SHORT TERM RENTAL PROPERTY MANAGEMENT AGREEMENT
DATE:______________, 2008 In consideration of the covenants and conditions contained herein:
OWNER, _________________________, hereafter known as "OWNER" and CitiStar Rentals hereinafter called "CR" hereby covenant and agree:
1. THE OWNER HEREBY EMPLOYS CR TO EXCLUSIVELY MANAGE AND RENT ON A SHORT TERM TRANSIENT (DAILY/WEEKLY/MONTHLY)
BASIS THE OWNER'S PROPERTY LOCATED AT: PROPERTY:___________________________Complex____________________
UNIT # __________ADDRESS :_________________________ TYPE: BED____________ BATH_____________________
This agreement shall be effective for one year from date signed by Owner and thereafter continuing for annual terms, termination of this agreement subject to paragraph 21.
3. While each property will have its own individual Internet advertisement, CR will group all rental properties by location, similarity and number of bedrooms and use this grouping to encourage renters requesting booked properties to book a similar unit under our management. Property owners proceeds will vary based upon property owners and owner guests use, quality of décor and amenities of property, location and view.
4. CR will set all rental rates and terms based on the competition of other units in the market. However, CR reserves the right to reject applications with rates not agreed to by CR. Due to competitive market conditions, tourist fluctuations and demand CR reserves the right to alter rates and terms and make special rates and terms at its discretion in order to maximize the OWNERS rental income and occupancy percentage.
5. CR may allow for payments of rents or damage deposits to be made by credit card. Bank charges related to the use of credit cards for payment of rent or deposits shall be deducted from the OWNER’S payout as an additional cost of 3%.
6. CR will promote the rentals on all their 100+ Real Estate web sites and on our specific site for the complex that the unit is located. CR’s main web site www.CitiStarRentals.com has been submitted to over 240 world wide search engines for Panama City Rentals to increase traffic.
7. CR shall not be liable for loss of OWNER”S personal property located in rental property or rents collected resulting from theft, dishonored or un-collectible checks or credit card payments, bank failure, wind, storms, accidents or other causes or events beyond its control. CR shall not be required to initiate legal actions or retain an attorney for the purpose of collection of rents, collection of damages, eviction of tenants or other persons unless directed by OWNER. Collection fees and legal fees are the responsibility of the OWNER.
8. CR shall render to the OWNER within 15 days after the end of each calendar month during which this agreement is in effect, a statement of income collected and expenditures made during the preceding calendar month. CR shall also disburse to the OWNER along with this statement all rents collected less all disbursements made on behalf of and for the account of the OWNER.
9. CR may require advance deposits from tenants and may deposit rent receipts in interest bearing accounts. OWNER agrees that any interest earned in these accounts shall accrue to CR and shall become the sole property of CS to be used by CS at its discretion to provide additional services for the rental program.
11. OWNER shall supply and maintain the furnishings and keep the property in good order and repair. CR shall advise OWNER of special cleaning, repair, or replacement required to keep the property in good order and repair. CR shall notify the OWNER in writing in the event the property is not kept up to acceptable standards, which are deemed to be the typical standards of the majority of comparable properties in the area. The OWNER shall then have 15 days to make arrangements to have the property brought back to acceptable standards or CR shall at their discretion suspend the rental of the property. Upon correction of the deficiencies, at OWNER’S expense, the property will again be placed in the CR rental program.
13. LIABILITY INSURANCE. It is understood that the OWNER shall carry personal liability insurance for the property in the minimum amount of $100,000/$300,000, a copy of which shall be furnished by OWNER to CR, and the OWNER is strongly encouraged to also carry an umbrella policy extending coverage to $1,000,000. OWNER agrees to indemnify and hold harmless CR.
14. CR shall collect a reservation and damage deposit from each tenant prior to the occupancy of any property rented herein. CR shall determine the amount of the damage deposit, require additional deposits or waive deposits as deemed in the best interest of the OWNER. The property will be inspected for damage as soon as possible after the tenant vacates said property by the cleaning contractor. CR will deduct from deposits the cost of missing items or repairs deemed beyond normal wear and use, and return any remaining damage deposit to tenant. It is understood and agreed between the parties that it is not the responsibility of to make a complete inventory and inspection of each item upon each vacation of the unit by the tenant, but rather generally inspect for major item loss and damage. The OWNER agrees to indemnify and hold CR harmless of liability of cost of damages or theft caused by tenants or others and all matters relative to this agreement.
15. OWNER acknowledges that CR makes no guarantee regarding amounts of rental income or expenses and that no inducements or representations of annual income or tax benefits have been made.
16. OWNER agrees to notify CR in writing when property is placed upon the open market for sale. OWNER agrees that property will only be shown when vacant or as coordinated through CR’S rental department. CR may at its sole discretion immediately terminate this agreement without notice and transfer any pending reservations, if in the opinion of CR sale showings and the CRs rental operations of the property cannot be properly coordinated, without any adverse effect on the quiet enjoyment of rental tenants. However our parent company CitiStar Realty is one of the most aggressive marketing companies in Panama City and would be an excellent choice for selling the property.
17. OWNER (OPTION One),______ authorizes CR to accumulate from the first month’s rental income a reserve fund, in the amount of $200 and to maintain reserves at this level. CR may, without prior approval of OWNER, use reserve funds to repair furnishings of the property and replace items of equipment as necessary to maintain rental services to the occupants, provided expenses for repair or replacement do not exceed $200. Additional reserves may be required should OWNER request CR to pay certain monthly expenses from rental proceeds.
(OPTION Two)______, CR will keep a credit card of owner on file for up to $200 in pre approved repairs.
card # __________________________________ Expiration date ____/______, Name________________________________________, Security # on back of card________, Type card Visa,____ Mastercard_____, Discover_____, Amexp._____.
18. OWNER shall be responsible for providing in the property two sets of sheets and towels. CR can supply if necessary and deduct the cost from rentals due owner. The quality of this initial supply of bed and bath linens shall be at least the quality of the typical standards of the majority of comparable properties in the area. The quality of these linens will make your property stand out to renters and keep them coming back. The OWNER may from time to time be charged for the replacement of linens or be requested to purchase additional linens as needed. The entry door to the unit shall be a combination type and no keys will be given to tenants. Owner will need to pay for the lock and backing plate and CR will pay for the installation. Cost will be deducted from the rentals due owner until paid in full.
19. Outside maintenance services requested by the CR rental department on behalf of the rental property OWNER will in most cases be paid from the maintenance reserve and deducted from the rent proceeds to the rental property OWNER. When vendor bills are billed directly to OWNER and not paid in a timely manner, and should the vendor have to request assistance in collection, the bill will be paid by CR and deducted from the OWNER’S proceeds unless OWNER notifies CR of desire to contest bill.
20. OWNER agrees that all rental tenant information shall be the sole property of CR and that all reservations and/or bookings in OWNERS unit(s) are deemed the sole and exclusive property of CR.
23. The OWNER shall pay to CR as a rental property management fee of 20 % percentage of all rentals collected including. THIS FEE SHALL BE DUE CR and will be deducted from each rental receipt. CR will allow the OWNER to rent to friends and family and pay only 50% of the scheduled fees listed below. In addition to rental rates, Tenants (not OWNER) shall pay to CR a unit-cleaning fee for each rental period. This fee is due whether unit is occupied by rental tenant, OWNER or OWNER’S guest. OWNER understands and agrees that CR will be promoting the property of OWNER, the general area where Owner’s property is located, and will be working with and through national and international travel agents, media, as well as other individuals who may have occasion to promote said property and area. OWNER agrees that for promotional purposes , CR may use and have occupied the property of OWNER, free of rent for a period not to exceed five (5) days per calendar year (called complimentary days). CR will not be receiving any rental monies whatsoever for this usage and CR will pay for the cleaning associated with the promotional stay.
These rates may change at any time based on the current availability of quality cleaning contractors. CR will arrange for an annual deep cleaning, general interior house keeping, and carpet cleaning at Owner’s expense.
24. HOLD HARMLESS/INDEMNIFICATION: Owner shall hold harmless and indemnify CR, its parent and subsidiary companies, affiliates, employees, independent contractors, representatives, shareholders, insurers, successors and assigns, from all claims, suits, damages, costs, losses, fees, penalties, taxes, fines, and expenses of any kind arising from or relating to: (i) Owner's failure or refusal for any reason to deliver possession of the Property; (ii) any claim or loss relating to any guests failure to perform under any agreement or failure to pay any funds due Owner; (iii) any injury to any person or property occurring on or about the Property; and (v) any violation of any federal, state, or municipal law, regulation or ordinance by any tenant or Owner. Owner agrees to carry personal insurance to protect against loss of dwelling/furnishings/or general liability claims. Copy shall be available to CR upon request.
Owner may denote any additional remarks, limitations, restrictions, in this section. If none, so state:____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
25. CR requires that the unit have a coded door lock installed at owners expense to eliminate the problems and labor cost with handling keys to and from the tenants, cleaners, maintenance, etc. A key code lock is the most efficient way to eliminate these problems. If a tenant arrives after hours or gets locked out they know that they can get in the unit. Owner will supply two complete sets of linens for change out each cleaning.
Additional Terms: ___________________________________________________________________
Accepted by: (OWNER- Managing owner)
Name ______________________________________ Date______________________
Address ______________________________________, City_________________________ Zip_____________
Social Sec# ______________________ for the year end statements
Phone (day) __________________ (night)___________________Email Address ______________________________________
Owner Signature(______________________________________________________date__________)
All additional owners must sign below:
Name______________________________________Date_________________
Name______________________________________Date__________________