Property Management Agreement
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1 Property Management Agreement DATE: In consideration of the covenants and conditions contained herein: OWNER,, hereafter known as "OWNER" and Vacation by the Beach, hereinafter called Vacation by the Beach hereby covenant and agree: 1. THE OWNER HEREBY CONTRACTS VACATION BY THE BEACH TO MANAGE, CLEAN, MAINTAIN, and RENT ON A SHORT TERM TRANSIENT DAILY/WEEKLY/MONTHLY BASIS THE OWNER'S PROPERTY LOCATED AT: PROPERTY ADDRESS (Full Address Including Zip Code): TYPE: BED BATH This agreement shall be effective beginning on and thereafter continuing every 30 days renewing automatically until a 90 days written notice is provided with intent to cancel this agreement. 2. VACATION BY THE BEACH accepts the aforesaid contract and agrees to furnish its services, to supervise all property management services normally rendered in the care and management of the above property. In addition, VACATION BY THE BEACH will develop a listing for Internet use and promote the property on selected Internet rental site(s).inquiries will be accepted and responded to by VACATION BY THE BEACH. When placing a booking VACATION BY THE BEACH will collect all rental monies from Guests and ensure that Guest has a credit card on file in case damage occurs to the property. 3. While each property may have its own individual Internet advertisement, VACATION BY THE BEACH may group all rental properties by location, similarity and number of bedrooms and use this grouping to encourage renters requesting booked properties to book a similar unit under our management. Property owners proceeds will vary based upon property owners and owner guests use, quality of décor and amenities of property, location and view. 4. VACATION BY THE BEACH will work with the property owner and set rental rates and terms. Due to competitive market conditions, tourist fluctuations and demand VACATION BY THE BEACH reserves the right to alter rates and terms and make special rates and terms at its discretion in order to maximize the OWNERS rental income and occupancy percentage. 5. VACATION BY THE BEACH may allow for payments of rents or damage deposits to be made by credit card. Bank charges related to the use of credit cards for payment of rent or deposits shall be charged to the GUEST as a convenience fee. If for any reason a chargeback occurs these fees will be deducted from the OWNER S payout as an additional cost. 6. VACATION BY THE BEACH shall not be liable for loss of OWNERS personal property located in rental property or rents collected resulting from theft, dishonored or un-collectible checks, bank failure, wind, storms, accidents or other causes or events beyond its control. VACATION BY THE BEACH shall not be required to initiate legal actions or retain an attorney for the purpose of collection of rents, collection of 1
2 damages, eviction of tenants or other persons unless directed by OWNER. Collection fees and legal fees are the responsibility of the owner. 7. VACATION BY THE BEACH shall to the OWNER within 20 days after the end of each calendar month during which this agreement is in effect, a statement of income collected and expenditures made during the preceding calendar month. VACATION BY THE BEACH shall also disburse to the OWNER all rents collected less all disbursements made on behalf of and for the account of the OWNER. This disbursement will be mailed by the 30th of the month. 8. VACATION BY THE BEACH may require advance deposits from tenants and deposit rent receipts in interest bearing accounts. OWNER agrees that all interest earned in these accounts shall accrue to VACATION BY THE BEACH and shall become the sole property of VACATION BY THE BEACH to be used by VACATION BY THE BEACH at its discretion to provide additional services for the rental program. 9. OWNER, family, and personal guests will be allowed to use the property at any time if no prior reservation by VACATION BY THE BEACH rental department has been made and OWNER requests and obtains confirmation of a reservation for the period in request through the VACATION BY THE BEACH rental department. This will ensure that there is never an issue of double booking. OWNER S account will be charged the appropriate cleaning fee. OWNER and OWNER S personal guests agree to observe the standard check-in and checkout times. There is not a booking fee for owner bookings. The only charge is the departure clean fee. Owners will have 24hr access of the booking system. Bookings already in place by Vacation by the Beach cannot be replaced by owner bookings. Owners will be notified of all new, edited, and cancelled bookings placed by Vacation by the Beach. 10. OWNER shall supply and maintain the furnishings and keep the property in good order and repair. VACATION BY THE BEACH shall advise OWNER of special cleaning, repair, or replacement required to keep the property in good order and repair. VACATION BY THE BEACH shall notify the OWNER in writing in the event the property is not kept up to acceptable standards, which are deemed to be the typical standards of the majority of comparable properties in the area. The OWNER shall then have 15 days to make arrangements to have the property brought back to acceptable standards or VACATION BY THE BEACH shall at their discretion suspend the rental of the property. Upon correction of the deficiencies, at OWNER S expense, the property will again be placed in the VACATION BY THE BEACH rental program. 11. Vacation BY THE BEACH shall contract and coordinate necessary repairs that are under $350. These repairs will be charged to the owner on the following month s statement. VACATION BY THE BEACH shall contact the OWNER for approval prior to contracting for any major repairs that are not of an emergency basis. This would include any non-emergency repair that is over $350. However, VACATION BY THE BEACH is authorized to make, at OWNER S expense and without prior approval any emergency repair involving danger to life or property or for the preservation of the safety of persons occupying the property. While all tenant rental contracts state there is no compensation for temporary disruption of essential services of the property during the period the property is rented, VACATION BY THE BEACH is authorized to make rental rebates as VACATION BY THE BEACH deems appropriate. VACATION BY THE BEACH is authorized, and shall use its best efforts to correct any such problems as quickly as possible in order to maximize rental income. In the event maintenance and repairs are necessary during months when no rental revenue is received, the OWNER will be billed direct for such incurred expenses. 12. LIABILITY INSURANCE. It is understood that the OWNER shall carry personal liability insurance for the property in the minimum amount of $300,000, or the amount required by Florida State Law, whichever is greater, a copy of which shall be furnished by OWNER to VACATION BY THE BEACH, and OWNER agrees to indemnify and hold harmless VACATION BY THE BEACH. 13. VACATION BY THE BEACH shall collect a reservation and damage deposit and/or damage waiver or credit card on file from each tenant prior to the occupancy of any property rented herein. VACATION BY THE BEACH shall determine the amount of the damage deposit, require additional deposits or waive deposits as deemed in the best interest of the OWNER. The property will be inspected for damage as soon as possible after the tenant vacates said property. VACATION BY THE BEACH will deduct from 2
3 deposits the cost of missing items or repairs deemed beyond normal wear and use, and return any remaining damage deposit to tenant. It is understood and agreed between the parties that it is not the responsibility of VACATION BY THE BEACH to make a complete inventory and inspection of each item upon each vacation of the unit by the tenant, but rather generally inspect for major item loss and damage. The OWNER agrees to hold VACATION BY THE BEACH harmless of liability of cost of damages or theft caused by tenants or others. 14. OWNER acknowledges that VACATION BY THE BEACH makes no guarantee regarding amounts of rental income or expenses. Any figures provided are projections of potential income that may be earned under certain market conditions and include data generated from past periods. OWNER understands that the market can be volatile and that no guarantees can be made with regards to income or loss. 15. OWNER agrees to notify VACATION BY THE BEACH in writing when property is placed upon the open market for sale. OWNER agrees that property will only be shown when vacant. VACATION BY THE BEACH may at its sole discretion immediately terminate this agreement without notice and transfer any pending reservations, if in the opinion of VACATION BY THE BEACH sale showings and the VACATION BY THE BEACH rental operations of the property cannot be properly coordinated, without any adverse effect on the quiet enjoyment of rental tenants. 16. OWNER authorizes VACATION BY THE BEACH to maintain in reserve an Escrow Deposit in the amount of $200. VACATION BY THE BEACH may, without prior approval of OWNER, use reserve funds to repair furnishings of the property and replace items of equipment as necessary to maintain rental services to the occupants, provided expenses for repair or replacement do not exceed $350 per occurrence. 17. The OWNER shall be responsible for providing VACATION BY THE BEACH the approved initial supply of linens for the property; 2 sets of linen per bed, 2 sets of towels which should total 4 bath towels, 2 hand towels, 4 washcloths per bathroom. The quality of this initial supply of bed and bath linens shall be determined by VACATION BY THE BEACH and will be at least the quality of the typical standards of the majority of comparable properties in the area. The quality of these linens will make your property stand out to renters and keep them coming back. As linen becomes worn or otherwise unserviceable VACATION BY THE BEACH will replace damaged linens with a comparable new set of linens payable by OWNER. 18. Outside maintenance services requested by VACATION BY THE BEACH on behalf of the rental property OWNER will in most cases be paid from the maintenance reserve and billed to the OWNER on the following month s statement. When vendor bills are billed directly to OWNER and not paid in a timely manner, and should the vendor have to request assistance in collection, the bill will be paid by VACATION BY THE BEACH and deducted from the OWNER S proceeds unless OWNER notifies VACATION BY THE BEACH of desire to contest bill. OWNER is responsible to pay all utilities. OWNER will also sign a Limited Power of Attorney that will allow VACATION BY THE BEACH to reinstate utilities if they have been turned off for non-payment. 19. OWNER agrees that all rental tenant information initiated by VACATION BY THE BEACH shall be the sole property of VACATION BY THE BEACH and that all reservations and/or bookings in OWNERS unit(s) are deemed the sole and exclusive property of VACATION BY THE BEACH and may be moved out of OWNER S unit at the sole discretion of VACATION BY THE BEACH or assigned. 20. TERMINATION OF AGREEMENT - Under normal circumstances, this agreement may be terminated by either party with or without cause upon ninety (90) days written notice. Such termination notification shall be by . VACATION BY THE BEACH will send an response notifying owner of receipt of the . Such termination will not affect any rental reservation obligation or other obligation entered into under the terms of this agreement. Under normal circumstances, OWNER must honor all reservations and/or tenants in place at time of receipt of written notice by VACATION BY THE BEACH of termination and pay VACATION BY THE BEACH normal fees and/or commissions. VACATION BY THE BEACH may at OWNER S request attempt to transfer any pending future reservations to another comparably priced 3
4 property. However, in the event that such transfer is not possible and the tenant must be moved to a higher priced property, OWNER shall be responsible to VACATION BY THE BEACH for the difference in rental rate or honor said reservation. 21. The OWNER shall pay to VACATION BY THE BEACH a set-up fee per property in the amount of $400 to ensure the home has all necessary items for successful rental. If any of the following items already exist in the home then the set-up fee will be adjusted accordingly. Home startup costs: $400 plus any additional costs necessary to ensure the home is rent ready 1. Lock box and back up lock. (If needed, amount billed on first statement) 2. 2 full sets of white towels (If needed, amount billed on first statement) 3. 2 full set of white linens per bedroom. (If needed, amount billed on first statement) 4. Full inventory of home and labor for setup is $200 (included in startup cost) 5. Initial clean to prepare home for guest (Cost depends on home size) 6. $200 Escrow held by Vacation By The Beach (included in startup cost) Once the property is inspected there may be additional items needed to make the property rental ready. After our inspection, we will have the exact cost of the home setup. If your home needs the lock box, linens, towels, or other items then the additional charges will appear on your first statement. 22. VACATION BY THE BEACH will actively market OWNERS home for rental. A 21% commission will be taken on all bookings generated by VACATION BY THE BEACH. OWNER is not assessed a booking fee for OWNER bookings. 23. OWNER is responsible for accounting for and payment of sales tax which the owner collects. VACATION BY THE BEACH will send the proper amount of Tourist Development Tax and applicable Sales Tax to the county and state of Florida for bookings we place. 24. OWNER is responsible to pay mortgage payment, property taxes, homeowner s insurance, and all applicable HOA dues. 24. Additional Terms: 4
5 Accepted and personally guaranteed by: (OWNER- Managing Owner) Tax ID (Soc Sec or EIN) Name Mailing Address City/State/Zip Phone Alt Phone Signature Print Name Date All other owners must sign below: Owner No. 2 Signature Print Name Date Owner No. 3 Signature Print Name Date Accepted by Vacation by the Beach Signature Date SHORT TERM / VACATION RENTAL MANAGEMENT FEE SCHEDULE MANAGEMENT FEE: $0 RENTAL BOOKING COMMISSION VACATION BY THE BEACH will actively market OWNERS home for rental. A 21% commission will be taken on all bookings generated by VACATION BY THE BEACH. OWNER is not assessed a booking fee for OWNER bookings. CLEANING FEES Each Departure Clean: Determined by property size $105-$300 Spring Clean: Twice the cost of a normal clean Pest Control: Owner sets up through local pest control company 5
6 MANAGEMENT COMPANY CONTACT INFORMATION Vacation By The Beach Shane or Heather Harstine 174 WaterColor Way Suite 103 Santa Rosa Beach, FL Fax: Office: Toll Free: Summary of Owner Responsibilities: 1. Pay mortgage payment. 2. Pay HOA fees. 3. Will not hold Vacation by the Beach, LLC responsible for any damage or liability whatsoever. 4. Owner must keep at least a $300,000 liability policy on the dwelling. 5. Notify Vacation by the Beach, LLC if owner puts their home up for sale. Owner agrees not to show the home while guests are booked in the property. 6. Pay all utilities, cable and pest control bills. Owner is responsible for termite inspection and keeping current with the termite bond. 7. Pay any sales tax collected from bookings generated by the owner. Owner Bookings: There is not a booking fee for owner bookings. The only charge is the departure clean fee. Owners will have 24hr access of the booking system. Bookings already in place by Vacation by the Beach cannot be replaced by owner bookings. Owners will be notified of all new, edited, and cancelled bookings placed by Vacation by the Beach. Owner must update the Vacation by the Beach booking system immediately upon creating a booking to prevent an instance of double booking. Please retain this sheet for your records. 6
7 LIMITED POWER OF ATTORNEY (With durable provision) TO ALL PERSONS, be it know that I/WE, As Grantor, do hereby make and grant a limited specific Power of Attorney to Shane Harstine and Heather Harstine, (managers, of Great American Vacations, LLC DBA Vacation By The Beach) and appoint and constitute said individual as my attorney-in-fact for the property located at. My named attorney-in-fact shall on my behalf have full power and authority to undertake, commit and perform only the following acts on my behalf to the same extent as if I had done so personally, all with full power of substitution and revocation in the presence: 1. To, on my behalf apply for taxes necessary for renting my property. 2. To use my credit card details to render late payments to utility/phone companies. This Power of Attorney shall constitute in full force and effect until revoked by subsequent writing. Signed: Owner Witness Witness Date 7
8 Owner Bookings Please provide a list of current owner bookings below. Name, dates, and 4 digit door code. Guest Name: Check in Date Check Out Date Door Code
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