Property Management Agreement (Page 3 of 6) in pdf

repairs on Owner’s behalf at Owner’s expense. Agent may require Owner’s prior

approval for all repairs in excess of $350.00.

h. On behalf of Owner, Agent will serve notices on lessees to vacate the leased

premises when the Agent deems such notice necessary. On behalf of and in the

name of Owner, Agent may institute and prosecute legal action or other

proceeding to recover possession of leased or rented premises and/or to collect

amounts due to Owner and may, with the approval of Owner, compromise and

settle any such legal proceeding. If owner approves a settlement of less than the

amount of rent due, Owner shall in doing so release Agent from any and all

causes of action for the remainder of the rent. Agent shall have the sole and

exclusive right to select counsel to initiate any necessary legal action, at the cost

of Owner.

Should Agent determine that eviction is necessary, Agent may institute and

prosecute legal action to achieve eviction. Agent may choose whether to proceed

with one action or two separate actions for eviction and collection of rent in

arrears. If Agent is successful in its action to evict lessee(s), Agent may, as soon

as practical, find new tenants and enter into a new lease on behalf of the Owner.

In connection with any or all legal proceedings, Agent may incur reasonable costs

of collection, including attorney fees and court costs. Agent will charge such

costs, fees and expenses to Owner’s account as expenses of operating the

Property.

i. Agent will maintain books and records (which may be in electronic form) on the

operation and maintenance of the Property. The books and records will be

available for inspection by Owner upon reasonable notice during normal business

hours.

j. Pay outs and/or other distributions of funds held by Agent and due to Owner will

be on the tenth (10

) and twentieth (20

) days of each month. In the event either

the tenth (10

) and twentieth (20

) day falls on a legal holiday or weekend,

distributions shall be made on the next regular business day. Agent will provide

Owner with a report on the tenth (10

) day of each month as to whether or not

Agent is holding any funds for or on behalf of the Owner, and whether Owner is

owed any funds by lessee(s) or other parties.

k. Owner is required to file all necessary Internal Revenue Service (IRS) forms and

meet all IRS requirements pertaining to the Property or income derived therefrom.

Agent shall be considered an independent contractor of Owner and not an

employee.

6. HOMEOWNER’S ASSOCIATIONS. If a Property subject to this Agreement is located

within or belongs to a homeowner’s association (HOA) and/or condominium owner’s

association (COA) that provides services such as cable television, internet, water or sewer

Page 3 of 6

Rev. 12/15/11

Property Management Agreement Page 3

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