Property Management Rental Agreement
On this ___________ day of _____________________, 20_______ in consideration of the covenants herein contained, (Owner) ___________________________________________________________
hereinafter designated as Owner, agrees to employ Home Experts Realty, hereinafter designated as Agent, to rent / lease, and manage the real property situated in the City of _________________________________, and County of_________________________________in the State of Ohio, Known as: (Address) ___________________________________________________________________________ for a period commencing on the date of this agreement and terminating upon either party giving 30 day written notice on or before the 1st day of a month. This agreement however may not be terminated by Owner, nor may Owner attempt to collect any rents directly from tenants until after any balance deficit due Agent in Owner’s rental management account has been paid in full.
AGENT’S AUTHORIZATION AND OBLIGATIONS Owner hereby confers upon Agent: 1. To advertise the availability “for rent/lease” of the premises as deemed best by the agent by signage (where allowable), web sites and print advertising. 2. To screen and use diligence in the selection of prospective tenants within the terms and conditions agreed between the owner and agent in abidance with fair housing laws. Standard guidelines being gross monthly income approximately four times the monthly rent, and acceptable credit and rental history. Owner acknowledges that Agent has sole right to make changes in guide lines, as is deemed necessary.
3. To negotiate, execute, acknowledge and deliver on behalf of Owner rental/lease agreements of said property with owner approval of such persons, firms or corporations. Agent is authorized in such cases where the owner is not reachable within reasonable time to accept or reject lease on owner’s behalf. 4. To collect, rents, security deposits, and all other receipts payable to owner. 5. To direct agent to pay re-occurring charges (not to exceed the account balance) which are associated with the property by providing the necessary payment information. 6. To maintain accurate records of all monies received and disbursed in connection with the management of the property and provide owner with monthly statements of these with copies of bills. 7. To provide those services Owner and Agent agree are reasonably necessary for the proper management of the property while under management whether the property is vacant or occupied including inspections, arranging of maintenance, and for such improvements, alterations and repairs as may be requested by Owner. 8. To execute service contracts for utilities and services for the operation, maintenance, and safety of the property as Agent deems necessary or advisable, provided without written approval of Owner. 9. To contract for repairs or maintenance requested by tenant and deemed necessary by agent at a cost to Owner up to an amount not to exceed TWO HUNDRED DOLLARS ($200.00) for any one item without the prior approval of owner except in such case where: a. The repair is a necessity to the tenant’s use of the property and or it would add additional service costs to have a contractor leave and come back at a later time. b. An emergency arises and the safety / health of tenant or property value are in jeopardy and time is of essence. 10. To serve such notices as Agent and Owner deem appropriate, including notices of termination to tenancies, notices to quit and or pay rent. 11. To utilize an attorney on behalf of Owner when Owner deems such utilization necessary for the purpose of enforcing Owner’s rights under lease/rental agreements and the institution of legal action. OWNER OBLIGATIONS Owner agrees to pay to agent fees for services rendered at the rates set forth below. Such compensation is due and payable on demand and may be deducted by the Agent from the receipts. Compensation for Management Servicesa. Finder’s fee for procurement of a new tenant shall be a FULL MONTHS RENT payable with the receipt of a new tenant’s first full month’s rent. Any prior partial rents paid will be assessed a management fee.b. Monthly management fee of 10% assessed only on the actual amount of rent received. No management fee is due in the month that a finder’s fee is collected.c. Should the owner of a property already have a tenant in place, Home Experts Realty will take on said property under the existing lease terms, starting on any day the owner wants or legally can allow with no set up fee and management fees starting with the next paid rent.d. In the advent that an owner would like Home Experts Realty to manage said property but has already found a suitable tenant prior to signing this agreement, an administrative flat fee of $200.00 will be charged for doing the lease and getting the tenant settled in which will be deducted from the initial rent in addition to the normal management fee.e. Should an owner after signing of this management agreement still end up finding an acceptable tenant the finder’s fee will be discounted by 25%.f. There is no charge to the owner for handling of a lease renewal. Property management accountg. Owner shall hold all tenant deposits but will maintain the equivalent amount in personal funds in the property management account. h. All monies received will be deposited and posted to owner’s account within 48 hours allowing for weekends and holidaysi. Disbursement of funds to owner’s will occur once a month within 48 hours of received monies being deposited allowing for weekends and holidaysj. Any disbursements made during the month will be recouped from the following month’s rent before disbursement of funds to owner k. Owner agrees to send immediately additional personal funds to cover any authorized or emergency expenses that would exceed the account balance. The Agent may terminate this agreement immediately if the request for additional funds is not paid or if owner defaults on taxes/mortgage obligations. Owner understands that it is not Agent’s obligation to advance its own funds for payment of Owner’s operating expenses. Owner Personal responsibilities Owner is personally responsible for the timely payment of the property mortgage payments and should not be dependent on the receipt of monthly rental proceeds to cover these as there is no assurance that the tenant’s payment will be timely.m. Owner must maintain proper insurance on the propertyn. Owner must notify Agent immediately if they become delinquent in payment of taxes or mortgage payments that may cause loss of the property so that tenant can be notified and instructed to seek legal counsel in regards to their continuing lease obligations. SALE OF PROPERTY WHILE UNDER MANAGEMENTIf during the term of this agreement Owner desires to sell said property through any employment of agency, owner shall give to Agent the first right of refusal to list said property for sale. Owner further agrees that if the property shall be sold to a tenant procured by Agent, whether or not such sale shall occur during the tenure of this agreement, Owner shall pay to Agent a commission in the amount of six percent (6 % ) of the total sales price of said property, Owner shall have the right; however , to sell said property directly to his own client without the employment of Agent, provided said client was not secured by any reason of the services performed by Agent under the terms of this agreement. Owner agrees to notify Agent at least thirty (30) days in advance of this intention to offer said property for sale.
INDEMNIFICATION OF AGENT Owner shall indemnify and save the Agent harmless from any and all costs, expenses, attorney’s fees, suits, liabilities, damages from or connected with the management of the property by Agent, or the performance or exercise of any of the duties, obligations, powers, or authorities herein or hereafter granted to Agent.Owner shall not hold Agent liable for any error of judgment, or for any mistake of fact or law, or for anything which Agent may do or refrain from doing hereinafter, except in cases of willful misconduct or gross negligence.Owner assumes full responsibility for the payment of any expenses and obligations incurred in connection with the exercise of Agent’s duties set forth in the agreement.Owner acknowledges that Agent is not permitted to engage in the practice of law such that whenever Owner’s right or obligations in relation to a tenant are implicated, owner shall seek guidance from legal counsel. FAIR HOUSING It is illegal, pursuant to the Ohio Fair Housing Law, Division (H) of Section 4112.02 of the Revised Code and the Federal Fair Housing law, 42 U.S.C.A. 3601, to refuse to sell, transfer, assign, rent, lease, sublease or fiancé housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in Section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services.; it is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representation regarding the entry into the neighborhood of a person or persons