Property Management Contract
This Property Management Agreement is signed and executed for the property located at ” ” hereinafter called “Property”, between parties:, who holds the title to the property, hereinafter called “Owner”, and Rentomatic Property Management LLC, hereinafter called “Agent”. The owner is employing the services of an Agent to manage, operate, control, rent and lease the Property.
- 1. TERM and RENEWAL: This agreement is effective upon completion and signing of all parties and will expire in 12 months from the commencement date, being the latter of Agent and Owner signatures. This agreement will continue month-tomonth unless either party gives the other a notice of termination in writing as described in this agreement.
- 2. AUTHORITY:Owner appoints Agent as exclusive Agent and grants full actual authority with Limited Power of Attorney in the management, leasing, operating, and arranging for the lease, and to do all lawful things necessary for the fulfillment of this agreement. Owner agrees to allow Agent exclusive rights to perform and fulfill the responsibilities outlined herein and to defer all action or duties associated with Agent.A. The owner represents and attests that:
- The owner has the legal capacity to lease the Property and complies with all local rental requirements including licensing fees, association permissions, or local taxes.
- The undersigned Owner represents all known or unknown owners of an interest in the Property and has permission and full authority to act and make decisions on behalf of all owners of the Property.
- The owner is not bound by another agreement with another Broker or Agent for the leasing, management, or sale of this property not previously disclosed to the Agent.
- 3. LEASING and MANAGEMENT: The owner hereby authorizes the Agent to exercise on behalf of the owner’s best interest:
- a. At the sole discretion of the Agent, advertising the property for lease using the best methods that are most effective to rent the premises.
- b. The Agent will show the property to the resident using the best methods at the sole discretion of the Agent through occupied assisted showings, Agent accompanied or place a lockbox to allow prescreened applicants with unaccompanied access.
- c. The Agent has the right to enter, sign and execute, renew, and cancel rental agreements and leases for the property and/or its units.
- d. The Owner shall inform the Agent in writing 90 days before a tenant lease term end date if the owner wishes not to renew the existing lease.
- e. The Agent will serve any notices to tenants that the Agent deems as appropriate; evict the tenant and recover possession of the property, indict, and recover for rent and loss of or damage to any part of the property and/or furnishings, and when expedient, compromise, settle and release any such legal proceedings or lawsuits. The owner agrees to not send any tenants notices directly and all notices will be served by the Agent.
- f. The Agent shall not enter any lease term for less than 6 months or more than 24 months without prior written consent from the owner.
- g. The agent will inspect at least 30 days before any lease expiration date.
- h. For liability reasons, your property must be rekeyed between tenancy. All exterior doors will be rekeyed to the same key. We can quickly and easily rekey the property between tenants, providing a safe and secure property for each set of tenants. All lock codes, garage codes, and remotes will be reset. The first time the locks are changed it will be at the Owner’s expense. After each tenant, this charge will be charged to the tenant.
- i. Any time the property goes vacant, we require that the interior and all carpets be professionally cleaned by one of our preferred cleaning companies They have been trained to understand our checklists and expectations. The first time it is cleaned before finding a tenant will be at your expense, and after each tenant, this cost will be charged to the tenant.
- 4. COMPENSATION: Owner agrees to pay Agent the following in addition to any reimbursement to which Agent is otherwise entitled under this agreement:
- A. Management Fee: For its services as managing Agent, for each month of the term of this agreement, Agent shall be paid an amount equal to $75 (Ruby) per month per occupied unit.
- B. Setup Fee: The Owner agrees to pay $0 (one time) to onboard to Agent’s property management portal.
Note: Due to economic inflation, the management fee may be increased up to 5% at the time of renewal.
The OWNER shall deposit with AGENT a funding deposit of two hundred and fifty dollars ($250.00) per unit, which shall be deposited to OWNER’s account to pay bills incurred on the property before commencement of the rental income stream.
- 5. RENTS & DEPOSITS: The agent is authorized to collect all rents and deposits due and to deposit these funds in accounts with a qualified banking institution. All security and other deposits will be held in a Property Management Trust Account. The agent will control the deposits and refund all remaining deposits to the tenant. The agent will not be liable for bankruptcy or failure of the depository institution. The agent is not liable for uncollected rents and does not guarantee rents or other rental income. Interest received on Agent’s Trust Account (if any), shall belong to the Agent to assist in offsetting the expenses of maintaining the trust account. All security deposits are held in an FDIC Insured Trust Account. The agent may convert tenant deposits to non-refundable cleaning, carpet cleaning, repair, and administrative fees. The Proceeds to the owner. Tenancy revenues, refunds, adjustments, or other funds due OWNER shall be sent on or before the 15th day of each month to the owner’s bank account or the mailing address.THE AGENT SHALL NOT BE HELD MONETARILY RESPONSIBLE FOR ITS INABILITY TO COLLECT RENTS. AGENT SHALL NOT BE HELD RESPONSIBLE FOR ANY EXPENSES INCURRED FOR LEGAL ACTION INVOLVED IN THE COLLECTION OF RENTS AND/OR THE EVICTION OF ANY TENANT AND/OR DAMAGES INCURRED TO THE PROPERTY. All such expenses shall be paid by OWNER, partly reimbursable in the event AGENT can collect the rents, legal fees, or damages from the tenant.
- 6. INSURANCE COVERAGE: OWNER is obligated to keep the necessary Fire and Extended Coverage and Liability Insurance current and renewed at OWNER’s expense. “Rentomatic, LLC.,” shall be shown as an additional insured under the liability section only.
- 7. MAINTENANCE AND REPAIRS: The AGENT shall have full authority to perform or to cause to be performed such maintenance of the property as is reasonable and necessary for the safety of the tenants and the preservation of the property.
- a) At the sole discretion, the AGENT may install fire/smoke detectors, carbon monoxide detectors, and/or fire extinguishers on the property at the OWNER’s expense.
- b) In the event of maintenance, repairs, or construction being more than $250, the owner will be contacted by AGENT to discuss the needed repair(s) except in the case of emergency repairs.
- c) Home Warranties: Home Warranties are discouraged as they are very difficult to work with and complete maintenance needed, creating an administrative burden on the Agent and many inconveniences for tenants. To offset some of these costs, should the Owner purchase a home warranty; Agent will charge Owner $50 per home warranty claim. In the event the home warranty company or its providers are unable to complete work promptly, Agent may hire its contractors at the Owner’s expense to prevent further damage or harm/discomfort to tenants.
- d) Fix-It Guarantee: If the Agent hires a vendor to complete repairs or maintenance on the Property, it will be completed correctly the first time, or it will be fixed at no additional cost to the Owner. The issue must be the same as the original issue with the same proposed repair and within 30 days of the original repair.
- 8. SALE OF PROPERTY: RENTOMATIC has licensed realtors to help the OWNERS to sell the house and TENANT buy the house. The owner will pay a 3% sales commission to the Agent if the property is sold to a current tenant located by Agent.
- 9. COMMUNICATION AND NOTICES: Both parties agree that electronic mail (email) shall be considered a valid means of communicating. No oral agreements have been made, nor shall any oral agreements be allowed between parties. Owner agrees to receive electronic statements, 1099’s, and other notices, files, market updates and reports, company services, etc. via email, the Owner Portal provided through Agent’s website, or through Agent’s 3rd party software systems. The owner agrees to maintain a valid email address with the Agent. Email notification shall be considered the formal method of sending written notice by either party.
- 10. THE OWNER AGREES TO:
- a. Not rent or lease the property to anyone without Agent’s written approval
- b. Not negotiate with any prospective tenant who might contact the Owner directly but refers all prospective tenants to Agent.
- c. Not communicate with any tenant or prospective tenant at any time, for any reason. In the event a tenant or prospective tenant contacts the Owner, the
Owner shall immediately refer the tenant to the Agent.
- d. Not enter into a property management agreement with another Agent for the rental, leasing, or management of the Property to become effective during this agreement.
- e. Not increase the liability of the Owner or Agent by hiring out maintenance or repairs to anyone unlicensed or not properly insured.
- f. Notify Agent if Owner becomes delinquent in the payment of mortgage, taxes, property insurance, or association fees.
- g. Provide all necessary documents and records and fully cooperate with the Agent in all matters concerning this agreement.
- 11. MEDIATION: Any dispute relating to this agreement during or following its termination shall first be submitted to mediation or binding arbitration under Utah law. Mediation is a process in which the parties meet with an impartial person who helps to resolve the dispute informally and confidentially. Mediators cannot impose binding decisions. The parties to the dispute must agree before any settlement is binding. The parties will jointly appoint an acceptable mediator and the initiator shall bear the cost of such mediation or binding arbitration. The provision of this section shall survive the termination of this agreement.
- 12. MODIFICATION OF AGREEMENT: This agreement represents the complete and entire understanding of the parties. It is understood that the Agent maintains and updates at its discretion certain operational policies and procedures to allow for the fulfillment of services as outlined in this agreement. This agreement supersedes all prior understandings and agreements of the Parties and contains the entire agreement of the Parties concerning the subject matter hereof. Due to changes in market conditions, federal and local requirements, etc.; fees and terms listed in this agreement are subject to change at the time of renewal. Agent agrees to provide at least 45 days advance written notice before any change(s) to this agreement with an option for the Owner to opt out and terminate this agreement.
- 13. GOVERNING LAW: This agreement and all transactions completed hereby shall be governed by, construed, and enforced under the laws of the State of Utah.
- 14. IN WITNESS WHEREOF, the parties hereto hereby execute this agreement on the date first above written.
By initialing below, you acknowledge and agree to the terms
The owner agrees to produce the following information for the Agent within 4 business days of signing the contract.
- 1) Owner information (name, phone, email, driving license)
- 2) Business Information, if applicable (business/trust name and entity type)
- 3) Authorized Contact Information, if applicable (contact name, phone, email)
- 4) Direct Deposit Payment Information
- 5) W-9
- 6) Pet Allowance Information
- 7) Home Warranty Information (if applicable)
- • Company Name, Expiration Date, Policy Number, Contact Number
- 8) Utilities
- • Depending on the location of the home will depend on how utilities will be handled. You will receive additional information on the setup after a copy of the most recent for all utilities listed below.
- • List of utilities the tenant is responsible for (gas, electric, water, sewer, trash, internet, HOA)
- 9) If the property is in an HOA
- • CC&Rs
- • HOA Name and Contact Information (Phone Number and Email) • Does HOA allow pets? Are there any restrictions?
- • Does the HOA require moving notification, moving fees, or moving deposits?
- 10) Vacancy date with minimum property standards completed, if applicable.
- 11) List if items left at the home (example: appliances, shed, etc.)
- 12) Garage/Exterior Door Codes
- 13) Disable all security systems
- 14) Keys and access code (if any)
- 15) Garage remotes, if applicable
SIGN AND ACCEPT
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.