Proactive Property Management
Page 1 of 5 Initials __________/__________
Careswell Morris Property Services, LLC
Residential Property Management and Exclusive Rental Agreement
This agreement is made on between “Landlord”) who owns or has the right to lease the Premises as defined below and Careswell Morris Property Services, LLC
(“Agent”) which is duly licensed to manage the premises and has complied with all state and local requirements. In consideration of the mutual terms of this Agreement, the parties agree
as follows:
1. EMPLOYMENT OF MANAGING AGENT
A. Employment and Acceptance. The Landlord employs the Agent as the sole exclusive agent of the Landlord to lease and manage the Premises upon the terms and conditions
provided herein. The Agent accepts the employment and shall furnish the services of the organization for the leasing and management of the Premises. The Landlord shall pay all
expenses in connection with those services as provided herein.
B. Relationship of the Agent to the Landlord. The relationship of the parties to this Agreement shall be that of principal and agent, and all duties to be performed by the Agent
under this Agreement shall be on behalf of the Landlord, in the Landlord’s name and for the Landlord’s account. In taking any action under this Agreement, the Agent shall be
acting only as agent for the Landlord, and nothing in this Agreement shall be construed as creating a partnership, joint venture or any other relationship between the parties or as
requiring the Agent to bear any portion of losses arising out of or connected with the ownership or operation of the Premises. Nor shall the Agent at any time during the period of
this Agreement be considered a direct employee of the Landlord. Neither party shall have the power to bind or obligate the other except as expressly set forth in this Agreement,
except that the Agent is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent of this Agreement. Any delays in the
performance of any obligation of the Agent under this Agreement shall be excused to the extent that such delays were caused by factors beyond the control of the Agent, and any
time periods required for performance shall be extended accordingly.
C. Description of the Premises. The property to be managed by the Agent under this Agreement is located at: Street Address Legal Description: (Premises”)
consisting of the land, buildings and other improvements.
D. Term. The term of this Agreement shall be for an initial period of year(s) (the “initial term”) beginning on ; and ending at the end of and thereafter
shall be automatically renewed from year to year unless terminated as provided in Paragraphs 18 (A), 18 (B) or 23. Each renewal period is referred to as a “term year”.
2. AGENT’S COMPENSATION AND EXPENSES. As compensation for the services provided by the Agent under this Agreement (and exclusive of reimbursement of expenses to which
the Agent is entitled hereunder), the Landlord shall pay the Agent as follows:
A. For Management Services Ten Percent (10%) of the total monthly gross rentals due the Landlord, but not less than 100.00 per month. Said management fees will be due by
the 5
th
calendar day of the month, even if the rent has not been received. A flat fee of $100.00 per month shall be due to Agent should property be vacant. In the event the owner
approves an applicant that doesn’t meet our financial guidelines, Agent may, at the sole option of the Agent, increase the management fee as described above from ten percent
(10%) to twelve percent (12%).
B. For Residential Leasing Fee. To pay the Agent a leasing fee of One Month’s Rent for lease terms of 12 months or less. 6% of the
gross rent or 1 Month’s Rent whichever is greater for lease term in excess of 12 months for leases negotiated on behalf of
the Landlord by Agent. The leasing fee is in addition to the management fee. Leasing and management fees are non-refundable. In any event where the Agent is required to
negotiate and/or has signed a lease renewal or extension, regardless of the term, a fee of 1/4 of one month’s rent (25%) will be paid to the Agent for each renewal or extension and
shall be paid each year on the anniversary date. In the event the lease goes month to month and owner elects not to extend for another year this fee is still due on the anniversary
date. For multi-year leases the leasing fee is due upon signing the initial lease and for renewals or continuance of lease upon subsequent yearly anniversary date(s).
C. Interest on Unpaid Sums. Any sums due the Agent under any provision of this Agreement, and not paid within fifteen (15) days after such sums have become due, shall bear
interest at the rate of twelve (12%) per annum, plus a $25.00 fee will be due to the Agent.
D. Non-Management Services. Landlord agrees to pay Agent 20% of the cost of up to $1000 and 10% over $1000 for non-management services or any insurance claim supervision
rendered at Landlord’s request in connection with the Premises. Non-Management services are defined as any service performed by Agent that is, in Agent’s sole discretion, not
considered necessary for continued tenant occupancy, or repair of damages incurred due to the tenancy. These services include, but are not limited to, Agent arranging for
renovations, additions, and improvements to Premises and/or repairs/maintenance to prepare home for sale or for Landlords return to the Premises. Nothing in this Agreement
obligates Agent to provide non-management services. If Agent agrees to secure such services for Landlord, the fee due Agent shall be treated as all other fees due Agent under
this agreement.
3. BANK ACCOUNTS.
A. Operating Escrow Account(s). The Agent shall establish a separate account known as the Operating Escrow Account, separate and apart from the Agent’s corporate accounts,
for the deposit of receipts collected as described herein, in a bank or other institution whose deposits are insured by the federal government. The Agent shall select such
depository. Funds in the Operating Account(s) remain the property of the Landlord subject to disbursement of expenses by the Agent as described in this Agreement. ANY
INTEREST ACCRUED ON THIS ACCOUNT WILL BE RETAINED BY THE AGENT.
B. Initial Deposit and Maintenance Reserve. Immediately upon commencement of this Agreement, the Landlord shall remit to the Agent an amount equal to the monthly debt
service (First Trust and Second Trust) plus condominium or association fees if applicable if Agent is to make these payments, plus $350.00 for the establishment of a maintenance
reserve fund to cover repairs and maintenance on the property. The Landlord shall maintain the maintenance reserve stated above at all times in the Operating Escrow Account(s)
to enable the Agent to pay the obligations of the Landlord under this Agreement as they become due. The Agent shall notify the Landlord if a new maintenance reserve amount is
required; the Landlord shall, immediately upon notice, remit to the Agent sufficient funds to cover the deficiency and replenish the contingency reserve. Incoming rent may be
utilized to replenish maintenance reserve account of owner.
C. Security Deposit Escrow Account. The Agent shall, if required by law, maintain a separate escrow account for tenant security deposits and advance rentals. Such account shall
be maintained in accordance with applicable state or local laws, if any. Any interest accrued on this account will be retained by the Agent to offset the administrative and
accounting costs.
4. COLLECTION OF RENTS AND OTHER RECEIPTS.
A. Agent’s Authority. The Agent shall collect all rents, charges and other amounts receivable on the Landlord’s account in connection with the management and operation of the
Premises. Such receipts shall be deposited in the Operating Escrow Account(s) maintained by the Agent for the Premises (except for those funds described in Paragraphs 3 (C), 4
(B) and 4 (C) hereof).
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