pms agreement sample

7/30/2019 PMS Agreement Sample

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Property Management ContractFortune Properties

1601 S. Rainbow Blvd. Suite 130Las Vegas, NV 89146

Office (702) 255-2800 Fax (702) 256-0202

The Owner hereby employs and grants Fortune Properties through its assigned duly licensed propertymanager and Agent : _________________________the exclusive right to rent, lease, operate, manage and

maintain the property known as: _____________________________________________________within

the terms hereinafter set forth, for the period starting on _______________ and ending______________.

Either party hereto may terminate this contract by giving to the other party, in not less than 30 days,prior written notice of their intention to terminate. In the event that any initial contract expenses such asagreed to property preparation expenses, tenant advertising, or solicitation expenses have not been fullyrecovered from a tenancy as rent set-offs ; or prior to tenancy as a result of an uncompleted procuringcause for any reason, Owner agrees to compensate Fortune properties for an documented services as

provided. This contract shall continue indefinitely after the ending date unless terminated by either partywith the 30 days written notice provision.

Duties Owed by Fortune Properties Agent:

a) Use diligence in the performance of this contract. b) Render statements of receipts, expenses, or other charges and to remit to Owner on a quarterly basis, from

the starting date above. Typically Owner receives a summary report with each monthly proceeds check for rent received. (see also Appendix).

c) Accumulate, as a reserve in the Fortune Properties brokers trust account and in custody for the tenant andthe Owner , all tenant deposits plus a pad of $250.00 held from owners second months proceeds for repairs,evictions and utilities when property is vacant. All monies that are either a credit or debit to the landlordsaccount will be reflected on the summary reports. Tenant processing fees are collected up front from

prospective tenants and are not generally refundable if rejected for any reason by the independent reportingagency employed. These fees are retained by management and are used to pay the agency used in the

background check of the prospective tenant. Owner shall not impose inordinate restrictions for the purposeof rejection after the fact and must make clear pre-contract restrictions prior to signing this contract. Pre-contract restrictions may include but are not limited to: restricting pets, non smokers; but may not includearbitrary or unlawful occupancy restrictions. Properties will be leased at the discretion of FortuneProperties after verification and confirmation of background and credit checks.

d) Deposit all receipts collected for Owner (less any sums properly deducted or as otherwise provided for herein) in an interest or non-interest bearing Trust Account at a qualified federal or state institution. Agentmay not be held liable in event of bankruptcy or failure of such a depository to guarantee its deposits.

e) Bonding will be provided by a fidelity bond agency in an adequate amount for any Fortune Propertiesemployee who also handles or is responsible for any Owners monies.

f) Rents will be disbursed in a timely manner using regular U.S. Mail unless otherwise directed by Owner , to

an address initially specified below. Rent paid by cashiers check, money order, automatic deposit, or cashwill be disbursed to the Owner without delay. Rents paid by a personal check cannot be disbursed untilsuch time as the tenants check has cleared the bank. It is recommended that Owners maintain at least aone-payment advance for an indebtedness payment associated with or dependent upon the investmenttenant income.


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Duties Owed by Owner:

The Owner grants Fortune Properties, via its Agent, authority, including a Limited Power of Attorney, to

make decisions on the Owners behalf or in its absence on issues considered crucial to the maintenance of the

property and in the due diligent administration thereof. Owner shall be financially responsible for any actions

related thereto and for fees incurred but not limited to, those listed below:

An initial leasing fee equal to half of the first months rent as an unconditioned draw by Fortune properties

to reimburse expenses such as limited advertising and solicitation expenses, routine signage, and tenant lease

preparation. The Owner is not responsible for fees charged directly to prospective tenants for background

investigations and credit reports upon obtaining their preliminary rental application. Optional services such as

customized signage, targeted advertising in trade journals and Apartment Guide type publications, brochures,

are to be directly invoiced expenses and payable by the Owner . Please note these are extra services that when

requested by the landlord, shall be paid by the landlord. Lease fees offered in MLX to another Realtor are set at

$250, if a Landlord requests a larger fee offered, he will then be responsible for the difference between the $250

and his request. After initial tenant, all subsequent leases there after shall have a flat $350 removed from 1 st

months proceeds. Please note that MLX commissions and ordinary advertising such as Sunday Review Journal

(At the discretion of Management) are expenses incurred and paid for by Fortune properties. Any extra

advertising can be requested and paid for by Owner .

a) Owner directs that Agent: advertise the availability for rental of the herein named premises at its discretion,or any part thereof, and authorizes the compliant display of a For Rent sign affixed thereto; to renew or cancel leases for the premises, or any part thereof; to terminate tenancies and to sign and serve, in the nameof the Owner , such notices as are appropriate; to institute and prosecute actions for eviction of tenant if need be; to recover possession of said premises in the name of the Owner ; to recover rents and other sumsdue; and when expedient, to settle, compromise, and release such actions or suits if reinstatement or resolution of such tenancy is accepted by the Management.

b) Any lease executed for the Owner by the Agent shall not exceed one year unless authorized by the Owner ,with written concurrence by the tenant.

c) A 5-Day Notice to Pay or Quit carries a charge of $150.00 plus court, constable, and locksmith fees,ultimately charged to the tenant by legal action but is guaranteed by the Owner . Normally these fees aretaken from the tenant security deposit in the event a tenant defaults or as a result of a successfullyconcluded judgment in favor the Owner . Landlord is responsible to Management for these fees if there isnot sufficient security deposit to pay them.

d) Owner shall make or cause to be made ( and ultimately supervise) all repairs and alterations, to directdecorating of the premises, to purchase supplies, and to pay all invoices in a timely manner related thereto.The Owner herewith delegates Agent to affect any repair not exceeding $350.00 per occurrence. Any

preauthorized recurring operating expense will normally be handles as set-offs from monthly proceeds or may be directly paid by the Owner as owner obligations exclusively. Emergency repairs in excess of themaximum amount specified above, i.e. air conditioning systems in the height of the summer months, water service or sewage malfunctions are considered to be an emergency repairs and are commonly recognizedin the desert southwest as a threat to health and welfare.

e) Owner shall remain accessible such that every good effort can be made to reach Owner in a timely manner should notification or repair authorizations be required. However, in the event of an emergency, Owner authorizes Fortune Properties to obtain professional serves to repair or replace defective equipment, and/or in the opinion of the Agent, affect such repairs as are necessary to protect the property f rom damage, to

prevent danger to life, or to maintain services as provided by the tenant lease. Owner agrees to promptly pay all such licensed service fees directly and in their entirety. For general repairs made by the FortuneProperties Maintenance Department, a service charge of $35.00 per hour, plus parts, will be incurred.

f) Owner agrees to and pre authorizes repairs if the situation is deemed to be consistent with the above paragraph. In the event Owner has a Home Protection Policy (HPP) for the property (recommended),


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Fortune Properties will engage and coordinate the repairs covered pursuant to the HPP contract in effect. Not withstanding, if the repair required is an emergency and the HPP will be delayed, Fortune Propertiesreserves the right, as granted by the Owner , to call a licensed plumber or electrician to take care of the

problem so that the property is maintained properly and to minimize the risk of liability or damage.g) Management agrees to hire, discharge and supervise all labor and employees required for the operation and

maintenance of the premises. Fortune Properties shall not be responsible for their acts, default or otherwisenegligence when reasonable care along with due diligence has been exercised in their appointment or retention.

h) Owner agrees to allow Fortune Properties to place orders for electricity, gas, fuels, water, window cleaning,vector, or insect extermination, refuse hauling, or any other critical service (excluding tenant electiveservices such as telephone, TV cable or ISP services) as deemed advisable, for the purpose of managing thecomplete property under the provisions of the tenant lease. Service deposits to utility companies aregenerally paid directly and in advance of service rendering by the Owner but can be a lease provision for atenant at the Owners discretion.

i) Owner is assumed to be the sole holder of the obligation of any contract so entered into as described hereinand at termination of this contract asserts that all documented expenses incurred by Fortune Properties will

be brought current and settled prior to such termination. Turning utilities on for a landlord/owner duringtime of vacancy, or maintenance, repairs or remodeling may also incur deposits and fees that will be paid

by the Owner in connection with these services. j) In the absence of any special provisions otherwise agreed to in writing, Owner will pay for and be

responsible for any loan indebtedness relative to the property, taxes, fees, special assessments, or insurances as required by the Owner . Fortune Properties has no liability whatsoever for the services hereindescribed in this paragraph.

k) Landscaping, prior to and after renting the property, unless lease arrangements providing for such activities by the tenant and made in writing and agreed to, shall be the responsibility of Fortune Properties. Eachonsite visit for mowing, edging, trimming, gardening, and/or maintaining irrigation systems are generallyinvoiced at a fixed rate of $50.00 per visit (barring special circumstances, size and situations, plus parts if needed). These visits will be kept to a minimum or as directed by the Owner but not to the detriment or risk of damage to the property itself. Owner has the right to subcontract landscaping if desired. FortuneProperties will be held harmless for any liability or damages resulting as a result of any independent third

party agreement for services entered into by the Owner. Owner acknowledges that these visits by FortuneProperties may be necessary to keep the property landscaped and in presentable condition even if a tenantneglects to maintain the property by tenant agreement. It is acknowledged that these activities, regardless

of who pays for them, may be required to avoid violations of local ordnances or fines imposed for the lack of defined property up-keep standards as prescribed.

Additional Authority Granted to Fortune Properties by Owner:

a) The Owner shall indemnify and save Fortune Properties and its agents harmless from any and all costs,

expenses, attorneys fees, suits, liabilities, damages, or claims, including but not limited to those arising out

of injury or death to any person or persons or damage to any property of any kind whatsoever and to

whosoever belonging, including Owner , in a way relating to the management of the premises by the agents

or in the performance of, or exercise of any of the duties, obligations, powers or authorities herein or

hereafter granted to the agent by the Owner .

b) Owner , at its sole expense, shall carry such public liability, property damage and workers compensation

insurance, which shall fully protect, in addition to the Owner , the interests of Fortune Properties and its

Agents. Such insurance policies shall designate Fortune Properties as co-insured with the Owner and be

evidenced by the issuance to Fortune Properties, of a current Certificate of Insured for the entire period of

the effectiveness of This Contract.

c) For management of the premises described herein a charge of 8% of the monthly gross rent collected for

any month on a monthly basis is herewith the agreed upon management fee. Any commission paid to a


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cooperating Realtor through the use of the Multiple Listing Service (in any increase amount not toexceed $250.00 without specific Owner authorization to increase) deducted from Owners proceeds.

d) In the event that the Owner requires Fortune Properties to undertake additional work exceeding that

associated with the normal management activities, an agreed upon service fee shall be negotiated that may

also be deducted from the Owners proceeds. Examples of this type of work includes on-site jobsupervision, modernization, refinancing, restoration, obtaining tax or legal advice, presenting petitions or

permit applications to planning or zoning boards or committees, advising on proposed new construction, or

other real estate consulting requiring professional opinions, services or reports.

e) The Owner agrees that Fortune Properties may also be compensated by any party or parties not limited to

the Owner requesting an assignment of a lease, or for approved services rendered in negotiating a consent

of assignment that must be approved by the Owner.

f) Normally all utilities are paid by the tenant except for sewer and taxes. Utilities paid by tenants are

typically electric, gas, telephone, t rash, and cable.

g) Personal property, left in the property for use by a tenant but belonging to the Owner shall be identified inwriting to Management by Owner.

Notices:

1) If it shall become necessary for Fortune Properties or Owne r to give notice of any kind, the same

shall be written and served, or by sending such notice by certified mail to the address shown under

their signature below at the Owners expenses. An Opt-in Agreement for electronic e-mail to

further expedite this provision (and is highly recommended for efficiency) will be provided upon

request.

2) This agreement shall be binding upon the successors to Fortune Properties and the heirs,

administrators, executors, successors in addition to assignees of the Owner .

3) Owner shall provide to Fortune Properties a current copy of any HOA documents regulating any

tract so governed upon which the property is located and for which notice thereof must be

acknowledged by a tenant or as is required in any leasing agreement.

4) Owner may provide, at its own expense, service copies of documents defined in paragraph 3

above, or, may authorize Fortune Properties to provide certified copies of such required

documents to a tenant at a copy fee of 10 cents per page.

5) In the event rent has been prepaid and commission paid to management as stated in NRS, those

prepaid management fees will not be reimbursed to Owner . If Owner terminates Management

contract prior to end of prepaid rents.

6) Landlord is aware, Fortune Properties is a Nevada licensed Real Estate company and able to

market and sell the property on request.


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The parties acknowledge this Contract, as having been read and agreed to with the following execution and receipt

of a copy thereof on this _____day of __________, 200__.

Owners Signature: Name Printed Social Security Number

Additional Owners: Name Printed Social Security Number

Mailing Address:

City: State: Zip:

Owner Authorized Telephone Numbers: E-Mail address:

Date:Agent for Fortune Properties:

Nevada License Number:

Date:Entered by Fortune Properties Broker:

Nevada License Number:

Required notices to be acknowledged and signed by all parties to this contract by the State of Nevada Revised

Statues:

Attached & Signed: Duties Owed

Attached & Signed: Consent to Act by a Nevada Real Estate Licensee


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Typical Practices, Services and Reports

High quality answering devices receive routine calls and faxes after hours (and on weekends).

Messages may be left accordingly and will be dealt with no later than 48 hours where practical, after receipt of the original call.

Tenants and Owners are provided with emergency telephone numbers to directly accessFortune Properties .

E-Mail Return Receipt response is acknowledged as documentation as to what was sent, when sent,and when it was received and read.

Fortune Properties provides extensive tenant screening that may delay a timely rental agreement.We do not recommend by-passing these steps in our procedure.

We collect and deposit all tenant rents, deposits, and securities and deposit them in a timely manner in a regulated Trust Account.

Rents are collected on the first of each month and proceeds are distributed to Owner promptlythereafter depending upon the method of payment and check distribution instructions by Owner .Regular mail may, or may not be, a dependable conveyance method. Checks placed in the U.S. Mailwill contain a restricted endorsement providing for Deposit Only to the Acc ount o f the Payee .

Complete financial ledgers are kept on each property along with a detailed activity log and spreadsheet.

Our files and Trust Accounts are always open for inspection during regular business hours, Mondaythrough Friday 9am-5pm, (Saturdays by appointment.)

Sharon A. Wilson , is the Managing Broker for Fortune Properties and exercises the ultimateresponsibility for this contract. She generally may be reached 24/7 for consultation or emergencies.

Tina Montes, Broker Assistant, Realtor and Licensed & Property Manager is our point of contactfor routine matters. All financials are maintained by staff and reconciled monthly. Reports areforwarded as required, every 90-days, but more commonly accompany each monthly proceedscheck.

Upon specific written requests, Fortune Properties will also pay mortgages, Home Owners Association fees, taxes, or make deposits directly to Owner accounts established for these purposes.

Our services may be customized to provide for Owner needs.

We are capable of handling most all property management situations including difficult tenancies andInsist that landlords be informed regarding all aspects of their operation or use (illegal) of their theproperties.

We perform routine on-site inspections of properties for review and analysis, documenting findingswith photographs or videos for immediate e-transmittal to Owners .

Dispute resolution is subject to consideration by qualified arbitrators provided by the Greater LasVegas Association of Realtors and/or at the direction of the Nevada Real Estate Division.

Late fees are $50.00 if not paid by the 5 th of the month and $10.00 a day there after. 50% of these

fees are payable to the Landlord with 50% are retained by Management.


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Approved Nevada Real Estate Division Page 1 of 1 524Replaces all previous editions Revised 05/01/05

CONSENT TO ACTThis form does not constitute a contract for services nor an agreement to pay compensation.

DESCRIPTION OF TRANSACTION: The real estate transaction is the sale and purchase or lease of

Property Address:

In Nevada, a real estate licensee may act for more than one party in a real estate transaction; however, before the licenseedoes so, he or she must obtain the written consent of each party. This form is that consent. Before you consent to havinga licensee represent both yourself and the other party, you should read this form and understand it.

Licensee: The licensee in this real estate transaction is (Licensee) whose

license number is and who is affiliated with (Brokerage).

Seller/Landlord Print Name

Buyer/TenantPrint Name

CONFLICT OF INTEREST: A licensee in a real estate transaction may legally act for two or more parties who haveinterests adverse to each other. In acting for these parties, the licensee has a conflict of interest.

DISCLOSURE OF CONFIDENTIAL INFORMATION: Licensee will not disclose any confidential information for one year after the revocation or termination of any brokerage agreement entered into with a party to this transaction,unless Licensee is required to do so by a court of competent jurisdiction or is given written permission to do so by that

party. Confidential information includes, but is not limited to, the clients motivation to purchase, trade or sell, which if disclosed, could harm one partys bargaining position or benefit the other.

DUTIES OF LICENSEE: Licensee shall provide you with a Duties Owed by a Nevada Real Estate Licenseedisclosure form which lists the duties a licensee owes to all parties of a real estate transaction, and those owed to thelicensees client. When representing both parties, the licensee owes the same duties to both seller and buyer. Licenseeshall disclose to both Seller and Buyer all known defects in the property, any matter that must be disclosed by law, and any information the licensee believes may be material or might affect Sellers/Landlords or Buyers/Tenants decisionswith respect to this transaction.

NO REQUIREMENT TO CONSENT: You are not required to consent to this licensee acting on your behalf. You may Reject this consent and obtain your own agent, Represent yourself, Request that the licensees broker assign you your own licensee.

CONFIRMATION OF DISCLOSURE AND INFORMATION CONSENT

BY MY SIGNATURE BELOW, I UNDERSTAND AND CONSENT: I am giving my consent to have the aboveidentified licensee act for both the other party and me. By signing below, I acknowledge that I understand theramifications of this consent, and that I acknowledge that I am giving this consent without coercion.

I/We acknowledge receipt of a copy of this list of licensee duties, and have read and understand this disclosure.

Seller/Landlord Date Time Buyer/Tenant Date Time



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DUTIES OWED BY A NEVADA REAL ESTATE LICENSEEThis form does not constitute a contract for services nor an agreement to pay compensation.

In Nevada, a real estate licensee is required to provide a form setting forth the duties owed by the licensee to:a) Each party for whom the licensee is acting as an agent in the real estate transaction, andb) Each unrepresented party to the real estate transaction, if any.

Licensee: The licensee in the real estate transaction is

whose license number is . The licensee is acting for [clients name(s)]

who is/are the Seller/Landlord; Buyer/Tenant.

Broker: The broker is , whose

company is .

Licensees Duties Owed to All Parties:A Nevada real estate licensee shall:

1. Not deal with any party to a real estate transaction in a manner which is deceitful, fraudulent or dishonest.2. Exercise reasonable skill and care with respect to all parties to the real estate transaction.3. Disclose to each party to the real estate transaction as soon as practicable:

a. Any material and relevant facts, data or information which licensee knows, or with reasonable care and

diligence the licensee should know, about the property. b. Each source from which licensee will receive compensation.4. Abide by all other duties, responsibilities and obligations required of the licensee in law or regulations.

Licensees Duties Owed to the Client:A Nevada real estate licensee shall:

1. Exercise reasonable skill and care to carry out the terms of the brokerage agreement and the licensees duties inthe brokerage agreement.

2. Not disclose, except to the licensees broker, confidential information relating to a client for 1 year after therevocation or termination of the brokerage agreement, unless licensee is required to do so by court order or theclient gives written permission.

3. Promote the interest of the client by:a. Seeking a sale, lease or property at the price and terms stated in the brokerage agreement or at a price

acceptable to the client. b. Presenting all offers made to, or by the client as soon as practicable.c. Disclosing to the client material facts of which the licensee has knowledge concerning the real estate

transaction.d. Advising the client to obtain advice from an expert relating to matters which are beyond the expertise of the

licensee.e. Accounting to the client for all money and property the licensee receives in which the client may have an

interest.

Duties Owed By a broker who assigns different licensees affiliated with the brokerage to separate parties.Each licensee shall not disclose, except to the real estate broker, confidential information relating to client.

Licensee Acting for Both Parties: You understand that the licensee _______ may or _______ may not, in the future act(Client Init) (Client Init)

for two or more parties who have interests adverse to each other. In acting for these parties, the licensee has a conflict of interest. Before a licensee may act for two or more parties, the licensee must give you a Consent to Act form to sign.




Approved Nevada Real Estate Division Page 1 of 1 525

Replaces all previous versions Revised 10/01/05


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Approved Nevada Real Estate Division Page 1 of 1 524Replaces all previous editions Revised 05/01/05

CONSENT TO ACTThis form does not constitute a contract for services nor an agreement to pay compensation.

DESCRIPTION OF TRANSACTION: The real estate transaction is the sale and purchase or lease of

Property Address:

In Nevada, a real estate licensee may act for more than one party in a real estate transaction; however, before the licenseedoes so, he or she must obtain the written consent of each party. This form is that consent. Before you consent to havinga licensee represent both yourself and the other party, you should read this form and understand it.

Licensee: The licensee in this real estate transaction is (Licensee) whose

license number is and who is affiliated with (Brokerage).

Seller/Landlord Print Name

Buyer/TenantPrint Name

CONFLICT OF INTEREST: A licensee in a real estate transaction may legally act for two or more parties who haveinterests adverse to each other. In acting for these parties, the licensee has a conflict of interest.

DISCLOSURE OF CONFIDENTIAL INFORMATION: Licensee will not disclose any confidential information for one year after the revocation or termination of any brokerage agreement entered into with a party to this transaction,unless Licensee is required to do so by a court of competent jurisdiction or is given written permission to do so by that

party. Confidential information includes, but is not limited to, the clients motivation to purchase, trade or sell, which if disclosed, could harm one partys bargaining position or benefit the other.

DUTIES OF LICENSEE: Licensee shall provide you with a Duties Owed by a Nevada Real Estate Licenseedisclosure form which lists the duties a licensee owes to all parties of a real estate transaction, and those owed to thelicensees client. When representing both parties, the licensee owes the same duties to both seller and buyer. Licenseeshall disclose to both Seller and Buyer all known defects in the property, any matter that must be disclosed by law, and any information the licensee believes may be material or might affect Sellers/Landlords or Buyers/Tenants decisionswith respect to this transaction.

NO REQUIREMENT TO CONSENT: You are not required to consent to this licensee acting on your behalf. You may Reject this consent and obtain your own agent, Represent yourself, Request that the licensees broker assign you your own licensee.

CONFIRMATION OF DISCLOSURE AND INFORMATION CONSENT

BY MY SIGNATURE BELOW, I UNDERSTAND AND CONSENT: I am giving my consent to have the aboveidentified licensee act for both the other party and me. By signing below, I acknowledge that I understand theramifications of this consent, and that I acknowledge that I am giving this consent without coercion.




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