Management Agreement
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1 Management Agreement
2 Section One: Identification 1. Owner: The Owner ( You ) refers to the undersigned owner or authorized agent of the owner of the real property at the address(es) listed below. Property Address(es): 2. Company: The Company ( We or Us ) refers to Un Incorporated DBA Castle, with the mailing address listed below. (DBA stands for doing business as Castle is our trade name. When we bill you or transfer you money, it will be from Castle.) Mailing Address: Castle 2831 E Grand Blvd Detroit, MI Section Two: Agreement 1. Powers: By signing below, you retain us exclusively to operate and manage the rental property at the address listed above. That means we re your only managers, and you give us the power to manage your property the way it should be managed. The Terms and Conditions stated below apply to Castle s management of the above property. 2. Termination: The Terms and Conditions stated below continue until one of us provides written notice of cancellation to the other. If you no longer wish to use Castle, us at support@entercastle.com with your desired end date at least 30 days before that desired end date. We ll prorate the management fee if the end date doesn t occur at the end of the month.
3 Section Three: Terms and Conditions The Owner hereby gives the Company the following duties, authority, and powers: 1. Rent: We will collect rent for you and deposit it in a bank account of your choosing. 2. Security Deposits: We will hold and disburse security deposits. For tenants we place, we will also collect security deposits before move-in. 3. Service Contracts: We may need to sign contracts to keep your property in good order. This agreement authorizes us to execute contracts for utilities and services for the operation, maintenance, and safety of the property, as we deem advisable and/or necessary. 4. Repairs and Maintenance: It s our job to coordinate repairs and maintenance. We ll contract all labor needed to keep the property in good shape. We ll take charge of repairs, decorating, and alterations, including buying any supplies needed. We ll request your prior authorization for any and each expense over $350, unless the expense is monthly, recurring, or for an emergency repair. If we make a reasonable attempt to get your authorization, but you re not around, we may spend more than $350 if we think that expense is necessary for the protection of the property from damage. We can also spend more than $350 for tenant services provided for in their leases. 5. Disbursements: We will issue disbursements once we owe you at least $350 at a unit, and at least $350 in aggregate over all of your units under our management. If you ve linked a bank account in the Castle app, we will initiate a disbursement as soon as the disbursement threshold is met. If you have not linked a bank account, we will issue disbursements by wire, check, or PayPal on a quarterly basis. We reserve the right to withhold disbursements if you are in violation of this agreement. 6. Ledger Balance: We will hold no more than $350 in expenses. If your balance with us exceeds $350, we will require immediate reimbursement for the total amount owed to us.
4 7. Liens: You grant to us all liens available to us by any legal means on all property which is subject to this Management Agreement in which you have any legal or equitable interest of whatever kind or nature to secure the unpaid fees and costs due to us. We may serve or record notices of such lien interests with all entities applicable to your property interests in order to perfect such liens. You agree to a lien in the amount of $1, or the amount of the outstanding fees and costs owed to us, whichever is greater. You will not be required to execute any further document to acknowledge or perfect such liens. 8. Records: We will provide records of any money we collect or spend on your behalf. If we spend more money than we collect on your behalf in a particular month, we may require you to reimburse us for the difference. 9. Cancellation: We may cancel simply by serving written notice, including , to you at least 30 days prior to the effective final date of management. The Owner hereby takes responsibility for the following duties, authority, and powers: 1. Fees: You agree to pay us the management fees listed below. Management Fee: If you have one unit with Castle: $99 per month per unit If you have two or more units with Castle: $79 per month per unit Tenant Placement Fee: $499 if we place a tenant in less than four weeks $199 if we place a tenant in four to six weeks No fee if it takes us more than six weeks to place a tenant Time to place a tenant is measured as the period starting when the property is rent-ready and ending when a tenant has signed a lease and paid their deposit. This fee will be refunded in full if the tenant we place breaks their lease or is evicted.
5 2. Agency: You authorize us as agent in any negotiations about the property which may have started while our agreement was in effect. 3. Operating Costs: You are responsible for all operating costs of the property, including, but not limited to: property taxes, maintenance and repairs, insurance, utilities not paid by tenant, and landlord attorney fees associated with eviction proceedings. We may assume responsibility for such payments on your behalf, in which case you must reimburse us for any payments we make according to the terms of this agreement. You assume full responsibility for the payment of any expenses and obligations incurred in connection with us performing the duties described in these Terms and Conditions. 4. Large Expenses and Balances: You must pay directly for any expense or group of expenses totaling over $1,000. You must immediately reimburse us for any balance over $350 on a ledger. 5. Security Deposits: If you are transferring your property from another management company, you are responsible for recovering the security deposit and transferring it to us for holding by a regulated financial institution. If we do not receive the security deposit from the old management company before the tenant in the transferred property moves out, you are responsible for disbursing the security deposit to the tenant. If you have the deposit, you must transfer it to us for holding by a regulated financial institution. 6. Utilities: You must have all utilities turned on and in your name if your property is vacant. Castle cannot handle utility turn-ons. 7. Insurance: At all times during this agreement, you must maintain in effect a public liability insurance policy that names the Company as a co-insured (also known as additional insured) and covers losses related to the property in the amount of not less than $500,000 for single family dwellings and $300,000 for multi-family dwellings, per occurrence. You will defend and indemnify us even in the absence of any insurance coverage to meet such obligation. You are responsible for initiating and executing insurance claims on damage to the property.
6 8. Permitting: You must have all permits required to operate the property as a rental, including a certificate of occupancy, at the time the tenant moves in. We are not responsible for obtaining any such permits. 9. Arbitration: All claims and disputes arising under or relating to these Terms and Conditions will be settled by binding arbitration in the State of Michigan in accordance with the rules set forth by the American Arbitration Association and the Michigan Association of Realtors. A court of competent jurisdiction may confirm any award of arbitration. 10. Hold Harmless: You agree to hold harmless from all damages or suits in connection with the management of the property described above, and from liability for injury suffered by any employee or other person whomsoever, and to carry, at his own expense, adequate public liability insurance and to name the Company as co-insured or additionally insured. We are not liable for any error of judgment or for any mistake of fact or law, or for anything which we may do or refrain from doing hereunder, except in cases of willful misconduct or gross negligence. If suit is brought to collect our compensation, or if we successfully defend any action brought against us by you, relating to the property, or to our management thereof, you agree to pay all costs incurred by us in connection with such action, including a reasonable attorney fee. 11. Data and Records: Sometimes, we need extra information about your property in order to manage it properly. You agree to give us all data, records, and documents about the property that we might need to do our duties described here. We accept this exclusive management agreement and agree to use due diligence in the exercise of our duties, authority, and powers conferred upon us under these Terms and Conditions. 12. Fair Housing: Fair housing laws require the property to be shown and made available to all persons without regard to race, religion, national origin, sex, disability, or familial status. Local laws may further protect people based on creed, student status, sexual orientation, or
7 age. The Company will comply with all applicable non-discrimination laws. It s wrong to discriminate, and we won t do it.
8 Signature of Castle representative: Date: Name and signature of owner (or authorized signatory): Date: Signature Owner name Owning entity name (if applicable)
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