PROPERTY MA AGEME T AGREEME T DATE: PMA# PARTIES: R&C Real Estate Investments LLC, (herein after referred to as Agent ) www.rcpmaz.com email: rose@rcpmaz.com Legal Owner: Your Present Address: City: State: Zip: Social Security Number: FED ID #: Company Name: Phone: E-Mail: Cell: Fax: COVENANTS: EXCLUSIVE AGENCY: The Owner hereby employs and appoints Agent, and Agent hereby accepts such employment and appointment on the terms and conditions hereinafter provided, as exclusive managing agent of the certain property hereinafter referred to as: 1. Address: City: Zip: # bedrooms Parking SQ FT Mail box # Pool Key Parking # 2. Address: City: Zip: # bedrooms Parking SQ FT Mail box # Pool Key Parking # 3. Address: City: Zip: # bedrooms Parking SQ FT Mail box # Pool Key Parking # 1
4. Address: City: Zip: # bedrooms Parking SQ FT Mail box # Pool Key Parking # Lease amount (min) (Max) 1. TERM agreement shall commence on the day of, 20, and terminate at midnight on the day of, 20 subject to all provisions set forth below. Either party may cancel the agreement with a five-calendar day written notice. Time shall begin 5 calendar days from receipt of such written notice by either part, by mail, fax or electronic transmission. If however, the Owner cancels within the first six (6) months after a tenant is found and moved into the home, Agent shall be entitled to the management fees for the balance of first six management fee payments. Agent reserves the right to terminate this agreement immediately with written or verbal notice if in the opinion of Agent s legal counsel, Owner s actions or inactions are illegal, improper, or jeopardize the safety or welfare of any tenants or other persons. Agent may at its option continue to hold Owners liable for any commission due, fees due or monies owed Agent if the tenant(s) remain in the property after such termination by Agent. 2. This agreement will automatically renew for an additional one year period provided that Agent notifies Owner of said renewal at least 30 days prior to each termination date. Should a delay occur in signing a new agreement after the expiration date, both parties agree to extend this agreement for one year or until another agreement is signed by both parties. This agreement may not be assigned to another licensee or licensed entity without the express written consent of the property Owner. a. EMERGENCY: Persons to contact on behalf of the Owner in their absence is as follows: Name: Address: City: State: Zip: Phone: The Owner hereby appoints above person in their absence to accept termination of property management agreement if served by Agent. b. RENTS: To rent, maintain and manage the designated property and to collect rents due (late fee, notice fees etc) or to become due and give receipts therefore: c. CONTRACTS: To enter into and terminate tenancies; and in that regard to sign and deliver appropriate notices; to institute and prosecute actions to evict tenants and recover possession of the designated property; to initiate other actions as may be appropriate; to collect on judgments, including but not limited to execution, garnishment and attachments; and when expedient, to 2
settle, compromise and release such actions or suits or reinstate such tenancies. Litigation requiring an attorney shall be at the owner s expense. d. REPAIRS: To make or cause to be made and supervise all necessary repairs, alterations, maintenance, replacements, and improvements to the designated property, and to purchase supplies and equipment and pay all expenses incurred in connection therewith. Owner understands that if a repair on a home is concerning Health & Safety or a Red Tag from any utility company a licensed contractor may be required to complete the repairs. Agent agrees to secure the prior approval of the owner on all expenditures in excess of a maximum cost of $200.00 per unit, for any one item, except for health and safety or hazard condition, monthly or recurring operating charges and/or emergency repairs in excess of such maximum, if in the opinion of the Agent such repairs are necessary to protect the residence from damage, to maintain services to the tenants as called for by existing leases, or repair air conditioners, heaters, other major appliances or pool equipment. This amount will be maintained in the Broker s Trust Account, and appear as a credit on the monthly statements. If the property owner maintains a Home Repair Warranty every effort will be made to have covered repairs done through this company. If the Warranty Company cannot meet a reasonable time frame with regard to a Health & Safety issue (heat, air conditioning, flood) R&C Real Estate Investments LLC reserves the right to procure another vendor that can meet this reasonable time frame. Owner will bear the cost of such repair. e. EMPLOYMENT: To hire, as Agent for Owner, contract for, supervise and terminate all employees required to the management, cleaning and maintenance of the Residence, all cost therefore, to be charged to be paid by the Owner. Agent may perform any of its duties through its attorneys, agents or employees and shall not be responsible for the acts, defaults or negligence of such attorneys, agents or employees if reasonable care has exercised in their appointment and retention. Owner hereby acknowledges that on occasion, the employment may be of a familial nature. f. ADVERTISING: To place advertising for rental for the Designated Property, to display signs upon the premises, to cause references of prospective tenants to be investigated and to enter into lease and to renew and/or exercise any right of cancellation of the same. This includes advertising the property in the MLS Multiple Listing Service with a listing expiration date not to exceed the expiration date of this agreement. g. UTILITIES: To enter into contracts for electricity, gas, water, fuel, vermin extermination, window cleaning, waste or rubbish removal, rental of furniture or equipment, and such other services as Agent may deem necessary, to reimbursed by the Owner from rents collected or direct payment from Owner h. MEDIATION: Agent and Owner agree to mediate any dispute or claim arising out of or relating to the management and property management agreement, any alleged breach of same or services provided in relation to same before resorting to court action. Any agreement signed by the Agent or Owner pursuant to the mediation conference shall be binding. Disputes shall include money held on behalf of Owner or representations made by the Agent and Owner in connection with the managed property including without limitation, allegations of concealment, misrepresentation, negligence and/or fraud. The prevailing party shall be entitled to receive reasonable attorney s fees and costs as set by the court or mediator. 3
i. STATUTORY AGENT: Per A.R.S. 33-1902 Owner hereby appoints Agent as statutory agent for the above referenced properties. The sole purpose of this appointment is for acceptance of all legal/service notifications from any state, city or county authorities. Any notification received shall be forwarded to the Owner or their emergency designated person immediately. j. REGISTRATION: Owner understands that Agent will register the above referenced properties as a rental property with Maricopa County Assessor s office per A.R.S. 33-1901 and 33-1902. The fee charged by the Assessor s office is currently $10.00 and will be charged back to the owner and shall be the owner s responsibility, fee subject to change without notice. k. PAYMENTS: If asked by the Owners, to make payments to the Homeowner s Association. HOWEVER IT SHALL NOT BE THE AGENT S RESPONSIBILITY TO DO SO. Payments will not be made if there are not sufficient funds in account. Agent WILL not make mortgage payments on Owner s behalf. l. COSTS: In the event of the inability or refusal of Owner to pay all costs incurred and expended by the Agent in connection with any of the foregoing, Agent is authorized to make such payments on Owner s behalf from any and all funds of Owner held by Agent, including security deposits. Agent shall render a complete accounting thereof monthly. 3. AGENTS AGREEMENTS: Agent agrees as follows: a. COMMUNICATION: To reasonably confer with Owner in the performance of its duties as set forth herein. b. MANAGEMENT: To use diligence in the management of the Designated Property for the term of the Agreement and upon the terms and conditions herein provided, and agrees to furnish the services of its organization for the renting, leasing, and managing of the same. c. ACCOUNTING: To furnish monthly statements of activity, charges, management fees and payments on each unit. In the event the disbursements and charges shall be in excess of the receipts, the Owner agrees to pay such excess promptly upon request. Agent agrees to mail or e-mail such monthly statements to the Owner on or about the 15 th calendar day of the subsequent month after rents are collected/processed and have cleared the bank. Owner may set up an account on line to look at monthly statements, which will be posted each month for their review. d. TRUST ACCOUNT: To establish and maintain in bank deposits, which are insured by the Federal Deposit Insurance Corporation, and in a manner to indicate the custodial nature thereof, an account for the deposit of all monies collected for the Owner, with the authority to draw thereon for any payments to be made by the Agent in discharging its duties, liabilities or obligations arising under the provisions of this agreement and for the payment of the Agents fees all of which shall be subject to the limitations of this agreement. Trust account may be interest-bearing account and Owner agrees that Agent may retain any interest earned as additional compensation for duties performed. In addition, Agent may establish an interest bearing trust account for receipt of tenants security deposits and Agent may retain all interest earned. Trust account signature shall be the Designated Broker, Rose McKinney and one licensee appointed by Designated Broker. e. STATUTORY COMPLIANCE: The Agent shall not be responsible for maintaining the Designated Property or any equipments therein in compliance with the requirements of any 4
statutes, ordinance, law or regulation of any body or if any public authority or official thereof having jurisdiction, except to notify the Owner promptly of any complaints, warnings, notices, or summons received by and in relating to such matters. The Owner represents that to the best of their knowledge, the Designated Property and such equipment comply with all such requirements and authorizes the Agent to disclose the Ownership of the Designated Property to any such officials and agrees to indemnify and hold harmless the Agent, its representatives, servants, and employees, if any, from all loss, cost, expense and liability whatsoever which may be imposed by reason of any present or future violations or alleged violations of such laws, ordinances, statues or regulations. 4. OWNERS RESPONSIBILITY: a. All lawful acts and actions performed by the agent under the provisions of this agreement shall be done as an agent for the Owner, and all such actions including any obligations or expense incurred in connection therewith shall be for the account, on behalf, and the sole responsibility of the Owner. b. Any payments to be made by the Agent hereunder shall be made from any Monies deposited to the Brokers Trust Account or as may be otherwise provided by the Owner. Agent shall not be obligated to make any advance to or for the account of the Owner or to pay any sums, except out of funds held for the Owner as provided as aforesaid, nor shall the Agent be obligated to incur any liability or obligations for the account of the Owner without assurance that funds necessary for the account of the Owner are available to cover any expense or obligation for the Owner. The Owner agrees to reimburse Agent for said expenses within fourteen (14) calendar days of written notice thereof by the Agent, and then Agent may terminate the agreement forthwith and shall have no further duty or responsibility hereunder. The Owner also agrees to immediately refund rents paid to them in case of insufficient funds etc. by the tenant. Also, the Agent is authorized to repay itself from any funds Agent holds for Owner or funds collected on behalf of the Owner. c. Owner agrees to provide Agent and its employees with liability coverage on the property listed above with the minimum coverage of $300,000. Certificate of insurance shall be provided to Agent for our file within 30 calendar days of the effective date of this agreement. Owner shall provide Agent with the name of current insurance company. If the residence is a Townhome or Condo Owner understands that the inside of the unit is probably NOT covered by the HOA blanket policy. Insurance Company: Agent Name: Address: Phone: Policy #: 5 Owner understands that they must carry Home Owners insurance Rental Dwelling policy on the unit. If at anytime the home is vacant for more than 30 days, Owner will contact the Homeowners insurance company, (listed above) and let them know the home is vacant to insure coverage on the home. d. HOME WARRANTY: Owner, not Agent, is responsible to purchase/renew a home warranty plan if they elect to do so and notify R&C Real Estate Investments LLC of new policy.
e. HOME OWNER ASSOCIATION HOME WARRANTY COMPANY Home Warranty Company Policy #: Phone #: Policy Date: #1 Property Address: Home Warranty Company Policy #: Phone #: Policy Date: #2 Property Address: Owner shall provide Agent with the name of the Home Owners Association for each property that is managed. Owner understands that Agent will request HOA Management Company to send copies of all notice of fines and violation to Agent. Owner is responsible for paying the HOA fees unless direction is given to Agent to pay from rents collected. Agent shall not be responsible for unpaid HOA dues not collected from tenant in rents. Owner understands they will be required to pay the HOA fee if no rent is collected from the tenant. Owner is responsible for all HOA set up fees that may be required. HOA Management Company Information: Name Address : City AZ Zip Phone: Fax: f. Owner is obligated to make all mortgage payment accruing against the designated property when due and to pay all expenses incurred by the Agent, including but not limited to attorney s fees for counsel or suit involving any constitution provision, statue, ordinance, law or regulation of any governmental body pertaining to fair employment, Federal Fair Credit Reporting Act, environmental protection, or fair housing (unless the Agent is finally adjudicated to have personally and not in a representative capacity violated such constitutional provision, statue ordinance, law or regulation). Northing here contained however, shall require the Agent to employ such counsel in any such proceeding or suit. g. MORTGAGES: To keep all mortgage obligations, property taxes, association fees, (and/or other obligations which could lead to a foreclosure action against the property) current and paid in full as required. Should Broker be notified in any manner that a foreclosure action has been initiated against the subject property, Owner authorized Broker to freeze all funds related to that property and Broker will make no further disbursement to Owner. Owner has 30 days to cure the default that initiated the foreclosure action. Should Owner fail to cure the default, Owner authorizes Broker to refund the security deposit to the Tenant and to deduct from any Owner s funds on hand with Broker all amounts due to Broker or Tenant including, but not limited to, any refund to Tenant of prorated rent or expenses and all of the management fees that would be due to Broker through the end of the original lease term. Owner and Broker agree that nothing in this paragraph shall limit Broker s other legal remedies to collect from Owner any unpaid fees due to Broker. Owner also understands that in case of Short Sale or Foreclosure the tenant may give a 6
written notice that they can break the lease and move due to the uncertainty of their tenancy. Owner also understands that we will do a walk through with the tenant before the security deposit is refunded to the tenant. h. Sale Agency: During the term and for a period of one (1) year after termination of this Agreement should any property which is the subject of this agreement be sold to any tenant secured by R&C Real Estate Investments LLC a commission equal to 3% of the sales price will be paid to R&C Real Estate Investments LLC. i. Fair Housing: Owner is acknowledging that they are aware of Federal, State and Local Fair Housing laws. If Owner should at any time request to disregard Fair Housing Laws AND/OR State or Local Landlord/Tenant Laws, this contract will be terminated immediately and the management fees for the balance of this contract will be due upon termination. j. Maintain Insurance Coverage: Owner will maintain liability coverage on the property. Certificate of insurance should be provided for property management s file. k. Owner agrees that Agent will be supplied with sufficient keys to give to the tenant and retain a copy for emergencies. Owner further understands the following and will bear the cost of same if any item is necessary: a. The home may have to be rekeyed between tenants or before tenant move in. b. The home cannot contain keyed dead bolts they must be thumb turn locks and will be changed out for safety escape. c. The home cannot have bars on the windows that are not break away bars Bars may have to be removed for safety escape. d. Pool & Postal keys are to be supplied to agent for tenant use. 5. ASSIGNMENT OF RENTS: Owner herby assigns to Agent all rents collected for the use of Designated Property during the term hereof, and all the receipts collected by the Agent on behalf of the Owner during the term hereof for the purpose of paying all expenses incurred by Agent in managing and maintaining the Designated Property and other expenses authorized under the terms of this Agreement, together with Agent s fees accruing for the services rendered or provided herein. 6. OWNER S AGREEMENT: Owner further agrees; a. PAYMENT OF COSTS: To make all mortgage payments accruing against Designated Property when due and to pay all expenses incurring by the Agent, including but not limited to attorney s fees for counsel or suit involving all alleged violations by the Agent or the Owner (most of which fees are collected from the tenant). 7. FINAL ACCOUNTING: a. Upon terminating of a property management agreement, the agent shall provide to the owner a final accounting according to ARS #33-2173 as follows: 1. Within 5 business days, a list of all tenant security obligations. 7
2. Within 35 business days, reimbursement for all Monies remaining in the property accounts maintained by the Agent, except for Monies needed for unpaid obligations incurred during the term of the property management agreement. 3. Within 75 business days a final accounts receivable and payable list, 4. Within 75 business days, a final bank account reconciliation. b. Owner shall furnish Agent security, satisfactory to the Agent, against any outstanding obligations or liabilities, which the Agent may have incurred hereunder, prior to termination, within 30 calendar days of termination of agreement. 8. FEES: In consideration for the services rendered as provided herein, Owner agrees to pay Agent the following: a. FOR MANAGEMENT: Twelve percent of the gross monthly/rents. Agent may charge and collect from the tenant the following fees; a fee of $50.00 for insufficient funds check; a notice fee in the amount of $50.00, a $50.00/$75.00 application fee, these fees are subject to change without notice. b. FOR LEASING PLACEMENT: If a ONE-year lease is signed the following fees apply: (Licensed Agent or other purchasing broker who brings the tenant) $350 (three hundred fifty dollars). Cost of advertisement and signage shall be (sign $25 internet $49 per month MLS no charge). Owner agrees to deposit into trust account $200.00 to cover advertisement costs and signage; additional fees will apply until unit is leased. c. If Owner requires placement only with no monthly management the one time fee is $1,000.00. d. If a SIX month lease is signed the fee shall be; $175 (one hundred seventy five). A fee of $75 (seventy five) will be charged as a renewal fee for resigning existing tenant. e. Agent may pay a referral fee out of the fees LISTED ABOVE, on behalf of the Owner to the following: 1. Licensed real estate broker acting as an apartment locator. 2. Unlicensed existing tenant, up to $100 referral for a new tenant, to be applied to their rent. 3. In order to minimize the fee Agent charges the Owner, the Agent may collect and retain for themselves from the tenants all or any of the following: A fee for serving notices, a NSF check collection charge, a credit report fee, key duplication fee, non-refundable security for an administrative management charge and or brokers commissions. Late fees collected from the tenant are to be paid to the agent. If a court date is acquired, then any collected late fees are to be applied to these costs on behalf of Owner. If no late fees are collected at time of judgment, the outstanding costs remaining unpaid to court/attorney will be the responsibility of the Owner to pay. Monies collected in the future for judgments shall be paid to Owner less a processing/collection fee of $75.00. 8
9. OTHER ITEMS OF AGREEMENT: a. This agreement and all attachments hereto shall constitute the entire Agreement between the parties, and no variance or modification thereof shall be recognized and effective, unless provided by supplement agreement in writing and executed in the same manner as this agreement. b. For the convenience of all parties, this agreement may be executed in counterparts, which are in all respect identical and each of which shall be deemed to be complete in itself so that any one may be introduced in evidence or used for any other purpose with out the production of the counterparts. This agreement shall be binding upon successors and assigns of the Agent, and the heirs, administrators, executors, successors, and assigns of the Owners. c. Complete Agreement: This Agreement and All attachments and exhibits contain collectively the complete expression of the parties on the subjects herein and therein set forth and there are not promises, representations or inducements except such as are so provided, incorporated herein or referenced hereby. Owner or Management has made no oral promises, representation or agreement. The only way to amend or modify this written agreement is by a separate subsequent written agreement. 10. OCCUPANCY STANDARDS: For clarification reasonable occupancy standards shall be two persons per bedroom. 11. Pet Policy: The Owner will or will not allow dogs/cats, with additional pet deposit. A deposit of $200 will be collected from tenant when lease is written, exception will be assistive animals. 12. Smoking Policy: Owner will or will not allow smoking in the home. IN WITNESS WHEREOF, the parties hereto have executed the agreement the day and year first written above. LEGAL OWNER: AGENT: R&C Real Estate Investments LLC. BY: DATE: BY: DATE: BROKER SIGNATURE: DATE: Revision: 09-9 9
ADDENDUM A The following items may need to be addressed in the leasing of your home. We will complete an inspection on all new management and move outs. 1. Homes needs to be clean a. Carpet needs to be cleaned and leaseable condition b. Walls and paint need to be clean and leaseable condition c. Windows need to be cleaned 2. Garage and yard need to be clean and maintained 3. Sprinklers need to be working 4. Pool - Fenced gates need to be auto closing - nothing against the fence 5. Pool NOT fenced a. Windows must be secure locks installed b. Doors need to be auto closing double knobs to open c. Windows need to have screen & thumb turn locks 6. Pool Needs to be in clean condition and running 7. Pool Equipment to maintain pool need to be available 8. Electrical, all plugs and electrical must be in working order. 9. Health & Safety issue need to be address and brought to city building code. 10. Keys - Sufficient keys will be supplied for leasing a. Pool Keys b. Mail Box Key c. Garage Openers d. Mail Box Number e. Entry gate controller If the above is not completed, Owner could be a charged to provide these items to the tenant and management company. Amount rent desired $ Amount rent minimum $ Owner Signature Date 10