XILA
Property Management Agreement
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XILA
Property Management ("Agent"), and ___________________________("Owner")
agree to the following:
A.
EMPLOYMENT OF AGENT
The Owner hereby employs and appoints the Agent as the sole and
exclusive leasing and management agent of the property located at
______________________________________________________________________________
hereinafter referred to as the "property", and any personal
property thereon belonging to the Owner upon the terms hereinafter
set forth commencing as of the _____ day of ___________, 20____,
subject to termination of this agreement as outlined hereinafter.
B.
JOB DESCRIPTION
The Agent shall act as Owner's exclusive Agent, and may
perform either in the Agent's or Owner's name to manage, maintain,
operate, lease/rent the property including negotiating for, entering
into, signing, renewing, transferring and canceling leases/rental
agreements for the property or any part thereof, except that the
Agent shall have the authority to execute and sign leases and renewals
for terms not in excess of one year.
C.
MANAGEMENT STANDARDS
The Agent shall use his best efforts and perform all measures necessary
for the orderly management of the property in furtherance thereof,
Agent shall use diligence to lease/rent the premises, to enforce
collection of rentals, and to comply with all other covenants contained
in this Agreement.
D.
ADVERTISEMENTS
The Agent shall have the option to advertise in The San Diego Reader or the Union-Tribune, with the approval of the Owner and at
Owner's expense, when the Agent deems it advisable. Agent shall have the further
right, at Agent's expense, to hang a sign or banner on the subject
property for advertising XILA Property Management with the owner's
consent.
E.
EMPLOYMENT AND SUPERVISION OF LABOR
The Agent shall hire, discharge and supervise all labor required
for the operation and maintenance of the said property. All employees,
except employees of independent contractors, shall be considered
as employees of the Agent and the Agent shall deduct from the employees
salaries or wages all taxes which may come from time to time be
proper in connection with unemployment insurance, social security
and withholding taxes, as well as any other taxes which may be applicable.
All salaries and tax obligation created under the provisions of
this paragraph shall be charged to the Owner and the Owner hereby
assumes and agrees to pay the same, or in lieu thereof, authorizes
said Agent to make such payments out of funds in Agent's possession.
All such records shall at all reasonable times be made available
to the Owner for examination. At the time of termination, these
employees are XILA employees and the owner agrees that XILA will
continue to collect their management fee as long as the owner keeps
the employee working actively. Whenever the services of independent
contractors are used in connection with the maintenance of the property,
Agent shall use his best efforts to secure such services at the
best price available, taking into consideration the quality of work
done by, and the reliability of such independent contractors. If
an affiliate or division of Agent is employed to render such services,
the cost of such to Owner shall not exceed the cost of like services
had they been procured in the open market nor the cost of like services
charged by such affiliate or division to any other owner to whom
Agent was then rendering management services.
F.
GENERAL AUTHORITY
The Agent shall be authorized to ask for, demand, collect and receive
all rents due or to become due from tenants or occupants of said
property, and give receipts therefore to execute and serve notices
to quit or pay rent notices terminating tenancy and other notices
affecting said property to institute such actions or other proceedings,
either in Agent's or Owner's name, as may be deemed advisable by
Agent to oust tenants, recover rent charges, or other sums payable
to Owner. Agent may, at his discretion, settle, compromise, or discontinue
any such action.
The
Agent is clothed with such general authority and power as may be
necessary or advisable to carry out the spirit and intent of the
Agreement, including setting up accounts in the owners name, accessing
information from vendors on behalf of the owner and making payment
arrangements.
G.
MAINTENANCE, REPAIRS AND OPERATION
The Agent shall make or cause to be made and supervise repairs and alterations, and do decorating on the premises, purchase supplies and pay all bills. XILA is not set up to handle the coordination of home warranty contracts as a standard repair. These services would not be included as part of this agreement.
It
is further understood that the Agent is authorized in the name of/or
for the account of the Owner, to make contracts for electricity,
gas, telephone, pest control and other regular services
or such of them as Agent shall deem advisable.
H.
EXPENDITURES
The Agent agrees to pay, from monies he holds for the Owner, any
monies for interest or amortization of encumbrances, assessments,
taxes, assignments or premiums on insurance which the Owner directs
Agent in writing to pay.
In
addition, the Agent shall not be required to advance any monies
for the care or management of said property, and the owner agrees
to advance all monies necessary therefore.
I. STATEMENTS
The Agent shall render to Owner monthly statements (via mail/e-mail),
showing all receipts and disbursements for the current month, and
shall deposit the net amount owing in Owner's account or make such
distributions thereof as the Owner shall direct in writing. All books of accounts maintained
with respect to the management of the property shall at all reasonable
times be open to Owner's inspection. Each statement shall stand
approved in its entirety unless exceptions in writing are made thereto
within 30 days.
J.
RESERVES
Owner agrees to establish a permanent Operating Reserve Account with the Agent in the amount of $500.00 or equal to the amount of the highest monthly rent on each single unit property (single family residence/condo) to protect against non-sufficient checks and other emergency situations. Agent will determine which reserve level is appropriate. This reserve deposit is due at the time of signing a one-year management contract and will be retained until the contract is terminated.
K.
DEPOSIT OF COLLECTIONS
All monies collected under the Agreement shall be deposited in a
trust bank account separate from the funds of Arista Management Corporation,
and at no time are any of the funds of said bank account to be intermingled
with the funds of the Agent.
Although
monies belonging to owner may be commingled in such trust bank account
with monies of other owners for whom Agent is rendering managerial
services, Agent shall not permit monies standing to the credit of
the Owner to be used to satisfy the obligation of any other owner
so that there shall never be any overdraft of monies standing to
the account of the Owner.
The
Agent shall have the authority to draw on this account for any payment
which he must make to discharge any liabilities or obligations incurred
pursuant to this Agreement, and for the payment of Agents fee, all
of which payments shall be subject to the limitations of this Agreement.
Owner
understands and recognizes that Agent will, from time to time, collect
certain pet, key, security, cleaning and other fees and deposits
from the tenants at the property and that such monies shall be deposited
with other monies belonging to Owner. Owner agrees to indemnify
Agent and hold Agent harmless from any claims made by the tenants
for such fees and deposits, together with any of Agent's costs and
expenses incurred in connection with any such claims. Owner further
agrees to hold XILA Property Management harmless for any loss of
money as a result of theft during the course of normal operation
unless negligence from Agent applies.
L.
INSURANCE
Maintenance and the cost of all insurance in connection with the
property (e.g. fire, earthquake, public liability, burglary, etc.)
shall be the responsibility of Owner. The Owner agrees to obtain
and furnish to the Agent all insurance policies pertaining to the
herein-described property, and to have the Agent named, immediately
after the effective date of this Agreement by endorsement, as an
additional insured under the above described insurance policies.
The
Owner shall furnish to Agent a Certificate evidencing that Owner
carries insurance for his liability for property damage and public
liability, with liability of not less than $1,000,000.00 per occurrence,
and $2,000,000.00 aggregate. Also, XILA Property Management, Arista
Management Corporation and Donald and Jan Maxted must
be named as additionally insured on the aforementioned policy. Owner
recognizes Agent may be brought into litigation due to property
management activity on behalf of Owner.
M.
INDEMNITY AND LIABILITY
The Owner shall indemnify the Agent against liability or loss arising
out of breach of this Agreement by the Owner, and the Agent shall
indemnify the Owner against liability or loss arising out of breach
of this Agreement by the Agent.
The
Owner shall indemnify and hold harmless Agent and all persons in
Agent's firm, from all costs, expenses, suits, liabilities, damages,
and claims of every type, including but not limited to those arising
out of injury or death of any person(s), or damage to any real or
personal property of any person(s), including Owner, in any way
relating to the management, rental, or operation of the Property
by Agent or any person in Agent's firm, or the performance or exercise
of any of the duties, powers, or authorities herein or hereafter
granted to Agent, except to the extent due to the negligence of
Agent or any person in Agent's firm.
The
Agent shall not be liable to the Owner for failure to pay any charges
against the property if Owner has not made necessary funds for such purposes available to Agent.
N.
COMPENSATION
For services rendered pursuant to this Agreement, the Owner shall
pay Agent monthly 8% (eight) percent of the gross revenues from
the property actually collected but in no case shall the fee be
less than $100 per unit for a single unit or $60 per unit for properties
with 2 or more units on the same property. For purposes of this
paragraph, "gross revenues" shall mean the total amount
of revenue received for rent, security and other services rendered
to them, less any returned checks and/or refunds.
Owner
agrees that Agent may, at times, charge tenants a service fee for
returned checks and late rent payments. Owner further agrees that
these fees shall be for the Agent's account to compensate for extra
handling and accounting expense.
Standard maintenance will be charged back at the rate of $30.00 per hour; anything deemed to be non-standard maintenance such as supervising and coordinating remodels, facilitating refinances/sales of property, etc., will be billed at $45.00 per hour or 10% of the total cost of the project, whichever is greater. Agent agrees not to perform any such extraordinary services without securing the prior approval of the Owner. Should Local, State or Federal governmental agencies require submission of various reports or information (i.e. 1099 forms), Agent is authorized to complete such work.
O.
ARBITRATION OF DISPUTES
Any dispute or claim in law or equity arising out of this contract
or any resulting transaction shall be decided by neutral binding
arbitration in accordance with the rules of the American Arbitration
Association, and not by court action except as provided by California
law for judicial review of arbitration proceedings. Judgment upon
the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof. The parties shall have the right to
discovery in accordance with Code of Civil Procedure 1283.05. The
following matters are excluded from arbitration hereunder: (a) a
judicial or non-judicial foreclosure or other action or proceeding
to enforce a deed of trust, mortgage, or real property sales contract
as defined in Civil Code 2985, (b) an unlawful detainer action,
(c) the filing or enforcement of a mechanic's lien, (d) any matter
which is within the jurisdiction of a probate or small claims court,
or (e) an action for bodily injury or wrongful death, or for latent
or patent defects to which Code of Civil Procedure 337.1 or 337.15
applies. The filing of a judicial action to enable the recording
of a notice of pending action, for order of attachment, receivership,
injunction, or other provisional remedies, shall not constitute
a waiver of the right to arbitrate under this provision.]
"NOTICE:
BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE
ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES'
PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA
LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE
DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE
SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY
AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE
'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO
ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED
TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL
PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."
"WE
HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES
ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES'
PROVISION TO NEUTRAL ARBITRATION."
P.
TERMINATION
This Agreement shall continue in full force and effect
for the duration of one year. This Agreement shall only terminate
thirty (30) days after the first day of the month subsequent to
the serving of such notice after the effective period as stated
above. In no event shall this Contract be canceled before the thirty
(30) day written notice is given by either Owner or Agent. If the managed property
is sold within the first year or the contract terminated by the owner without just cause, XILA will charge a $500 fee. XILA
can cancel this agreement at any time with a 30 day written notice.
Q.
NOTICES
Any written notice to Owner or Broker required under this Agreement
shall be served by sending such notice by first class mail to that
party at the address below, or at any different address which the
parties may later designate for this purpose, and shall be deemed
received three business days after deposit into the United States
mail or via email as requested.
R.
MISCELLANEOUS
This Agreement shall be binding on the parties hereto, their heirs,
executors, administrators, successors and assigns.
S.
ADDITIONAL INSTRUCTIONS
XILA's office hours are from 8-4pm Monday through
Friday, or by appointment. A staff person is always available by
pager and cell phone for emergencies including fires, floods, property
damage or resident harm. Financial requests including check printing
or non-scheduled reports will be honored within three working days
(please put the request in writing).
T.
ADDITIONAL DUTIES
XILA Property Management as Agent agrees to the following additional
duties if Owner initials the line:
___ Pay owner property tax on behalf of owner
___ Pay owner mortgage on behalf of owner
___ Pay owner HOA fees on behalf of owner
___ Pay utilities and set up services on behalf of owner
___ Pay independent contractors (gardeners, etc.)
____Other _____________________________________________
We
have read the foregoing before execution and agree thereto on the
date first above written.
_________________________________________________________________________
Owner/Agent (sign & date)
XILA Property Management
3579 5th Ave, #200, San Diego, CA 92103
619-683-2728
_________________________________________________________________________
Owner
1 (sign & date)
Street Address / City / State / Zip:_____________________________________________
Phone #:____________________________FAX #:________________________________
e-mail address:______________________________ SS#:__________________________
_________________________________________________________________________
Owner 2 (sign & date)
Street Address / City / State / Zip:_____________________________________________
Phone #:____________________________FAX #:________________________________
e-mail address:______________________________ SS#:__________________________
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