This Agreement is made and entered into on
* Owner Name:
and Metro Detroit Property Management (Manager). Owner employs the services of Manager to manage, operate, control, rent and lease the following described property:
Responsibilities of Manager.Owner hereby appoints Manager as his lawful agent and attorney-in-fact with full authority to do any and all lawful things necessary for the fulfillment of this Agreement, including the following:
A. Collection and Disbursement. Manager agrees to collect all rents and security deposits as they become due; to render to Owner an accounting of rents received and expenses paid; and to remit to Owner all income, less any sums paid out. Manager agrees to collect the rents from the Tenant and to disburse funds by ordinary mail or as instructed by the Owner on the 15th day of the current month, provided, however, that the rent has been received from the Tenant. If rent is not available for disbursement by the 15th of the month – funds will be disbursed on the last day of said month. If the 15th or last day of the month is on a Saturday, Sunday or Holiday, funds will be disbursed the following business day.
B. Maintenance and Labor.Manager agrees to decorate if necessary, maintain and repair the property, and to hire and supervise all employees and other needed labor. The Manager must have maintenance and repairs over $200.00 approved by the Owner. If a necessary repair over $200 is an emergency situation, then this requirement will not apply.
C. Advertisement and Legal Proceedings.Manager agrees to advertise for tenants, screen tenants and select tenants of suitable credit worthiness. Manager will be responsible to determine and set rents for subject property. This determination will be based on the current market conditions. Manager agrees to rent and lease the property; to sign, renew and cancel leases for the property or any part thereof; to sue and recover for possession; and when expedient, to compromise, settle and release any such legal proceedings or lawsuits.
D. Evictions. The Owner will pay all filing fees and court costs for evictions.
Liability of Manager.Owner hereby agrees to hold Manager harmless from, and to defend Manager against, any and all claims, charges, debts, demands and lawsuits. Owner agrees to pay Manager’s Attorney’s fees related to Manager’s management of the herein-described property and any liability for injury on or about the property which may be suffered by any employee, tenant or guest upon the property. Owner agrees to maintain sufficient and prudent all risks property insurance. Owner shall provide a copy of such insurance policy and proof of ownership with signed Property Management Service Agreement to the Manager for the Manager’s records.
Compensation of Manager.Owner agrees to compensate Manager as follows. Owner agrees to pay the Manager an amount equal to the first month’s rent as a fee (commission) for acquiring, screening, and renting the premises. If the property is currently rented at the time Manager is contracted to manage property, there will be no tenant placement fee charged for the current tenant. If a tenant placed by Manager does not occupy the property for any reason for a twelve month period of time and a new tenant has to be selected – there is no additional fee charged to Owner for the subsequent placement (i.e. Owner will pay a maximum of one (1) placement fee in a 12 month period of time). Owner agrees to pay Manager an amount equal to 10% of the monthly rent charged per the lease, per property, with a $75 minimum per unit, and further agrees to abide by the conditions set forth by the Manager to the Tenant on the Owner’s behalf. If property is occupied, these fees shall commence upon the date of this contract. Any late fees collected by Manager from tenant will be split 50/50 between the Manager and Owner. The property management fee is billed on a month-to-month basis, and paid monthly.
All payments are payable to:
Metro Detroit Property Management
P. O. Box 531012
Livonia, MI 48153
Term of Agreement. This Agreement shall be effective as of
and shall expire one year from this effective date.
Upon expiration of the above initial term, this Agreement shall automatically be renewed and extended for a like period of time. Either the Manager or the Owner may terminate this Agreement at any time upon giving a 30 day written notice to other party. Upon termination, Owner shall pay to Manager any fees, commissions and expenses due to Manager under the terms of this Agreement.
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Manager and the heirs, administrators, successors, and assigns of the Owner. Notwithstanding the preceding sentence, Manager shall not assign its interest under this Agreement except in connection with the sale of all or substantially all of the assets of its business. In the event of such sale, Manager shall be released from all liability under this Agreement upon the express assumption of such liability by its assignee.
This Agreement represents the entire Agreement between the parties hereto. IN WITNESS WHEREOF, the
Parties hereto hereby execute this Agreement on the date first above written.
* Owner Electronic Signature:
Manager - Metro Detroit Property Management Signature