SAMPLE PROPERTY MANAGEMENT AGREEMENT:
This Property Management Agreement (“Agreement”) is made effective as of _______, 20__ (the “Effective Date”) between A Stay Above The Rest, LLC, a Texas limited liability company (“ASATR”) and ____, a _Texas Corporation__[individual, Texas corporation, etc.] (“Owner”), with reference to the following: _____, for the term of _2_ year(s) after completion of design/furnishing and the availability of the property for rent.
a. ASATR is engaged in the business of renting short term vacation rental properties, and Owner owns certain real property that is suitable for rental as a short term and/or vacation rental property.
b. ASATR and Owner have agreed that ASATR will provide certain property management services to Owner, all upon the terms and conditions set forth herein.
NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
Summary. The following is a summary of the parties and property that is subject to this Agreement:
- Owner: ______________________
- Owner address: ________________________________
- Owner Telephone and Email: _____________________________________
- Property address: _______________
- Property manager: A Stay Above The Rest, LLC
- Property manager address: PO Box 340076, Austin, TX 78734-0002
- Property manager Telephone and Email: _833-698-2229, email@example.com____
- Grant of Authority. Owner hereby employs and grants to ASATR the exclusive right to act on behalf of Owner and provide services for the care, management and occupancy of Property as a vacation residence or temporary stay residence, available to the public for rent to third parties (“Guests”). ASATR is hereby authorized to take any or all of the following actions, when and to the extent ASATR determines the same to be in Owner’s interest.
- ASATR may advertise the property, by means and methods that ASATR determines are reasonably competitive including but not limited to creating and placing advertisements with interior and exterior photos of the Property and related information in any media, including the internet.
- ASATR may place signs on the Property in accordance with applicable laws, regulations, ordinances, restrictions and homeowners’ associations.
- ASATR may hire, discharge and supervise contractors to make any and all reasonable or necessary non-emergency repairs, maintenance or alterations to the Property; provided that ASATR shall not incur more than _(Example:$200)_ for any single repair, maintenance or alteration without Owner’s consent. ASATR may hire contractors to make emergency repairs to the Property without regard to the expense limitations, if ASATR determines that such repairs are necessary to protect the Property or the health or safety of a Guest. In the event of an emergency, ASATR will make every attempt to contact the Owner. From time to time, ASATR and Owner may enter into short-term separate agreements subsequent to the Effective Date regarding the cost of repairs or modifications to the Property to accommodate Guests.
- ASATR may use some of its own personal property to manage the reservations or operations of the Property. In such event, all of such personal property will remain the property of ASATR and will be removed at the end of the term of this Agreement.
- ASATR may hire contractors to provide cleaning, laundry services, make readies, inspections and maintenance to the Property. Carpet cleaning and a deep cleaning (includes carpet, upholstery and windows) are required at least once a year, and ASATR will charge the cost of such cleaning to Owner if provided by ASATR.
- ASATR may negotiate and/or lower rental rates and length of rental days to remain competitive when occupancy in the Property is lower than current market conditions dictate. Owner authorizes ASATR to use its judgment to maximize rental revenue by negotiating rental rates when needed to create higher occupancy rates.
- ASATR may charge Guests hotel taxes, reservation fees, cancellation fees, pet fees (in homes that allow pets), cleaning fees and other fees, as ASATR determines to be appropriate and reasonable. Any such fees will be in addition to the base rental rate charged to the Guest and such fees shall be paid to ASATR and shall not be deemed part of the Net Rent (as hereinafter defined).
- Relocation of Guests. ASATR reserves the right to move any Guests to another rental home if Guests are unhappy or dissatisfied with the Property or if repairs cannot be completed in a reasonable and timely manner.
- Refunds to Guests. ASATR reserves the right to negotiate a refund with Guests in the event they are unhappy or dissatisfied with accommodations or if repairs cannot be completed in a reasonable and timely manner.
- Guest Privacy. Owner shall not enter the property during a Guest stay. If Owner is entering surrounding a Guest stay, it is the responsibility of the Owner to contact ASATR to verify Guest’s check in times. ASATR is not required to provide guest information such as, but not limited to, guest full name, phone number, email, residence location, payment information, etc.
- Taxes. ASATR shall collect all local and state hotel taxes from Guests and remit the same to the appropriate authorities.
- Accounts; Monthly Statements; IRS Reporting. ASATR shall maintain a separate accounting record of all receipts, expenditures, disbursements and reservations regarding the Property. ASATR shall prepare statements of all Rental Receipts received in each month, based on the reservations ending in that month (the “Monthly Statement”). ASATR shall make an online statement available on or before the 7th day of the following month, and each Monthly Statement shall be accompanied by the amount due to Owner in accordance with Section 4 below. ASATR shall prepare all IRS 1099-MISC forms each year and shall mail the same by January 31st of each year. As an example only and for further clarification, if a Guest stays at the Property from March 28 through April 4, the Monthly Statement for March will not include the Rental Receipts for the 4 nights of March 28, 29, 30, and 31. The entire reservation will be on the April Monthly Statement.
- Necessary Personnel. ASATR shall provide all personnel necessary to accomplish Guest check-in and check-out, key services, bookkeeping services, collection and refund of security deposits and on-site inspections of the Property both preceding and following the occupancy by each Guest.
- Necessary Repairs. ASATR shall promptly notify Owner of any needs for any necessary replacement, repairs, improvements or maintenance that is the responsibility of Owner.
- Liaison. ASATR shall act as a liaison between Owner and any Guest who is unhappy, makes a claim, or has a dispute with Owner, and ASATR shall assist in negotiating the resolution of any such claim or dispute, but shall in no way be responsible for the solution to any such claim or dispute.
Compensation Due to ASATR. ASATR shall be entitled to receive a commission in an amount equal to ______%____ of all “Net Rent” (as hereinafter defined) as compensation for ASATR’s services provided pursuant to this Agreement (the “Commission”). ASATR shall deduct and retain its Commission from the total rent collected from Guests. No Commission is due when the Property is occupied by Owner, Owner’s family or non-paying Guests affiliated with or identified by Owner. Owner and Owner’s Guests are subject to the same check-in, check-out times and procedures as Guests who rent the Property from ASATR. In the event any occupant is identified by Owner as non-paying, ASATR shall have no duties under this contract.
Owner’s Representations and Responsibilities.
- Representations. Owner represents and warrants to ASATR that Owner holds vested title to the Property and has full authority to enter into this Agreement, or, if there are any other owners of the Property, Owner represents that Owner has authority to enter into this Agreement on behalf of all other vested owners. This includes obtaining all necessary licenses or permits to operate legally. It’s the responsibility of the Owner to provide a valid copy of all licenses or permits to ASATR.
- Responsibilities. Owner agrees as follows:
- Owner shall immediately notify ASATR of any plans to list the Property for sale and shall make no commitment that shall breach any agreement with any prospective or current Guest.
- Owner shall provide a clean safe, fit home and its contents in working and habitable condition that is satisfactory for rentals at all times.
- Owner shall notify ASATR of any changes made to the Property. Any major changes requiring new photos, per ASATR’s discretion to accurately display the property for rent, the Owner shall be responsible for the photography expenses; these changes may include, but not limited to, paint color, new furniture, structural changes, landscaping, additional features, decor, etc.
- Owner will promptly comply with any notices from ASATR regarding any needs for replacement, repairs, improvements and maintenance of the Property that are the responsibility of Owner.
- Owner shall give advance notice of any maintenance, repair or replacement that will take place at the Property, in order to assure the Property will remain unoccupied for the duration of the repairs or to enable ASATR to adjust the instructions for a Guest.
- Owner shall furnish the Property with good quality, style and utility, including appropriate furniture in each room to accommodate the number the Property will occupy and the appropriate amenities for the number of occupants (dishes, kitchen utensils, pillows, blankets, bedspreads and/or comforters). ASATR has a standard set of materials and has the right to exercise aesthetic approval of the overall Property and all furnishings.
- Owners shall maintain a locked cabinet (referred to as “Owner’s Closet”), used primarily to store Owner’s personal items that should not be accessible to Guests. This may include any bedding, linens, cleaning supplies, etc. Owner agrees to provide ASATR a duplicate key to the Owner’s Closet so that the cleaning teams will have access to the Owner’s Closet.
- Owner shall give Guests complete occupancy of the Property once they have occupancy and shall be accorded peaceful and undisturbed possession of the Property for the duration of their rental period.
- Owner shall provide ASATR with copies of any and all documents and records relating to the maintenance of the Property, including any existing service contracts.
- Owner shall obtain and maintain, at Owner’s sole expense, Bodily Injury, Property Damage and Personal Injury General Liability Insurance, which shall identify ASATR as an additional insured and must cover the obligations of Owner to insure and indemnify ASATR. Owner must furnish ASATR with the appropriate endorsement of all policies. Owner shall Provide ASATR with a copy of a Certificate of Insurance on the Property (showing all endorsements required herein) that will provide for a minimum of ten days notice of cancellations or non-renewal.
- Owner agrees to pay any assessments, dues and premiums on all policies of insurance required under this Agreement and all mortgages, real property taxes, maintenance fees, and other taxes levied and assessed against Property and Owner.
- Owner agrees to have a monthly subscription amount for Netflix removed from their earnings. The chosen subscription will be at ASATR’s discretion and will come out of each month’s rental revenue.
- Across the term of this Agreement, Owner may not exceed personal occupancy of up to _X__ nights per year without written consent from ASATR during peak or holiday seasons. This includes any night that is unpaid or rented at lower than fair market price. Owner shall pay commission, which percentage is agreed upon in this contract, on the fair market value rate, deemed by ASATR, of any night(s) exceeding the allowed personal occupancy per year to ASATR. A peak or holiday season includes:
- Example- Spring Break Dates
- Example- Christmas and New Years
- Example- (depends on location)
- Owner shall pay _$X (Example: $7+/-)_ per stay for guest’s supplies. This may be include, but not limited to, toilet paper, paper towels, soap(s), coffee and tea supplies, dish washing soap, laundry soap, etc. This does not include “fixtures” such as light bulbs, batteries, air filters and the like.
Rental of Property and Rental Receipts.
- Check-In and Check-Out. ASATR shall establish check-in and check-out times for the Property, and initially, ASATR shall set check-in at 4:00 pm and check-out at 11:00 am. ASATR has the authority to change these times at any time.
- Cleaning and Linen. ASATR shall provide each Guest with cleaning and linen services, paid for by the cleaning fees collected from the Guest on each reservation, including (a) cleaning of the Property upon departure of each Guest, limited to ordinary housekeeping operations and excluding maintenance due to damages or wear and tear such as carpet cleaning, laundry of drapes, or the repair or replacement of property damaged or removed by a Guest; and (b) providing fresh linen service at the beginning of each occupancy under a reservation, which includes (but is not limited to) bed sheets, pillow cases, bath towels, wash cloths and kitchen towels. ASATR will provide additional maid services and linen service as requested by Guests during their occupancy, or by Owner at the beginning or during Owner’s occupancy, for a special services fee to be agreed upon and paid by the party requesting the additional services. For the rare occurrence a longer than average guest stay takes place, the owner shall pay for refresh of linens and new set of guest supplies, per ASATR’s discretion.
- Rental Rates. The rental rates charged each Guest for occupancy under a reservation will be set by ASATR based on rents received for comparable units available in the local vacation rental market. Rates may vary greatly due to weather, seasons, length of stay, availability, holidays, days of the week, number of occupants, etc.
- Owner’s Rentals. Owner may reserve the Property for Owner’s use; provided, Owner shall not request the cancellation or movement of booked reservations by third parties. Owner agrees and acknowledges that Owner cannot occupy the Property during anytime in which there is a booked reservation for the Property. Owner shall pay all cleaning fees at the same rate as all Guests.
- Expectations of Guests. ASATR shall ask and expect Guests to take out trash, remove food they brought in, load and start dishwasher, run disposal, turn off lights, lock and secure windows and doors.
- No Rental by Owner. Owner shall not negotiate the rental rate or rent the Property to any third party without ASATR’s prior written approval.
- Rental Receipts. ASATR shall collect all rent due from a Guest for a reservation in advance of the Guest’s occupancy. ASATR shall not be liable to Owner for rental proceeds which cannot be collected for any reason, including but not limited to NSF checks, credit card chargeback’s, unpaid damages.
- Relocation of a Guest. In the event a Guest takes possession of the Property and is moved for any reason to another rental home managed by ASATR, the Rent Proceeds collected for the entire length of the Guest’s stay in both properties shall be allocated to Owner’s Property pro rata based on the number of nights the Guest stayed in the respective properties.
- Disputes. In the event a dispute arises with a Guest regarding the Property, on or after taking possession and for any reason, and if the dispute is resolved by ASATR’s agreement to reduce the Rent, the rent shall be the amount collected in settlement of the dispute.
- Net Rent. “Net Rent” shall consist of the total rent collected from Guests on fully prepaid reservations for the Property, less taxes, cleaning fees, security deposits, credit card charges, travel or reservation agent fees incurred for reservations for the Property, or any other charges incurred by Guest for concierge or other services rendered by ASATR. From the Net Rent received for each month, ASATR shall deduct and retain its Commission; all remaining Net Rent received for such month shall be remitted to Owner with the Monthly Statement, less any other amounts due to ASATR or others as provided for in this Agreement.
- Refunds of Rent. ASATR may refund a Guest’s rent and security deposit without reductions if a reasonable likelihood exists of a continuing dispute or litigation with the Guest arising for any reason, such as cancelled reservations, shortened stays, removal to other rental property.
- Eviction of a Guest. In the event the collection of rent or an eviction of a Guest shall become necessary, ASATR is to incur only those administrative expenses associated with correspondence, billing notices and telephone calls. All other collection or eviction expenses shall be Owner’s responsibility, including attorney fees. ASATR will not incur collection or eviction expenses on behalf of Owner without Owner’s prior approval, except in an emergency.
- Past Due Rents. In the event a collection agency is employed by ASATR to recover monies due from a Guest, Owner hereby authorizes payment to the agency of a collection fee based on a percentage of monies collected by the agency. Any collection fee paid will be deducted entirely from Owner’s share of the rent collected.
- No Representations. ASATR makes no representation to Owner about the amount of rental income Owner may anticipate receiving under this Agreement. However, the rental income from reservations under this Agreement will be derived solely from the rental of the Property, there being no pooling of income or expenses with other units.
Repairs to Property. Owner may maintain a home warranty contract for the repairs to the Property, providing all repairs are accomplished before the next Guest arrives. If ASATR believes that the repair will impact the next Guest, ASATR may arrange for the repairs to be performed or managed through a contractor at a reasonable rate. Owner shall advise ASATR of any regularly scheduled maintenance for the Property (such as mowing, pool/spa maintenance, exterminating fees, etc.), and all costs for such regular maintenance will be paid directly by Owner.
Damage to Property. In the rental process, ASATR will communicate damage charges to each Guest within fourteen (14) business days after check-out by such Guest. ASATR will charge for the cost of willful damages to the Property discovered and attributed to the Guest. ASATR will provide receipts and/or invoices to Owner for any such damages and charges. In no case will ASATR be liable to Owner for more than the amount collected from the Guest. ASATR is not responsible for normal wear and tear on Property.
Term and Termination.
- Term. The term of this Agreement shall be that set forth in Section 1 above. Unless either party provides written notice of termination to the other party at least 30 days before the expiration date, this Agreement will automatically renew for successive periods of one year each. Upon termination, Owner shall honor all future bookings, and ASATR shall retain all fees associated with future bookings.
- Termination for Breach. Either party may terminate this Agreement upon the breach by the other party of a material term of this Agreement, if the breaching party fails to cure such breach within fifteen (15) days after receiving written notice of the breach. All agreed upon fees (specified in other agreements) are due upon termination, and Owner shall reimburse ASATR for all costs incurred by ASATR relating to the Property, prorated for the term.
- No Termination upon Sale. In the event a Contract for Sale is entered into on the premises by the Owner and a third party, this agreement shall remain. The third party (new Owner) shall be informed as part of the Contract for Sale and will inherit the terms of this agreement upon sale. Any items removed from the property upon sale, shall be replaced with equal or greater than value like items for the new Owner to maintain the same level of rental readiness.
- Early Termination. Owner has the right to terminate this agreement with a 60 day written notice to ASATR. Owner will pay an Early Termination Penalty of _X_ if Early Termination takes place within the first term of this Agreement. Owner agrees to not occupy the property during the 60 day notice for more than 7 nights.
- Fair housing laws require Property to be shown and made available to all people without regard to race, color, religion, national origin, sex, disability of familial status. Also, additional protected classes (creed, status as a student, marital status, sex orientation or age)
- Nothing contained herein shall be construed to create a partnership or joint venture between or among parties. It is the express intention of the parties that ASATR shall be an independent contractor to Owner and that Owner shall have no right to control or direct the details of ASATR’s business or activities.
- As of the Effective Date, this Agreement constitutes the entire agreement between the Owner and ASATR concerning the management of the Property and supersedes and replaces all prior agreements between ASATR and Owner, if any, whether written or oral concerning the property. This Agreement shall be binding upon and shall endure to the benefit of the parties hereto and their respective successors and permitted assigns. Whenever in this Agreement a reference is made to any of the parties hereto, such reference shall be deemed to include a reference to the successors and permitted assigns of such parties.
- OWNER HEREBY INDEMNIFIES ASATR FROM ANY LIABILITY, LOSS, DAMAGE, COST OR EXPENSE, INCLUDING ATTORNEY FEES AND JUDGMENTS, ARISING FROM INJURY TO PERSON OR PROPERTY, SUSTAINED BY ANYONE IN CONNECTION WITH THE RENTAL OF THE PROPERTY, NOT CAUSED BY THE NEGLIGENCE OR WILLFUL CONDUCT OF MANAGER OR ITS EMPLOYEES OR AGENTS. OWNER ALSO AGREES TO PROTECT, DEFEND, INDEMNIFY AND HOLD HARMLESS FROM ANY DAMAGES, COSTS, ATTORNEY’S FEES, AND EXPENSES THAT ARE CAUSED BY OWNER, NEGLIGENTLY OR OTHERWISE, ARISING FROM OWNER’S FAILURE TO DISCLOSE ANY MATERIAL OR RELEVANT INFORMATION, OR BY OWNER’S GIVING INCORRECT INFORMATION TO ANY PERSON, OR FOR ANY CONDITION OF THE PROPERTY, WITHOUT REGARD TO WHETHER ASATR’S NEGLIGENT ACT OR OMISSION MAY IN PART HAVE CAUSED THE PERSONAL INJURY.
- ASATR is not authorized to practice law. Where legal assistance is needed for such matters, such as enforcing the collection of rent or eviction of a Guest, such actions will be through legal counsel. All expenses of such counsel will be the responsibility of Owner.
- The prevailing party in any action on a dispute shall be entitled to seek and recover attorney fees and costs. This Agreement shall be governed by the laws of the State of Texas.
- This Agreement shall not be assigned by Owner but may be assigned by ASATR provided ASATR give written notice of such assignment to Owner.
THIS IS A SAMPLE AGREEMENT.