RENTAL MANAGEMENT AGREEMENT

PROPERTY MANAGEMENT AGREEMENT

(Long Term Leases/Rentals)

THIS AGREEMENT, by andbetween: ___________________ (hereinafter called "Owner") and Walt Flood Realty, a Hawaii soleproprietorship (hereinafter called "Agent"), wherein the partieshereby agree as follows:

 

AGENCY. Owner exclusively appoints Agent to rent,lease, operate, and manage on the owner's behalf the property located at: ______________________________________

 

Property Name: _________________________††††† Unit #:__________

 

TERM. This agreement shallbe for an initial period of twelve months beginning on: ___________,and shall be automatically renewed forsuccessive one year terms thereafter. However, either party upon sixty (60)days written notice may terminate this agreement. Termination of this agreementdoes not invalidate any existing rental agreements made by Agent on Owner'sbehalf. Upon termination, Owner shall continue to be responsible or shall causeto be completed all obligations or expenses incurred hereunder by the Agent. Inthe event this agreement is terminated, or the property is sold, the Ownershall honor all confirmed leases (Rental Agreements).

 

RESPONSIBILITIES OF AGENT.  Agent agreesto and shall:

      

(a) Complete an initial propertyinspection and prepare a condition report of the unit. If necessary, makerecommendations to Owner and prepare unit for occupancy.
      ††††† (b)Use its best efforts to promote unit for rent and be diligent in the managementof the property.
      ††††† (c)Advertise the rental unit in the localnewspapers, bulletin board, and on the Internet. Provide the invoice(s) fromthe media, pay the charges and pass on the cost to the Owner, on the monthlyproceeds statements.

†††† ††††† (d) Collect all rents for property anddeposit same in a special trust account in an insured financial institutionauthorized to do business in the State of Hawaii. Owner understands and agrees thatall finds may be placed in an interest bearing account and the interest shallaccrue to the benefit of the Rental Agent.
      ††††† (e)Provide Owner with a monthly statement of income and expenses for the property.To the extent there are amounts available for distribution to the owner; agentshall distribute the amount to the owner or as owner may direct.
      ††††† (f)Contract for services and authorize expenditures on Owner's behalf forhousekeeping and regular maintenance. Agent shall obtain prior written approvalfrom Owner for any expenditure in excess of Three Hundred Dollars ($300.00) except for what the Agentshall in its best judgment consider an emergency

 

RESPONSIBILITIES OF OWNER.  Owneragrees to and shall:

(a) Allow Agent to establish rentalrates for the property.
      ††††† (b)Provide Agent with Owner's General Excise Tax License.
      ††††† (c)Provide Agent with Owner's U.S. Federal Tax Identification number or SocialSecurity †††††number.††††††

††††     † (d) Provide Liability Insurance coverage forthe property with minimum limits of$300,000 for bodily injury and $25,000 for property damage to others. The Agentshall be named as additional insured and shall be furnished with a copy of theinsurance policy and a certificate of insurance.

PROPERTYMANAGEMENT AGREEMENT:†††††††††††††††† (Page 2)

    

AGENT'S FEES. Owner isadvised and agrees to pay the following:

A fee of twenty percent (20%) of the gross revenues formanagement services for the first month of the Lease.

 

A fee of ten percent (10%) of the gross revenues formanagement services for the second month and until the end of the long-termlease.

 

A minimum charge for administrationand accounting, at $20.00/month.

A fee of ten percent (10%) on the total charge for repairs,upgrades, restorations, and maintenance.

A fee of $35/hour to schedule repairs, upgrades, renovations, replacement ofappliances, carpets, curtains, drapes, and/or to escort the contractors,repairpersons, technicians and handymen.

 

 AGENCY START-UP FEE. Uponthe execution of this Agreement, the Owner shall pay one hundred fifty dollars ($150.00) to the Agent as anon-refundable start-up fee. The Agent shall use such fee to pay initialadministrative expenses of including the premises (property) in its rentalprogram, to conduct a complete inventory of all furniture and furnishings inthe rental unit, to produce a condition/inspection report of the premises,appliances and contents, and to pay other sums initially required for theperformance of its duties under this agreement.

 

Plus, the Agent will assess/charge theOwner the Hawaii Gross Excise tax (4.712%)on all the above fees, commissions and charges.

   †††††††† DISCLAIMER OF GUARANTEES. TheOwner understands and agrees that Agent has made no guarantees (written orverbal) of occupancy or income levels for the property.

   

HOLD HARMLESS. The Owneragrees that Agent shall not be liable for any claim for loss or injury to anyperson or property located on the property subject to this agreement, exceptfor loss or injury caused by Agent's gross negligence or wilful misconduct, andOwner shall hold Agent harmless and indemnify Agent for any such claim orliability.

   

GOVERNING LAW. This isthe entire Agreement between the parties and shall be governed by the laws ofthe State of Hawaii.This Agreement shall be binding upon the successors and assigns of Owner orAgent.

 

SIGNED in duplicate this __________ dayof_____________, 20 ____.
Both parties acknowledge receipt of a copy of this Agreement.

 

†††††† OWNER: __________________††††† ††††††AGENT: Walt FloodRealty

 

 

By: __________________________†††† By: ___________________________

†††† ††††††††††††††††††Itís Owner††††††††††† †††††††††††††††††††††††††††††It's Principal Broker

 

Date:_________________________††††Date:__________________________

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All information contained herein is obtained from sources deemed reliable, no representation is made as to the accuracy thereof, & it is submitted subject to errors, omissions, changes & withdrawals without notice.


Walt Flood Realty • Phone: 808-922-1659 •  Fax: 1-866-912-8984 (Toll Free) • 
 1750 Kalakaua Ave., Suite 103 • Honolulu, HI 96826-3795 • E-mail: WaltFlood[at]Hawaii.rr.com

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