Property Management Agreement s1

PROPERTY MANAGEMENT AGREEMENT

This Agreement is made on ______, between ______(Owner) and Better Homes NJ (Manager), and shall become effective as of ______, and shall continue until ______, unless earlier renewed or terminated or until it is terminated pursuant to this Agreement.

Appointment and Acceptance

1. The Owner appoints the Manager as exclusive agent for the management of the property described in Paragraph 3 of this Agreement, and the Manager accepts the appointment, subject to there terms and conditions set forth in this Agreement.

Description of Premises

2. The Premises are described as follows:

Name: ______Street Address: ______City: ______County: ______State: _____ Number of dwelling units: ______

Professional Management Standards

3. The Manager agrees to furnish the services of its organization, to exert its best efforts and to exercise the highest degree of professional skill and competence in managing the Premises, in order to provide the Owner with maximum economic return consistent with proper management.

Duties With Respect to Leasing and Tenants

4. The Manager accepts the following responsibility, authority, and duties as to renting and leasing the Premises:

Solicitation of Tenants

(a) The Manager will use all reasonable efforts to keep the Premises rented by the procuring tenants for the Premises and negotiating and executing on behalf of the Owner all leases for space in the Premises. However, the Manager will not execute any lease without securing the prior written consent of the Owner. Cooperation with Outside Brokers

(b) The Owner agrees that the Manager shall act as the Owner’s exclusive agent in managing, operating, leasing, and renting the Premises.

Advertising Tenancies

(c) The Manager will advertise the availability of rental or lease space by the full use of appropriate media of communications, such a newspapers, the display of signs on the Premises, and Internet.

Advertising Expenses

(d) The manager will charge all expenses of advertising deer Paragraph 4 ©, above to its own account as a managerial expense and not as an operating expense to be reimbursed by the Owner.

Investigation of Prospective Tenants

(e) The manager will conduct any reasonable investigation of the references of prospective tenants as is necessary to protect the Owner against financial loss and for the protection of the Premises.

Authority and Duty to Enforce Leases

(f) The Manager will serve notice to vacate the premises when the Manager deems the notices necessary will bring any legal action or proceeding to recover possession of rented or leased premises, will compromise and settle the lawsuits, with the approval of the Owner, will incur collection fees, costs, and legal fees.

Collection of Rents and Other Receipts

(g) The Manager will collect all rents, charges, and other amounts receivable on the Owner’s account in connection with the management and operation of the Premises. These receipts will be deposited in an account, separate from all other accounts and funds, with a bank selected by the Owner and maintained in accordance with Paragraph 6(b) of the Agreement. This account will be carried in the Manager’s name and be designated of record s Trust Account. Operation and Maintenance

5. The Owner gives to the Manager and the Manager accepts, the following responsibity, authority, and powers regarding with Premises.

Maintenance Standards

(a) The Manager will cause the Premises to be maintained and repaired in accordance with the sound management policies and local codes, and in a condition acceptable to the owner at all times, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and any other necessary maintenance and repair work, subject to any limitations imposed by the Owner. Specifically, the Manager agrees to perform the following duties:

 Special attention will be given to preventive maintenance, and to the greatest extent feasible, the services of regular maintenance employees will be used.

 The Manager may contract with qualified independent contractors for the maintenance and repair of air-conditioning systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees.

 The Manager will systematically and promptly receive and investigate all service requests from tenants, will take any necessary action, and will keep records of the action taken. Emergency requests will be received and serviced on a twenty-four (24) hour basis. Complaints of a serious nature will be reported to the Owner after investigation.

 The Manager is authorized to purchase all materials, equipment, tolls, appliances, supplies, and service necessary to proper maintenance and repair.

 Notwithstanding any of the foregoing provisions, the prior approval of the Owner will be required for an expenditure that exceeds $100 in connection with the maintenance and repair of the Premises. This limitation will not apply to recurring expenses within the limits of the operating budget or emergency repairs involving manifest danger to person or property, or required to avoid suspension of any necessary service to the Premises. In the later event, the Manager will inform the Owner of the facts as promptly as possible. Maintenance and Inspection of Account Books

(b) The Manager will maintain accurate, complete, and separate records in accordance with generally accepted accounting standards and procedures. These records will show income and expenditures relating to the operation of the Premises, accounts payable and accounts receivable, available cash and other assets and liabilities pertaining to the Premises. The Owner may at any reasonable time, inspect the records kept by the Manager, either in person or through an attorney, accountant, or other representative. The Owner may have an audit made of all account books and records pertaining to the management of the Premises.

In addition to the other requirements specified in this Agreement, the Manager has the following responsibilities with respect to records and reports:

 With respect to each fiscal year ending during the term of their Agreement, and if economically feasible, the Manager will cause an annual financial report to be prepared by a Certified Public Accountant, or other person acceptable to the Owner, based on the preparer’s examination of the books and records of the Owner and the Manage. The report will be certified by the preparer and the manager, and will be submitted to the Owner within 20 days after the end of the fiscal year.

Monthly Receipts and Disbursements Statement

(c) The Manager will provide the Owner with a detailed monthly statement of all receipts and disbursements, to be furnished on or before the10th day of each month for the preceding month. This statement will show the status of collections and will be supported by canceled checks, vouchers, duplicate invoices, and similar documentation covering all items of income and expense, This documentation will be kept in the Manager’s office and be available for inspection by the Owner’s representatives at all reasonable times.

The Manager will also furnish a monthly operating statement showing the income and expense for the month and year to date and for the same portion of the preceding year. If this report is prepared by a computer, the Owner will pay the fee charged to the Manager for the use of the computer. The Manager will be under no obligation to advance funds on behalf of the Owner, but in the event disbursements are in excess of the rents collected, the Owner agrees to pay this excess promptly on demand. Compliance with Governmental Regulations

(d) The Manager will comply with all building codes, zoning and licensing requirements, and other requirements of federal, state, or local authorities having jurisdiction over the Premises. The Manager may, with prior written consent of the Owner, appeal from any requirement imposed by the above authorities when the Manager considers that requirement unwarranted or unreasonable and may, with or without an appeal, compromise or settle any dispute regarding any requirement imposed by the above authorities . Utilities and Services Contacts

(e) The Manager will contract on behalf of the Owner for water, gas, electricity, extermination laundry facilities, telephone service, and other utilities and services necessary in the operation and maintenance of the Premises. No contract for any item involving an expenditure in excess of $______will be made by the Manager without the prior written approval of the Owner.

Fidelity Bond

(f) The Manager will furnish a fidelity bond as provided in Paragraph 10 of the Agreement.

Employment of Necessary Personnel

(g) The Manager will employ, discharge, and pay on behalf of the Owner all servants, employees, or contactors necessary for the management and operation of the Premises. The manager will discharge any servant, employee, or contractor whose discharge is demanded in writing by the Owner, unless the demand is in violation of any written agreement or contract with any servant, employee, or contractor.

Purchase of Supplies and Equipment

(h) The Manager will purchase on the Owner’s behalf all equipment, appliances, supplies, and uniforms necessary for the maintenance or operation of the Premises

Collection and Disbursement of Revenue 6. The Manager has the following authority and duties as to the collection and disbursement of revenues from the Premises:

(a) The Manager will use its best efforts to collect all rents and revenues from the Premises.

(b) The Manager will establish and maintain, in a bank selected by the Owner, a trust account for the deposit of all funds (except for tenants’ security deposits, which will be handled as specified in Paragraph (5) (g) of this Agreement) collected form the Premises. The Manager will withdraw from this account any payments that the Manager must make to discharge the Manager’s responsibilities and duties under this Agreement, and to pay its fees and commission, which are subject to any and all limitations contained in this Agreement.

Insurance Coverage

7. The Manager shall obtain recommendations and premium costs from at least three different insurance companies on all forms of insurance needed to protect the Owner and the Premises. This insurance coverage shall include liability, fire, flood, and other insurance required by law. The Owner shall designate the insurance company or companies whose bids have been accepted by the Owner and the Manager shall secure insurance in the amounts and with the beneficial interests acceptable to the Owner. The following is also agreed between Owner and Manager:

(a) The Manager will be named as coinsured in a policies relating to the property.

(b) Proof of all insurance will be delivered to the Owner in a form acceptable to the Owner.

(c) The Manager will promptly investigate and make a full written report on all accidents, claims, and potential claims for damages relating to the ownership, operation, and maintenance of the Premises, including and damage to or destruction of the Premises and the estimated cost of repair. The Manager will meet and fulfill all requirements applicable to the loss or claim imposed under the insurance policy or policies covering the loss or claim.

Legal and Accounting

8. The Manager will refer matters requiring legal or accounting services to qualified professionals approved b the Owner, and will charge the fees for these ser vices to the Owner’s account as an operating expense of the Premises... Compensation for Managerial Services

9. In consideration for the services to be rendered to the Owner by the Manager under this Agreement, the Owner agrees to pay the Manager 10% of the gross revenues from the Premises actually collected, deducted monthly. The Manager shall be entitled to a commission of one month rent on the leasing or renting space within the Property.

Other Forms of Compensation Prohibited

10. The compensation set forth in Paragraph 12 is to be paid in consideration of all services to be rendered by the Manager and all of the Manager’s employees, except on-premises employees and workers. No disbursements will be made under this Agreement by which managerial expenses reimbursed by treating this reimbursement as an operating expense of the Premises. Expenses of office overhead of the Manager, whether or not allocable to services rendered in the management of the Premises are to be treated as managerial compensation provided for in Paragraph 12. All rebates, discounts, or commissions collected by the Manager, or credited to the Manager’s use, which relate to the purchasing of supplies or the rendering of services for the Premises, must be fully disclosed to the Owner. Any part of any rebate, discount, or commission that is allocated to the purchasing of supplies, or the rendering of services for the Premises, shall be credited to the Owner’s account. For the purposes of this Paragraph 13, all rebates, discounts, or commissions relating solely to managerial overhead expenses need to be disclosed to the Owner and need not be allocated in the part the Owner’s account.

Budgets

10. Annual operating budgets for the Premises must be submitted to the Owner Except as permitted under Paragraph 7(e) above, annual disbursements for each type of operating expense itemized in the budget may not exceed the amount authorized by the approved budget. In addition to preparation and submission of a recommended operating budget for the initial fiscal year, the Manager will prepare a recommended operating budget fore each subsequent fiscal year beginning during the term of this agreement, and will submit the budget to the Owner at least thirty (30) days before the beginning of that fiscal year. The Owner will promptly inform the Manager of any changes incorporated in the approved budget, and the Manager will keep the Owner informed of any anticipated deviation from the receipts or disbursements in the approved budget.

Applicable Law

12. This contract shall be governed and construed in accordance with the laws of the State of New Jersey. Executed by the parties at ______

(city,state)

______DATE PRINT OWNER’S NAME

______DATE OWNER’S SIGNATURE

______MANAGER’S NAME

______MANAGER’S SIGNATURE .