owner shall pay all fines, penalties, or other expenses in connection with any
claim, proceeding or suit involving an alleged violation of any law pertaining to fair employment, fair credit reporting,
environmental protection, rent control taxes or fair housing, including illegal discrimination on the basis of race, sex,
color, religion, national origin, physical handicap, familial status, elderliness or all other protected classes; provided,
however, that Owner shall not be responsible to Broker for any such expenses if Broker is finally adjudged in a court of
law to have personally, and not in a representative capacity, violated any such law. Nothing contained in the
Agreement shall obligate Broker to employ legal counsel to represent Owner in any such proceeding or suit.
Owner ______
Agent _______
Owner ______
Agent _______
(B) Fees for Legal Advice. Owner shall pay reasonable expenses incurred by Broker in obtaining legal advice regarding
compliance with any law affecting the Property. If such expenditure also benefits other principals of Broker, Owner
shall pay an apportioned amount of such expenses.
16. REPRESENTATIONS
(A) Owner Representations. Owner represents and warrants: that Owner has full power and authority to enter into this
Agreement; that there are no written or oral agreements affecting the Property other than disclosed tenant leases,
copies of which have been furnished to Broker; that there are no recorded easements, restrictions, reservations or
rights of way which adversely affect the use of the Property for the purposes intended under this Agreement; that the
Property is zoned for the intended use; that all permits for the operation of the Property have been secured and are
current; that the building and its construction and operation do not violate any applicable statues, laws, ordinances,
rules, regulations, orders or the like; that the information supplied by Owner is dependable and accurate; and that any
loans, notes, mortgages, dues or trust deeds are fully paid and are current without defaults.
(B) Multiple Listing Service. No Multiple Listing Service or Association of REALTORS is a party to this Agreement and no
Multiple Listing Service or Association of REALTORS sets, controls, recommends or suggests the amount of
compensation for any service rendered pursuant to this Agreement.
17. TERMINATION
(A) Early Termination. This Agreement may be terminated by Owner before the termination date specified in Paragraph
1(D) by written notice to Broker not less than 30 days prior to the termination date specified in such notice, together
with a cancellation fee in the amount equal to the management fee for the remainder of the stated term of any
existing lease agreement. For this purpose, the monthly management fee for the remainder of the stated term of the
existing lease agreement shall be presumed to be the same as that of the last full calendar month prior to service of the
notice of cancellation. In the event Owner directs Broker to transfer files and documents to a succeeding management
company, Owner will pay Broker a transfer fee of $______________. This Agreement may be terminated by Broker
before the termination date specified in Paragraph 1(D) upon 30 days written notice to Owner. Within ten days of
termination, Owner will pay Broker all monies due under this Agreement.
(B) Owner Responsible for Payments. Upon termination of this Agreement, Owner shall assume the obligations of any
contract or outstanding bill incurred by Broker under this Agreement. Broker may withhold funds for 30 days after the
end of the month in which this Agreement is terminated in order to pay bills previously incurred but not yet invoiced
and to close accounts. Broker shall deliver to Owner, within 30 days after the end of the month in which this
Agreement is terminated, any balance of monies due Owner or tenant security deposits, or both, which were held by
the Broker with respect to the Property, as well as a final accounting reflecting the balance of income and expenses
with respect to the Property as of the date of termination or withdrawal. The security deposit will not be released
unless all parties agree in writing to the transfer of the security deposit from the Broker’s account to Owner.
18. INDEMNIFICATION SURVIVES TERMINATION. All representations and warranties of the parties contained herein shall
survive the termination of this Agreement. All provisions of this Agreement that require Owner to have insured or to
defend, reimburse or indemnify Broker shall survive any termination. If Broker becomes involved in any proceeding or
litigation by reason of having been Owner’s Broker, such provisions shall apply as if this Agreement were still in effect.
19. MISCELLANEOUS
(A) Rights Cumulative; No Waiver. The exercise of any right or remedy provided in this Agreement shall not be an election
of remedies, and each right and remedy shall be cumulative. The failure of either to this Agreement to insist at any
time upon the strict observance or performance of any of the provisions of this Agreement, or to exercise any right or
remedy provided in this Agreement, shall not be construed as a waiver of such right or remedy with respect to
subsequent defaults. Every right and remedy provided in this Agreement may be exercised from time to time and as
often as may be deemed expedient by the party exercising such right remedy.
Owner ______
Agent _______
Owner ______
Agent _______

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