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HomeMy WebLinkAboutKaiser Property Management/ENG/Property Management AgreementPROPERTY MANAGEMENT AGREEMENT THIS AGREEMENT is entered into by and between Kaiser Property Management hereafter called “Agent”), and_______City of Carmel__________, (hereafter called “Owner”), who holds fee simple title to real estate located at _10583 Lakeshore Dr, Carmel, IN 46033, (hereafter called “Property”). IT IS AGREED BETWEEN PARTIES THAT: 1.Owner hereby employs Agent to exclusively lease and manage Owner’s Property according to the terms and conditions set forth herein. 2.Owner agrees that this Property will be offered on the open market in accordance with Federal and State law and race, creed, or color will have no bearing on the acceptability of a Tenant. 3.Agent has the expressed authority to render the following services in connection with the leasing of Owner’s Property: a.Advertise Owner’s Property in local newspapers and business journals at Agent’s discretion. b.Notify local Realtors of the Property and submit information on the Property into the Multiple Listing Service computer for further exposure. c.To display a sign on Owner’s Property for the purpose of advertising its’ availability for lease. 4.Agent has the exclusive authority to approve all advertising and marketing expenses incurred in locating and approving suitable Tenants for Owner’s Property. If Owner requests additional advertising other than Agent provides, cost for such will be charged to Owner. 5.All applicants are required to complete a “Lease Application”, upon Agents favorable investigation of applicant’s employment, previous leasing history, credit history, general references and applicant interview, Agent will contact Owner for final approval. Owner understands and agrees that Agent is not a guarantor of the performance of the lease obligations of any tenant, and Owner hereby releases Agent from any claims, demands, or causes of action arising from any matter to Owner caused by false or misleading information having been supplied to Agent by or on behalf of prospective tenants, or for any other reason. 6.Agent will receive a monthly management fee equal to ten percent (10% ) of the monthly rent. Agent will receive fifty percent ( 50% ) of any late fees assessed. Should Owner terminate this Agreement, with a written notice to Agent, prior to Agent’s obtaining an approved applicant, Owner shall pay to Agent any out-of pocket expenses incurred by Agent in the performance of this Agreement. Agent shall provide receipts of advertising costs. Termination will become effective immediately. In the event the Property is leased within 30 days after termination of this Agreement, to any person procured in whole or in part by efforts of Agent, Agent will be entitled to a Lease Fee. 7.An Occupancy Report will be completed after execution of the Lease Agreement. Any items needing repair or replacement will be noted and such expense will ordinarily be the Owner’s responsibility, in order to render the items in good condition for the inception of a Lease. Items showing noticeable wear and tear will be noted before the inception of a Lease and will be considered by Agent in assessing any damages of the Property upon termination of such Lease. 8.Owner will maintain liability insurance including but not limited to personal injury and property damage covering the Property in an amount not less than $1,000,000 with medical payments coverage for any one injured person in an amount not less than $5,000.00. Agent, it’s directors, officers, employees shall be named as additional insured on said policy, and a certificate of insurance shall be furnished to Agent. Owner does hereby waive and release any and all claims which it may have against Agent for damages to said Property or contents herein to the extent that such damages are covered by such insurance. In addition to liability insurance, Owner will maintain, at his expense, adequate property insurance including, in addition to fire, extended coverage’s, vandals and malicious mischief, and an “all risk” clause on the building and any other improvements existing on the Property, 9.Owner shall indemnify and hold Agent (and its representatives, employees, officers, directors, and agents) harmless from and against all claims and liability, whether separate, several, joint, or concurrent, arising from or connected with Agents control or use of Owner’s Property, including without limitation, any damage or injury to person or property. If Agent shall become a party to litigation commenced by or against Owner, then Owner shall indemnify and hold Agent harmless. This indemnification provided by this paragraph shall include Agent’s legal costs and fees in connection with any such claim, action or proceeding. Owner does hereby knowingly, willing, and with a subjective understanding, release Agent from liability for any accident, damage, or injury caused to persons or property on or about the Property. 10. Agent will provide the following services in connection with the management of Owner’s Property: a.Agent shall make an inspection of both exterior and interior of Premises within the first 30 days of any lease and approximately each month thereafter for the term of the lease. b.Agent shall be responsible for supervision of routine maintenance matters, which expenses are allocated between the Owner – Lessor and the Lessee pursuant to the Lease Agreement. c.Agent will collect rent and have regular contact with Lessee to ensure property is well maintained. d.Upon Owner’s request, Agent will pay all utilities, and/or mortgage, taxes and any expenses pertaining to the Property. If these expenses exceed the rental income, Owner agrees to advance Agent the estimated amount needed. Upon completion or payment Owner will receive receipt of exact amount spent, The following work will be performed at Owner’s expense: 1.A vacant property will be winterized, October through March, including necessary snow removal, lawn service will be required April through September, and all utilities will remain on. 2.Annually, heating and air conditioning systems will be serviced and cleaned, as per lease agreement terms. 3.Prior to occupancy by a new Tenant, all carpets will be professionally cleaned, and necessary repairs and/or painting exterior or interior) shall be completed including any required cleaning, subject to owner’s prior written approval. e.Single maintenance or repair items up to $100.00 will be done at the discretion of the Agent, and in accordance with the Lease Agreement, without prior approval of the Owner. For any maintenance or repair items in excess of $100.00, Agent must obtain Owner’s approval, unless an extraordinary or emergency condition exists and the Owner is unavailable. f.Nothing in this Agreement shall be construed to require the advancement of funds by Agent for any maintenance, replacement, or repair, mortgage payments, taxes, insurance, homeowner’s association dues, or any other claims against the Owner of the Property. g.Agent will keep an Escrow Account for Tenant’s damage deposit. The retention of said deposit will be the responsibility of the Agent. Final determination of the amount of refund of said deposit will be the responsibility of Agent. h.Any mortgage on the Property must be current and in good standing at the time Agent assumes management, and must remain so throughout this Management Agreement. i.Agent shall provide Owner with a monthly computerized statement of preceding month’s receipts and disbursements pertaining to the Property. 11.Lease Up fee will be $ . 12. Owner does hereby authorized Agent to institute actions for the collection of monies due to Owner from Lessee under the Lease Agreement, or do any and all lawful acts and things necessary for the enforcement of the Lease Agreement. Owner hereby acknowledges that any court action will necessitate the services of an attorney. If legal assistance is authorized by the Owner to enforce any right under this Management Agreement or under the Lease Agreement and fees for such legal assistance cannot be collected from the tenant as provided by the lease, the Agent shall be entitled to collect from the Owner all costs and reasonable attorney fees necessarily expanded to enforce such right. 13. The term of this Agreement begins upon the date signed by both the Owner and the Agent and remains in effect until: (a) one year after the date hereof; or (b) so long as a tenant secured for the Property remains in occupancy under a lease, whichever is longer. The term of this Agreement shall automatically be extended for consecutive one year periods at the end of the term hereof unless either party notifies the other of its desire to terminate this Agreement within thirty (30) days prior to the end of the term in effect of time of such notice. In the event that Owner is unable or unwilling to correct a problem that affects the habitability of this property as it relates to health, safety, zoning, or violation of any Federal, State or local statute, regulation or order, Agent retains the right to cancel this agreement with a 7 day written notice. 14.This Agreement is binding upon the successors and heirs of the parties hereto. 15. Any notice, demand, or request or other instrument which may be or is required to be given under this Agreement shall be sent by United States Mail Postage prepaid and shall be addressed (a) if to Agent, to Kaiser Property Management, 12401 Old Meridian Street Carmel, IN 46032, and b) if to Owner at: 2,550.00