Synopsis of Northstar Rental Management Agreement
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1 Synopsis of Northstar Rental Management Agreement Contractual Entity: All contracts are made with Trimont Land Company, dba Northstar-at-Tahoe. Length of Contract: The Rental Management Agreement is in effect from the date of signature, automatically renewable successive one-year periods, until terminated with 30 days prior written notice and consideration being given to existing rental bookings. Management Fee and Commissions: This Agreement provides for gross rental revenues to be split equally, 50% to Owners and 50% to Agent. Owners' Use: Owners may reserve their condominium/home by calendar for a maximum of 21 days each season which is (42 days per year) for personal use or that of personal non-paying guests; however, no more than 7 days are allowed on the calendar over the winter holiday periods. Personal usage calendars are sent out before each season for owners to plan their reservations. Additional personal usage may be arranged with certain restrictions. Calendar for summer is due in April and Calendar for winter use is due in June. The Rental Management Agreement is an exclusive agreement that stipulates that Owners may not personally rent the unit. Owners must provide use of their unit for six nights per year for promotion purposes associated with the Rental Program. Thorough records are kept of this usage. Agent's Expenses: Agent shall provide from its 50%: sales/marketing; reservations; front desk; housekeeping expenses associated with renter occupancy; monthly accounting; credit card fees; key control; long distance telephone service -1-
2 Owners' Expenses: Owners shall bear expenses for all utilities, firewood (if applicable) maintenance and repairs, inventory replacements, annual cleaning and upgrade. Travel agent commissions are paid by the owner. Additionally, there shall be a basic maintenance services fee of $35.00 per month to cover minor maintenance; assistance to guests and periodic maintenance inspections. Owners of homes on the Rental Program must contract for winter snow removal from driveways, walkways and decks on a seasonal basis. In addition, owners of homes with Hot Tubs will also need to contract for regular service. Housekeeping Services: Agent provides all housekeeping supplies normally associated with rental activity, including all linens, towels, paper supplies, soaps and cleaning products. Services provided to renters include preparatory cleaning and check out cleaning in all units; daily housekeeping services in Village units and midweek services in all other units. Rental Services inspects all units after guest departure to secure unit, turn down heat and check for damage or loss. Owners pay for their checkout cleaning services or those of their non-paying guests. Charges will be posted to the Owners' account. Services in addition to checkout cleaning are available to Owners and their guests at additional charge and advance notice. Agent will perform semi-annual deep cleaning, rug shampooing, window cleaning and window covering cleaning at owner s expense. Agent will present the annual upgrade form to Owner for authorization before proceeding with furniture/appliance replacement or painting. Owner must agree to comply with Agent s recommendations to provide a quality mountain-comfortable accommodation. Maintenance: The monthly maintenance fee of $35.00 will provide services for general care of the property. Owner authorizes Agent to perform maintenance and repair work at owner s expense as is deemed necessary to maintain the unit in rentable condition. Agent shall obtain Owner s advance approval for chargeable services and materials on expenditures of $500 or more (exception if an emergency repair is required). Keys: Schlage locks are mandatory on all doors to rental units. Owners must agree to and bear costs of initial rekeying and/or lock changes. Costs of any subsequent rekeying or lock changes associated with routine security precautions will be borne by Agent. Telephones: Owners are responsible for monthly service charges associated with maintaining an open phone line. Northstar Rental Management contracts with an operator service for guest long-distance calls. Owners are reimbursed for any long distance charges that may occur on Owner s telephone bill. -2-
3 Insurance: Owners are required to obtain public liability insurance. Proof of such insurance must be provided to Agent. Theft & Damage: Agent is not responsible for any damage to premises, or theft. Agent will secure unit after each guest departure to check for damage or theft, to the best of their ability, and will inform and assist Owners in the recovery of missing items. The guest's credit card information is on file and Agent will attempt to secure compensation for damages from guest wherever possible but does not guarantee same and will not be held responsible. Rental Rotation: Agent will use its best efforts to rotate rentals equitably among units, according to size, renter occupancy and Owner/Owner Guest occupancy. Requests for specific units are over and above the rotation. Accounting: Agent will send a monthly accounting statement and disburse rental revenue to all Owners no later than 20 days after the close of the fiscal month. Outstanding balances will be charged an interest fee of 1.5% after 30 days. Agent must provide #1099 tax forms to tax authorities on annual basis reporting gross rental revenue earned for each rental unit. The fiscal revenue year is based on December 1 through November 30. Staff - Northstar Rental Management: The rental and care of your condominium or home is a 24 hour a day, 365 days a year job for Northstar Rental Management. We draw upon and are assisted in many ways by all Northstar departments. Key personnel of the rental program headed by Director of Lodging Operations, Connie Blair, are: Sharon Yuhas is the Homeowner Relations Manager with the Northstar Rental Program homeowners. She is responsible for maintaining the high quality of all Northstar rental units and is available to assist all rental program homeowners in the upkeep of their property. JC Goldrup is the Housekeeping Manager and is responsible for the quality and inventory inspections of all rental units, housekeeping services, delivery service and janitorial functions for the entire resort. In addition, the housekeeping department coordinates carpet cleaning, window washing, spring and fall deep cleaning. Connie Blair, Director of Lodging, is responsible for front desk operations that include reservations, check in/check out procedures, night audit/accounting and the switchboard for the entire resort. We also have an on-site building maintenance department with experienced electricians, plumbers and carpenters. This department works closely with Sharon Yuhas with regard to the rental properties and can also arrange for outside contractors when needed. -3-
4 Northstar's Group Sales Department assists with the myriad details that go into booking and coordinating meetings and conferences at Northstar. Group sales combines Northstar lodging with food and beverage services, meeting room and audio visual requirements, transportation and recreational activities. Marketing and Sales: With an annual budget well into six figures and an experienced, knowledgeable staff, Northstar's Marketing Department attempts to educate and entice consumers, the travel industry and the press about the benefits and value of getting away to Northstar. This is accomplished through sales efforts, advertising, public relations and publicity. While Northstar's primary market has been, and will continue to be, Northern California, sales efforts are directed at a number of other markets including Southern California, Dallas, Houston, Phoenix and Chicago markets. Our sales people maintain an exhaustive schedule, traveling to trade shows and making sales calls in many cities across the United States. Northstar also plays host to dozens of familiarization tours in order for the travel trade industry and media to view our mountain, base facilities and, of course, our lodging. To reach our variety of clientele, Northstar runs print ads in many nationally distributed magazines and newspapers. Other mediums include radio, television and outdoor advertising. Our marketing department is also responsible for producing and distributing brochures and other printed materials. We annually print in excess of 500,000 winter lodging brochures, 200,000 summer lodging brochures, 50,000 locator Maps - in addition to service directories and activity schedules that are placed in all rental units. The marketing department creates, develops and builds numerous packages in which we sell lodging in connection with lift tickets, ski lessons, ski rental equipment, golf and tennis, fitness programs, airline tickets, rental cars and even theatrical events! Much of this packaging of lodging and other components is done in cooperation with airlines, tour wholesalers, car rental agencies, ski clubs and visitors bureaus. Northstar heavily promotes group lodging/convention business. Corporations lodge and meet at Northstar on a regular basis. Finally, we believe that one of the most effective marketing tools is to provide a quality experience to our guests, which results in the most important business we can develop - repeat business. Guests pleased with their vacation will usually return to the same area often. Our responsibility and obligation to our Owners is to provide this type of service and guest experience. -4-
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