Sample Management Agreement
In consideration of the covenants herein contained, MPI PROPERTY MANAGEMENT, LLC (hereinafter called “AGENT”), and _Bennie Alexander_ (hereafter called “OWNER”), agree as follows:
1.The OWNER hereby employs the AGENT for the following purposes:to rent, maintain, and manage the properties located at _______ in the City of _Milwaukee_, State of Wisconsin (hereinafter “Properties”).See addendum “A” for multiple properties if applicable.This Agreement shall begin on ________________________ and shall end on (Termination date).Said Agreement shall automatically renew yearly unless either party hereto notifies the other in writing (60) days prior to the annual renewal date of its intention to terminate this Agreement on the Termination Date.
The AGENT hereby accepts the employment and agrees:
a)To use due diligence in the management of the property during the Agreement term,
b)To render monthly statements of receipts, expenses and charges required to rent, maintain and manage the Property.
c)To remit to OWNER once monthly the net proceeds from the Property.Any additional payments sent will be at a fee of twenty-five dollars ($25). In the event the disbursements shall be in excess of the rents collected by AGENT, OWNER hereby agrees to pay such excess within five (5) days after notice from the AGENT.AGENT may at its option but is not so required, advance funds on behalf of the OWNER.
d)To deposit all funds collected for OWNER in a Trust Account in a national or state insured institution qualified to engage in the banking business.AGENT shall not be held liable in the event of bankruptcy or failure of the financial institution.
3.OWNER hereby gives to AGENT the following authority and powers and agrees to assume the expenses in connection herewith:
a)To advertise the availability for rental of the Property or any part thereof, including but not limited to displaying “For Rent” signs; to sign, renew and/or cancel leases or rental agreements of one (1) year or less for the Property or any part thereof, including rental concessions as inducements to prospective tenants to occupy the property;to collect rents due or that become due and give receipts for said rents; to terminate tenancies and to sign and serve in the name of the OWNER such notices as are appropriate; and to institute and prosecute eviction, small claims and large claims civil court actions and to recover possession of the Property and collect judgments, and when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies
b)To make or cause to be made repairs, maintenance, alterations, and redecorations of the Property. Fees for said repairs shall be billed at the rate of $45.00 per man hour or $67.50 per man hour on weekends and holidays, a $10 trip charge with a one hour minimum, and a reasonable price for materials for the actual service if performed by AGENT. Should OWNER choose another contractor, agent, or employee to make any repairs OWNER shall not hold AGENT responsible for any acts, defaults or negligence. All expense disbursements including but not limited to AGENT’s management fee, repairs, maintenance, cleaning, alterations, redecorating, attorneys’ fees, utility bills, and any other charges related to the operation of the property shall be disbursed from the Trust Account referred to in paragraph 2d). AGENT agrees to secure prior approval of OWNER on all expenditures more than $_______ for any one item, except monthly or recurring operating charges and/or emergency repairs, if in the opinion of the AGENT such repairs are necessary to protect the property from damage or to maintain services to tenants as called for in their leases.
c)To make contracts in the name of the OWNER at OWNER’s sole expense for utilities at the Property including but not limited to electricity, gas, fuel, water, telephone, or rubbish hauling and other services as the AGENT shall deem advisable.
d)To perform at AGENT’s discretion or as reasonably requested by OWNER other functions and services including, but not limited to, supervision of capital repairs or improvements, restoration of damage due to fire or other casualty for such reasonable additional compensation and upon such terms and conditions as the parties shall mutually agree.
4.OWNER further agrees:
a)To indemnify and hold AGENT harmless from all damages, suits, liability, loss or expense including costs and reasonable attorneys’ fees incurred by AGENT in connection with management of the Property and from liability from injury suffered by any employee or other person whomsoever, and to carry, at OWNER’s expense all necessary public liability insurance adequate to protect the interests of the parties hereto, said policies shall be so written as to protect AGENT in the same manner and to the same extent they protect OWNER, and shall name AGENT as an additional insured.AGENT shall not be liable for any error of judgment or for any mistake of fact of law, or for anything which it may do or refrain from doing hereinafter, except in cases of willful misconduct or gross negligence.
b)To pay AGENT a minimum monthly fee of $____ as a management fee. Any amounts payable hereunder may be paid by AGENT from the accounts established under paragraph 2d). Should the accounts contain insufficient funds to pay AGENT, AGENT shall submit an invoice for services hereunder, which OWNER shall pay within five (5) days of invoice date. Delinquent amounts shall bear interest at the rate set forth in paragraph 4(c). If AGENT must appear in court for building code violations as a result of orders not being completed due to the lack of funds or failure to advise AGENT of receipt of such orders, the AGENT shall be reimbursed for their time spent in court at the rate of $150.00 per hour paid from the Trust Account refereed to paragraph 2 (d).
c)To pay all statements within thirty (30) days and to pay interest at the rate of one and one half percent (1.5 %) per month on all unpaid statements.
5.This Agreement may be terminated:
(1)Upon breach of a material term hereof by AGENT and a failure to cure same within thirty (30) days after written notice by OWNER to AGENT specifying such breach; or
(2)Immediately upon an act of proven willful misconduct, theft or fraud by AGENT.
(1)Upon OWNER’s breach of its responsibilities hereunder or failure to provide sufficient funds, to provide authorization required for AGENT to perform its duties under the contract, or to perform actions necessary for AGENT to fulfill its responsibilities hereunder within five (5) days after written notice by AGENT to OWNER specifying such breach unless said breech is pursuant to paragraph 2c) of this Agreement; or
(2)Immediately upon AGENT becoming aware of any breach of law, regulation, ordinance or any other governmental order existing on the property.
(3) If this Agreement is terminated pursuant to this paragraph for any reason OWNER acknowledges that AGENT will suffer significant damages which are not capable of mitigation because of the unique character of this Agreement. Accordingly, OWNER will pay AGENT, as liquidated damages and not a penalty, a termination fee equal to the average management fee per month over the prior six (6) months times the number of months remaining in the contract.
(c)By sale.If Property is sold during the term of this contract a 60-day written notice prior to the day of closing must be given for termination of this Agreement to occur without a termination fee. If 60-day written notice is not given prior to the day of closing OWNER will pay AGENT as liquidated damages and not a penalty, a termination fee equal to 2-months management fee. Management fees will be assessed through the day of closing and the termination fee thereafter. If this contract includes multiple properties only the sold property will be terminated from this contract.
6.This Agreement shall be binding upon the successors and assigns of the AGENT, and assigns of the OWNER.
7.All Security Deposits collected by AGENT will be held in AGENTs Trust Account.
8.A _$___ _Operating Reserve will be held in AGENTs Trust Account to be used when OWNER’s funds fall below any amounts due.
IN WITNESS WHEREOF, the parties hereto have affixed or caused to be affixed their respective signatures;
Dated this _____ day of ____________________ 2017.