LEASING AND PROPERTY MANAGEMENT AGREEMENT

Transcription

1 1 LEASING AND PROPERTY MANAGEMENT AGREEMENT 1 16 September THIS AGREEMENT (referred to as the Agreement") made effective as of the day of, 20. (the "Effective Date"). BETWEEN Abode Student Life Inc. (referred to as the Agent ), located at: 171 East Liberty Street, Unit 127B, Toronto, ON, M6K 3P6 Fax #: clientcare@abodestudentlife.com AND (referred to as the Owner(s) ) residing at: Whereas the Owner(s) is the registered owner of the following furnished proposed condominium unit(s) (referred to as the Premises ) located within the building municipally known as 330 Phillip Street, Waterloo, Ontario, N2L 3W9. Located at: 330 Phillip Street Tower: Unit: Waterloo, ON N2L 3W9 Model: And whereas the Owner(s) desires to appoint the Agent as his/her/its exclusive property and leasing manager to lease, operate, market, and manage the Premises, and the Agent wishes to become the Owner(s) s exclusive agent in respect to leasing, operating, marketing, and managing the Premises, on the terms and conditions contained in this Agreement. And whereas pursuant to the agreement of purchase and sale between Ontario Inc. (the "Developer"), as vendor, and the Owner(s), as purchaser(s), for the Premises, the Developer agreed to provide, included as part of the Agreement of Purchase and Sale for the Premises, a two school year (20 months) free property management services for the Premises during the Guarantee Period (the "Guarantee Period"). Now therefore, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. APPOINTMENT OF THE AGENT a) The Owner(s) hereby appoints the Agent to act as his/her/its sole and exclusive agent to lease, manage, market, and operate the Premises, subject to and on the terms and conditions and for the remuneration contained in this Agreement, and the Agent hereby accepts such appointment. b) The Agent is authorized and the Owner(s) hereby appoints the Agent as its attorney to sign leases, rental agreements, contracts, and other agreements with respect to the Premises on behalf of the Owner(s), in accordance with the terms of this Agreement and during the term of this Agreement. c) It is understood and agreed that the Agent shall have the exclusive right to procure any lease (written or oral) and the Owner(s) may participate in the negotiation of any lease if it elects to do so during the term of this Agreement. 2. DUTIES AND SERVICES OF AGENT Without limiting the generality of section 1 above, the Owner(s) hereby authorizes the Agent and the Agent hereby covenants and agrees, to provide the following services in a professional and good and business like manner: a) Those listed in Appendix A attached hereto and forming part of this Agreement. b) Organize marketing activities and events to advertise the Premises geared at procuring prospective tenants, including without limitation placing advertising in newspapers, magazines, social media, or any other medium deemed necessary and at the discretion of the Agent for such purpose. c) Prepare, negotiate and enter into leases for the Premises on behalf of the Owner(s). d) Prepare, negotiate and enter into assignments of the Lease as permitted by the Lease. e) carry out and enforce the provisions of the Lease, including without limitation obtaining payment of the amounts due thereunder, dispossessing and evicting tenants and other persons from the Premises for

2 2 nonpayment of rents and/or other proper causes and instituting legal action or other proceedings to carry out same, subject to the Owner's written approval prior to the Agent instituting a claim or any other legal action or proceeding. f) negotiate, enter into, enforce, satisfy, and administer reasonable contracts and agreements as necessary for the operation and management of the Premises. g) collect security deposits, rental deposits, rent, and all other revenue and deposits due under the Leases for the Premises, deduct and make payments from the rental income for the Premises in accordance with subsections 4(c), 4(d) and 4(e) of this Agreement or as otherwise approved by the Owner(s). h) arrange, contract for, purchase, and provide the necessary services and supplies for the proper maintenance, repair of the Premises, and the furnishings which are the property of the Owner(s) in the Premises, as required to comply with the Owner's obligations pursuant to the declaration, by laws and rules of the Condominium Corporation, applicable laws of governmental authorities with jurisdiction and in order to maintain the Premises in a state of good order and repair, and to cause such maintenance, repairs to be done, provided that each single expenditure which exceeds the amount of $500.00, shall require the Owner(s)' prior written approval, which approval shall not be unreasonably withheld or delayed, unless the Agent shall consider the circumstances surrounding the request for the repair or service to be of an emergency, then prior to the Owner(s)'s approval if not readily obtainable provided the Agent then provides notice to the Owner(s) of such repair or service; i) maintain and cause to be kept and prepared and provided the records and receipts as required by and in accordance with this Agreement. The Agent will use diligence in contracting for repairs and other services and will have the right to hire, discharge, supervise and pay any employees, servants or contractors for work performed which are in accordance with the terms of this Agreement, at the Owner(s)' expense. 2a. AGENT'S NON LIABILITY The Owner(s) agrees that the Agent shall not be liable or responsible in any way for any injury, death, loss or damage to any person or property owned by or being the responsibility of the Owner(s) in the Premises no matter how same shall be caused and whether or not such loss or damage is caused or contributed to by the negligence of the Agent, its agents, servants, employees, contractors or persons for whom the Agent is in law responsible. Without limiting the generality of the foregoing, the Agent shall not be liable or responsible for any injury, death, loss or damage to any person or property caused or contributed to by any of the following: fire, explosion, steam, water, rain, snow, electricity, gas, falling wood or plaster, dampers or leaks from any pipes, appliances, plumbing works, roof, exterior walls or any other source whatsoever. The Agent shall not be liable or responsible in any way for any loss or damage, injury or death to any person or property caused by any other tenant or occupant of the Premises or by the public or by the construction of any public, quasi public or private work or utilities. All property owned by the Owner(s) or for which the Owner(s) is legally responsible, kept or stored in or about the Premises shall be at the sole risk of the Owner(s) and the Owner(s) shall indemnify the Agent and save it harmless in respect of the same. Without in any way limiting or affecting the generality or interpretation of the foregoing provision, it is agreed that the Agent shall in no event be liable for any indirect, consequential, punitive or exemplary damages suffered by the Owner(s). 3. RESPONSIBILITIES OF THE OWNER(S) The Owner(s) covenants and agrees as follows: a) The Owner(s) is responsible for the payment of the Goods and Services Tax (GST/HST) and any other applicable taxes, including Property Taxes, income taxes, charges, rates and levies payable by the Owner(s) in connection with Premises. b) The Owner(s) is responsible for the payment of common expenses (sometimes referred to as condo fees ) as determined by the Condominium Corporation from time to time, including and not limited to the property management costs that make part of the condo fee. c) The Owner (s) is responsible for any insurance costs with respect to insuring the Premises and its contents as set out in the declaration and by laws of the Condominium Corporation and in accordance with prudent practice and is responsible for obtaining and maintaining such insurance, including contents insurance. The Owner(s) shall carry, at the Owner(s) s expense, sufficient public liability insurance in an amount determined by the Agent from time to time with the Agent designated as an additional named insured. d) The Agent may withhold from the Owner(s) s rental revenue and remit to Canada Revenue Agency or any other relevant authority any amounts required to be withheld or remitted in respect of any other applicable tax, charge, rate or levy which the Agent is required to withhold or remit by law. e) The Owner(s) is responsible for mortgage payments, utilities, water and any other expenses relating to the Premises unless the Agent has collected such amounts from tenants under the lease and directly remitted such amounts to the relevant party. f) The Owner(s) is responsible for the costs associated with cleaning the Premises upon termination of a tenant s Lease and before a new tenant(s) is placed. g) The Owner (s) shall not change the locking hardware to the Premises without supplying the Agent with a duplicate set of keys.

3 3 4. COMPENSATION AND EXPENSES OF THE AGENT; GUARANTEE PERIOD a) Notwithstanding anything to the contrary in this Agreement, the fee in Section 4(b) below shall not be payable by the Owner(s) during the Guarantee Period. During the Guarantee Period, the Owner(s) shall still be responsible for payment of the amounts in Section 3 above and any in Section 4(c), 4(d) and 4(e) below. b) Except during the Guarantee Period, in consideration of the services to be rendered by the Agent on behalf of the Owner under Section 2 and Appendix A of this Agreement, the Owner(s) agrees to pay the Agent: (i) A monthly fee equal to 4.5% (four and a half percent) of the monthly rent for the unit, plus applicable taxes, payable in advance on the first day of the first renewal term after expiry of the Guarantee Period and thereafter on the anniversary of the said commencement date for each subsequent renewal term of this Agreement. This fee is subject to change in accordance with Section 6 below. (ii) A onetime, non refundable, placement fee of fifty percent (50%) of the first month s rent from the Premises whenever a new tenant is placed or a tenancy agreement is renewed, to cover administration and advertising costs. c) Any special services that are conducted for the Owner(s) and not included in Appendix A" or in Section 2 of this Agreement, will be subject to a fee payable by the Owner(s) for the benefit of the Agent as agreed between the parties from time to time. d) The Owner(s) agrees and shall reimburse all direct charges (e.g. bank charges, courier charges, postage, NSF cheque charges, etc.) incurred by the Agent related to the services provided in Appendix A to this Agreement under the heading Other Services. The Agent shall deduct such direct charges from the rental income for the Premises actually received from the tenant(s) and deliver to the Owner(s), at the same time as or before delivery of the rental income to the Owner(s), a written statement setting out such direct charges and the deductions by the Agent from the rental income. e) The Owner(s) acknowledges that: (i) all costs and expenditures for the Premises incurred under Section 2 and Appendix "A" of this Agreement or otherwise approved by the Owner(s) shall be for the account of the Owner(s), and (ii) all of the expenses, costs and disbursements of the Agent in rendering services under this Agreement, except as otherwise set out herein in subsection 2(g), shall be for the account of the Owner(s). The Agent shall not be required to advance any of its own funds for the management and operation of the Premises. In the event that the Agent advances its own funds to make payments for expenses, costs, disbursements, and/or expenditures properly incurred on behalf of the Owner(s) in accordance with this Agreement or otherwise approved by the Owner(s), then the Agent may deduct such amounts from rents collected on behalf of the Owner(s) provided that the Agent provides the Owner(s) with a written statement showing the amounts so deducted with supporting evidence showing that such amounts were incurred by the Agent. If there are insufficient funds from the rental income collected to cover the Owner(s)' expenses and expenditures for the Premises under this Agreement or as otherwise approved by the Owner(s), then the Agent may deliver a written request for funds to the Owner(s) setting out the purpose and amount of funds required, to whom the funds will be paid and that the expenditure is in accordance with this Agreement, and the Owner(s) shall pay such funds to the Agent within fifteen (15) business days of the Agent's written request. 5. INDEMNIFICATION The Owner(s) shall indemnify and save harmless the Agent and all of its agents, employees, contractors and persons for whom the Agent is in law responsible from all liability, claims, damages, losses, costs, and expenses arising out of or in any way connected with the Property and the management, operation, marketing, and leasing of the Premises or the performance by the Agent of its services and obligations under this Agreement. 6. TERM OF AGREEMENT This Agreement shall have an initial term of 20 (twenty) consecutive months commencing on the Effective Date. Upon completion of the initial term, unless terminated earlier by either party in accordance with Section 7 below, this Agreement will renew itself automatically for consecutive periods of 12 months each on the same terms and conditions except for the compensation to the Agent in subsection 4(b) above which shall be fixed, at the commencement of each renewal term, by the Agent in its sole and absolute discretion, acting reasonably and based on then current competitive market rate for the services rendered under this Agreement given the location and type of the Premises, by notice in writing to the Owner(s). 7. TERMINATION AND CHANGE OF OWNERSHIP a) Either party may terminate this Agreement for any reason upon giving 180 days prior written notice to the other party. b) Either party may terminate this Agreement on thirty (30) days written notice to the other party if the other party becomes insolvent or is in default of any of its monetary obligations under this Agreement and such monetary default has not been cured within thirty (30) days after written notice of default from the non defaulting party to the defaulting party, or if a party is in material default of any of its non monetary obligations under this Agreement and such default is not cured within 45 days after written notice of default from the defaulting party to the non defaulting party. c) The following shall apply upon termination of this Agreement: (i) as of the effective date of termination in the notice of termination (the "Termination Date"), the Owner(s)'s appointment of the Agent shall terminate;

4 4 (ii) the Owner(s) agrees to uphold and honour any lease agreement and rental agreement already in place for the Premises until the end of its term and to execute any documents required to give effect to this provision; (iii) other than leases and rental agreements with tenants, the Agent shall terminate any contracts and agreements with third parties with respect to only the Premises entered into by the Agent as of the Termination Date, except if any such contracts or agreements cannot be terminated with respect to only the Premises by the Termination date, then the Owner(s) shall assume from the Agent such contracts and agreements with respect to only the Premises; (iv) the Agent shall pay to the Owner(s) all money collected by the Agent on behalf of the Owner(s) no later than five (5) days after the Termination Date; (v) within five (5) days after the Termination Date, the Owner(s) shall pay the Agent its fees under Section 4 of this Agreement up to and including the Termination Date and reimburse or pay the Agent for any direct charges, expenses and expenditures properly incurred by the Agent on behalf of the Owner(s) in accordance with this Agreement up to and including the Termination Date. d) The Owner(s) agrees that it shall not sell or transfer all or part of its interest in the Premises without first using its best efforts to obtain a written assumption agreement with the Agent from its proposed transferee, in a form satisfactory to the Agent, acting reasonably, wherein such transferee agrees to be bound by the terms and provisions of this Agreement as if such transferee was an original party hereto. Should the ownership of the Premises change or the Premises sold without obtaining the above mentioned assumption agreement from the transferee of the Premises, this Agreement shall terminate as of the date of transfer of the Premises and the Owner(s) agrees to inform the Agent in writing at least thirty (30) days prior to the transfer of title. 8. ASSIGNMENT a) The Owner(s) may not assign or transfer, directly or indirectly, all or part of its rights or obligations under this Agreement without the prior written consent of the Agent, which consent shall not be unreasonably withheld or delayed, and only to another person or entity to whom the Owner(s) will transfer registered title and ownership of the Premises and who has entered into a written assumption agreement with the Agent, in a form satisfactory to the Agent, acting reasonably, agreeing to be bound by the terms and provisions of this Agreement as if it was an original party hereto. b) The Agent may assign this Agreement, without the Owner(s)'s consent, to its lender as collateral security and/or to a successor by way of merger, amalgamation or affiliation (as defined in the Business Corporations Act (Ontario)) who has acquired all or substantially all of the Agent's business and has covenanted in favour of the Owner(s) to be bound and comply with the terms and provisions of this Agreement. The Agent shall be relieved of all liability hereunder upon delivery of written notice to the Owner(s) of such assignment and assumption covenant. 9. KEYS The Owner(s) acknowledges and agrees that the Agent will be provided with a key to the unit and the Owner(s) authorize the Agent to duplicate such key to provide to the tenants at the time the tenancy takes effect. 10. BINDING AUTHORITY The Agreement shall be binding upon the successors and permitted assigns of the Agent, and the heirs, administrators, executors, successors and permitted assigns of the Owner(s) 11. GOVERNING LAW The Agreement will be construed according to the laws of Ontario and the federal laws of Canada applicable therein. 12. CURRENCY All amounts payable by either party to the other under the Agreement will be paid in Canadian Funds. 13. ENTIRE AGREEMENT The Agreement constitutes the entire agreement between the parties and will not be modified or amended except by an instrument in writing dated and signed by all the parties to the Agreement. 14. NOTICE Any notice, request, consent, approval, acceptance, waiver or other document required or permitted to be given hereunder shall be in writing and shall be effective upon personal delivery or facsimile transmission or electronic transmission, and shall be deemed to have been made on the date of delivery or date of facsimile or electronic transmission, provided that any party shall be entitled to designate another address by giving written notice thereof to the other party.

5 5 15. FURTHER ASSURANCES The parties agree to execute and deliver, make or cause to be made all such further acts, deeds, assurances and things as may be reasonably required or necessary to more effectually implement and carry out the true intent or meaning of this Agreement as may be requisite. 16. SEVERABILITY The invalidity or unenforceability of any provision of this Agreement shall not impair the validity or enforceability of any other provision. 17. COUNTERPARTS This Agreement may be executed in any number of counterparts with the same effect as if the parties hereto had all signed the same document. All counterparts of this Agreement shall be construed together and shall constitute one instrument. Transmission by facsimile or electronic transmission in pdf format of an executed counterpart of this Agreement shall be deemed to constitute due and sufficient delivery of such counterpart. 18. CONFIDENTIALITY At Abode Student Life Inc. protecting your privacy is very important to us. Our goal is to treat the personal information you provide to us with the utmost respect and privacy. Any personal information provided to us will be kept in the strictest confidence. 19. APPROVAL Any request for the Owner(s) approval or consent under this Agreement shall be in writing, and such approval or consent shall not be unreasonably withheld or delayed by the Owner(s). If the Owner(s) does not respond to a request for approval or consent within ten (10) business days after the date of receipt of the request in accordance with the Notice provision of this Agreement, then the Owner(s) shall be deemed to have given its consent or approval. 16 IN WITNESS WHEREOF, the parties set their signatures and seals on this day of, 20. REGISTERED OWNER(S): Signature Signature Signature Signature AGENT: Abode Student Life Inc. Per: Name: Title: I have the authority to bind the corporation.

6 7 APPENDIX A Scope of Work: 1 Provide trained leasing staff and leasing phone lines 7 days a week. 2 Show Premises to prospective tenants. 3 Assist tenants with room mate search process. 4 Retain/store Lease Agreements and other documents on behalf of the Owner(s). 5 Provide Condominium Rules and Regulations to tenant to ensure compliance. 6 Organize, co ordinate and assist tenant with move ins/outs. 7 Manage, co ordinate and cause to be done any necessary repairs or services to the Premises required in accordance with the declaration and by laws of the Condominium Corporation. 8 Conduct inspections of the Premises before move ins and move outs. 9 24/7 Emergency contact for tenants. 10 Provide Customer Service to all tenants and deal with tenant s complaints and issues. 11 Customer Care office available at the Property 7 days a week. 12 Organize special services and events for tenants to promote strong retention. 13 Manage storage unit if applicable. Other Services: 1. Provide rent receipt to tenants at year end, for tax purposes. 2. Monthly rent collection and deposit collections. Follow up with any unpaid amounts or NSF 3. Issue rent reimbursements to Owner(s) either by direct deposit or cheque as directed in writing by Owner(s), less any deductions permitted by this Agreement. 4. Provide rent revenue statements to Owner(s) for his/her records and tax purposes. 5. Provide statement of expenses incurred to Owner(s) for his/her records and tax purposes.

7 RENT REIMBURSEMENT FORM Rental Property Address: 330 Phillip Street, Waterloo, ON., N2L 3W9 Tower: Unit: Unit Type: Please reimburse all rents (less applicable deductions) received on my behalf with respect to the rental property and storage unit mentioned above by the following method: Monthly direct deposits to bank account (one bank account only). (Please complete, sign and return enclosed Direct Deposit Agreement Form) OR Quarterly cheques payable to: Please mail the rent reimbursement cheque to the name and address below: (one person only) Name: Address: City Province Postal Code Signature(s):

8 DIRECT DEPOSIT AUTHORIZATION AGREEMENT FORM I hereby authorize Abode Student Life Inc. to initiate automatic deposits to my account at the financial institution named below. Further I agree not to hold Abode Student Life Inc. responsible for any delay or loss of funds due to incorrect or incomplete information supplied by me or by my financial institution or due to any error on the part of my financial institution in depositing funds to my account. This Agreement will remain in effect until Abode Student Life Inc. receives a written notice of cancelation from me or my financial institution, or until I submit a new direct deposit Agreement Form. PROPERTY INFORMATION Purchaser Name(s): Rental Property Address: 330 Phillip Street, Waterloo, ON N2L 3W9. Tower: Unit: BANK ACCOUNT HOLDER IDENTIFICAITON Name of Account Holder: Address City Province Postal Code Phone #: FINANCIAL INSTITUTION INFORMATION Name of Bank: Branch Address City Province Postal Code Financial Institution #: Branch # Account # Account type: Chequing Account S Savings Account ATTACH A PERSONALIZED VOID CHEQUE HERE CERTIFICATION I as the person entitled to receive rent reimbursement for the property above, authorize Abode Student Life Inc. to deposit such funds directly to the account indicated above. Signature: Date: