PROPERTY MANAGEMENT AGREEMENT
THIS
PROPERTY MANAGEMENT AGREEMENT (the
“Agreement”) is hereby made as of the _____ day of _________________, 2009 (“Effective Date”) by and between Greg Garrett Realty.com,
Inc. t/a Greg Garrett Property Management, Inc., a Virginia corporation (“Manager”)
and __________________________________________ (collectively, “Owner”).
NOW THEREFORE
FOR
AND IN CONSIDERATION of the mutual
covenants and agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Owner
and Manager hereby agree as follows:
1.
Property; Owner’s
Representations and Warranties. Owner hereby hires and retains Manager to
exclusively list, lease and manage the following real property and improvements
(“Property”) and the following are now true and correct and Manager may rely on
the truth of such information unless and until Owner notifies Manager otherwise
in writing:
Owners
of Record of Property:
__________________________ ___________________________
__________________________ ___________________________
__________________________ ___________________________
Persons
Authorized to Make Decisions under this Agreement:
_________________________ ____________ ______________
Property
Address: Mailing/Billing
Address:
_
________________ __ _ _ ___________________________
_
________________________ ___________________________
__________________________ ___________________________
Insurance
Agent:
__________________________ ___________________________
__________________________ ___________________________
Description of Property:
□ single
family home
□ condominium
□ townhouse
□ other
____________________________________________________
Bedrooms: __________
Bathrooms:
___ ______
Manager
shall take possession/control of the Property, as of ______________.
Occupancy
status, as of the Effective Date:
□ Authorized
tenants (#____) pursuant to a written lease (EXHIBIT #1)
□ Authorized
tenants (#____) holding over after lease expiration/termination
□ Unauthorized
occupants (# ____)
□ Vacant
□ Other
____________________________________________________
Owner hereby represents and
warrants that the following are true and correct to the best of Owner’s
knowledge and belief after due inquiry and a diligent effort to confirm the
truth and accuracy hereof:
A.
that Owner is the sole
owner of the Property and is legally entitled to possession of the same,
subject only to the terms and conditions of any lease attached as an Exhibit to
this Agreement. (EXHIBIT #1).
B.
that Owner is legally
entitled to enter this Agreement without need for any other or additional
signatures or authorizations of any kind;
C.
that the Property is fit
for immediate human habitation and is in compliance with the Virginia
Residential Landlord Tenant Act (“VRLTA”), the Virginia Landlord Tenant Act
(“VLTA”), all applicable environmental codes, building codes, zoning codes, and
other federal, state or local laws, statutes or ordinances of any kind;
D.
that the Property is
free from all hazards of all kinds (e.g. environmental; structural defects;
moisture infiltration; mice, rats, roaches, pests and other vermin of any kind;
asbestos, lead based paints, mold, mildew) and is safe for immediate human
habitation as a primary residence without restrictions of any kind;
E.
that the Property has
all health and safety equipment installed in good working order (e.g. smoke
detectors, window locks, door locks, peep holes, primary and secondary security
devices on sliding glass doors); and
F.
that Owner’s execution
of this Agreement and Manager’s performance of its duties and obligations
pursuant to this Agreement shall not constitute or cause a breach of any homeowner’s
association covenants or bylaws, or any other oral or written contract,
agreement or covenant of any kind.
2.
Term; Automatic
Renewal; Termination Notice; Termination. This Agreement shall be
for a minimum term of one (1) year from the Effective Date of this Agreement
and shall automatically renew for additional terms of one (1) year unless
terminated as discussed below. Any
party desiring to terminate the Agreement without cause must give the other
party written notice at least sixty (60) days in advance of the first
anniversary of the Effective Date.
For
good cause shown based upon circumstances or conditions that constitute
emergencies or which are reasonably beyond the control of the party giving such
notice and which materially interfere with the parties’ abilities to otherwise
successfully perform their respective duties and responsibilities under this
Agreement, either party may terminate this Agreement on less than sixty (60)
days notice by giving the other party written notice of the termination along
with a clear explanation of the cause for such termination.
Upon
termination of this Agreement, Manager may withhold for up to sixty (60) days any
or all funds, including rent, otherwise owed to Owner for the purpose of
ensuring that all monies owed by and between Owner and Manager are reconciled
prior to the final disbursement.
However, payment of funds from Manager to Owner shall not be deemed to
be or construed as a waiver of any claims or causes of action for monies
otherwise owed to Manager pursuant to this Agreement.
3.
Financial and
Accounting Standards. Owner hereby directs Manager to handle
all funds in accordance with the following:
A.
Collect Security
Deposits, Application Fees, Rents and Other Monies. Manager
shall collect and hold any and all rents, charges or other monies to the extent
allowed by the VRLTA and any application or lease for the Property. Manager shall ensure that all security
deposits are held in an appropriate bank account and disbursed in accordance
with the requirements of the VRLTA.
Any interest earned, application fees, late fees (with the exception of
ten percent (10%) retained by Manager) or other amounts that are not defined as
‘rent’ pursuant to Va. Code Ann. § 55-248.6 and that are not required by law to
be paid or held for tenant’s account shall automatically be and become
additional consideration to Manager.
Manager may charge prospective tenants and retain as additional
consideration for its services a reasonable application fee and may charge and
mark up a reasonable amount for any other fees or services provided or required
and allowed by the VRLTA.
B.
Order of
Application of Payments. Manager reserves the right to apply
funds received by Manager in any order or manner that Manager deems appropriate
in Manager’s sole discretion. However, generally, all money received by Manager from or on
behalf of any tenant shall be applied to tenant’s account in the following
order, commencing with the oldest amounts first, then continuing to the fees
and costs incurred thereafter:
(i)
Court costs;
(ii)
Attorneys’ fees;
(iii)
Late fees;
(iv)
Repairs/Damages;
(v)
Utilities; and then
(vi)
Rent.
C.
Account for All
Monies; Owner’s Cash Flow Payments. Periodically throughout the term of
this Agreement, Manager shall report to Owner regarding the collections and
disbursements made in respect of Owner and/or the Property and shall disburse
to Owner any excess funds available, including owner cash flow payments, on or
before the fifteenth (15th) day of each month. Owner has two options for payment: (1) Checks mailed to the owner’s last
known mailing address; or (2) ACH Direct Deposit into an account bearing Owner’s
name. Unless Owner provides Manager its direct deposit information in writing,
all payments shall be made by mail according to subsection (i). Owner shall be
solely responsible for any costs incurred beyond normal United States’ postal
rates in delivering such payments.
Manager shall maintain adequate records and supporting documentation for
all rent and other income received and all expenses incurred and shall provide copies
of such information to Owner upon written request.
D.
Timely Pay All
Amounts Due. Owner shall ensure that all amounts due
to any third party on account of the Property are paid in full in advance of
the due date. Such duty shall
include Owner’s obligation to timely pay any mortgage or loan payment due, any
taxes or assessments due, as well as any utilities or other charges which
relate directly or indirectly to the Property or Owner. Owner hereby authorizes Manager to use
any funds within Manager’s control or to advance monies to pay any such amounts
that are past due. If Manager
expressly agrees in writing, Manager may elect to periodically escrow all or a
portion of any monies received for the purpose of paying when due any real
estate or personal property taxes, and/or insurance. Manager may also disburse funds in any other manner directed
from time to time by Owner in writing.
E.
Maintenance,
Repairs and Capital Improvements. When a tenant vacates the Property,
Manager shall inspect the Property and, in Manager’s sole discretion, make such
repairs to the Property it deems necessary, and deduct the costs of such
repairs from the tenant’s security deposit to the extent it is allowed to do so
under the VRLTA. Owner may not make repairs to the Property without the written
consent of Manager, which consent shall not be unreasonably withheld.
F.
Leasing and
Management Commissions. In consideration of Manager’s execution
of this Agreement and performance of any duties set forth herein, Owner shall
pay Manager as follows:
(i)
For tenants that are in
possession of the Property as of the Effective Date, Owner shall pay Manager ten
percent (10%) of the gross rents actually collected after the
Effective Date.
(ii)
For tenants procured by
Manager, Owner shall pay Manager Two Hundred and Fifty and 00/100 Dollars
($250.00) as a leasing fee (the “Leasing Fee”) upon execution of a Lease for
the Property. Manager may only collect the Leasing Fee once per twelve (12)
month period, beginning on the Effective Date. Additionally, Owner shall pay Manager
ten percent (10%) of the gross rents actually collected from a tenant
procured by Manager. The For Rent Listing Agreement will be for a period of 90
days starting on ___________________ and ending on ____________________. If the property is not rented by ending date and the
property management contract is terminated, the owner will pay the manager Two
Hundred and Fifty and 00/100 Dollars ($250.00) for listing costs.
(iii)
In the event that Owner
terminates this Agreement or sells the Property prior to the expiration of the
full twelve (12) month term or any renewal term, Owner shall remain responsible
for payment of the commission for the remaining lease term of a tenant procured
by Manager. For example, if Manager procures a tenant for the Property for a
one (1) year term at $1,000 per month and Owner terminates
this
Agreement with three (3) months remaining in the term of the Lease, Owner shall
pay the remaining three (3) months commission ($300.00) to Manager at the time
Owner gives notice to Manager under Section 2. If the Property is sold during
the term of this Agreement, the remainder of the commission that would have
been paid under the lease shall be due to Manager at closing.
G.
Property
Management Fees and Costs. Owner shall be solely responsible for
all fees, expenses and costs incurred by Manager or authorized by Manager for
the benefit of Owner or the Property.
Manager may offset against any monies held by Manager, for any amounts
that are due and owing or which Manager is authorized to escrow. Owner shall always maintain with
Manager a minimum escrow of $200 for future
repairs or maintenance. If any
repair or maintenance can be reasonably anticipated, Manager may, but shall not
be required to, escrow money from the Property’s rents the reasonable,
anticipated costs for such repair or maintenance. At no point shall Manager be obligated to advance any funds
for Owner’s or the Property’s use or benefit. In the event that Manager elects to advance any funds for
the benefit of Owner or the Property, Owner shall pay Manager in full for all
such fees, expenses or costs actually incurred. If sufficient funds are not available in the Property
account to pay for any such costs, fees or expenses, Owner shall have not more
than thirty (30) days to pay in full the entire amount due. Thereafter, Manager may, but shall not
be required to, charge Owner for any interest actually incurred or, in the
alternative, Manager may charge Owner a flat rate of ten percent (10%) per
annum.
4.
Manager’s Rights, Duties
and Obligations. Owner hereby appoints Manager during
the term of this Agreement to use its’ good faith business judgment as Owner’s
lawful and exclusive agent to take or omit any actions relating to the leasing,
rental, maintenance or operation of the Property, which Owner could otherwise
take on behalf of themselves.
During the term of this Agreement, Manager shall be entitled to rely on
instructions from the ‘Persons Authorized to Make Decisions’, as noted in
Section 1 of this Agreement, or as amended by Owner in writing from time to
time. To that end, the Manager is
expressly and exclusively authorized to do the following:
A.
Establish Fair
Monthly Rental and Other Charges; Concessions. Manager
shall be solely responsible for establishing a reasonable and fair market rent and
other related charges for the Property after consulting with Owner. Manager shall make diligent efforts to
procure and keep a qualified tenant and make a fair return on the
Property. In the course of Manager’s
duties, Manager may from time to time grant such rent or other concessions,
credits or inducements as Manager may deem appropriate in Manager’s sole
discretion.
B.
Advertise Property
for Rent; Execute Leases, Repair Contracts and Other Agreements; Compromise
Claims. During the term of this Agreement Manager may from time to
time advertise the Property for rent or lease using signs, advertisements,
listings in multiple listing services or any other method or medium and Manager
may distribute or release any information about the Property to third persons
that Manager deems reasonable or appropriate in Manager’s sole and absolute
discretion, the costs of which shall be borne solely by Owner. If in Manager’s sole discretion a
suitable tenant is obtained, Manager may execute any listing agreement,
advertising contract, sub-agency agreement, lease, contract or other agreement
for the possession, repair or maintenance of the Property or the settlement or
resolution of any claims or disputes relating directly or indirectly to the
Property, which in Manager’s sole and absolute discretion is consistent with
this Agreement or is in the best interests of the Property or Owner. Such right shall also include the right
to negotiate, waive, compromise or relinquish any rights, duties or obligations
pursuant to such agreements, including after such agreements are executed. If Owner fails to make any mortgage,
tax or other payment that causes or threatens to cause any lender or
governmental entity to foreclose or advertise the Property for foreclosure,
Manager may terminate the existing lease, grant financial concessions or
discounts to the existing tenant or take other actions that Manager believes in
its sole and absolute discretion to be reasonable and prudent.
C.
Institute Suits
and Proceedings. From time to time during the term of
this Agreement, Manager may demand payments, give notices, file suits or
Unlawful Detainers, serve Garnishments, Interrogatories, levy on personal
property or take or omit any other actions, directly
or through attorneys or debt collectors, which Manager reasonably believes will
assist in recovering possession of the Property or collecting any monies
owed. All such fees and costs
shall be the sole responsibility of Owner. Manager may offset such amounts against any rent or other
monies in Manager’s possession or control at any time.
D.
Maintain the
Property. It shall always remain Owner’s primary
duty and obligation to maintain a safe and habitable Property in good condition
and repair. However, during the
term of this Agreement, Manager may, but shall not be required to, directly or
indirectly through contractors or subcontractors, maintain, repair or safeguard
the Property, as needed in Manager’s sole and absolute discretion. Any and all costs, fees or expenses
incurred in repairing or maintaining the Property shall be at Owner’s sole cost
and expense and Manager’s refusal or failure to use a contractor or
subcontractor designated or requested by Owner shall not prevent or limit
Manager’s right to recover the entire costs or expenses incurred. For convenience, Manager may adopt a
fixed fee or fixed cost pricing structure for some or all repairs, maintenance
or capital improvements.
E.
Non-Discrimination. Manager
shall show and make available the Property in strict accordance with all local,
state or federal laws, including but not limited to the laws prohibiting
discrimination on the basis of race, color, creed, religion, national origin,
sex, familial status, handicap or elderliness.
F.
Communicate with Owner. Manager
shall be entitled to rely on the current contact information on file with
Manager. If Manager is unable to
contact Owner in a reasonable period of time, given the facts and circumstances
then existing, Manager may take whatever actions or omit any actions that
Manager deems necessary or appropriate in their sole business judgment.
G.
Changing of Locks. In order to ensure the proper and safe transition of
tenants, Manager shall have the right, but not the obligation, to change all locks
at the Property upon the termination of any tenancy. The costs incurred in
changing locks shall be the responsibility of Owner and shall be paid according
to the terms of Section 3 (G) above.
5.
Owner’s Rights, Duties
and Obligations. Commencing on the Effective Date of
this Agreement.
A.
No New Leases or
Property Management Agreements. Owner shall not enter into any lease or
grant any person possession of the Property or enter into any new property
management agreements that conflict directly or indirectly with this Agreement;
B.
Tenant Relations;
Access and Inspections. Owner shall not communicate directly or
indirectly with tenants or visit or inspect the Property without seven (7) days
advance written notice and consent from Manager. All communications with any tenant or inspections of the
Property must be accomplished in the manner that will be least disruptive to
tenants’ quiet enjoyment of the Property.
Except for emergency or urgent circumstances relating to the maintenance
of the Property, Owner shall not inspect or visit the Property on more than two
(2) occasions per year per tenant.
There shall not be any limitation on Owner’s rights to use, access or
inspect the Property when it is vacant.
C.
Maintain the
Property. Owner hereby authorizes and directs the
Manager to repair and maintain the Property at all times to ensure that it
shall be and remain in good and habitable condition in accordance with all
applicable building codes, health and housing requirements and regulations,
etc. If directed by Owner in
writing, Manager shall consult with Owner within a reasonable time about any
repairs anticipated to cost $1,000 or more. When the Property is occupied or rented, Owner may not
personally conduct or direct or demand that Manager utilize any contractor or
subcontractor to conduct repairs, maintenance or capital improvements on the
Property. Owner acknowledges that Manager shall have sole authority and
discretion to utilize licensed and insured contractors of its’ own choosing.
D.
Safeguard the Property
from Damage. If at any time during the term of this
Agreement the Property is threatened with damage from any hurricane, snowfall,
high tide, flooding or other natural weather phenomena or event, Owner shall
take reasonable precautions to safeguard the Property and the tenants and their
possessions from damage, injury or death.
E.
Maintain Adequate
Insurance. Owner shall continually maintain
adequate comprehensive Owner’s insurance, fire insurance and liability
insurance policies that expressly names Manager and its employees and
associates as an additional insured.
If the Property lies within a flood plain, Owner shall also maintain
adequate flood insurance. For
purposes of this Agreement, “adequate” shall mean that the liability insurance
required herein shall be issued from an AAA or better rated company in an
amount equal to at least $1,000,000.
F.
Refinancing or
Selling the Property. Owner shall promptly notify Manager in
writing if Owner desires to offer the Property for sale or seeks to refinance
the Property. Owner acknowledges
that an additional incentive to Owner is that Manager is also a licensed real
estate broker and, as such, if Owner elects to sell or offer the Property for
sale, Owner will engage and hire Manager or its designee to be its sole and
exclusive listing agent for the sale of the Property in consideration of six
percent (6%) of the actual sales price or in the case of a gift, the fair
market value, whichever is higher.
G.
Indemnification. Owner
shall indemnify, defend and hold harmless the Manager, its’ officers,
directors, shareholders, employees, affiliates and subcontractors from any and
all claims, liens or liabilities arising directly or indirectly from this
Agreement or Manager’s actions or omissions in relation to the Property.
H.
Update Address and
Contact Information. Owner shall provide Manager with
written notice within ten (10) days of any change of address, telephone number,
email address or other contact information.
6.
Miscellaneous
Provisions.
A.
Entire Agreement. This
Agreement constitutes the entire agreement between the parties hereto
pertaining to the subject matter hereof and all prior and contemporaneous
agreements, representations, negotiations and understandings of the parties
hereto, oral or written, are hereby superseded and merged herein.
B.
Governing Law;
Venue. This Agreement shall be governed by and construed under the
internal laws of the Commonwealth of Virginia without regard to choice of law
rules. Venue in any action arising
out of or relating to this Agreement is only proper in the jurisdiction in
which the Property is located.
C.
Modification. No
modification, waiver, amendment, discharge or change of this Agreement shall be
valid unless the same is in writing and signed by the party against which the
enforcement of such modification, waiver, amendment, discharge or change is or
may be sought.
D.
Notice and
Payments. Any notice to be given
or other document or payment to be delivered by any party to any other party
hereunder may be:
(i)
delivered in person and
shall be deemed to have been given as of the date on which such personal
delivery is obtained; or
(ii)
deposited in the United
States mail, duly certified or registered, return receipt requested, with
postage prepaid and shall be deemed to have been given as of the day on which
the mail is metered or post marked; or
(iii)
delivered by national
overnight courier (e.g. Federal Express, DHL or UPS) and addressed to the party
named herein at the last known address and shall be deemed to have been given
as of the day on which the package or envelope is placed into the hands of the
overnight courier.
Any
party hereto may from time to time, by written notice to the others, designate
a different address which shall be substituted for the one above
specified. Unless otherwise
specifically provided for herein, all notices, payments, demands or other
communications given hereunder shall be in writing.
E.
Successors and
Assigns. All provisions of this Agreement shall
inure to the benefit of and shall be binding upon the successors and assigns of
the parties hereto.
F.
Waivers. No act
of any party shall be construed to be a waiver of any provision of this
Agreement, unless such waiver is in writing and signed by the party affected.
G.
Counterparts. This
Agreement may be executed in counterparts, each of which, when taken together,
shall be deemed one fully executed original.
H.
Severability. If any
portion of this Agreement shall become illegal, null or void or against public
policy, for any reason, or shall be held by any court of competent jurisdiction
to be illegal, null or void or against public policy, the remaining portions of
this Agreement shall not be affected thereby and shall remain in full force and
effect to the fullest extent permissible by law.
WITNESS
the following signatures as of the day and date referenced above:
OWNER:
_______________________________________
_______________________________________
SS#
OR Tax ID:
_______________________________________
MANAGER:
Greg Garrett Realty.com, Inc. t/a Greg Garrett
Property Management, Inc.
By:_______________________________
Name:_____________________________
Its:_______________________________
::6152321\2
ADDENDUM TO RESIDENTAL MANAGEMENT AGREEMENT
This ADDENDUM to the
Residential Management Agreement made as of ______________________ 2009, between
_________________________________ (“Owner”) and Greg Garrett Property Management, Inc. (“Broker/Agent”)
provides:
Owner and Broker/Agent agree
the original Residential Management Agreement shall contain the following
conditions.
Long Term Lease:
(Permitted / Not Permitted / Negotiable)
Leases not to
exceed__________years with _____________automatic rent escalator.
Short Term Lease
(Permitted / Not Permitted / Negotiable)
Leases not less
than__________months with _____________premium added to monthly rent.
Pets: Permitted Not Permitted Owner’s
Approval
Our tenants pay a $350 Pet
Deposit (for all pets) and an additional Monthly Pet Rent ($30 Per Pet)
We do not allow aggressive
breed dogs, and all cats must be de-clawed and neutered.
Pet Provisions:
Maximum # of Pets
Allowed:_________________
Dogs Not to
exceed:_________LBS
Additional Pet Restrictions:___________________________________________________________________
Smoking: Permitted / Not
Permitted / Limited to Outside
Other Special Terms and
Conditions:_________________________________________________________________________________________________________________________________________________
Name of Homeowner’s
Association:_______________________________________________________
HOA dues of
$_____(monthly/quarterly/semi-annual/annual) to be paid from rent collected?
Yes/No
Mail Box Number________
Parking Space Number_______ Gated Community?_____________
(Owners Must Provide
Broker/Agent with a copy of rules and regulations for tenant use.)
Annual Termite &
Moisture Contract? Yes / No Effective
Date:_________________
Contractor Information:___________________________________________________________
Annual HVAC Contract? Yes
/ No Effective
Date:_________________
Contractor
Information:___________________________________________________________
Alarm System Contract? Yes
/ No
Monitoring (included/not
included) Master
Code___________________
(Owners Must Provide
Broker/Agent with operating manual for alarm system.)
Contractor
Information:________________________________________________________________
Sprinkler System Contract?
Yes/No
Effective
Date:_________________
Contractor
Information:___________________________________________________________
Home Warranty Contract? Yes/No
Effective
Date:__________________
Contractor
Information:___________________________________________________________
Maintenance Requests by
Tenants:
$200 max allowable charge
without contacting owner: Yes/No
Would you like to make
your own repairs? Yes/No
Do you have your own
contractor for repairs? Yes/No
Special
Instructions:________________________________________________________________________________________________________________________________________________
Email Address for
Contact:______________________________________________________________
Email Address for
Contact:______________________________________________________________
Other Contracts,
Warranties and or Other
Terms:_______________________________________________________________________
____________________________________ __________________________________________
Owner Date Owner Date
____________________________________
Agent Date
Owner Contact Information Sheet
Rental Property: __________________________________________
Name:____________________________________________________________
Address:__________________________________________________________
City:______________________
State:___________ Zip:__________________
Home
Number:____________________________________________________
Cell
Number:______________________________________________________
Work
Number:____________________________________________________
Email
Address:_____________________________________________________
Emergency Contact
Information:
Name:____________________________________________________________
Home
Number:____________________________________________________
Relationship
to Owner:______________________________________________
Additional Important
Information:__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
PROPERTY OWNER AUTHORIZATION AGREEMENT
FOR AUTOMATIC DEPOSITS (ACH)
I hereby authorize Greg
Garrett Property Management, Inc., hereinafter called COMPANY, to initiate
credit entries and to initiate, if necessary, debit entries and adjustments for
any credit entries in error to my bank account as indicated below and the
depository named below, hereinafter called DEPOSITORY, to credit and or debit
the same to such account:
DEPOSITORY NAME (Bank name)
______________________________________________
Name on the Account
___________________________________________________________
Checking ______ Savings______
TRANSIT/ABA NO. ____________________
ACCOUNT NO. ________________________
List of Managed Properties
subject to this agreement:
____________________________________ ____________________________________
____________________________________ ____________________________________
____________________________________ ____________________________________
This authority is to
remain in full force and effect until COMPANY has received written notification
from me of its termination in such time and in such manner as to afford COMPANY
and DEPOSITORY a reasonable opportunity to act.
Signature of Authorized
Owner(s): ______________________________________________
Date
______________________
(must be a signator on the
owner agreement)
**********a voided check (no deposit
slips)**********