This agreement ( Agreement ) made by and between (owner name) hereinafter called the OWNER, and RMG REALTY, INC., hereinafter called the AGENT.

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1 This agreement ( Agreement ) made by and between (owner name) hereinafter called the OWNER, and RMG REALTY, INC., hereinafter called the AGENT. FIRST: The owner hereby employs the agent to rent, manage, and direct the operation of the owner s property located at (full property address), known as (complex name) in the city of (city) described as a residential type rental with units (collectively the Property ). The term of this Agreement shall commence on and shall end on (the Term ). 1. During the first six (6) months of the Term, this Agreement may be canceled as follows: a) By either party upon the occurrence of a for cause event (defined below) upon payment by the owner to agent for all costs incurred by agent through the date of termination. b) By mutual written agreement of the parties. c) By the owner unilaterally, without cause, after paying all costs incurred by the agent through the date of termination, plus payment to agent of an additional management fee of 50% of one month s rent for each month less than six (6) months this Agreement will be in effect. 2. This Agreement will renew automatically unless either party cancels the Agreement with a thirty (30) day prior written notice to the other party. During such thirty (30) day notice period, Owner shall pay Agent all amounts due pursuant to the terms of this Agreement. 3. Notice to terminate must be in writing and delivered in person or by certified mail, return receipt requested. For purposes of this agreement, a for cause event shall mean the occurrence of any of the following events: a) Any breach of this Agreement by a party which has a detrimental economic effect upon the other party. b) A party is convicted of a crime (other than a misdemeanor traffic violation.) c) Any conduct by a party which seriously demeans or threatens to demean the reputation of the other party. d) Any act constituting noncompliance by a party of its contractual obligations under the Agreement.

2 A party may terminate this Agreement upon the occurrence of a for cause event provided that at the time of such termination such party (i) has not also committed a for cause event and (ii) is not otherwise in breach of this Agreement. Unless this Agreement is terminated as provided herein, at the conclusion of the Term this Agreement shall automatically renew for the same period of time and on the same terms and conditions. SECOND: The agent accepts said employment and agrees: 1. To use commercially reasonable efforts to serve present tenants and to obtain suitable new tenants for vacancies in the Property, to furnish all services required therefore and for the management of the Property and to supervise all labor required for their operation and maintenance. 2. To report to the owner promptly any condition at, on or about the premises which, in the opinion of the agent, requires the attention of the owner. 3. To keep full, detailed and adequate accounts and records with reference to its receipts and disbursements from the Property. 4. Not to commingle any of the owner s money with agent s own funds but to deposit same in an Owner s Trust Account with a federally insured bank institution. Between the parties hereto, all such monies shall be deemed to be trust funds held in trust for the owner, to be disbursed as hereinafter set forth. 5. Not to assign this Agreement to another individual or licensed entity without the express written consent of the property owner. 6. To deliver to the owner, on or before the 15 th day of each month hereafter, a detailed statement of agent s receipts, expenses, and disbursements on behalf of owner during the preceding month. All said expenses shall be charged to the owner. 7. The agent operating as RMG Realty, Inc., dba High Intensity Property Management will not act as the listing agency should the owner decide to list the property for sale prior to termination of this Agreement. THIRD: The owner hereby gives to the agent the following authority and powers: 1. To take sole, entire and exclusive charge of the Property.

3 2. To offer-said Property, or any part thereof for rent; to display For Rent signs thereon, if desired by the owner, and to rent the same. To screen tenants, use commercially reasonable efforts in selection of the prospective tenants and to abide by all Fair Housing Laws. To charge prospective tenants for their own credit report, using the collected fees to run credit reports and investigate all current and previous landlord references. To negotiate rental agreements on the Property or any part thereof, together with renewal of the same, for terms agreeable to the owner. 3. To collect all rents due or to become due from said Property; to give receipts therefore; to deposit same in the Owner s Trust Account. It is expressly agreed that the agent does not guarantee the collection of rents. 4. To act as the owner s lawful attorney-in-fact, to sign and serve such notices to delinquent tenants as the agent may deem necessary or proper and in the owner s name: a) To sue for and to recover any of said rents which are past due; b) To attach, garnish, and levy upon the property of any delinquent tenant and recover possession of any part of the Property there from; c) To settle, compromise, and adjust such actions, suits or proceedings and the matters involved therein. 5. To make or cause to be made all repairs to the Property using licensed, bonded and insured contractors. To purchase all materials, furniture, fixtures, and equipment deemed to be necessary by the agent for the operation of the Property, provided always that the agent shall obtain the owner s prior approval on all expenditures in excess of $ for any one item except monthly or recurring operation charges, and/or emergency repairs if the agent deems repairs are necessary to protect the Property from damage and/or to abide by the Arizona Residential Landlord/Tenant Act (A.R.S et seq.). 6. To pay out of the owner s funds held in the Owner s Trust Account, all expenses connected with management, operation and maintenance of the Property, as authorized therein, including the agent s fees. 7. To take whatever action may be deemed necessary by the agent to collect NSF checks that may occur from time to time; and collect a handling charge at least equal to the bank charge. All charges collected for NSF items will be retained by agent. 8. To levy late charges for past due rents in the amount of $50.00, for any rent paid after the 5 th of the month in which it is due. Late charges are to be split with agent and deposited to the Owner s Trust Account. 9. To pay out of the Owner s Trust Account the following items in addition to the expenses of normal operation: cleaning, painting, advertising, long distance phone

4 charges, and any other charges against the owner s property; the expenses to be equal to the amount charged to the agent. 10. To collect a non-refundable processing fee of $ 40 from each tenant as part of move in, to be paid to RMG Realty, Inc to cover the cost of the application processing. 11. To collect a Security Deposit in the amount agreed between owner and agent and to hold said Security Deposit in compliance with applicable law. Within fourteen (14) days after the tenant vacates the premises, the agent will, in writing, notify the tenant regarding the status of the Security Deposit and provide the amount due to tenant, if any. The Security Deposit will be refunded or retained depending on the condition of the premises compared to move-in condition. If all or part of the Security Deposit is retained, the monies will be transferred out of the Security Deposit Trust Account and deposited into the Owner s Trust Account, and funds disbursed according to the owner s direction. Interest will be collected from the Security Deposit Account and will be retained by agent as an offset to administrative costs. 12. To collect from the owner at signing of contract a one-time property set-up fee of $. A constant balance of at least $ is to be held in the Owner s Trust Account as an operating reserve for emergencies. FOURTH: The owner agrees: 1. To pay to the agent on the first day of each month for management and operation % of the rent, as well as any other income to the owner collected the previous month. 2. To pay a fee of $ for every new tenant secured by agent. 3. That all interest earned on trust account monies shall be allocated and disbursed to agent. 4. To indemnify, defend and hold the agent harmless from all claims, actions, and judgments for damages on account of injuries to persons or employee or other person whomsoever in, or about the Property and to defend against the same; to carry and keep in effect at all times, at owner s expense, public liability insurance fully adequate to protect the interest of the parties hereto: and to cause all policies providing such insurance to be so written as to protect the agent in the manner and to the same extent as they protect the owner. The owner shall and does assume responsibility for the adequate, kinds and amounts of insurance. 5. Upon termination of this Agreement, agent shall furnish owner with a list of parties with whom agent is negotiating a lease, lease renewal, or rental agreement. The

5 owner agrees to recognize the agent as the broker in any negations then pending for the leasing, including lease renewal, or rental of the Property, or any part thereof, and in the event of the subsequent consummation of any such lease, lease renewal or rental, to pay the agent s commission thereon at the rate set forth above. When owner terminates account for services and resumes same service at a later date, owner to pay $0 fee for reactivation. 6. In case this Agreement is referred to an attorney for collection or suit or action in instituted by either party to enforce any provisions of this Agreement, the prevailing party shall be entitled to, in addition to any award of costs or disbursements provided by statute, such additional sums as the court may adjudge reasonable as attorney s fees and costs to be allowed in such suit or action, including sums allowed as reasonable attorney s fees and costs on any appeal of such suit or action. 7. If there is an unpaid balance after a thirty (30) day period by owner, the unpaid balance will accrue interest at a rate of 1.5% per month 18% annually. ADDITIONAL CONDITIONS: It is the owner s responsibility to give all information (including Home Warranty Information) to RMG Realty, Inc upon management. IN WITNESS THEREOF, the owner and agent have executed this Agreement in duplicate the day and year first herein written. RMG Realty, Inc. Property Owner By: Robert G. Davis, Designated Broker

6 Property Owner Date Owner Contact Information: Name: Address: Cell: Home: Work: Fax: ** Please also complete the attached Form W-9 and return along with the management agreement. This is required to prepare 1099-MISC forms for tax purposes.

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