ProManage Realty, LLC

ProManage Realty, LLC
4939 W. Ray Road, Suite 4, Box 174
Chandler, Arizona 85226
www.andersonsrentaz.com
[email protected]
PROPERTY MANAGEMENT AGREEMENT v.1
OWNER:
TERM:
(Start Date)
(Termination Date)
RENEWAL:
AUTOMATIC. After the Termination Date, this Agreement continues on
a month-to-month basis until terminated in writing.
TERMINATION:
ANYTIME, by either party, with thirty calendar days advance written
notice, for any reason or no reason.
TERMINATION FEE:
• By Owner: There is no termination fee and Owner may terminate for
any reason or no reason, but Owner must pay at the time of
cancellation the Management Fee (as calculated herein) through and
including the termination date of any executory lease agreement (i.e.,
lease that is still in effect at the time of termination) for the Property,
whether or not said lease(s) is subsequently terminated prior to the
lease termination date.
• By Broker: Broker may terminate at any time, for any reason or no
reason and shall forfeit remaining management fees, but is entitled to
compensation as stated herein through the date of termination.
PROPERTY:
See separate Addendum for each property. All of Owner’s properties
managed by Broker are referred to herein as “Property.”
FEES:*
All services offered and fees charged by Broker are explained in detail
in the Fee Table (see Section 10, below). The specific services
requested for each Property are noted on the Property Addendum.
BROKER:
Kelly Larsen, ADRE License Number: BR532547000
BROKERAGE:
ProManage Realty, LLC, ADRE License Number: LC628712000
BANK ACCOUNTS:
Broker maintains a trust account and/or a property management
operating account at Chase Bank, 3970 West Ray Road, Chandler,
Arizona 85226.
Owner’s Initials: ______________________
Page 1
Property Management Agreement (continued)
Page 2 of 14
1.
Agreement. Owner agrees to employ Broker to rent, lease and/or manage the Property (see
separate Addendum for each property managed by Broker for Owner) for the Term specified
above (and any renewal or extension thereof) in exchange for the Fees specified in this
Property Management Agreement (referred to herein as PMA or Agreement). In addition, for
the Term specified above, Owner employs and grants Broker the exclusive right to sell the
Property identified on the attached Addendum 1 and other Properties identified on other or
subsequent Addendums hereto.
2.
Broker authority, responsibilities, duties and obligations.
A.
Broker shall, as appropriate and subject to the services selected by Owner in Section 10:
(1) Advertise the Property for rent, lease or, if authorized by Owner, for sale or for lease
with an option to purchase. Owner agrees that the Property will not be advertised
through any Multiple Listing Service (MLS) unless Owner executes a separate written
agreement (i.e., listing agreement) authorizing Broker to list the Property in the MLS.
(2) Enter into lease agreements with tenant on behalf of Owner. (See separate special
power of attorney form).
(a) Owner has specified the minimum rent to be charged for the Property, but Broker
may negotiate all other terms with tenant.
(b) If authorized by Owner (see Section 10, below), Broker shall make the final
decision regarding tenant renewal and tenant approval and, toward that end,
Broker shall make reasonable efforts to screen potential tenants and to collect
rents, but Broker does not guarantee future performance of tenants and is not
obligated to refund to Owner any compensation or commissions in the event of any
tenant breach. Nevertheless, if a tenant and/or tenant application is "borderline"
or "questionable," Broker may, on a case-by-case basis, elect to seek input from
Owner on the final decision regarding tenant approval.
(c) Broker shall hold (in Broker’s trust account or property management account)
prepaid rent (if any) until due to owner. Prepaid rent includes the last month’s rent
(if collected) and rent paid by tenant during the current rental period (i.e., one
month) but which is not due until the beginning of the next rental period. Rent for
a rental period (i.e., one month) is all due and payable to Owner on the first day of
the rental period, unless otherwise provided by a written lease with a tenant.
(3) Collect rent checks or money orders, but not cash, from tenants and, after deducting
Broker’s fees, Owner’s expenses (see Section 10, below) and other amounts due
hereunder, forward the balance to Owner on or before the fifteenth (15th ) of the current
month, provided rent is received from the tenant on or before the tenth (10th ) of the
current month. If rent is received from the tenant after the tenth (10th ) of the current
month, then the balance due to Owner will be sent on or before the fifteenth (15th ) of the
following month.
(a) Broker shall have unfettered discretion to accept a partial payment (and have the
tenant execute a partial payment agreement) and/or to waive all or part of the late
Owner’s Initials: ______________________
Page 2
Property Management Agreement (continued)
Page 3 of 14
fees. When warranted, as determined in Broker’s sole and unfettered discretion,
Broker may seek input from Owner, if Owner is available, before accepting a partial
payment from tenant.
(b) To receive payment of Broker's Fees, Broker may deposit tenant's initial payment
(which may include rent and/or deposits) and/or subsequent payments into
Broker's trust account, and Broker may then issue a check to Broker's operating
account for the Fees due to Broker and issue a check to Owner for the balance.
Alternatively, at Broker's option, Broker may forward any or all tenant payments to
Owner and bill Owner for amounts due.
(4) Maintain records of expenses for the Property and provide Owner with copies thereof.
(5) Provide Owner with a monthly report of income, expenses and other information
relevant to the Property. Reports may be sent via mail, e-mail or fax.
(6) Serve tenant with notice(s) regarding late rent and/or failure to abide by the terms of the
rental agreement and/or the Arizona Residential Landlord and Tenant Act. All notice
fees (whether or not collected from the tenant), late fees and returned check fees owed
by tenant and/or collected by Broker shall be payable to Broker as additional
compensation for the additional duties related thereto and to defray the administrative
expense associated with collection thereof.
(7) Notify Owner when the Property needs repairs and/or maintenance. If appropriate and
if agreed to by Broker, Broker may hire, employ, supervise and discharge persons to
maintain and/or repair the Property or may assist Owner with one or more of the
foregoing.
(8) After termination of this Agreement, Owner and Broker agree that, in the event Broker
has not already provided Owner with copies, that Broker shall provide Owner with
copies of past rental agreements, tenant applications and other related documents, and
originals of current rental agreements and tenant applications (all other documents may
be sent electronically). Broker may withhold funds as permitted by law to pay any
amounts due, expenses previously incurred but not yet invoiced, and to close accounts.
Broker shall deliver to Owner all remaining tenant deposits (if any) and the balance of
any monies due Owner, as well as a final accounting reflecting the balance of income
and expenses as required by law. Broker shall notify tenant that tenant’s deposits have
been sent to Owner.
(9) Tax Reporting: Broker shall report Owner income as required by law and issue Owner
an IRS Form 1099-Miscellaneous Income form for all funds received for tax purposes.
Owner agrees to complete a W-9 or other applicable income reporting form with an
accurate Social Security Number or Tax Identification Number and address, in addition
to any other requested information or required tax reporting form, and to notify Broker
if changes require the information to be updated.
Owner’s Initials: ______________________
Page 3
Property Management Agreement (continued)
Page 4 of 14
B. Broker may:
(1) Advance funds on Owner’s behalf to satisfy obligations of Owner and/or Broker incurred
in connection with maintaining and/or protecting the Owner’s property:
(a) Broker shall contact Owner for expenditures for maintenance, repair or any other
expense that exceeds $300.00. Broker shall have full and unfettered discretion to
pay for maintenance or repairs to the Property when the cost thereof is $300.00 or
less.
(b) Broker shall have full and unfettered discretion to pay for “emergency expenses”
less than $500.00. “Emergency expenses” include, but are not limited to: repair of
heating, ventilating, air-conditioning system(s) when outside temperatures warrant
immediate action; any action taken to prevent damage or further damage to the
Property; any action to stop a water leak; and any action to restore essential
services (i.e., electricity, gas, water, etc.).
(2) Collect and hold an Emergency Fund to pay for maintenance, repairs and/or
“emergency expenses.” This amount will be paid by Owner or advanced by Broker and
deducted from the next payment made by an existing tenant and held by Broker in a
trust account to be used for maintenance and repair of the Property. Owner shall
replenish this fund within five (5) calendar days after written request by Broker or Broker
may replenish this fund by deducting funds from any amounts paid by tenant
subsequent to Broker's written demand to Owner. The Emergency Fund will be
returned to Owner, as provided by A.R.S. § 32-2173(C)(2), within thirty-five days after
termination of this Agreement.
(3) Open and/or maintain one or more property management trust accounts to hold
Owner’s and/or tenant’s funds. Interest, if any, on any trust account shall be retained
by Broker to defray the expense of opening and/or maintaining the account.
(4) Use either the Arizona Association of Realtors' lease form or may use a form drafted
by Broker's attorney.
(5) Prepare or assist Owner with preparation of a Disposition of Deposits form (which is an
itemized statement of deductions from the tenant’s deposits, pursuant to A.R.S. § 331321, that must be prepared and mailed within fourteen (14) business days after
tenancy terminates), accounting for the tenant’s deposits after the tenant vacates the
property and/or refunding of tenant deposits. If Owner prepares the Disposition of
Deposits form, then timely completion and mailing of the Disposition of Deposits form
and refund of tenant’s deposits (if any) is solely the Owner’s responsibility.
(6) Sign leases and rental agreements on behalf of Owner. This Agreement hereby grants
Broker a special power of attorney, to act on behalf of Owner, for the limited purpose
of entering into leases and rental agreements on behalf of Owner and Owner agrees
that Owner shall be bound by any such agreements signed by Broker on Owner’s
behalf. So that the content hereof is not unnecessarily disclosed to third parties, Owner
shall execute a separate special power of attorney.
Owner’s Initials: ______________________
Page 4
Property Management Agreement (continued)
Page 5 of 14
(7) Owner authorizes Broker to install a lockbox on the Property and to use the lockbox as
Broker deems appropriate and/or cost-effective. Owner acknowledges that a lockbox
will permit access to the Property by other brokers with or without potential tenants.
Similarly, Broker may permit a prospective tenant to access the key from the lockbox
and view the Property unaccompanied by Broker. Owner acknowledges that, from time
to time, unauthorized persons may gain access to the Property using the lockbox or by
other means and that Broker is not insuring Owner or any occupant against theft, loss
or vandalism resulting from any access.
(8) Release refundable deposits to the tenant or to Owner, as determined by Broker (in
Broker’s sole and unfettered discretion), if Owner’s right to title is terminated by
foreclosure, a writ of execution or otherwise.
(9)
Inspect (by Broker or Broker’s agents) the Property prior to move-in and following
move-out of a tenant for the purpose of assessing the condition of the Property, but
Owner acknowledges and understands that Broker is not a licensed contractor, may
not recognize one or more significant or insignificant property defects, and cannot
give opinions or estimates with respect to costs of repairs or replacements.
Inspections that thoroughly assess the Property and the Properties various systems
(i.e., HVAC, electrical, plumbing, etc.) must be conducted by licensed persons other
than Broker and at Owner’s expense.
(10)
Hire persons and/or companies on behalf of Owner for repair, maintenance and/or
services related to the Property. Owner agrees that said persons and/or companies
shall be deemed contractors or sub-contractors for the Owner and not of Broker and
that Broker shall not be responsible for their acts (intentional, negligent or otherwise),
omissions, or defaults.
(11)
Enter into contracts for utilities and services for the Property on behalf of the Owner
and Owner shall pay the amounts due during the term of this agreement and assume
the obligations of all such contracts after termination of this agreement. Broker shall
also have the unfettered discretion to pay delinquent utility bills for the Property so
that utilities can be turned on for a new tenant.
(12)
Elect to have carpets and/or floor coverings professionally cleaned, at Owner's
expense, when a tenant renews or extends their lease.
C. Broker cannot:
(1)
Give Owner legal or tax advice. Owner understands and agrees that Broker is not
qualified or licensed to provide legal or tax advice or any other professional advice
except for property management. Owner shall consult with an attorney, tax
consultant, or other qualified professional to advise Owner with respect to legal, tax
and/or all other issues outside the scope of Broker's expertise.
(2)
Represent Owner in court. Owner must either: (1) appear pro per (i.e., represent
himself/herself in court) in court proceedings or (2) hire an attorney to represent
Owner in any/all court proceedings (if any). Whether or not Broker holds a valid
Power of Attorney, Arizona law prohibits a property manager from representing
Owner’s Initials: ______________________
Page 5
Property Management Agreement (continued)
Page 6 of 14
Owner in court, but Broker can and will testify as a witness on Owner’s behalf.
In the event court action becomes necessary, Broker will notify Owner that legal
representation is needed and may suggest one or more local attorneys, but Owner
is responsible for interviewing and hiring legal representation.
3.
Owner responsibilities, duties and obligations.
A.
Owner shall:
(1)
Pay amounts due under this Agreement and reimburse Broker for all amounts
expended to preserve, protect, repair or maintain the Property managed by Broker
for Owner and/or expended on behalf of or for the benefit of Owner. Owner shall
replenish the “emergency fund” within five (5) calendar days after written request by
Broker or Broker may replenish this fund by deducting funds from any amounts paid
by tenant subsequent to Broker's written demand to Owner. If not paid by Owner
within five (5) calendar days of demand, amounts due and unpaid by Owner shall
accrue interest of ten percent per annum.
(2)
Reimburse Broker for any monies which the Broker expends in connection with, or
in defense of, any claim, civil or criminal action proceeding, charge or prosecution
made, instituted, or maintained against Broker, or Owner and Broker jointly or
severally.
(3)
Provide to Broker copies (in digital form, i.e., PDF files) of all relevant documents
pertaining to the Property, including but not limited to, covenants, conditions, and
restrictions (CC&Rs), homeowners association governing documents, service
contracts, existing leases/rental agreements, notices of pending special
assessments, association fees, claims or litigation, personal property lists and any
other agreements, documents, studies, or reports relating to the Property. Broker
shall provide Owner with a blank "Residential Lease Owner's Property Disclosure
Statement" (or equivalent form) and Owner shall complete, sign and return the form
to Broker. If Owner is unable to provide CC&Rs, Owner shall pay a fee of $25.00 to
Broker to obtain CC&Rs from the homeowners association or from the public records.
(4)
Broker shall provide Owner with a blank "Residential Lease Owner's Property
Disclosure Statement" (or equivalent form) and Owner shall complete, sign and return
the form to Broker.
(5)
Register, at Owner’s expense, the Property with the appropriate county assessor and,
if residing out-of-state, Owner shall designate a statutory agent who lives in Arizona
to accept legal service on behalf of Owner. Owner agrees to purchase any business
license and/or other license required by the applicable governmental authority and
pay any fees or taxes when due.
(6)
Fulfill all Owners' obligations to tenant pursuant to the lease/rental agreement and as
required by law.
Owner’s Initials: ______________________
Page 6
Property Management Agreement (continued)
Page 7 of 14
(a) Owner is financially responsible for all taxes related to the Property (i.e., rental
taxes, income taxes, etc.) and will reimburse Broker for any taxes paid by Broker
on Owner’s behalf.
(b) If the Property has a pool and/or spa, Owner shall: (1) Owner shall be financially
responsible for maintenance and repair of the pool and/or spa and the expense
thereof shall be included in the amount of rent charged to the tenant and (2)
Owner, at Owner's expense, shall comply with all applicable state, county, and
municipal swimming pool barrier laws or regulations prior to the Property being
occupied.
(c) Owner authorizes Broker to terminate a lease with a member of the military
without penalty if the tenant is deployed or receives order for a permanent
change of station or as otherwise required under the law.
(7)
Direct all inquiries from tenant and prospective tenants to Broker. Owner shall not
have direct contact with tenant, except as stated herein.
(8) Direct all inquires from other brokers and agents regarding the sale, rent or management
of the Property to Broker. All negotiations regarding the Property shall be conducted by
or through Broker.
(9) Provide Broker with at least ten (10) business days advance written notice to Broker if
Owner wishes to visit, inspect or show the Property, to allow Broker sufficient time to
provide tenant with any legally required notice(s). Owner shall not enter the Property
unless accompanied by the Broker unless the Property is vacant (i.e., no tenant residing
in the Property).
(10)
Carry, at Owner's expense, insurance on the Property managed by Broker for Owner,
including coverage for personal injury, property damage and public liability damage, and
to name Broker as an additional insured. Owner shall indemnify Broker for any
damages and expenses (see below) incurred by Broker as a result of Owner's failure
to comply herewith.
(11)
Promptly and diligently defend, at Owner’s expense, any claim, legal action or other
proceeding brought against Broker arising from the management of the Property,
except in the case of Broker’s willful misconduct or gross negligence.
(12)
Indemnify and hold Broker harmless from any and all costs, expenses, attorney's fees,
and damages from, or arising out of, the management of the Property managed by
Broker for Owner, or the performance, non-performance or exercise of any of the
duties, obligations, powers or authorities granted in this Agreement, except where the
damage is legally due to the gross negligence or intentional misconduct of Broker.
(13)
Indemnify Broker for any damages, losses and/or expenses (see list in Paragraph 5E,
below) incurred by Broker as a result of Owner's failure to comply with any provision of
this PMA.
Owner’s Initials: ______________________
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Property Management Agreement (continued)
Page 8 of 14
(14)
Upon termination or cancellation of this Agreement, Owner shall assume all contractual
obligations and payment of all outstanding amounts due pertaining to the Property or
arising from this Agreement.
B. Owner shall notify Broker, in writing, of:
(1) Change of address or phone number for Owner;
(2) Changes relating to the Property, including changes of any information on any Property
Addendum attached or subsequently attached hereto;
(3) Complaints received by Owner from any source regarding the Property or tenant
occupying the Property and/or requests for repairs received by Owner from any source;
(4) Any other information relevant to Broker’s obligations, Owner’s obligations, the Property,
or a tenant of the Property (including past tenants, current tenants and all tenant
applicants).
(5) Notice from any lienholder (i.e., lender) for the Property that foreclosure proceedings have
been started or are imminent.
(6) All current and subsequently discovered material (important) facts regarding the Property,
including all physical, environmental, and other conditions that affect the Property, and
any violations of applicable building, zoning, fire, health, and safety codes.
(7) All current and subsequently discovered material defects in/on the Property managed by
Broker for Owner, including, but not limited to: potential flooding; dangerous conditions
in, on or near the Property; lead-based paint or lead-based paint hazards; known radon
gas, mold and other environmental hazards and provide Broker with any reports relating
thereto.
(8) Any changes in the foregoing that arose or occurred after this Agreement has been
signed by Owner. Owner acknowledges that the failure to make legally required
disclosures may result in Owner’s civil liability to tenant and/or Broker.
C. Owner shall make material decisions regarding the Property, including:
(1) If indicated below (see Section 10, below), Owner shall make the final decision regarding:
(a) All tenants and tenant applications, and
(b) Whether to renew or not renew tenancy with an existing tenant (excluding month-tomonth tenancy).
(2) Whether to terminate a tenant’s tenancy because of a tenant breach.
(3) Whether to initiate legal action against a tenant, including (but not limited to) notices,
demand letters, lawsuits to evict a tenant and/or collect past due rent and/or property
damage.
Owner’s Initials: ______________________
Page 8
Property Management Agreement (continued)
Page 9 of 14
(4) Whether Owner will appoint a statutory agent for the Property and, if so, selection thereof.
(5) What rental agreement form Broker shall use for the Property.
(6) Owner shall decide whether or not to withhold all or any part of the tenant’s deposits and,
if so, when to complete and send the Disposition of Deposits form (or other form itemizing
any deductions from the tenant’s deposits). Broker may assist Owner with preparation
of a Disposition of Deposits form. Because Owner shall make the foregoing decisions and
notwithstanding that all or part of the tenant’s deposits may be held in Broker’s trust
account, Owner shall be deemed to have received all refundable deposits and shall bear
full responsibility for tenant’s deposits.
5.
Arizona law, validity of this Agreement and remedies for breach.
A.
Controlling law. This Agreement shall be governed by and construed according to
Arizona law and Arizona shall have exclusive jurisdiction over the parties and the subject
matter of this Agreement and all claims relating to or arising out of this Agreement.
B. Court modification. If any provision of this Agreement is found by a court of law to be
invalid, illegal, vague or unenforceable, then the parties agree that such provision shall
be modified or stricken to the minimum effect necessary to make this Agreement valid,
legal and enforceable and that all other provisions of this Agreement shall remain in full
force and effect.
C. Failure to initial pages. The failure to initial any page or any specific provision of this
Agreement shall not affect its validity or terms.
D. Mediation/arbitration of disputes; waiver of jury trial. If a dispute arises out of this
Agreement and/or between Broker and Owner, the parties hereby agree to mediate any
and all disputes. If mediation is unsuccessful, the parties hereby agree to submit to
binding arbitration with the Southeast Valley Association of Realtors®. The fees paid to
any mediator or arbitrator shall be divided equally between the parties. To the extent
litigation if filed or is otherwise available, then to minimize delay and reduce the cost of
litigation, Owner and Broker hereby agree to waive their right to a trial by jury; the parties
hereto understand that they are entitled to a jury trial for claims arising out of this PMA,
but knowingly and voluntarily waive this right.
E.
Attorney's fees and court costs. Neither party hereto, whether or not they are declared
a "prevailing party," shall be entitled to an award of attorney's fees, court costs, witness
fees, expert witness fees, litigation expenses, travel expenses, and/or expenses of any
kind for any dispute arising out of this Agreement, whether for tort or for breach of
contract or any other claim or cause of action, including expenses for mediation,
arbitration, litigation, appeal and/or collection, except that a party who appears in litigation
as a defendant and successfully defends litigation (i.e., no monetary award granted to the
plaintiff) brought by the other party shall be entitled to attorney’s fees, court costs, and all
other fees and expenses listed above.
F.
Original PMA not required. Broker and Owner agree that: (1) a fully executed fax, copy,
scanned image or other digitally stored and/or reproduced copy of this PMA shall be
treated and enforceable as the original, (2) it shall be admissible in all legal and/or
Owner’s Initials: ______________________
Page 9
Property Management Agreement (continued)
Page 10 of 14
administrative proceedings and (3) the original signed documents may be destroyed
without impairing the validity hereof.
G. Release of Claims. To the fullest extent permitted under Arizona law, Owner hereby
holds harmless and releases Broker from any/all claims, liability, damages, and/or legal
action arising from the management of Owner’s Property and all leases between Owner
and tenants, including, but not limited to liability for injury or death suffered by any person
(i.e., tenant; occupants; guests; agents for Owner, Broker or tenants; repairmen; thirdparties; trespassers) on the Property, except for liability directly caused by the gross
negligence of Broker.
6.
Conflict of Interest. Owner understands and agrees that Broker may now, or in the future,
represent other owners of similar properties, which may constitute a real or perceived conflict
of interest. Owner agrees that Broker may represent other owners with rental property located
near Owner’s Property and that, to the extent any conflict of interest exists, Owner waives and
expressly consents to the conflict of interest.
7.
Fair housing. Owner understands and agrees that state and federal law prohibits
discrimination and that Broker cannot unlawfully discriminate against any tenant.
8.
Notices.
A.
Informal Notices. Owner and Broker will typically communicate informally regarding day-today matters, to update information and for reports. Informal notices from Owner to Broker
and from Broker to Owner may be sent via regular mail, fax and e-mail.
B. Formal Notices. All legal notices (i.e., notice of legal action, notice of complaint, etc.) from
Owner to Broker and from Broker to Owner shall be sent to the addresses stated herein and
shall be deemed received five (5) calendar days after being sent via certified mail, return
receipt requested. Notwithstanding, notice shall be effective upon actual receipt, without
regard to method of delivery.
9.
Entire Agreement. This document constitutes the entire agreement between the parties
regarding the management of Owner’s Property by Broker (not including other, separate
written agreements, which may have been executed by the parties for other purposes or for
purposes stated herein). This Agreement may be modified only in writing, which may be
accomplished via Formal Notice or Informal Notice, provided the same is signed by both
parties.
10. Fee Table. The Fee Table (below), and the information thereon, is incorporated herein by this
reference. Owner agrees to pay without formal demand the fees stated thereon if/when Owner
receives the services stated. Note: Commissions, fees, and/or rates for selling, leasing, or
managing real property are agreed upon by Owner and Broker and are not set by any board
of association of Realtors®, any multiple listing service, or any other group.
Owner’s Initials: ______________________
Page 10
Property Management Agreement (continued)
Page 11 of 14
FEE TABLE
Fee
Services
Set-up Fee - $0 for 1-2 properties, $100.00 ea
for 3-5 properties or $50.00 ea. for 6 or more
properties under management.
Owners Reserve - $ 300.0 0 ea. for 1-2 properties,
$100.00 ea. for 3-5 properties, $ 50.00 ea. for 6 or
more properties under management (max $2000).
One-tim e fee for each newly m anaged
property.
O wners reserve is required to cover maintenance
issues that may arise while marketing or manageing
owners property.
Property Management Fee
• 8 % of monthly rent when occupied by
Manage Property.
Includes collecting and
forwarding rent, handling tenant calls and
com plaints, sending notices to tenant, and
scheduling and supervising repairmen, regular
Drive-by and scheduled inspections.
Rental Marketing Fee - 5%
with MLS and/or outside broker
Rent Property to a new tenant. Includes advertising
Property, listing property with Arizona Regional
Multiple Listing Service {if desired by Owner},
receiving tenant applications, reviewing tenant
applications and m aking recom m endation to Owner,
and signing rental agreem ent with tenant on behalf
of Owner. Listing of Property with MLS, use of
realty sign, lockbox, etc.; separate listing agreem ent
m ay be used.
tenant ($75.00/mo minimum).
• 6 % of monthly rent when occupied by tenant
($65.00/mo. minimum) with 3 or more properties
under management.
• $ 00.00 per month when vacant.
(Minimum marketing fee $500)
Lease Extension and/or Renegotiate Fee - $150.00
Renegotiation of one or m ore term s in the rental
agreem ent with an existing tenant. Also includes
extension of rental agreem ent with an existing
tenant along with changing one or m ore additional
term s of the existing rental agreem ent.
Notice Fee - $25.00
Preparation and service of a notice to tenant (i.e., 5Day Notice to Pay or Q uit, 10-Day Notice for
Material Noncom pliance, etc.)
Hourly Fee - $100.00 per hour
Any work perform ed for Owner that is not included
in this Agreem ent (i.e., supervising renovations or
capital im provem ents, m eeting contractors, etc.) or
to appear in court on behalf of Owner.
Statutory Agent Services Fee - FREE
(for out-of- state landlords)
Serve as the in-state statutory agent for Owner,
which is required by A.R.S. § 33-1902.
Owner’s Initials: ______________________
Page 11
Property Management Agreement (continued)
Page 12 of 14
FREE SERVICES
! Act as the in-state statutory agent for residential
rental property for out-of-state Owners.
! Appear in court as witness for Owner.
! Forward m ail received by Broker for Owner.
! Assistance with refinancing.
Termination Fee
There is no term ination fee and Owner m ay
term inate for any reason or no reason, but Owner
m ust pay at the tim e of cancellation the
Managem ent Fee (as calculated herein) through
and including the term ination date of any executory
lease agreem ent (i.e., lease that is still in effect at
the tim e of term ination) for the Property, whether or
not said lease(s) is subsequently term inated prior to
the lease term ination date. Broker m ay term inate
and forfeit rem aining m anagem ent fees, but shall
not forfeit past due and unpaid fees.
Sale Fee - 5% of sales price
Sale of Property to tenant or anyone else during the
term of this Agreem ent or within 90 days after
term ination, if term inated by Owner.
Exam ple: Property sold to buyer for $100,000. Sale
Fee is $5,000 (5% of $100,000).
Page 12
Property Management Agreement (continued)
Page 13 of 14
11. Initial Owner Decisions and disclosures: I (Owner) make the following initial decisions and
disclose the following information:
SECURITY DEPOSIT: Broker shall keep all refundable tenant deposits in Broker’s trust account.
RENT PAYMENT:
Tenant shall pay rent to Broker.
OTHER PROPERTY
FOR SALE
I have real property in Arizona listed for sale or rent with another broker.
G Yes G No
OTHER PROPERTY
MANAGED
I have other rental property in Arizona managed by another broker.
G Yes G No
Special Terms:
$0 per month while vacant.
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
This Agreement and any addenda and attachments (listed below) shall constitute the entire
Property Management Agreement between Owner and Broker, shall supersede any other written
or oral agreements, and can be modified only by a subsequent written agreement signed by Owner
and Broker.
By signing below, Owner(s) represents to Broker that he/she/they have read and understand all
provisions of this Agreement and agree to be bound hereby. The undersigned represents to Broker
that he/she/they are the true owner(s) of the Property and has/have authority to enter into this
Agreement. In addition, by signing below, Owner(s) acknowledges receipt of the following:
U
G Signed copy of this Agreement
U
G Special Power of Attorney form (to be signed, notarized and returned by Owner(s)).
U
G Addendum 1 - Listing the FIRST Property to be managed by Broker
G Addendum ___ through ____ - Listing additional Properties to be managed by Broker
G Listing Agreement - Listing one or more Properties for sale and/or rent
G Other _______________________________________________________________
Agent:
____________________________________________
Renee Anderson
(date)
Broker:
____________________________________________
Kelly Larsen, Broker
(date)
ProManage Realty, LLC
Owner’s Initials: ______________________
Page 13
Property Management Agreement (continued)
Page 14 of 14
Owner 1:
____________________________________________
(Signature)
(date)
____________________________________________
(Print name)
____________________________________________
(Address)
____________________________________________
(Telephone number)
____________________________________________
(Fax number)
____________________________________________
(E-mail address)
____________________________________________
(Social Security Number or Federal ID Number)
Owner 2:
____________________________________________
(Signature)
(date)
____________________________________________
(Print name)
____________________________________________
(Address)
G Same as Owner______
____________________________________________
(Telephone number)
G Same as Owner______
____________________________________________
(Fax number)
G Same as Owner______
____________________________________________
(E-mail address)
G Same as Owner______
____________________________________________
(Social Security Number or Federal ID Number)
Page 14
Property Management Agreement (continued)
Page 15 of 14
Owner 3:
____________________________________________
(Signature)
(date)
____________________________________________
(Print name)
____________________________________________
(Address)
G Same as Owner______
____________________________________________
(Telephone number)
G Same as Owner______
____________________________________________
(Fax number)
G Same as Owner______
____________________________________________
(E-mail address)
G Same as Owner______
____________________________________________
(Social Security Number or Federal ID Number)
Owner 4:
____________________________________________
(Signature)
(date)
____________________________________________
(Print name)
____________________________________________
(Address)
G Same as Owner______
____________________________________________
(Telephone number)
G Same as Owner______
____________________________________________
(Fax number)
G Same as Owner______
____________________________________________
(E-mail address)
G Same as Owner______
____________________________________________
(Social Security Number or Federal ID Number)
Property Management Agreement, v.1
Page 15
ADDENDUM 1 - First Managed Property
This Addendum was completed on the same date as the PMA. This Addendum is made a part
of the Property Management Agreement (PMA) between Broker, as property manager, and Owner.
Owner makes the following representations, provides the following property information, and
requests the following services:
PROPERTY 1
Address of Property to be managed:
Rent to be charged:
Not less than $
Final authority to approve or reject
tenant application
G Broker G Owner
Final authority to renew or not renew
lease for an existing tenant
G Broker G Owner
Owner authorizes sign on Property:
G No G Yes
(sign m ay suggest Property is vacant)
Owner authorizes lockbox:
G No G Yes
Owner authorizes pets:
G No G Yes G Yes, with limitations
This Property has a pool or spa:
G No G Yes (pool barrier? G No G Yes)
- Pool Notice m ust be given to tenant
- Pool barrier m ust be installed before occupied
Owner has a home warranty policy:
G No G Yes If yes, Owner must provide Broker with
a copy of the policy or the name of the warranty
company, phone number, policy number, etc. If Owner
wants a home warranty policy, Broker may refer Owner
to one or more companies, but Owner must apply for,
pay for, and renew (including keeping track of the
renewal date) the policy.
Property in HOA:
G No G Yes. If yes, then CC&R's must be given to
Broker and Owner must list Broker with HOA
Owner requires the following services
from Broker for this Property.
G
The Property is NOT currently rented; rental
services are necessary. Owner wishes to have
Broker list the Property “for rent.” (A separate real
estate listing agreement {to sell/rent the Property}
must be signed).
G
The Property is currently rented; rental services
are not presently necessary. Owner will provide
Broker with a copy of the current tenant’s rental
application (if available), a copy of the current
lease, a copy of prior leases with this tenant, a
copy of the move-in inspection, copies of letters
to/from the current tenant, and copies of other
documents Owner believes relevant.
Owner’s Initials: ______________________
Page 1
ADDENDUM 1 - First Managed Property (continued)
Page 2
RENT/SALE/OPTION:
G
G
G
STATUTORY AGENT:
(for out-of-state Owners)
Title to this Property is held by
(individual, corporation, etc.):
I wish to offer the Property for rent (ONLY).
I wish to offer the Property for sale or rent. (A
separate real estate listing agreement {to sell/rent
the Property} may be signed).
I wish to offer the Property for rent/lease with an
option for the tenant to purchase.
G
G
I wish to have Broker act as my statutory agent
I have appointed, or wish to appoint, someone
other than Broker as my statutory agent for the
Property; I will provide Broker with this information.
G
Individual(s) G Corporation G LLC G Trust
G Other
Exact name on title:
Any loans on this property in default:
G No G Yes
Owner of the Property or principal of
the Owner (i.e., an officer of a
corporation or a member/-manager in
an LLC) holds a current Arizona real
estate salesperson or broker license?
G No G Yes (listed them below)
Are there any other facts about the
Property that Broker should know?
(check applicable boxes and list all
others)
G Built before 1978? - Lead Paint Addendum required
G Mold or any environmental issues?
G Termites
G Known pests:
G ants G roaches G spiders G scorpions G bedbugs
G Other:
Are there any other facts about the
area/neighborhood that the Broker
should know? (If so, please list) (For
example: dispute with neighbor;
previous tenant complained about
neighbor’s barking dog or free
roaming cat; illegal drugs reportedly
being sold from house in the
neighborhood; loud noise or odors
from nearby property; etc.)
G No G Yes (list here or on separate sheet)
The city or town where this rental
property is located, prohibits a tenant
from paying these utilities/services.
Owner will pay these bills, but Broker
must then bill tenant for these
amounts as “additional rent.”
G Electricity
G Gas
G Water
G Cable
G Other ___________________
Owner’s Initials: ______________________
Page 2
ADDENDUM 1 - First Managed Property (continued)
Page 3
Owner 1: ___________________________________________________________________
(Signature)
(date)
Owner 2: ___________________________________________________________________
(Signature)
(date)
Owner 3: ___________________________________________________________________
(Signature)
(date)
Owner 4: ___________________________________________________________________
(Signature)
(date)
Page 3
ADDENDUM
- List of Managed Property
(each rental property must have a separate Addendum)
G
G
This Addendum was completed on the same date as the PMA.
This Addendum was completed on a date after the PMA and is intended to supplement and
become a part of the PMA. This Addendum is made a part of the Property Management
Agreement (PMA), dated _________________, between Broker and Owner.
At the time of this Addendum, Owner has a total of
employed Broker via the PMA to manage.
rental properties that Owner has
Owner makes the following representations, provides the following property information, and
requests the following services:
REPRESENTATIONS, PROPERTY INFORMATION and SERVICES REQUESTED
PROPERTY 1
Address of Property to be managed:
Rent to be charged:
Not less than $
Final authority to approve or reject
tenant application
G Broker G Owner
Final authority to renew or not renew
lease for an existing tenant
G Broker G Owner
Owner authorizes sign on Property:
G No G Yes
(sign m ay suggest Property is vacant)
Owner authorizes lockbox:
G No G Yes
Owner authorizes pets:
G No G Yes G Yes, with limitations
This Property has a pool or spa:
G No G Yes (pool barrier? G No G Yes)
- Pool Notice m ust be given to tenant
- Pool barrier m ust be installed before occupied
Owner has a home warranty policy:
G No G Yes If yes, Owner must provide Broker with
a copy of the policy or the name of the warranty
company, phone number, policy number, etc. If Owner
wants a home warranty policy, Broker may refer Owner
to one or more companies, but Owner must apply for,
pay for, and renew (including keeping track of the
renewal date) the policy.
Property in HOA:
G No G Yes. If yes, then CC&R's must be given to
Broker and Owner must list Broker with HOA
Owner’s Initials: ______________________
Page 1
Owner requires the following services
from Broker for this Property.
RENT/SALE/OPTION:
G
The Property is NOT currently rented; rental
services are necessary. Owner wishes to have
Broker list the Property “for rent.” (A separate real
estate listing agreement {to sell/rent the Property}
must be signed).
G
The Property is currently rented; rental services
are not presently necessary. Owner will provide
Broker with a copy of the current tenant’s rental
application (if available), a copy of the current
lease, a copy of prior leases with this tenant, a
copy of the move-in inspection, copies of letters
to/from the current tenant, and copies of other
documents Owner believes relevant.
G
G
I wish to offer the Property for rent (ONLY).
I wish to offer the Property for sale or rent. (A
separate real estate listing agreement {to sell/rent
the Property} may be signed).
I wish to offer the Property for rent/lease with an
option for the tenant to purchase.
G
STATUTORY AGENT:
(for out-of-state Owners)
Title to this Property is held by
(individual, corporation, etc.):
G
G
I wish to have Broker act as my statutory agent
I have appointed, or wish to appoint, someone
other than Broker as my statutory agent for the
Property; I will provide Broker with this information.
G
Individual(s) G Corporation G LLC G Trust
G Other
Exact name on title:
Any loans on this property in default:
G No G Yes
Owner of the Property or principal of
the Owner (i.e., an officer of a
corporation or a member/-manager in
an LLC) holds a current Arizona real
estate salesperson or broker license?
G No G Yes (listed them below)
Owner’s Initials: ______________________
Page 2
Are there any other facts about the
Property that Broker should know?
(check applicable boxes and list all
others)
G Built before 1978? - Lead Paint Addendum required
G Mold or any environmental issues?
G Termites
G Known pests:
G ants G roaches G spiders G scorpions G bedbugs
G Other:
Are there any other facts about the
area/neighborhood that the Broker
should know? (If so, please list) (For
example: dispute with neighbor;
previous tenant complained about
neighbor’s barking dog or free
roaming cat; illegal drugs reportedly
being sold from house in the
neighborhood; loud noise or odors
from nearby property; etc.)
G No G Yes (list here or on separate sheet)
The city or town where this rental
property is located, prohibits a tenant
from paying these utilities/services.
Owner will pay these bills, but Broker
must then bill tenant for these
amounts as “additional rent.”
G Electricity
G Gas
G Water
G Cable
G Other ___________________
Owner 1: ___________________________________________________________________
(Signature)
(date)
Owner 2: ___________________________________________________________________
(Signature)
(date)
Owner 3: ___________________________________________________________________
(Signature)
(date)
Owner 4: ___________________________________________________________________
(Signature)
(date)
Page 3