Fillable Property Management Agreement (Page 2 of 15) in pdf

Management Services. Owner hereby appoints the Manager as its exclusive agent for the purpose of

management and operation of the Property, for the Owner’s account. The specific services to be provided by

Manager are specified below. Manager shall perform the duties through an on-site manager, through Manager’s

employees or through third-party vendors and independent contractors. Manager shall have the right to charge

Owner the costs of Manager’s employees to perform the obligations under this Section 3 (including on-site

management personnel and any off-site allocated personnel), as reasonably determined by Manager.

3.1

Repairs. Manager shall, in the name of and at the expense of Owner, make or cause to be made

such repairs and alterations to the Property as Manager may deem advisable or necessary; and to purchase all

fuel, supplies, furniture, fixtures and equipment deemed necessary by Manager for operation of the Property.

However, not more than an amount equal to the Limit of Manager’s Authority set forth above shall be expended

at any one time for any single repair, alteration or purchase without Owner’s prior approval, except for monthly

or recurring operating charges or items specified in an approved operating budget (if any). The foregoing

monetary limitation shall not apply to emergency repairs, alterations or purchases if, in the Manager’s sole

opinion, such repairs, alterations or purchases are reasonably necessary to protect the Property from damage or

to maintain services to tenants as called for in their leases or rental agreements. All expenses incurred pursuant

to this Section 3.1 shall be charged to Owner as Expenses under Section 6.2 of this Agreement.

3.2

Service Contracts. Manager shall, in the name of and at the expense of Owner, contract with or

hire third-party vendors for such utilities, trash removal, cleaning, security, window washing, supplies,

equipment maintenance, glass replacement and other Property operation and maintenance services as

reasonably determined by Manager. Attached as Schedule C is a list of employees or businesses in which

Manager has a pecuniary interest that will perform work on the Property. Owner acknowledges that Manager

shall not be responsible to Owner for any act, omission, negligence, or contract default of such third parties.

Manager shall disclose to Owner in writing and in a timely manner, any use of employees or a business in

which the Manager has a pecuniary interest, to perform work on the Property. Manager shall, at Owner’s

expense, purchase and furnish the Property with supplies reasonably necessary to carry out its obligations under

this Agreement. All expenses incurred pursuant to this Section 3.2 shall be charged to Owner as Expenses

under Section 6.2 of this Agreement. Owner shall be credited with all rebates, refunds, allowances and

discounts allowed to Manager to the extent such items are specifically identified to the Property.

3.3

Collection and Segregation of Rents. Manager shall take reasonable steps to collect rent,

additional rent, security deposits, and other charges provided for under the leases or rental agreements

associated with the Property (collectively, the “Client Funds”), in the name of the Manager or the Owner.

Manager is expressly authorized to use a lock box for such collection activities, if deemed appropriate by

Manager. Manager shall prepare a written receipt for any cash funds received under this Agreement; all

receipts shall meet the requirements of the regulations adopted by the Oregon Real Estate Agency (the “REA

Rules”). Manager is authorized to impose a late fee for rental payments received more than four days late, and

a fee for any NSF check received from any tenant. Such fees will be charged to the tenant’s account and, when

paid, shall be retained by Manager as consideration for administrative costs and expenses incurred in connection

with such late payment. All Client Funds received by Manager shall be deposited in a bank trust account

maintained by Manager for the deposit of funds received on behalf of owners of property managed under

property management agreements (“Clients’ Trust Account - Property Management”). All such deposits shall

be made and accounted for in the manner specified in applicable REA Rules. Manager shall be the authorized

signer on the Clients’ Trust Account - Property Management, and shall control the receipts and disbursements

on such account. Client Funds shall not be commingled with the funds of Manager. Owner acknowledges that

the Manager does not guarantee the collection of Client Funds. Owner hereby authorizes Manager to transfer

funds between two or more ledgers and/or accounts maintained for Owner. At the time of any such transfer the

PROPERTY MANAGEMENT AGREEMENT - Page 2

Property Management Agreement Page 2

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