EXCLUSIVE PROPERTY MANAGEMENT AGREEMENT Vacation/Short Term Rental Property

EXCLUSIVE PROPERTY MANAGEMENT AGREEMENT Vacation/Short Term Rental Property IN CONSIDERATION of the mutual covenants and promises set forth herein, Landlord hereby contracts with Broker as its sole and exclusive agent to offer the property for lodging, and Broker hereby contracts with Landlord, to lease and manage the property described below (the Property ) in accordance with all applicable laws and regulations upon the terms and conditions contained herein. 1. Rental Property. Property Address: 2. Duration of Agreement. It is mutually agreed by and between the parties that this Management Agreement shall be binding upon the parties successors, estate and assigns and shall remain in full force and effect until termination pursuant to the terms of paragraph 9. The term shall begin on the day of, 20 and will be in effect for one year and will automatically renew for successive year periods at the anniversary date so long as there has not been at least a ninety (90) day written notice prior to the next term given by either party to terminate. 3. Duties on Termination. Upon termination of this agreement by either party, each shall take such steps as are necessary to settle all accounts between them, including, but not limited to the following: (A.) Broker shall promptly render to Landlord all rents then on hand after having deducted them from any: Broker s fees then due and amounts sufficient to cover all outstanding expenditure of Broker incurred in connection with operating the Property: (B.) Broker shall transfer to Landlord any advance payments from tenants held by Broker (including deposits and fees owed to third parties not already lawfully disbursed); provided, Landlord understands and acknowledges that advance payments must be held in a trust account in an insured bank or savings institution located in State. (C.) Landlord shall promptly pay to Broker any fees or amounts due to Broker under the agreement and shall reimburse Broker for any expenditure made and outstanding at the time of termination. (D.) Landlord shall notify all future tenants of the termination of this agreement and transfer of any advance rents or deposits. 4. Broker s Fee: For services performed hereunder, Landlord shall compensate Broker in the following manner: A broker s fee equal to twenty-five percent (20%) of the gross rental income on all vacation rental agreements entered into during the term of this agreement. Broker s fee shall be deemed earned when rent is paid by tenant. Landlord authorizes Broker to deduct fees earned under this paragraph from rents collected by Broker. If following any such deduction, it becomes necessary to transfer rent to a tenant or a new owner of the property, then Landlord understands and agrees that Broker shall be entitled to retain all earned fees previously deducted from such rent under this paragraph. Landlord shall be responsible to the tenant or new owner, as the case may be, for any amount of rent to be transferred that may have been properly deducted by Broker under this paragraph. 5. Disclosure of other Fees: Broker may from time to time, in its sole discretion, provide or arrange services for tenants, including but not limited to equipment rental (cribs, linens, etc.), trip insurance, tenant damage insurance, long distance telephone service, special event bookings and other special services requested by tenant. Landlord acknowledges and agrees that Broker may receive additional fees from tenants or third party vendors for arranging such services, and that any such fees shall belong exclusively to the Broker. Broker may also charge and retain reasonable administrative fees to tenants to cover the costs of processing tenant s reservations, transfers or cancellations or vacation rental agreements. 6. Authority and Broker Responsibilities: During the time this Management Agreement is in effect, Landlord Page 1

expressly grants to Broker the following authority, powers, and rights: (A.) Manage the property to the best of Broker s ability and, devote thereto, such time and attention as may be necessary. (B.) Broker agrees to use its best efforts to solicit, secure and maintain tenant. (C.) Advertise the property in such a manner as may be appropriate in Broker s opinion, including the right to photograph the property for use in Broker s advertising. (D.) Negotiate, execute and retain copies of Brokers standard vacation rental agreements on behalf of Landlord at such rates as Broker shall choose based on the market conditions at the sole discretion of Broker unless requested in writing from Landlord to adjust rental rates that are reasonable and consistent with current market rentals in the area at the time of the request to Broker. Broker may from time to time, in Broker s sole discretion and without consultation with Landlord competitively reduce the current rental rates up to thirty percent for the purpose of filling vacancies. (E.) Require the payment of such tenant security and other deposits as Broker recommends on behalf of Landlord unless Landlord determines in advance a set amount they wish to be collected. Broker however, retains the right to charge tenant option either refundable damage deposit (which may be in the form of a credit card authorization) or a retained fee for a security deposit program or to offer tenant damage insurance in lieu of such deposits. (F.) Landlord agrees that any legal notices or institution of eviction or damage proceedings against tenant(s) through the courts or otherwise, must be taken by the Landlord individually or, with the permission of Landlord, Broker shall hire an attorney to perform the eviction. Costs and attorney fees to evict tenant(s) or otherwise will be paid by Landlord in advance and Landlord agrees to hold Broker harmless for same. (G.) Rebate rents and other fees collected on behalf of tenant and or terminate any lease and refund any payments made by the tenant if, in Broker s reasonable opinion, the property is not in fit and habitable condition at the time the tenant is to begin occupancy, or negotiate partial refunds with tenants if, in Broker s reasonable opinion, the tenant s use and enjoyment of the Property has been or will be materially and adversely affected as a result of a defect in the condition of the Property that cannot be promptly repaired or replaced within eight hours. In the event that Broker refunds rent to a guest, Landlord will reimburse Broker for same to the extent that Landlord received such rent. (H.) Make or cause to be made any repairs, to purchase necessary supplies, to provide for all negotiating and contractual arrangements by suppliers or other independent contractors for all improvements, maintenance or repair services deemed necessary by Broker or to comply with applicable building housing, and health codes, and to determine that such services were performed in a proper and prescribed manner. Broker may not make any repairs that exceed five hundred dollars ($500.00) without prior approval of Landlord except in the case of an emergency, in case of emergency, i.e. air conditioning, heat, refrigerator, range or plumbing or any other repair the Broker deems an emergency and or necessary in Broker's sole judgment for the safety of the tenant(s) or the welfare of the Property, Broker may, without prior approval, institute repairs, even if over the aforementioned limit. (I.) Maintain the Property as required by tenant s leases, including responsibility for having the Property cleaned to the extent deemed necessary by Broker at the conclusion of each tenant s occupancy in most but not all cases at the tenant s expense. (J.) Comply with any duties or obligations imposed upon Landlord by any local, state or federal law or regulations, including the authority to purchase such supplies and hire such labor as may be necessary in Broker s opinion to accomplish any necessary repairs. (K.) Broker will also furnish the Landlord with a monthly statement and remittance of all rental receipts and expense disbursements relating to the Property for the preceding month by the twentieth (20th) day of each month. (L.) Within twenty (20) days following the end of the month in which monies are received or a tenant's stay is completed, whichever is later, Broker will pay to Landlord all monies received on behalf of the Landlord, after deducting from these monies any amounts Broker is entitled to under this Agreement and its attachments and addendums. In no case will disbursements be made until tenant(s) funds have cleared Broker's bank. In the event disbursements should be made in excess of income collected, Landlord shall pay back such excess promptly to the Broker. (1.) This shall not constitute a guarantee by Broker for rental payments that Broker is unable to collect in the exercise of reasonable diligence. (2.) Payments hereunder are subject to being earned and advance rents paid by tenant are not considered earned upon payment by tenant. (3.) Pursuant to this agreement or required by law, if Broker is required to refund in whole or part any rental fees paid by tenant and Landlord has been paid rental payments on them then Landlord agrees to return said payments to Broker promptly upon Broker s demand for disbursement to tenant. (M.) Landlord agrees that Broker may manage other similar properties in the area and further acknowledges that Broker makes no representations concerning occupancy levels of the property or any income to be received by Landlord as a result of Broker s efforts hereunder. Landlord agrees that all information concerning persons occupying the property, specifically including without limitation; names, addresses and credit card data, is the sole Page 2

and exclusive property of Broker. This Agreement does not give Landlord the right to use the service marks or trademarks of Broker. 7. Responsibilities of Landlord: During the time this Management Agreement is in effect, the Landlord shall: (A.) Advance to Broker such sums as may be necessary from time to time to cover the costs repairing the Property and maintaining it in accordance with the normal requirements of comparable vacation property standards in the subject property area and any other applicable laws and regulations, as well as the requirements of the tenant s lease. (B.) Reimburse Broker for any expense actually incurred by Broker in managing the property, including but not limited to, the cost of storm preparations and clean-up, emergency maintenance and repairs, utilities, property taxes, homeowners association dues and assessments, court costs, and attorney s fees, etc. (C.) Landlord agrees to procure, maintain and keep payments current with all utilities and services required for the use and enjoyment of the property to include but not limited to: electric, water, sewer, gas, phone, cable TV, Internet, etc., and authorize Broker to make such payments if Landlord s funds are available as necessary to keep said services on. (D.) Landlord agrees to not take any action or adopt any policy that the effect of which would be to prevent Broker from offering the property for rent in compliance with all applicable homeowners association, local, state and federal laws and regulations, including but not limited to those laws and regulations prohibiting discrimination on the basis of race, color, religion, sex, national origin, handicap or familial status in the leasing of the property. (E.) Landlord agrees to pay for and keep in effect liability insurance in the minimum amount of Three Hundred Thousand Dollars ($300,000) per occurrence for the Property. Landlord will provide Broker with a certificate of insurance verifying the insurance coverage at least once a year. Landlord agrees that its insurance policies are primary for all occurrences and incidents which happen in or about the Property and authorizes Broker to provide copies of the certificate to third parties upon reasonable demand. (F.) Indemnify and hold Broker, its officers, employees, agents, subsidiaries, and affiliates harmless to the extent allowable by law from any and all costs, expenses, attorney s fees, suits, liabilities, damages, or claims for damages, including but not limited to, those arising out of any injury or death to any person or loss or damage to any property of any kind whatsoever including Landlord, in any way relating to the management of the Property by Broker or the performance or exercise of any duty, obligation, or authority set forth herein or hereafter granted to Broker, except to the extent that such may be the result of gross negligence or willful or intentional misconduct by Broker. (G.) Supply all items necessary and usual to occupancy of the Property prior to the commencement of any tenancy, including but not limited the following: GENERAL HOUSEHOLD ITEMS INCLUDING BUT NOT LIMITED TO FURNITURE, COMFORTERS, PILLOWS, MATTRESS PADS, BLANKETS, POTS & PANS, DISHES, SILVERWARE, MICROWAVE, COFFEEMAKER, HIGH SPEED WIRELESS INTERNET, TELEPHONE, AND CABLE TELEVISION (sample list of items needed will be provided as necessary). (H.) It is the Landlord s responsibility to conduct a thorough inspection of the property prior to the first time being rented and from time to time thereafter as Landlord feels necessary or upon written request by Broker. Initial inspection by Landlord shall include but not limited to inspecting the electrical, plumbing, sanitary, heating and ventilating facilities, smoke detectors, appliances, utilities, kitchen supplies, and other furnishings, equipment and systems. Landlord agrees to have preventive maintenance and make such repairs as may be necessary from time to time to maintain such items in good working order. (I.) Clean the Property in accordance with Broker s standards following any use by Landlord or Landlord s nonpaying guests at the Landlord s expense or pay to have the service provided by Broker's cleaning service. (J.) Provide the Property with furnishings of such quality, style and condition as are consistent, in the opinion of the Broker, with other comparable vacation rental properties offered by Broker or others in the subject property area, and keep the Property furnished and maintained in such manner. Landlord agrees to pay for as requested or as needed an annual deep cleaning of the property to include carpets, flooring and upholstery at Landlord s sole expense. 8. Advance Payments: Broker shall place all advance payments as necessary or required from tenant(s), including rent, security deposits and any other fees permitted by law, in a trust account(s) in Broker s name in a State bank or savings institution. Broker may, in Broker s discretion, provide in tenant s leases that such advance payments may be placed in an interest-bearing account(s). Landlord agrees that any such interest shall belong to Broker, and that Broker may remove such interest from account(s) at all times and with such frequency as is permitted under the terms of the account(s). Page 3

9. Occupancy/Entry by Landlord: Landlord agrees to notify Broker in writing of any specific dates that Landlord may desire to use the Property. Landlord understands and agrees that Landlord shall not have to right to occupy the property during any time that the Property is subject to a tenant reservation, whether confirmed or not. Landlord further agrees not to enter the property for any purpose whatsoever during any time that it is occupied by a tenant. If property is not occupied Landlord agrees to notify Broker in writing in advance or call to schedule any inspections or entries with reasonable advance notice to Broker except in cases of true emergencies in which case no notice would be required. 10. Responsibility for Certain Costs. Except as may otherwise be expressly provided herein, Landlord shall be responsible for paying all costs and expenses associated with the maintenance and operation of the property, including but not limited to, all utilities, which the Landlord agrees shall be registered in Landlord s name and billed directly to Landlord. In the event Landlord fails to pay any such cost or expense when due, Broker shall have the right, but not obligation, to make payment on Landlord s behalf, in which case Landlord agrees to reimburse Broker promptly upon request. 11. Sale of Property. In the event Landlord desires to sell the Property through the Landlord s own efforts or in those of a firm other than Broker, Landlord shall: (A) promptly notify Broker that the Property is for sale and, if applicable, disclose to Broker the name of the listing firm; (B) show or cause the Property to be shown to prospective purchasers only at times schedules through Broker; and (C.) promptly notify Broker if the Property goes under contract and disclose to Broker the agreed-upon closing date. In any event, Landlord agrees to comply with all requirements of this management agreement with Broker prior, during and after the transfer as necessary or required. Landlord specifically acknowledges and understands that that any sale and or transfer of ownership will be subject to any existing vacation rental lease agreements or reservations already booked. Landlord further authorizes Broker to provide the buyer of the property information pertaining to existing rental agreements. Landlord agrees that Property will only be shown when vacant. 12. Pets. Tenants shall not be allowed to bring pets onto the Property unless the Property has been determined by the Landlord and the Broker to be a Pet-Friendly Property. If pets are allowed, Landlord authorizes Broker to charge a non-refundable pet fee of up to $150.00 to be retained by Broker for the extra work involved in processing the paper work, extra cleaning and other related services in conjunction with the pet(s). In the event Landlord or guest(s) of Landlord bring pets onto a non-pet-friendly Property, the Landlord may be charged an appropriate fee for any additional cleaning made necessary, because the Property is rented to the general public, some tenants may have pet allergies and may be sensitive to the pet s presence, odors, etc. 13. Entire Agreement; Modification. This Agreement, the attached fee schedule and policies contains the entire agreement of the parties and super cedes all prior written and oral proposals, understandings, agreements and representations, all of which are merged herein. No amendment or modification to this Agreement shall be effective unless it is in writing, signed by all parties and executed by all parties hereto. 14. Non-Waiver of Default. The failure of either party to perform in any one or more instances on the performance of any terms or conditions of this Agreement shall not be construed as a wavier or relinquishment of any rights granted hereunder or of the future performance of any such term or condition, and the obligations of the non-performing party with respect hereto shall continue in full force and effect. 15. Taxes on property. I acknowledge that, by renting, leasing, letting, or offering a license to others to use any transient accommodations for my property to collect and remit sales tax levied under chapter 212, F.S. to the Florida Department of Revenue as defined in Rule 12a-1.061 (2) F.A.C. Therefore, as a taxable consequence under Chapter 212, F.S., I am ultimately liable for any sales tax due the State of Florida on such rentals, leases, lets, or licenses to use. I fully understand that should the state, federal, local, or homeowners association be unable to collect any taxes or fees including the ones listed herein, penalties, and interest due from the ownership, leasing or other use of my property, a warrant for such uncollected amount may be issued and will become a lien against my property until satisfied. 16. Governing Law; Venue. The parties agree that this Agreement shall be governed by and construed in accordance with the laws of the State, and that in event of a dispute, any legal action may only be instituted in the county where the Property is located. Page 4

17. Relationship of Parties. The parties intend for their relationship to be that of an independent contractor relationship and nothing contained in this Agreement shall be construed to create a partnership or join venue of any kind. 18. Exclusivity. Landlord agrees that Broker shall be the exclusive rental agent for the Property, and that no other party, including Landlord, shall offer the Property for rent during the time this Agreement is in effect. Any rent nevertheless received by Landlord or any third party will be transferred to Broker and thereafter accounted for as if originally received by Broker, including the deduction there from of any fee due Broker hereunder. 19. Default. If either party defaults in the performance of any of its obligations hereunder, in addition to any other remedies provided herein or by applicable law, the non-defaulting party shall have the right to terminate this Agreement if, within thirty days after providing the defaulting party with written notice of the default and the intent to terminate, the default remains uncured. 20. Costs in Event of Default. If legal proceedings are brought by a party to enforce the terms, conditions or provisions of this Agreement, the prevailing party shall be entitled to recover all expenses including, but not limited to, reasonable attorney fees, legal expenses, and reasonable costs of collection paid or incurred by such prevailing party in endeavoring to enforce the terms, conditions, or provisions of this agreement and/or collect any amount owing in accordance with this Agreement. 21. Early Termination Fee. Except for terminations permitted in paragraphs 2 and 19 above, if Landlord terminates this Agreement prior to the end of its current term, then Landlord agrees to pay Broker a termination fee in the amount of the greater of the confirmed reservations management fees or $750.00 dollars. 22. Authority to Enter into Agreement; Principal Contact. Landlord represents and warrants to Broker that Landlord (s) has full authority to enter into this Agreement, and there is no other party with an interest in the Property whose signature or consent in this Agreement is necessary. 23. Binding Nature of Agreement. This Agreement shall be binding upon and inure to the benefit of the heirs, legal and personal representatives, successors and permitted assigns of the parties. 24. Power of Attorney. Landlord hereby grants Broker, its agents, successors and assigns the authority and power of attorney to sign leases and other documents pertaining to the management of the property on behalf of and in place of Landlord. Landlord hereby agrees to be bound by such signature of Broker, its agents, successors and assigns as if Landlord had signed the lease or accepted reservations or made other related documents. Landlord signature on this agreement authorizes Broker to assume power of attorney. 25. Assignment by Broker; Change of Landlordship. Landlord agrees that at any time during the term of this Agreement, Broker may either assign Broker s rights and responsibilities hereunder to another real estate agency, or transfer to another person or entity all or part of the ownership of Broker s real estate agency, and that in the event of any such assignment or transfer, this Agreement shall continue in full force and effect provided, that any assignee or transferee must be licensed to engage in the business of real estate brokerage in the State of Florida and agree to the terms herein. 26. The broker s fee shall be paid on all rental revenue derived from the rental of the Property during the term and for such period following the expiration of the term as persons occupy the Property who reserved such occupancy during the term, whether rented by Landlord or Broker. Broker agrees to pay credit card discount and processing fees. Rental revenue does not include any taxes and surcharges imposed by any governmental or regulatory entity or fees collected by Broker from persons renting the Property for services or amenities, including, but not limited to: golf course and greens fees; pool fees; tennis fees; fees for use of boats and bicycles; video rentals; rebates from suppliers and vendors; food and beverage charges; and apparel. 27. Landlord agrees to pay an origination fee of $250 to Broker to defray all or part of Broker s expenses in establishing Landlord s Property in Broker s management system. 28. Housekeeping expenses related to rental departures will be borne by tenant with the exception of Landlord/Guest Reservations. The Landlord will be responsible for an annual Deep Cleaning Fee. Landlord understands that flooring, upholstery, etc. in the Property will be cleaned as needed at the discretion of Broker and will be billed to Page 5

the Landlord. Also, any inventory items that are described in this Agreement as Expendable Items may need to be replaced and will be replaced by Broker and billed to Landlord without Landlord s authorization up to $300 per item. 29. Landlord will pay one-time linen set up fee of $150 per bedroom to Broker. Linen replacement fees will be as determined by Broker and will be charged annually. 30. Landlord will pay Broker a Florida State Tax Registration Fee of $5.00, which may change as determined by the State of Florida. In the event that the Landlord is already registered with the State for the purposes of paying rental related taxes, the Landlord will provide that information to Broker to prevent multiple registrations. 31. A fee of $15.00 per month for accounting services provided by Broker will be charged to Landlord if Landlord elects to have Broker pay monthly utility and other regularly recurring bills for the Property. At Broker's discretion, Broker may choose not to pay certain bills such as homeowners association fees. 32. Broker may collect all fees due to Broker hereunder out of rental revenue received in respect of the Property. In the event rental revenue is insufficient to pay all fees when and as due, Landlord will promptly pay any balance upon receipt of Broker's invoice. Broker requires that Landlord maintain a working balance of $300 on condominiums and $500 on houses. Broker may ask Landlord to sign a Credit Card Preauthorization form to allow Broker to charge to a credit card any expenses that Landlord does not pay for separately or charges that are not covered by Landlord s rental income. Broker maintains the right to increase this working balance amount at Broker's discretion, if the working balance is shown to not be sufficient. 33. At Broker's discretion, Broker can discount the rate paid by unsatisfied tenants to resolve tenant's issues related to Property problems, issues or deficiencies such as Property feature closure, construction, unit condition, appliance failure, etc. Broker reserves the right to vary the rate based on market conditions. Broker reserves the right to relocate any unsatisfied tenant who demands to be moved to another Property managed by Broker. 34. Landlord agrees that check in time for Landlord and Guests of Landlord is after 4:00p.m. and departure time before 11:00a.m. 35. Landlord agrees that all cleaning of the Unit will be performed by Broker and not by Landlord or Guest of Landlord. 36. During times of occupancy by tenants, Landlord agrees not to enter Property. 37. Broker works diligently to acquire advanced reservations, in some case up to one year in advance. Landlord agrees to allow advanced reservations and to make Landlord Reservations as far in advance as possible. Both the Landlord and the Broker will use their best efforts to avoid reservation conflicts. If through an error, which results in a double booking, a renter is occupying the premises when the error is discovered and if substitute accommodations are available, such accommodations shall be provided to the Landlord at the prevailing rate, less Broker's management fee. Broker is unable to honor a request by Landlord to move a confirmed paying tenant. 38. Broker will inspect Landlord s Property at least once per year and give Landlord a report of the condition of the Property as well as to make recommendations that may assist the Landlord in making the Property more desirable to tenants. Landlord agrees not to allow the Property to fall below Broker's minimum standards. In the event that the Property does fall below Broker's minimum standards, Broker will notify the Landlord and the Landlord will have forty-five (45) days to bring the property up to minimum standards before Landlord is considered to be in breach of this Agreement. 39. Landlord will pay for the installation, maintenance and service fees of electronic locks on the Property. 40. Landlord is solely responsible for securing any area the Landlord may designate as an Landlord s Closet on the Property. Broker is not responsible for inspecting the Landlord s Closet, and will not be liable for any property left in or losses from the Landlord s Closet. 41. All provisions of this addendum may be changed provided that notice of the change is given to the Landlord with Page 6

not less than 60 days written notice. Whenever any notice is required in this Agreement or desire to communicate formally or legally by Landlord to Broker, notice must be in writing and mailed certified or return receipt requested to the address as indicated hereafter, and deemed delivered upon actual physical receipt thereof, not date of mailing. BROKER: All County Gator Property Management 1110 Pine Ridge Road, Suite 203 Naples, FL 34108 LANDLORD: Print Name Print Name Mailing Address: Email Address: Home Phone Work Phone Cell Phone IN COMPLIANCE WITH THE FEDERAL FAIR HOUSING ACT, please do not ask or expect us to place any restrictions on your property based on a prospective tenant(s) racial, religious, handicap, sex, national origin or familial status. FEDERAL AND STATE LAWS prohibit us from placing any such restrictions on the properties we handle for rent. EXECUTED this day of, 20. Landlord Signature Landlord Signature Please check one: Landlord does does not choose to deem the Property as a Pet-Friendly Property. If Landlord chooses to deem Property as Pet-Friendly, Landlord does so with full knowledge that the homeowners association allows tenants to stay with pets. Initial by Landlord. Agent for: All County Gator Property Management Page 7