Property Management Agreement Vacation Rentals

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1 Property Management Agreement Vacation Rentals BETWEEN CENTURY 21 Boardwalk, Property Management Division (Agent) 113 Maple Street, Manistee, MI Phone: (231) 645-RENT {7368} Fax: (231) AND Name(s): Address: City, State Zip: Home Phone: (s): Cell Phone: Property Address (Unit #): Business Entity, if any: SSN or Tax ID (if under a business name, like an LLC): Insurance Company, providing coverage on property: Insurance Policy #: Proceeds Payable To (name on check):

2 AGENT is a property management company engaged in managing real property for the OWNERs thereof. In consideration of the covenants herein contained, the OWNER and the AGENT agree as follows: I. Term: The term of this agreement shall become effective on the date hereof, and shall continue until either party gives written notice, at least 30 days in advance of termination date. In the event the Property is sold during the term of this contract, this agreement will end at the closing, when the Property sells. Upon cancellation of this agreement for any reason, or sale of the Property the OWNER will either honor all future rental commitments as those of 30 days or less or be liable to the AGENT and Tenants for all costs and expenses incurred. For the purpose of this agreement, existing rental commitments are defined as a written reservation or rental contract for which a monetary deposit has been received by the AGENT. II. AGENT s Compensation: A. Short-Term/Vacation Rentals: Thirty percent (30%) of gross revenues/collected rental income. OWNER shall pay AGENT such commission, whether such a transaction is consummated as a result of the efforts of the AGENT, OWNER, or some other person or entity, unless it is an Owner stay or Guest of Owner stay where no revenue is collected. AGENT is required to receive at least $500 in management fees to cover the costs of advertising, if AGENT receives less than this amount due to extensive block out dates by OWNER or GUEST OF OWNER than OWNER is responsible for covering the difference. B. Long-Term/Month-to-Month Rentals (over 30 days): Fifteen percent (15%) of gross revenues/collected rental income. OWNER shall pay AGENT such commission, whether such a transaction is consummated as a result of the efforts of the AGENT, OWNER, or some other person or entity. III. Appointment and Duties of AGENT: OWNER hereby appoints AGENT, and AGENT hereby accepts appointment as Exclusive AGENT and representative of OWNER for the sole purpose of managing the Property on the terms and conditions set forth below. The authorities, powers, responsibilities, duties and limitations of AGENT are as follows: A. Receipt, Deposit and Distribution of Income: During the term hereof, the AGENT shall use its best efforts to obtain Tenants for the OWNER s Property, and to collect all rents and deposits for the Property. All tenants shall prepay all rental payments and security deposits. The AGENT may accept payments in cash, money order, cashier s check, traveler s checks, e-checks, or credit cards. The AGENT shall deposit all funds collected by the AGENT hereunder in a federally insured bank or savings institution designated by the AGENT (the Management Account ), and such funds shall be held in an Escrow account, and will not be co-mingled with the AGENTS operating funds or any other funds. The AGENT shall not be responsible for any loss resulting from the insolvency of such depository. B. Compliance and Enforcement of Leases: AGENT shall receive tenant communications on behalf of the OWNER and shall use reasonable efforts to maintain tenant compliance with the

3 lease provisions. AGENT is authorized to execute on behalf of OWNER all documents and notices and to retain counsel selected by AGENT as AGENT may deem appropriate and necessary. AGENT shall collect and retain security deposits and cleaning fees on tenant s behalf. These deposits will be used by the AGENT to replace or repair items damaged by the tenant, disbursed to the OWNER or refunded to the tenant as the AGENT may reasonably determine. C. Maintenance of Property: AGENT shall manage and maintain the Property consistent with industry standards in the locale where the Property is located. All repairs and maintenance shall be performed without prior approval from OWNER, except that which exceeds expenditure limit (see item IV). AGENT shall negotiate service and labor contracts on behalf of OWNER, which are required in the ordinary course of managing the Property as requested by OWNER. AGENT shall also place orders for such equipment and supplies necessary to properly maintain the Property. All contracts and orders shall be made in the name of the OWNER by AGENT as OWNER s authorized and designated representative. D. Maintenance of Records: AGENT shall maintain full and accurate records of the accounts of the Property, in accordance with generally accepted accounting standards, which shall be open to the inspection of OWNER at the office of the AGENT after reasonable notice to AGENT during regular business hours. AGENT shall render to OWNER a monthly statement showing all receipts and disbursements reflecting the financial condition of the Property for the month immediately preceding. Said monthly statement shall be deemed accurate and correct between the parties unless OWNER notifies AGENT of any claimed error or inaccuracy. IV. Expenditure Limit: AGENT shall advise OWNER of work needing to be performed and obtain authorization prior to performing needed maintenance, or ordering supplies in excess of $250. V. Payment of Expenses: From the gross revenues collected from the Property, the following will be addressed: A. Operating Expenses: AGENT shall pay all expenses incurred through renting, servicing, maintaining, or repairing the Property including, without limitation, AGENT s compensation as described in section II of this Agreement and such other expenses in connection with the Property as may be authorized by OWNER from the Management Account referred to in section VI paragraph A. B. Michigan Use and Local Lodge Tax: AGENT shall collect from guests and remit to the State of Michigan any appropriate Michigan Use Tax which may be required. Additionally, AGENT shall collect from guests and remit to appropriate local entity any appropriate Local Lodge Tax or any other taxes, other than real property taxes, which may be applicable. VI. Duties of OWNER:

4 A. Furnishings, Linens & Supplies: OWNER shall maintain a standard set of furnishings, linens and supplies as defined by AGENT. OWNER shall pay any and all cost associated with the laundering or replacement of these as the AGENT deems reasonable. B. OWNER or Guests of OWNER Use: Use of the unit by the OWNER or Guests of OWNER for personal use will be subject to prior reservations made by the AGENT under the terms of this Agreement. OWNER may use his or her Property for any length of time, so long as the property is not currently rented. The Owner must notify the AGENT within reasonable notice to block off any dates for self or guests. OWNER or Guests of OWNER are required to pay costs to AGENT for cleaning, maintenance, or repairs as AGENT deems reasonable. C. OWNER Costs: OWNER shall pay all other taxes and assessments including property taxes, association fees, all utilities and any loans secured by, or otherwise affecting, the Property. AGENT shall have no responsibility for payment of same. VII. Representations and Warranties: A. Representations and Warranties of OWNER: OWNER hereby represents and warrants the following to AGENT for the purpose of inducing AGENT to enter into this Agreement: 1. OWNER is the OWNER of the Property and has full right, power, and authority to agree to execute, deliver, and carry out the provisions of this Agreement; and no consent of any third party is required. The execution and delivery of this Agreement by OWNER is duly authorized and thereupon this Agreement shall be a valid and binding agreement of OWNER. 2. To the best knowledge of OWNER, there are no material violations of any rule, regulation, code resolution, ordinance, statute, or law involving the use, maintenance, operation, or condition of any of the Property, or any part thereof. Neither the execution nor delivery of this Agreement will conflict with, or result in a breach of the terms, conditions, or provisions of, or constitute a default under any agreement or instrument, to which OWNER is a party. To the best of Owner s knowledge, no litigation is pending or proposed, threatened or anticipated with respect to any matter affecting the Property. OWNER is not in default under, and is current with respect to the payment of principal and interest pursuant to any trust deed encumbrance against the Property. B. Representations and Warranties of AGENT: AGENT hereby represents and warrants the following to OWNER for the purpose of inducing OWNER to enter into this agreement: 1. AGENT has full right, power, and authority to execute, deliver, and carry out the provisions of this Agreement. The execution and delivery of this Agreement by AGENT is duly authorized, and thereupon, this Agreement shall be a valid and binding agreement of AGENT. 2. Neither the execution nor delivery of this Agreement, nor the consummation of the transactions covered hereby, nor the fulfillment of the terms hereof, nor compliance

5 VIII. Miscellaneous: with the terms and provisions hereof will conflict with, or result in a breach of the terms, conditions or provisions of, or constitute a default under any agreement or instrument to which AGENT is a party, or any restriction to which an AGENT is subject. A. Accounting: Monthly Statements will be issued to OWNER within the month following the calendar rental month. AGENT shall, provided OWNER has paid to AGENT all sums due AGENT under this Agreement, deliver to OWNER within thirty (30) days after the expiration or termination of this Agreement the following: (i) an up-to-date accounting reflecting the balance of income and expenses on the Property as of the date of termination and (ii) list of all rentals, insurance policies, and unpaid bills which are the property of the OWNER. If OWNER does not notify AGENT within forty-five (45) days specifying any inaccuracy, AGENT shall be deemed to have delivered all monies and documents of OWNER and AGENT shall be released by OWNER from any and all liabilities or obligations. B. Document Files: AGENT is required to maintain a complete file of all documents associated with this Agreement, including, but not limited to, copies of all insurance policies and any required endorsements which are required by OWNER; home warranty policies, if applicable; copies of the most recent property tax bills; W-9 (provided by AGENT); Certificate of Compliance and/or Registration with the City of Manistee (if within the city limits) as required by law. OWNER shall also provide OWNERs or Business/LLC tax identification number to AGENT, for all tax purposes. C. Entire Agreement: This agreement constitutes the entire Agreement between the parties pertaining to the subject matter contained in the Agreement and supersedes all prior and contemporaneous agreements, representations, and understandings of the parties. D. Notices: Notices given under this Agreement shall be in writing and shall either be served personally or delivered by U.S. Mail, postage prepaid, Federal Express, or other express mail service. Notices may also effectively be given by facsimile or electronic mail transmittal if the party, to whom the notice is being sent, has such a system in its office, provided a complete copy of any notice so transmitted shall also be mailed in the same manner as required for a mailed notice. E. Governing Law and Venue: This Agreement shall be construed in accordance with, and governed by, the laws of the State of Michigan, and any action or proceeding, including arbitration, brought by any party in which this agreement is a subject, shall be brought in Michigan. F. Joint and Several Liability: In the event either party shall at any time consist of more than one person, firm, or corporation, then in such event, all such persons, firms or corporations shall be jointly and severally liable as parties under this Agreement. G. Advice of Professionals: Each party has had the opportunity to be advised by legal counsel and other professionals in connection with this agreement, and each party has obtained such advice as each party deems appropriate.

6 H. No Property Interest Created: Nothing herein contained shall be deemed to have created, or be construed as having created, any property interest in or to the Property in AGENT. I. Interested Parties: The terms and conditions of this Agreement shall be binding upon and inure to the benefit of each of the parties and their heirs, executors, successors, and assigns. J. Other Activity of AGENT: AGENT shall not be required to spend its full time and attention in the management and operation of the Property, but AGENT shall devote to the Property such portion of its time as may be reasonably necessary to discharge the duties of AGENT set forth in this Agreement. AGENT shall have the right to engage in any other activity for its own benefit or advantage, including any competitive real estate venture. Nothing contained herein shall preclude, prevent, or be in limitation upon AGENT being engaged in other real estate ventures, whether acting for itself or for others, or as a partner in a partnership or a stockholder in a corporation or otherwise. OWNER(S) Date: Date: AGENT CENTURY 21 Boardwalk, PMD Date: Date:

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