PROPERTY MANAGEMENT AGREEMENT (Long Term)

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1 PROPERTY MANAGEMENT AGREEMENT (Long Term) THIS PROPERTY MANAGEMENT AGREEMENT is entered into by and between Multi-Choice Management, LLC (Florida Corporations Division Document # L ) ( Property Manager ) and [insert owner(s) name(s)] (individually and/or collectively Owner ). The Parties hereby mutually covenant and agree as follows: 1. Property. Landlord hereby agrees to lease to third-party tenant(s) certain residential real property (street address: [insert street address]; legal description: [insert legal description]; parcel identification number: [insert parcel identification number]) (the "Property") owned by Owner. 2. Agent Appointment. Owner appoints Property Manager as Owner's exclusive agent for the leasing, management, and maintenance of the Property. Property Manager shall, at all times during this agreement, maintain such licenses and permits as are required for any of the various services to be performed by Property Manager on behalf of Owner. 3. Leasing. Property Manager shall make reasonable efforts to lease the Property, and shall be responsible for all negotiations with a prospective tenant. Property Manager shall also have the exclusive right to execute and enter into, on behalf of Owner, leases for the Property. Property Manager shall not, without prior written consent of Owner, enter into any lease for a term of less than seven months or more than twelve months. a. Minimum Rental Terms. Property Manager shall not lease the Property to tenant(s) unless such lease agreement meets the following minimum terms. 1. Monthly Rental Amount. The minimum monthly rental amount for the property acceptable to Owner shall be $[insert amount]. 2. Security Deposit. The minimum monthly security deposit which shall be collected from tenant(s) shall be equal to one month's rent, unless Owner agrees to a lesser Page 1 of 6

2 amount in writing. 3. Utilities. Tenant(s) shall pay all costs (including, without limitation, activation fees, connection fees, termination fees, and/or security deposits) for all utilities (including, without limitation, electricity, telephone, internet, and/or cable/satellite television) furnished to the Property. 4. Pets. Pets [insert: will / will not] be allowed at the Property. A [insert: refundable / non-refundable] pet deposit in the amount of $[insert amount] per pet shall be collected for any pet kept at the Property. In no event shall any tenant be permitted to keep any pet deemed dangerous by Property Manager. 4. Rent Collection. Property Manager shall use best efforts to promptly collect all rents and other income from the Property as such amounts come due. Owner understands and agrees that Property Manager does not guarantee the collection of rents or other income. Property Manager, in the name of Owner, shall execute and serve such notices and demands on delinquent tenants as Property Manager may deem necessary or proper. 5. Deposit Monies. Property Manager shall collect a security deposit in connection with rental agreements for the Property. Property Manager shall deposit such security in a non-interest bearing escrow account. Deposit monies shall be held by Property Manager in accordance with the Florida Landlord-Tenant Act (Chapter 83, Florida Statutes). At the expiration or termination of any rental agreement for the Property, Property Manager may return the security deposit to tenant(s) or, on behalf of Owner, give tenant(s) written notice of intention to impose a claim on the security deposit and resolve the claim against the security deposit on behalf of Owner. 6. Sales & Use Tax. Owner shall be responsible for remitting all sales and use tax, and other state or local government taxes, due on any rental of the Property directly to the taxing authority. 7. Property Manager Compensation. Property Manager shall be compensated for its efforts as follows. a. Leasing Fee. Property Manager shall retain an amount equal to one month's rental for the Property as a leasing fee. The leasing fee shall be deducted from the rent collected for the Property. In the event that a tenant terminates its rental agreement for the Property within the first six (6) months of the rental agreement, Property Manager shall return one-half of the leasing fee to Owner. b. Management Fee. Owner shall pay Property Manager a management fee equal to Page 2 of 6

3 six percent (6%) of the gross rental income for the Property. The management fee due to Property Manager shall be deducted from the rents collected on the rental of the Property. c. Lease Renewal Fee. Owner shall pay Property Manager a lease renewal fee of $150 for each rental agreement that is renewed with an existing tenant at the Property. Property Manager shall deduct the lease renewal fee from the first rental payment collected from tenant during the renewal or successive rental term. d. Expenditure Fee. Property Manager shall deduct the amounts expended for the maintenance, repair, and operation of the Property from the rents collected on the rental of the Property. In the event that the rent collected on the rental of the Property is not sufficient to pay the amounts expended for the maintenance, repair, and operation of the Property, Property Manager shall invoice Owner for such amounts; and Owner shall remit full payment to Property Manager immediately upon receipt of any such invoice. 8. Eviction / Actions for Possession of the Property. Property Manager may, in the name of Owner, institute, settle, or compromise any legal action and make use of such legal process against delinquent tenants or the property of delinquent tenants as may be necessary to enforce the collection of rent or other sums due from any tenants, to enforce the terms and conditions of any provision of any rental agreement for the Property, and/or to recover possession of the Property. No other form of legal action will be instituted and no settlement, compromise, or adjustment of any other matters relating to the Property shall be made without the prior written consent of Owner. Property Manager may retain counsel to bring and prosecute any action for eviction, enforcement of a rental agreement, or possession of the Property. Owner shall be responsible for the payment of all attorney fees and costs of any such action, even though Property Manger shall retain the attorney. Such fees and costs may be paid by Property Manager from any amounts collected or held on Owner's behalf. Property Manager may require Owner to advance additional sums for the payment of attorney fees and costs to bring and prosecute actions against any tenant. 9. Maintenance, Repairs, & Operations. Property Manager shall use its best efforts to insure that the Property is maintained in an attractive condition and good state of repair. In this regard, Property Manager shall purchase necessary supplies, make contracts for, or otherwise furnish cleaning services, pest control services, and/or any other utilities or services required for the operation of the Property. Property Manager shall make or cause to be made necessary repairs and alterations to the Property. Expenditures for repairs or alterations to the Property in excess of $250 shall not be made without Owner's prior written consent, except in the case of emergency, or if Property Manager reasonably determines that such Page 3 of 6

4 expenditures are necessary to protect the Property from damage, to prevent injury to persons or property, or to maintain basic utility services to tenant. Emergency situations include (without limitation) fire, flood, water intrusion, wood-destroying pests, nuisance animals, mold presence, and plumbing, electrical or HVAC failures. 10. Insurance. During the term of this agreement, Owner shall maintain property / hazard insurance on the Property in an amount not less than the full replacement cost of the structure and other improvements at the Property. Owner shall also maintain public liability property insurance in an amount not less than $300,000 for a single limit for bodily injury, death, and property damage. Owner shall name Property Manager as an additional insured on all insurance policies relating to the Property and shall provide Property Manager with a certificate of insurance evidencing the coverage required by this agreement. 11. Foreclosure / Actions Against Property. In the event a foreclosure proceeding or other action is filed against the Property, Property Manager shall be entitled to immediately terminate this agreement and demand that Owner immediately pay Property Manager the full amount due to Property Manager under the terms of this agreement as if this agreement were fully performed. 12. Property Manager Rules & Regulations. From time to time, Property Manager may promulgate and/or amend written Rules & Regulations governing tenant rights and duties with respect to the Property. 13. Term. The term of this agreement shall begin on the effective date set forth below and shall continue for a period of twelve months or until the expiration of any rental agreement for the Property procured by Property Manager, whichever time is longer. This agreement shall be automatically renewed for successive terms, unless and until terminated by Owner or Property Manager in writing at least thirty days prior to the expiration of the original term or successive term(s) of this agreement. 14. Termination. This agreement may be terminated by Property Manager or Owner, with or without cause, on thirty days prior written notice. At any time Owner delivers notice of termination to Property Manager while the Property is subject to a rental agreement procured by Property Manager, Owner's right to terminate shall be conditioned upon payment to Property Manager of the full amount of compensation due to Property Manager under this agreement. The termination provisions set forth in this paragraph apply to the voluntary sale of the Property. 15. Indemnity & Defense. Owner shall fully defend, indemnify, and hold Property Manager harmless from and against any and all claims, fines, liens, suits, judgments, losses, expenses, and/or other liability (including, without limitation, attorney fees and costs), whether for personal injury, property damage, Page 4 of 6

5 labor, materials, or otherwise, arising out of and/or in any manner connected with any act or omission on or in connection with the Property. 16. Books & Records. Property Manager shall keep accounting books and records that reflect all revenues received and all expenditures made in connection with the leasing, management and operation of the Property. The books and records shall be maintained in accordance with generally accepted accounting principles at Property Manager's principal place of business. Property Manager shall, during regular business hours, make the books and records available to Owner for examination and/or audit by appointment on no less than 15 days' notice. All such examination or audit shall be at Owner s sole expense. Property Manager shall furnish Owner, no later than the end of the next succeeding month, a detailed statement of all revenues and expenditures for each preceding month, a copy of all invoices, statements, purchase orders, and billings received and paid during such preceding month, as well as such other information relating to the leasing, operation or management of the Property that, in the opinion of Property Manager, requires the attention of Owner. Within sixty days following expiration or termination of this agreement, Property Manager shall deliver to Owner a copy of all books and records pertaining to the Property together with any remaining security deposit held by Property Manager which is not disputed by a tenant. 17. Assignment & Delegation. Property Manager may assign and/or delegate its rights or duties under to this agreement without obtaining Owner s prior, written consent. 18. Amendment and/or Modification. This agreement may not be amended or modified, unless otherwise agreed by both parties in writing. 19. Notices. Property Manager shall serve all formal notices to Owner at [insert address & address]. Tenant shall serve all formal notices to Property Manager at Sunrise Lakes Boulevard, Suite 4, Clermont, Florida, (or at such other address as Property Owner may designate from time to time). At all times during the term of this agreement, Owner shall keep Property Manager updated on Owner s current phone number (mobile or home) and address. 20. Parol Evidence, Merger, and/or Full Integration. This document comprises the entire and fully integrated agreement (and supercede any and all prior negotiations, representations, and/or agreements, written or oral) by and between the parties for the management of the Property. 21. Additional Terms: [insert any]. WITNESS THE EXECUTION HEREOF by the parties on the date(s) set forth below (the latest of which shall be the effective date of this agreement). Property Manager, Page 5 of 6

6 Dated: By: [insert] Multi-Choice Management, LLC Owner, Dated: By: [insert owner name] [insert owner address] [insert owner mobile phone] Owner, Dated: By: [insert owner name] [insert owner address] [insert owner mobile phone] Page 6 of 6

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