PROPERTY MANAGEMENT RENTAL AGREEMENT
Property Name and Address:
_____________________________________________________________________________
This Agreement is made and entered into this the _____ day of _______________,
2008, by and between Toccoa
Wilderness Realty & Cabin Rental, LLC (herein after
referred to as Manager) and _________________
(herein referred to as Owner)
with Owner’s physical mailing address being
______________________________________________.
1. Management and Property
WHEREAS, Toccoa Wilderness Realty & Cabin Rental, LLC. Is in the business of
managing short term rental properties owned by others and of finding renters for
same. Toccoa Wilderness Realty & Cabin Rental, LLC, does not desire to manage
the real property of the Owners (better known as
follows):_____________________________ to provide for vacation rentals and the
generation of income from said property.
WHEREAS, subject to the terms of this Agreement, Owner desires to engage Toccoa
Wilderness Realty & Cabin Rental, LLC., to provided rental management services
for said Property, and Toccoa Wilderness Realty & Cabin Rental, LLC., desires to
accept such engagement.
NOW, THEREFORE, for and in consideration of the mutual promises and covenants
contained herein and other good and valuable consideration, the receipt of which
is hereby acknowledged the parties agree as follows:
2.
Terms of Agreement
The initial term of this Agreement is twelve (12) months from the effective date
set forth above. This Agreement shall automatically renew thereafter for the
additional term of twelve (12) months each year thereafter unless after the
expiration of six (6) months of the initial term; provided, however, the six
months shall not apply to termination for violation of this agreement, either
party shall terminate upon sixty (60) days advance written notice given by
either the Manager or Owner with notice being sent to the correct physical
address of the opposite party. If there are no future bookings for the Property,
this Agreement may be canceled with a written notice to the opposite party at
any time. If this Agreement is cancelled prior to the end of the 6 month initial
term, an fee of Two Hundred Fifty Dollars ($250.00) will be due to Manager to
cover initial start up costs. Manager reserves the right to issue addendums to
the Agreement herein. Any notices required or permitted to be given shall be
mailed by certified mail by either party. Upon termination, the Owner will honor
all confirmed reservations and the Owner hereby affirms that the Manager is
relying on the availability of Owner’s property when a reservation is made. All
such reservations will survive the termination of the Agreement and be subject
to the management and service policies of Manager exclusively and not any other
company regardless of whom the Owner has entered into a contract with. Owner
shall be obligated to reimburse Manager upon demand for all costs incurred by
Manager to relocate confirmed reservations to a comparable property(or higher
priced property if Manager deems it necessary- during peak seasons as the
ability to transfer renters to comparable properties is difficult due to high
demand) as determined by Manager. Manager will retain all and full commission on
all reservations. Owner shall promptly pay Manager all sums otherwise due to
Manager including compensation during each 12 month period.
3.
Authority
Owner hereby confers to Manager the exclusive right to rent and manage property
during the term of this Agreement. For such purposes, Manager shall be the
authorized agent of the Owner and shall bind and obligate Owner by the
performance of Manager duties as herein set forth in this Agreement. Neither
Owner nor any other persons or agents may rent, use or occupy managed property
without advance notice given to Manager. Owner by his/her execution of this
Agreement warrants and represents that he/she is either the sole Owner in Fee
Simple of said Property or is an owner of an interest in Fee Simple Title in
said Property who has been duly authorized by all other owners to bind such
Owners and said Property to the terms and conditions hereof. The liability of
all Owners in Title shall be joint and several.
(a). Assignment – Manager may assign this Agreement to another manager or
management company at any time during the term of this Agreement and the terms
are binding on Owner and on all successors and assigns of agent enforceable to
the same extent as though no assignment had occurred.
4.
Duties of Manager
Manager shall undertake the following duties with reference to Property and
Owner:
(a). Rental Duties – Manager shall use its best efforts to locate tenants,
collect income and manage said Property. All decisions concerning the day to day
operation of the Property as a rental accommodation shall be made by Manager in
its sole discretion including by not limited to, decisions regarding rental
rates, staffing, marketing, maintenance, housekeeping, reservation policies and
collection of rental proceeds, In addition, Manager shall be in addition to the
rental rate charged and shall belong exclusively to Manager.
(b). Policies and Collections – Manager shall provide rental quests with written
notice of reservations. Manager shall set policies and advise Owner and rental
quests thereof with respect to reservations, check-in and check-out times,
payment, maximum occupancy and other regulations of and relating to the use and
occupancy of Property.
Manager may accept payment of rents from guests by cash, personal check, bank
drafts or credit cards but in no circumstance will Manager be liable to Owner
for failure of quest to pay rental balance or dishonored checks, stop payments,
credit card reversals, forgeries or any other similar event which results in
non-payment. Manager will use good faith effort to investigate the credit and
tenant worthiness for any occupancy intended to exceed sixty (60) days.
In the event Owner should determine that it wishes to undertake collection
efforts for non-payment including but not limited to collection litigation,
Owner shall do so at their own cost and expense. However, Manager will assist
Owner and any attorney or other representative which Owner selects by providing
information and materials indicating the dates of occupancy, confirmed
reservations, rental rates, and other written and factual information in the
possession of Manager that will assist in such collection efforts.
It is agreed that the standard Rental Rate Guideline shall range from $_____ to
$______ per night for this property depending on demand and season. Owner agrees
and grants Agent permission to use best judgment in determining the best rental
rate while maximizing occupancy on behalf of the Owner.
(c). Inspection and Maintenance – Manager shall periodically inspect the
Property. Whenever possible all inspections will be recorded on Owner’s account.
The failure to Manager to so inspect and/or during inspection, to detect any
defect or adverse condition, including but not limited to conditions affection
the integrity or safety of any structure upon Property or factors which may
affect the rent ability of Property shall cause no liability whatsoever to
Manager. It is expressly understood that Manager shall use best efforts and due
care in inspection the Property.
Owner hereby authorizes Manager to perform or cause to be performed routine
maintenance and repair work at said Property (at Owners expense) provided that
the total of such maintenance and repairs may not exceed the sum of Three
Hundred Dollars ($300.00) per repair without the advance oral or written consent
of the Owner. It is expressly understood that Manager shall use good judgment
and discretion in the undertaking of such repairs or maintenance.
Should Manager discover any condition in said Property which requires immediate
repair, replacement, construction or action in order to prevent an unsafe
condition, damage to the structures or adjacent areas, including common areas,
loss of habitability or factors likely to result in sustained loss of rental
income (herein emergency repairs), Manager may proceed with the emergency repair
without advance consent of Owner and Owner shall be fully responsible for the
payment of all reasonable costs related thereto and the dollar limitations above
described in above paragraph shall not apply. It is expressly understood that
Manager shall use best efforts to contact Owner and inform Owner of the
condition of the Property in case of an emergency.
If requested by Owner, Manager shall assist Owner in the preparation of any
insurance claims for damages to Owner’s property. Such assistance shall be
limited to the provision of repair invoices and copies of reservations canceled
due to conditions of Property.
Regardless of nature of repair, maintenance, replacement or construction work
undertaken by Manager, Owner shall be solely and exclusively responsible for all
reasonable costs and charges in connection therewith and whether incurred
directly by Owner or Manager on Owner’s behalf. Owner shall be stopped to
contest the nature of the work undertaken, the cost there and Manger’s authority
to bind Owner in connection there with. If Manager or any of its employees or
representatives undertakes repairs, Owner shall reimburse Manager for costs
thereof including labor and materials and such obligation shall be separate and
distinct from the compensation due and owning under Paragraph 6.
(d). Cleaning: Provided that Owner is current in all payments due Manager,
Manager shall, from its compensation under Paragraph 6 or from cleaning fees
collected from tenants, pay for departure cleaning at Property after an
Selective generated paid occupancy, including but not limited to laundry for
towels and linens, excluding bedspreads. Manager shall not be obligated to pay
for Maid service under any circumstance or to pay for departure cleaning herein
indicated for any use or occupancy by Owner or for Owner’s quests at the
premises for which full rentals are not paid directly to Manager. After each
rental, Toccoa Wilderness Realty & Cabin Rentals, LLC., will arrange for the
Property to be cleaned at no charge to the Owner except as outlined in above
reference to Owner use. Owner agrees to an Initial Clean upon signing of this
Agreement at which time required inventory checklist will be completed.
Deep Cleaning: The Property is required to be cleaned thoroughly (deep clean) a
minimum of once every year.
(e). Pest Control: All Properties are required to have pest control.
(f). Restricted Phone Line: Owner shall provide a restricted phone line. The
cost of the equipment or the cost of the installation of the restricted line, as
well as the maintenance of t0 conventional, touch-tone line with the local phone
company shall be the responsibility of the Owner. The restricted phone service
will allow quests to make local calls only at no charge, this allows convenience
in obtaining local information and access for emergency services.
(g). Satellite/Cable Service: Owner shall provide local channels via satellite
or cable TV service. The cost of the equipment, replacement and/or maintenance
of said equipment shall be the responsibility of the Owner. It is the
responsibility of the Owner to arrange for blocking of access to pay per view
channels or any other movie channels. Toccoa Wilderness Realty & Cabin Rental,
LLC., is not responsible for any pay per view program charges incurred by quest
and said charges will be the responsibility of the Owner if the necessary black
were not set up prior to the property being available for rental.
(h). Trash/Garbage Pickup Service: Owner shall provide a weekly trash /garbage
removal service. It is understood that the Manager or it’s Affiliates, or
companies used for Cleaning or maintenance work shall not be liable or
responsible for any damage, or repairs to property for any reason.
5.
Owner’s Duties
Owner shall undertake the following duties with reference to Property:
(a). Minimum Inventory: Owner shall be required to provide and maintain a
minimum inventory of goods and accessories as specifically described in Required
Inventory (Exhibit 1) attached hereto. Such items shall be at the Owners
expense. Owner is hereby notified that one full set of all linens and towels may
be kept offsite and laundered offsited. Owner agrees to provide a combination
keypad entry system at the property with 2 full sets of keys to the property on
file in case of emergency. Property must be fully stocked with (Exhibit 1)
inventory prior to any rental of the Property. The Manager may, at Owners
expense, procure replacements, said replacements not necessarily a match but
similar in quality and type, for lost, stolen or broken items for the following
items only;
(1). Starter Pack of Linens, Soaps, Paper Goods: for any Paid booking, is
supplied by the cleaning company:
(b). Maintenance: Owner shall deliver the Property in excellent condition and
shall, during the term of this Agreement, comply, at Owner’s expense, with all
reasonable requests of Manager in connection with the provision of furnishings,
appliances, accessories, amenities, and preventive maintenance. At a minimum,
Owner hereby agrees to the following:
(1). Steam clean carpets and rugs on as needed basis.
(2). Clean all windows and blinds on a n as needed basis.
(3). Caulk all sinks and bathtubs as needed.
(4). Insulate all exposed water pipes.
(5). Provide clean yard, roof & gutters on a as needed basis.
(6). Paint or Stain the interior and exterior of the property as
needed.
(7). General deep-clean once yearly
(8). Service of Fire Extinguishers.
(9). Clean Chimneys.
Owner agrees to provide Manager, in writing, and to make accessible the location
of the main water shut off, gas shut off and water heater shut off valve and
give specific instructions as to the location of the electric panel box.
(c). Insurance: Owner shall, at all times, during the term of this Agreement,
maintain and pay for a public liability and property damage insurance (Vacation
Renal Policy) with a single combined liability limit of not less than One
Million Dollars ($1,000,000.00) and property damage limits of no less than Two
Hundred Thousand Dollars ($200,000.00) insuring against all liability arising
out of and in connection with the rentals, occupancy and activity contemplated
by this Agreement. Owner shall cause Manager to be listed as a co-insured under
said policy and shall provide Manager with proof of such status within Thirty
(30) days of the execution of this Agreement and in any event before any rental
or occupancy occurs pursuant to the terms hereof. Such policies shall contain an
endorsement, which provides that Manager shall receive not less than Ten (10)
days advance written notice of any modification or cancellation of such policy.
(d). Owner’s Occupancy of Property: Owner acknowledges and agrees that they
shall not have the right to occupy the Property without first making a
reservation with Manager. To confirm no existing reservations for requested
dates are in effect and to block out dates for the owner. Further, Owner shall
not be entitled to make a reservation to occupy the Property during any time for
which Manager has already issued a confirmed reservation to a rental quest. No
commission will be due to Manager for an Owner’s use or an Owner’s quest use
provided the guest is not paying the for use. If Manager approves a reduced
rental rate at the Owner’s request, Manager will collect the commission based on
the agreed upon percentage of the rental amount as stated herein. Any
maintenance visits required on Owner or Owner’s quest reservations will result
in a charge to the Owner. Owners and Owner’s guests shall be subject to the same
check-in and check-out times and procedures as other quests who rent the
Property from Manager. All Owner and Owner guest reservations will require a
signed confirmation of the reservation and cancellation of any reservation will
need to be forwarded, in writing, via mail, email or fax. If Manager does not
have a signed confirmation on file and a paying guest reserves the property, the
guest reservation will stand and the Manager will not be held liable for the
Owner’s reservation. Owner may elect to clean the property themselves after
their personal use. In that case, no cleaning becomes necessary. If Owner
desires Manager to arrange to cleaning of the Property after Owner’s visit, the
standard cleaning fee will apply. Manager will arrange to clean should Owner
fail to inform Manager of Owner’s occupancy of Property, and should Manager
obtain a rental for the Property which could not be accommodated as a result of
Owner’s occupancy, then Owner shall be responsible for any and all costs
associated with that rental, including but not limited to rental commission.
6.
Compensation to Manager
Compensation to Manager and Other fees shall be as follows:
(a). Commissions: As and for payment for Managers services hereunder, Owner
shall pay to Manager an amount equal to Twenty -Five Percent (25%) of all gross
rental proceeds generated from the property.
(b). Other Fees: Owner agrees to the costs incurred with setting up or having
Manager set up the Property in Rent Ready Condition, including but not limited
to key pad installation, required inventory, initial cleaning, etc…
Manager agrees to limit any additional fees and charges to maximize rental
income on behalf of the Owner.
(c). Payments to Manager: It is specifically understood that the compensation
herein provided shall be paid on the full amounts of sums paid. Owner shall
promptly pay to Manager all compensation due Manager and any other costs, fees,
expenses, and charges for which Owner is responsible within ten (10) days of
submission of an invoice thereof. In addition, and without the necessity of
advance invoicing Manager may deduct from gross rentals all such compensation
and fees, costs, expenses and charges. As and for security for payment of
Owner’s obligations to manager under this Agreement. Owner hereby grants to
Manager a security interest in all rents, rental contracts and accounts
receivable related thereto and related to Property. In all cases, the security
herein granted shall survive the termination of this Agreement and shall
continue until all sums due Manager for compensation and other fees, costs,
expenses and charges including fees and charges for maintenance and repair,
payment of utility bills, mortgage payments, tax payments, homeowner dues home
improvements, remodels, appliances and furnishings have been paid in full.
7.
Limited Liability and Indemnification
Owner acknowledges and agrees that Manager is not guaranteeing any specific
number days of occupancy, any rental income or rental rate, although Manager
will use good faith efforts to secure competitive occupancies and rates.
Toccoa Wilderness Realty & Cabin Rental, LLC., reservationists have the
authority to discount rates up to Twenty Percent (20%) based on demand in order
to maximize rentals for property owners. Manager may also offer repeat and
referral program/discounts up to Twenty Percent (20%) and free night promotions
to maximize rentals for property owners.
Owner hereby indemnifies and holds Manager harmless from any and all costs,
damage, claims, expense, liability, attorney fees and any obligation whatsoever,
whether incurred or suffered by Owner, guest, invitees and/or renters. Owner
hereby indemnifies and holds Manager harmless from any and all costs, damage,
claims, expense, liability, attorney fees or any obligation whatsoever to any
issue arising out of emergencies, repair and maintenance, loss of personal
property by theft, including person property of the Owner or guest, invitees and
renters, injury to Property, personal property or person from any cause
whatsoever.
8.
Miscellaneous
This Agreement shall be construed in accordance with the Laws of the State of
Georgia.
Should any litigation commence between the parties hereto or their personal
representatives concerning any provision of this Agreement or the rights and
duties of any person in relation thereto, the party or parties prevailing in
such litigation shall be entitled to such relief as may be granted, to include
but not limited to, costs of a reasonable sum such as attorney fees in such
litigation.
Owner may not voluntarily or involuntarily assign or transfer any or all
interest in this Agreement to any other person without the prior written consent
of Manager. Except as herein provided this Agreement shall be binding upon and
insure the benefit of the parties’ respective successors and assignees.
Should Owner choose to market this property for sale at any time, Owner agrees
to allow Toccoa Wilderness Realty & Cabin Rentals, LLC., the opportunity to
either Purchase or List for purchase and market to buyers for a minimum of six
(6) months at the current standard rate of Real Estate Commissions.
All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given on the date of
service if serverd personally on the party to whom notice is to be given or on
the seventh (7) day after mailing. Written notice shall be mailed to the party
to whom notice given by first class mail, registered and/or certified mail with
prepaid postage and addressed properly for successful delivery.
Toccoa Wilderness Realty & Cabin Rental, LLC., reserves the right to place a
property on hold status from rentals should the property be deemed unsafe for
any reason or if property is in need of maintenance or repairs that hinder the
ability to rent the property. Owner will be notified if this becomes necessary
and Agent will assist in arrangement of anything needed to be able to promptly
remove the hold status as quickly as possible.
Owner agrees and understands that it is the Owners’ responsibility to provide
and maintain Smoke Detectors, Fire Extinguishers and any and all other items
needed to provide a safe place for guests to rent and occupy.
9.
Special Instructions/Notations
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
So Agreed this _____ day of _____________________, 200_
____________________________ ______________________________
Property Owner: SS#
____________________________ (Printed Name)
____________________________ ______________________________
Property Owner: SS#
____________________________ (Printed Name)
By and Through - Toccoa Wilderness Realty & Cabin Rental, LLC (Manager)
8436 Aska Road
Blue Ridge, Georgia 30513
____________________________ (Representative)
____________________________ (Printed Name)
____________________________ (Title)
____________________________ (Witness)