VIEWS: 186 PAGES: 8 CATEGORY: Legal Forms POSTED ON: 5/19/2010
Prepare a contract to manage a residential premises with this template Hawaii Rental Property Management Agreement.
- The property manager is retained on an exclusive basis to rent, lease and manage the rental property.
- The manager will be paid a percentage of the monthly rental amount for managing the property. If the manager undertakes additional work outside the scope of its duties, additional fees will be payable.
- The owner authorizes the property manager to collect rents, sign leases, issue late payment notices, undertake eviction proceedings, purchase supplies, make repairs, and pay all recurring bills on the property.
- The owner indemnifies the property manager against claims arising from the management services, including claims resulting from the owner's failure to make full disclosure about the property.
- The property manager will submit a Form 1099 to the IRS each year for the income derived from the property.
- The owner is responsible for carrying public liability, property damage and worker's compensation insurance.
This Hawaii Rental Property Management Agreement is provided in MS Word format, and is easy to download, fill in and print.
PROPERTY MANAGEMENT AGREEMENT (HAWAII) THIS AGREEMENT made effective as of the _____ day of ______________, _______. BETWEEN: [NAME OF PROPERTY MANAGER] a Hawaii corporation with a head office in the City of _____, Hawaii (the “Agent”) - and - [NAME OF PROPERTY OWNER] (the “Owner”) THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained in this Agreement, the parties hereby agree as follows: 1. Engagement and Grant of Authority. The Owner hereby retains the Agent on an exclusive basis, and the Agent accepts the retainer, to rent, lease and otherwise manage the residential property located at: [insert address of rental property] (the “Premises”) as more particularly described in the Addendum to this Agreement. The Owner grants the Agent the authority and power to perform its duties and responsibilities under this Agreement, and the Owner shall pay the Agent’s expenses in connection with such performance. 2. Term and Termination. The term of the Agreement shall be for a period of ____ year(s), commencing on the _____ day of ______________, _______ and terminating on the _____ day of ______________, _______, and continuing thereafter on a monthly basis until terminated by either party upon thirty (30) days’ written notice to the other party. 3. Management Fees. For finding and screening qualified tenants, preparing the rental agreements, and establishing new tenant records, the Owner shall pay the Agent a fee of ___% of the first month’s gross collections from the tenant. For all other ongoing management services, a management fee of ____% of the monthly gross rental income will be paid, commencing the second month and continuing each month of the tenancy thereafter. If the Owner rents the Premises to a tenant procured by the Agent, then the Agent shall be entitled to the management fee for such rental for the term of the rental contract. 4. Additional Fees. (a) In the event that the Owner requests the Agent to undertake work outside of the duties and responsibilities of the Agent hereunder, the parties shall agree upon an appropriate hourly fee before the work begins. Such work would include such tasks as improvements to the Premises, major restoration after fire, flood or other damage, and similar work. (b) In the event that the Owner sells the Premises at any time to a tenant placed by the Agent, the Owner agrees to pay the Agent a finder’s fee of ___% of the sale price. The Agent shall release the Owner from contract at the close of escrow. (c) The Owner agrees that the Agent may be compensated by the party requesting an assignment of lease for services rendered in negotiating the consent to the assignment. -2- 5. Duties and Responsibilities of Agent. At all times during the term of this Agreement, the Agent shall: (a) diligently perform its obligations hereunder; (b) collect all rents and other charges due from tenants. Agent is authorized to retain all late fees and returned check charges; (c) prepare monthly statements of receipts, expenses and charges and provide the Owner with all such statements; (d) remit all receipts to the Owner, less disbursements. In the event that disbursements are in excess of the rents collected by the Agent, the Owner hereby agrees to pay such excess promptly upon receipt of the monthly statement provided under sub-clause (c) above; (e) deposit all receipts (less proper deductions) in a Trust Account in a bank or other financial institution. The Trust Account funds must be separate and not commingled with any other funds deposited by the Agent. The Owner agrees that the Agent shall not be held liable in the event of bankruptcy or failure of the financial institution; (f) accumulate and maintain a reserve in the Owner’s account of _____% of all monthly receipts, or such other amount as the Owner may direct in writing. The Agent shall not be required to perform any act or duty hereunder involving the expenditure of funds unless there are sufficient funds in the Owner’s account for such expenditure. The Agent may advance sums as necessary, but is not obligated to do so. In any such case Owner agrees to reimburse Agent for such advances immediately upon notice thereof; (g) sign, renew or cancel leases and rental contracts for the Premises; (h) establish a competitive rental rate for the Premises in accordance with existing market conditions, and change the rental rate as necessary to stay competitive and to adjust to seasonal changes in demand (for resort accommodations), with the objective of maximizing the Owner’s return. The Agent shall have the right to grant reasonable discounts at the Agent’s sole discretion, however, the Owner may designate a discounted rental rate for selected tenants and relatives; (i) conduct or arrange for inspections of the Premises prior to a tenant moving in and again when a tenant moves out, and to make the repairs necessary to transfer a reasonably safe dwelling unit to the incoming tenant; (j) advertise the availability of the Premises for rent or lease; (k) perform reference background checks on prospective tenants, including employment, financial, prior eviction and criminal background checks; (l) terminate tenancies, and sign and serve in the name of the Owner such notices as are appropriate; (m) coordinate with legal representatives to institute actions to evict tenants and recover possession of the Premises, and to recover rent and other charges due. The Agent shall pay all legal fees (up to a maximum of $_________) in the event an eviction is necessary, but only if the tenant was recommended and placed by the Agent; (n) when expedient, and with the Owner’s consent, settle, compromise and release actions or suits against tenants, and/or reinstate tenancies which have been terminated; -3- (o) maintain and repair the interior, exterior and landscaping of the Premises, including making periodic inspections; (p) provide 24-hour repair service for after-hours emergencies, and arrange for the expedient repair of any dangerous, unsafe, hazardous or life-threatening defective condition upon being notified of same by a tenant; (q) make contracts for utilities and services to the Premises as the Agent shall deem advisable. The Owner agrees to assume the obligation of any such contract at the termination of this Agreement; (r) purchase supplies and pay all bills with respect to the Premises, including without limitation, utilities, garbage collection, mortgage loan payments, ground lease rent, condominium or homeowner fees, management fees, property taxes, special assessments and levies, and State and Federal revenue taxes (if applicable). The Agent shall not be liable for late fees assessed unless due to the Agent’ negligence. The Agent agrees to secure the prior written approval of the Owner on all expenditures in excess of $_________ for any one item except for: (i) monthly or recurring operating charges, (ii) emergency repairs if, in the opinion of the Agent, such repairs are necessary to prevent damage and to protect the Premises, the occupants, the Owner and/or the Agent, (iii) charges which must be paid to avoid suspension of services or the assessment of penalties or fines, (iv) turn-over maintenance expenses to prepare the Premises for move-in of tenants; (s) arrange, pay for and supervise labor and employees required for the maintenance of the Premises, including maintenance and janitorial staff, and an on-site licensed property manager. The Agent shall have the right to perform any of its duties through the Owner’s attorneys, agents or employees, and shall not be responsible for the acts, defaults or negligence of such parties if reasonable care has been exercised in their appointment and retention. 6. Duties and Responsibilities of Owner. At all times during the term of this Agreement, the Owner shall: (a) indemnify and save the Agent and its officers, directors, agents and employees harmless from and against any and all actions, causes of action, suits, claims, costs, expenses, attorney’s fees, liabilities or damages, including but not limited to those arising out of any injury or death to any person or persons or damage to any property of any kind whatsoever and to whomsoever belonging, including the Owner, which is in any way related to the management of the Premises by the Agent or the performance or exercise of any of the duties, obligations, powers or authorities herein or hereafter granted to the Agent. The Agent will not be liable for any error of judgment or mistake of law or fact or for any loss caused by the Agent’s negligence except when the loss is caused by the Agent’s willful misconduct or gross negligence. This sub-clause will survive the Agent’s performance and the transfer of title; (b) provide complete and accurate information to the Agent, including disclosure of all known facts that materially affect the value of the Premises. If the Premises was built before 1978, the Owner will provide the Agent with all information the Owner has about lead-based paint / hazards in the Premises and with all available documents pertaining to such paint and hazards, as required by federal law. The Owner understands that the law requires the provision of this information to the Agent and to prospective tenants before the tenants become obligated to lease the Premises. The Owner acknowledges that the Broker will rely on Owner’s representations regarding the Premises when dealing with prospective tenants, and the Owner will indemnify and save the -4- Agent and its officers, directors, agents and employees harmless from and against any and all actions, causes of action, suits, claims, costs, expenses, attorney’s fees, liabilities or damages, and from liability to any person, to the extent based on the Owner’s misstatement, negligence, action, inaction, or failure to perform the obligations of this Agreement or any lease or agreement with a vendor, or the existence of undisclosed material facts about the Premises. This sub-clause will survive the Agent’s performance and the transfer of title; (c) promptly pay all amounts billed by the Agent within ___ days of receipt of the Agent’s
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