Platinum Plan Agreement


Pine State Property Management, LLC
d/b/a Professional Rental Operations™

115 Main Street • STE 3A • Bangor, ME 04401
(207) 991-9800

 

1. MANAGEMENT FEE BREAKDOWN SHEET - Platinum Plan

1.1 FEE BREAKDOWN

This form will summarize and present all pertinent fees to this agreement that may be levied in providing management services for the property listed. It is our intent to be fully transparent and clarify all charges up front prior to you moving forwarding in completing this paperwork. The summarized charges are listed below with references to the paragraph in our management agreement. We want you to fully understand what we charge, why we charge it, and what your money is going to be applied towards for our services.

Management Fees = $2,580 Per Year Per Unit (Paid in Monthly Payments of $215 Per Unit): Reference Section 2.19
Pays for the Day to Day costs of managing your home. For the first year of management, yearly fee will be $2,365/unit billed for 11 months at $215/unit. The full yearly fee of $2,580/unit, billed at $215/month will be charged for all subsequent renewals.

Leasing Fees = INCLUDED (NO FEE): Reference Section 2.19
*FREE LEASING FEE WITH PLATINUM PLAN on other plans this fee covers photos, video, marketing, scheduling showings, servicing showings, handling applications, screening applicants, lease preparation etc.

Periodic or Initial Inspection = NO FEE: Reference Sections 2.29 & 2.30
*FREE INITIAL INSPECTION WITH PLATINUM PLAN
* FREE LEASE RENEWAL INSPECTION WITH PLATINUM PLAN
* FREE END OF LEASE INSPECTION WITH PLATINUM PLAN

Annual Technology Fee = $25: Reference Section 2.21
Covers the cost of technology associated with management of unit and prep. and distribution of annual statements.

Set Up Fee = $100: Reference Section 2.20
Pays for the cost of uploading your information into our systems to include the management agreement, property information, warranty information pictures, videos, notes, financials and inspections and bank account set up.

Lease Renewal Fee = $325: Reference Section 2.19
This fee is only charged when a tenant agrees to renew their lease agreement for a minimum of 3 months or longer. Your Leasing Agent assigned to your property earns one half of this fee making them extremely vested in getting your tenants to renew their lease agreement, saving you money.

Maintenance Oversight Cost = NO UP CHARGE: Reference Section 2.26
*NO MAINTENANCE UP CHARGE ON PLATINUM PLAN

Owner’s Insurance and Surcharge = $35 Per Month: Reference Section 2.18
All owners are allowed and encouraged to opt out of this fee by following the stipulations in paragraph 2.18.

Early Termination Fees: Reference Section 2.24
Prior to Lease Execution: No Charge with 30 day's notice           After Lease Execution = No Charge with 30 day's notice

 

By typing your initials below, you acknowledge and agree to the terms in Section 1.



2. PROPERTY MANAGEMENT AGREEMENT - PLATINUM PLAN


2.1 PARTIES

Property Management Agreement by and between (hereinafter, "Owner"):
Owner Name
Company Name (if owned by company) 
Owner Mailing Address
Best Contact Info:
Email:  
Phone Number:
SSN or EIN:
This is required for tax purposes

and Pine State Property Management, LLC, a Maine based Limited Liability Company D/B/A Professional Rental Operations™, with an address of 115 Main Street STE 3A, Bangor,
Maine 04401 (hereinafter, "Manager")


2.2 PROPERTY TO BE MANAGED

NOTE: if more than 3 units total, you qualify for our Multi Unit management plans, DO NOT SUBMIT THIS AGREEMENT, see our Multi Unit Plans page on our website.

Property 1:
Full Rental Address:  

Property 2:
Full Rental Address:  

Property 3:
Full Rental Address:  

 

How many total units to manage?  

2.3 TERM

A. Commencement Date: Upon Completion of this Agreement by all Parties.

B. Term: 12 months from the Date of Commencement of this Agreement, ending on the last day of the 12th month.

C. Automatic Renewal: This agreement will automatically renew.

D. Anniversary Date: This agreement coincides with any current or future tenancy to include leases that Manager inherited on behalf of Owner, or when Manager executes a new lease agreement to include all lease renewals under management.

E. Cancellation Notice: Either party may cancel this agreement with a 30-day written notice.

F. Tenancy: This agreement coincides with any current or future tenancy to include leases that are inherited on behalf of the Owner, or when a new lease agreement is executed by Manager.

G. Owner Handbook: Manager has created an Addendum to this agreement called the Owner Handbook that details Manager's pricing, policies and procedures for Owner review and acknowledgement that this agreement coincides with upon commencement. Any effective changes to the Owner Handbook will be presented via email, to Owner, at a minimum of 60 days in advance.

H. Termination: If Owner violates any terms of service contained in this agreement, or Manager determines that effective management can no longer be provided, Manager may terminate this agreement immediately without notice, subject to all outstanding fees.

2.4 LEASING AUTHORITY OF MANAGER

Owner grants to Manager the following authority which Manager may exercise on behalf of Owner's best interest:

A. Advertise the Property for lease using methods Manager determines to be most effective.

B. Place advertisements to include signs and banners on property in accordance with local rules and regulations. It is Owner's responsibility to make Manager aware of said rules and regulations and any changes to rules and regulations.

C. Place a key lockbox, containing property and unit access devices to include, but not limited to, keys, remotes, access cards etc. on or at the unit and allow staff, maintenance, agents and prospective tenants access to lockbox, unit and common areas.

D. Authorize other managers, their associates, inspectors, appraisers, and contractors to access the property at reasonable times and to disclose security and lockbox codes as required or needed to facilitate access to the property.

E. Duplicate keys and security devices as needed, at Owner's expense, to access the property for showings and repairs, as well as for a tenant.

F. Negotiate and execute pre-approved lease documents on behalf of Owner at rates and terms, designated by Manager, to include, but not limited to, rent price, length of lease agreement, included or not included utilities and services etc.

G. Negotiate and execute any amendments, extensions, or renewals to any lease for the property on Owner’s behalf and terminate leases for the property, negotiate lease terminations and serve notices of termination.

2.5 FINANCIAL AUTHORITY OF MANAGER

A. Collect and deposit Owner rents, security deposits and other funds related to the property and pay any compensation and reimbursements due Manager under this agreement and any other persons this agreement may authorize to compensate.

B. Collect all administrative charges without accounting to Owner any additional tenant fees, administration fees, processing fees, animal fees, application fees, late fees, non discounted rent, NSF fees or any other tenant related charges associated with management.

C. Enforce actions to, at Owner’s expense, evict tenants in the property, recover possession of the property, recover lost rent with damages, and defend against legal action with attorney’s fees and other costs.

D. Engage an attorney of Manager's choosing, at Owner's cost, for legal proceedings such as evictions.

E. Negotiate and make reasonable concessions to tenants on a case by case basis.

F. Obtain information from any holder of a note secured by a lien on the property and any insurance company insuring all or part of the property.

G. Manager is allowed to bring current any delinquent or outstanding fees or bills to avoid fines or other legal action on behalf of Owner, at Owner's expense.

2.6 MANAGER AUTHORITY - MAINTENANCE

A. Routine Repairs: Hire contractors to repair, maintain, improve, or alter the property provided Manager does not expend more than $500.00 for any single repair, maintenance item, or alteration without Owner's prior approval.

B. HVAC -- Plumbing -- Electrical: During repairs for HVAC, Plumbing or Electrical work not regarding the safety and health of a tenant, approved animal, service animal or the property, Manager may expend no more than $800.00 for any single repair, maintenance item, or alteration, without Owner's prior approval.

C. Manager may hire contractors to make emergency repairs to the property without regard to the expense limitations that Manager determines are necessary to protect the property or the health or safety of human, pets or service animals.

D. Manager may contract, at Owner's expense, in either Manager's or Owner's name, for utilities and maintenance to the property during times the property is vacant (or if property is filled and its a responsibility of Owner as outlined in a Lease Agreement) including but not limited to, electricity, gas, water, oil, alarm monitoring, cleaning, pool and spa maintenance, yard maintenance and other regularly recurring expenses that Manager determines are reasonable to maintain and care for the property.

E. At start of this Agreement, Manager will change all locks on Property at Owner's expense ($50-75 per lock, required when Property is turned over to Manager and in between each new tenant). It is required that the lock change be done by Manager. Manager uses a specific key system to ensure the Property, Owner and Tenants are protected.


2.7 MANAGER AUTHORITY - AGREEMENTS

A. This agreement is subject to policy and procedures changes periodically into the Owner Handbook, as laid out in Paragraph "H" of Section "2.3" of this agreement.

B. Manager reserves the right to amend or supplement the terms and conditions contained in this agreement to the Owner Handbook by providing written notice to Owner via email, as laid out in Paragraph "H" of Section "2.3" of this agreement.

C. This agreement may be assigned by Manager without written permission from Owner.

2.8 RECORD KEEPING

A. Manager may file reports with the Internal Revenue Service related to funds received on behalf of the Owner under this agreement. Owner authorizes delivery of 1099 via electronic methods.

B. Manager will remit each month to the Owner funds collected by Manager for Owner under this agreement, less authorized deductions and charges, as well as an electronic statement of receipts, disbursements and charges. Owner may instruct Manager to remit the items to another person or address. If there is no Owner disbursement on a property, Manager will not send a statement to Owner.

C. Unless otherwise agreed upon, overdrawn Owner accounts reaching past 30 days will incur a surcharge for payment by Owner. The charge will equal 10% of the total overdrawn amount with a minimum charge of $50 per month.

2.9 SECURITY DEPOSITS

A. During this agreement, Manager will collect security deposits received from tenants and will account to tenants for the security deposits in accordance with the Lease Agreement. However, it is strictly understood that Manager cannot provide legal advice and Owner should consult with a qualified legal professional regarding any security deposit law. Owner agrees that any return, withholding or deductions of security deposit, as well as notification to tenant of withholding, return or deductions and the timeline in which this is required, lies solely with Owner. All responsibility for tenant security deposits are that of Owner.

B. Owner will waive any liability against Manager, its members, employees, agents, successors and assigns, of and from all actions, causes of action, claims or demands for damages, suits, claims, demands, fees, judgments, costs, expenses, compensation, commissions, consequential damage, specific performance, attorneys fees, or other thing whatsoever in law and in equity, which Owner has ever had, now has, or may or shall have in the future, on account of, or in any way growing out of a from any claim or loss from a tenant or Owner in regard to a security deposit. Owner will be responsible for any legal fees incurred by Manager in lawsuits over a security deposit return. This paragraph survives termination of this agreement.

2.10 FREE LEASING GUARANTEE

Manager will guarantee a tenancy for 12 months (military orders excluded). Should a tenant that Manager screened and placed under an executed Lease Agreement fail to complete an initial term for their Lease Agreement, NO leasing fee will be charged to replace that tenant. This excludes short term lease agreements that are executed or agreements landlord agrees to.

2.11 FREE PET PROTECTION GUARANTEE

Manager charges a monthly Administrative Pet Fee to the tenant for each approved pet. We offer a guarantee that any damages caused to the unit, above and beyond normal wear and tear, resulting from the approved pet(s) that is in excess of the security deposit, will be paid by Manager to make necessary repairs on behalf of the Owner. This excludes service or therapy animals per the local, state and federal Fair Housing Guidelines. This Free Pet Protection is limited to an amount of $750 per tenancy and only while this management agreement is in effect. Any work done to repair the damage must be done by and overseen by and to the sole satisfaction of Manager using materials of similar quality to original. Manager will not provide funds directly to Owner but will pay contractor or maintenance person/company of Manager's choosing directly. Any collection efforts to recoup money from tenant under this provision become the sole responsibility and ownership of Manager.

2.12 FREE DOUBLE SECURITY DEPOSIT GUARANTEE

Manager offers a "Preferred Tenant Program" to assist in marketing your property by easing the burden of up-front expenses that tenants incur while moving. Tenants can "opt-in" to this optional program for a monthly fee in lieu of paying a standard security deposit (generally 1 month rent + $50). If a tenant in Owner's unit opts in to the Preferred Tenant Program, Manager offers Owner the Free Double Security Deposit Guarantee. Under this guarantee, Manager will repair, at expense to Manager, damages caused to the Property by the tenant, above and beyond (at discretion of Manager) normal wear and tear, up to the amount of two (2) times the monthly, non-discounted rent amount. This amount will be limited to $2,500 per unit, per lease. This excludes pet damage covered under our Free Pet Protection Guarantee or optional Pet Protection Guarantee, damage caused by a service or therapy animal per the local, state and federal Fair Housing Guidelines. or tenants/guests not approved by Manager.

Free Double Security Deposit Guarantee is only valid with tenants that Manager has properly screened through our application process, and only applies to those tenants that complete a lease agreement both written and executed by Manager and opt in to the Preferred Tenant Program. Free Double Security Deposit Guarantee only covers damage caused by approved tenants or occupants and does not cover damage caused by guests or unapproved tenants and is only valid while this management agreement is in effect. Any work done to repair the damage must be done by and overseen by and to the sole satisfaction of Manager using materials of similar quality to original. Manager will not provide funds directly to Owner but will pay contractor or maintenance person/company of Manager's choosing directly. This Guarantee excludes fire claims, water claims, natural disaster claims, Owner negligence, unpaid rent, or any damage that can be covered by the homeowner’s insurance policy that Owner is required to carry per this management agreement. Owner will subjugate all rights to pursue any and all debts incurred to Manager, against the tenant. Owner Agrees all fees charged for tenants to opt into Preferred Tenant Program are considered additional administrative fees and are retained by Manager. By signing this agreement, Owner agrees to Manager undertaking this program.

2.13 RESERVE FUNDS

Upon execution of this Agreement, or at time of execution of a new lease, Owner will allow Manager to hold in their account a reserve. These reserve funds will be used to pay any expense related to the leasing and management requirements under this Agreement. If the balance of the reserve becomes less than the amount stated, Manager may deduct the applicable amount from the monthly income to bring balance to the amount requested. The standard reserve fund is $300 per property.

2.14 OWNER DISBURSEMENTS

Owner Disbursements will be batch processed between the 20th and 25th of each month via either ACH or by check sent to the address on file. Manager offers an early disbursement option between the 10th and the 15th of the month for an additional fee.

By selecting Opt in, owner elects to have funds processed faster and disbursed between the 10th and 15th of the month (assuming rent is received by tenant and funds have cleared and been released, if funds have not been received or cleared, they will be processed as soon as possible after clearing) for an additional $120 per year, made in payments of $10 per month. By selecting Opt out, Owner acknowledges payments will be batched processed between the 20th and 25th of the month, assuming funds have been received by tenant and cleared and been released.


2.15 OWNER REPRESENTATIONS

Owner represents and attests to all the following:

A. Owner has fee simple title to and the legal capacity to lease the property.

B. Owner is not bound by another agreement with a Broker or another manager for the leasing, management or sale of this property that will affect the timing of this Agreement. Should Owner enter into an agreement with another manager or with a Broker, this Agreement can be terminated without notice subject to all outstanding fees.

C. No person or entity has any current right to purchase, lease or acquire the property by an option, right of first refusal or any other agreement.

D. Owner is not delinquent in the payment of any property taxes, Association Fees, property hazard insurance or mortgage payments.

E. Owner is in compliance with all local rental requirements to include, but not limited to, licensing, fees, association permission or local taxes.

F. Owner and property is in compliance with all code, fire or life safety requirements.

2.16 PROPERTY CONDITION

A. Owner and Manager are obligated under law to disclose to a tenant or to a prospective tenant any known condition that materially and adversely affects the health or safety of an ordinary tenant. Owner may be obligated under the Property Code to repair such conditions for a tenant.

Owner represents that:
• Any pool or spa has the required enclosures, fences, gates and latches in place to comply with all laws and ordinances; and
• Owner is not aware of any condition existing on the property that would materially affect the health or safety of an ordinary tenant.
• There are working Smoke and Carbon Monoxide Detectors that are interconnected so that if one alarm is activated, they are all activated, there is a minimum of one in each bedroom, and one on each floor outside of the bedrooms and that they are less than 8 years old.

Upon first inspection, or at any time during the term of this agreement, if Manager determines any of the above requirements are not met, Manager, at cost to Owner, will immediately install as required by property code. This is a serious issue that Manager will make NO exceptions for.

B. Utilities: Owner is required to keep utilities connected and enabled to the property during any vacancies. Utilities to include water, sewer, gas, oil and electricity. If Manager is obligated to turn on utilities on behalf of the Owner, a processing fee equal to $75 per occurrence and bill received will be charged. Utilities may be removed out of Owner's name starting the first day of the executed Lease Agreement, assuming Owner is not responsible for said utility under Lease Agreement.

C. Lead-Based Paint: Were any of the properties to be managed under this agreement built prior to 1978?


If YES -- Manager and Owner must complete and attach to this agreement an addendum regarding lead-based paint hazard information that
will be made part of any lease agreement of the property and as required by federal law.

2.17 OWNER AGREES TO

A. Cooperate with Manager to facilitate showing, marketing and leasing of the property.

B. Not rent or lease the property to anyone without Manager's written approval.

C. Not negotiate with any prospective tenant who might contact Owner directly, but instead, refer all prospective tenants to Manager.

D. Not deal with or negotiate with any tenant in the property concerning any matter related to the management or leasing of the property, but instead, refer all tenants and perspective tenants to Manager.

E. Not enter into a listing agreement for sale or a property management agreement with another manager for the rental, leasing or management of the property to become effective during this agreement, without prior written approval from Manager.

F. Provide Manager with any existing copies of lease agreements, related to the property, keys, remotes, insurance documents, maintenance contacts and any warranties within FIVE (5) days of execution of this agreement.

G. Tender to Manager any security deposits paid by existing tenants within FIVE (5) days of execution of this agreement.

H. Notify Manager if Owner becomes delinquent in the payment of any mortgage secured by the property, property taxes, property insurance, Association Fees or any other bill related to the property.

2.18 OWNER'S INSURANCE AND SURCHARGE

A. At all times during this agreement while the property is under management, Owner must maintain in effect a public liability insurance policy (Home Owner’s insurance) that covers losses to the property. This will include an amount equal to the reasonable replacement cost of the property’s improvements and containing endorsements showing the insuring party is aware that the home will be leased to tenants. It is required that the Owner name Pine State Property Management, LLC D/B/A Professional Rental Operations™ as “Additionally Insured” on their Owner’s Insurance Policy.

B. This Agreement will also serve as Owner’s authorization to obtain and discuss any claim regarding the property with the Owner’s insurance.

C. All Owners incur a THIRTY FIVE DOLLAR ($35.00) per month Administration Surcharge to cover the cost of administrative fees associated with home Owner’s insurance policy compliance and tracking.

D. Owners may opt out of the above monthly Surcharge by providing Manager a letter or notice delivered via mail or email that indicates Pine State Property Management, LLC D/B/A Professional Rental Operations™ as “Additionally Insured” on their Owner’s Insurance Policy no later than 15 days from the execution date of this agreement.

2.19 MANAGEMENT FEES

Management Fees: Manager will charge a yearly Management Fee of $2,580.00 per unit for each year that this agreement is in effect. Management Fees will be charged, starting the month this this agreement is executed. Management Fees will be billed on a monthly basis at a rate of $215.00 per unit

Yearly Management Fee = $2,365.00 per unit billed in monthly installments of $215.00 per unit for 11 months for first year. After renewal, yearly fee will be $2,580 per unit, billed in monthly installments of $215.00 per unit.

Leasing Fee = NO CHARGE - Included

Renewals or Extensions: Each time a tenant renews or extends their Lease Agreement, Manager will charge a Lease Renewal Fee of $325.00. This fee will be charged for any executed lease extensions of at least 3 months (unless shorter terms are approved by Owner), with a maximum of 12 months. Longer than 12-month lease extensions will be charged accordingly with a pro-rated Lease Renewal Fee. This charge will be paid upon the execution of the renewal or extension agreement.

Interest on Accounts: Manager retains any and all income resulting from an interest-baring account.

Administrative Fees: Manager will retain any and all administrative fees to include, non discounted rent, late fees, non-sufficient fund fees, returned check fees, pet fees, or any other assessed additional tenant fees.

Landlord Exit Fee: Upon completion or termination of this agreement, Owner will incur a $150 charge for turning over all documentation, accounting for all funds, archiving all files, and forwarding any information required to the Owner and/or tenants.

2.20 SET UP FEE

Upon execution of this agreement, a $100 Set Up Fee will be charged to the Owner. This fee accounts for the set-up of all bank accounts, software, introduction packets, organizing with any existing tenants, out going tenants, and/or Owner’s points of contact to gain access to the home to integrate the home into Manager’s care.

2.21 ANNUAL TECHNOLOGY FEE

There is an annual $25 Technology Fee to Manager to cover the costs of administration fees associated with all technology features and prep work to include electronic delivery of the statements and preparation of annual statement.

2.22 IN THE EVENT OF A SALE

A. In the event that the property goes under a sale contract while this agreement is in effect, agreement will automatically terminate, and Owner will be immediately charged all fees and costs remaining in the agreement, plus a surcharge of 50% of the total balance remaining, unless agreed upon, in writing, by Owner and Manager.

B. Manager is making it known to Owner that at this point in time, Manager has employees who are also licensed in the State of Maine through the brokerage eXp Realty. If Owner enters into a listing agreement with one of Manager's employees who are licensed agents through eXp Realty, Manager will waive the fee under paragraph A of this section.

C. If you already have a listing agreement with a licensed real estate agent, please disregard paragraph B of this section.

2.23 TENANT REALTOR COMMISSION

Manager offers all licensed real estate agents a $200 leasing commission, at cost to Owner, to show and assist in bringing in a qualified applicant to lease your home. The real estate agent is required to show the home in person to be eligible for this commission paid upon tenant move in.

2.24 EARLY TERMINATION OF AGREEMENT

Owner may cancel management services with a written 30-day notice to Manager, without penalty. Owner agrees to pay balance of all fees owed under the term of this agreement in accordance with Paragraph 2.3 and any balance of optional guarantees Owner opts in to.

2.25 LEASE NULLIFICATION

Manager reserves the right to nullify any lease agreements that were executed by Manager, upon termination of this agreement by either party. These leases are for the sole use of clients of Manager. If either party chooses to cancel with a 30-day written notice, a change in management and lease nullification notice will be sent to all parties to any current lease agreement.

2.26 REPAIRS & MAINTENANCE

A. Manager will not up charge  the total invoice amount to handle routine repairs of a property under management. Manager will invoice Owner for any repairs or maintenance done.
REPAIR CHARGES = NO UP CHARGE

B. Vendor Payments: All vendor payments for work conducted on a property under management must be processed through Manager.

C. Owner’s should consider this notice that on occasion without accounting to Owner, Manger may receive incentives, reimbursements, referral fees, cash payments from business associates including, but not limited to, cable companies, internet service providers, contractors and vendors to refer or participate in joint business arrangements relating to repairs, inspections, improvements, maintenance, referrals or group marketing efforts.

2.27 FORECLOSURE NOTICES

A. If Manager receives notice of the Owner's delinquency in the payment of any mortgage or encumbrance secured by the property, property taxes, property insurance or Home Owner's Association fees, Manager may give 15 days to cure the delinquency during which period Owner authorizes Manager to freeze any funds held by Manager and no disbursements will be made to Owner related to this agreement or the Property. If after the 15-day period, the delinquency is not cured and the foreclosure process is initiated Owner authorizes Manager to deduct from any other funds being held by Manager for Owner any remaining Management fees or funds due to Manager related to services
performed under this agreement.

B. Owner authorizes Manager to return any security deposit being held by Manager to a tenant of the Property in addition to any prorated amount of rent being held by Manager and Manager may terminate this agreement without notice. This paragraph does no preclude Manager from seeking any other remedies under this agreement or at law that may be available to Manager.

2.28 OWNER HOME WARRANTY

Does Owner Have a Home Warranty?


Manager DOES NOT recommend using a 3rd party provider for Home Warranty Services. Under this agreement, services calls that require the involvement of a 3rd party home warranty vendor will incur additional charges of $65 per work order.

Home Warranty Failure To Repair: In the event a Home Warranty company fails to complete a timely repair, Manager retains full authority under paragraph 6 to complete any and all necessary repairs at Manager discretion.

Owner must provide Manager any necessary paperwork related to the home warranty, to include but not limited to, warranty company name, contact info, policy number etc. within 5 days of this agreement commencing. Owner must also ensure Manager is authorized with Home Warranty company to order services. If Owner fails to provide necessary info to Manager within 5 days of this agreement commencing or doesn't authorize Manager, Manager will set up account as normal and will conduct repairs as normal. Manager, at Manager's discretion may accept this information later in which case, an additional Set Up Fee will be billed to Owner at a rate of 75% of original Set Up Fee (section 2.20), to cover the cost of updating Owner file.

2.29 PERIODIC ASSESSMENTS

Manager may, at managers discretion, conduct a Home Condition Assessment at the following times: annually, prior to a lease renewal being fully executed, prior to a new tenant taking possession of a unit, and at the termination of this agreement. These assessments are INCLUDED on the Platinum Plan.

2.30 INITIAL INSPECTION

At the beginning of this agreement, and once the Property is surrendered to Manager, an Initial Inspection will be conducted at NO COST to Owner on the Platinum Plan.

2.31 SECURITY DEPOSIT INSPECTION

When a tenant vacates a unit, Manager will conduct a move out inspection of the unit to determine the condition of the unit and make appropriate deductions from the Security Deposit, at a cost to the owner of $50.

2.32 PROFESSIONAL INSPECTION

OPTIONAL: As a cost-effective method for ensuring the Property is reviewed on an annual basis, a Periodic Assessment is conducted with only a visual inspection. During the Periodic Assessment described above, no mechanical, plumbing, electrical, HVAC or other is manually inspected in the Property that requires an Inspector Certification.

We recommend all Owners requiring a more inclusive inspection to allow us to arrange a home inspection by a Certified Property Inspector with a written report once per year.

The cost for this inspection is dependent on the size of the property and the additional items requiring inspection, such as septic system or in-ground pool).

These costs may range from $400 to $1,500+ per inspection.
By selecting Opt in, Owner requests Manager to coordinate for a professional inspection of the Property on an annual basis costing between $400 and $1,500+ per inspection. By selecting Opt out, Owner declines option for a professional inspection of the home conducted annually.



2.33 NECESSARY MAINTENANCE

During an initial or periodic assessment, it may become necessary to perform required maintenance to the Property. It is the policy of the Manager to ensure full compliance with federal, state and local law, code and life safety requirements.

2.34 POOL MAINTENANCE

Does the Property have a pool?

If yes, Owner agrees to provide an ongoing Pool Maintenance Service Contract with Manager. All billing and service arrangements may be made through Manager.

2.35 OPTIONAL MAINTENANCE PACKAGE

By selecting Opt in, Owner agrees to the following:

A. Manager will charge Owner $570 per unit per year, billed monthly at $47.50 per unit.

B. Optional Maintenance Package = $570 per unit per year billed monthly at $47.50 per unit. This includes the following:

     1. No maintenance oversight fee or mark up for routine repairs.
     2. One Security Deposit Inspection included at no charge.
     3. One annual cleaning and maintenance of the heating system by a licensed Heating Tech.
     4. Free Utility Management. Manager will cover any time or coordination expense associated with placing electrical, heating, water/sewer or other utilities back into Manager or           Owner name during a vacancy.
     5. Free re-key services of unit. (Covers re-key only portion of any locks in the unit(s), does not cover the cost for replacement or new locks).
     6. Free Basic Pest Control Service

Optional Maintenance Package:         $570 per unit per year billed monthly at $47.50 per unit per month

Feature

Value

 

No Markup on maintenance invoices

10% of invoice (for example, subcontractor invoice is $2,000 for maintenance, Manager would add a 10% markup without this optional package and owner would be billed $2,200. With this optional package, owner would just be billed $2,000)

*A few maintenance items per year can possibly easily pay for this package based on average maintenance invoices.

Free Security Deposit Inspection

$50 per inspection

*No fee charged for security deposit inspection when opting in to this package.

Free yearly furnace cleaning

$200

*We will coordinate with a licensed heat tech to clean your furnace each year at no cost to you.

Free Utility Management

$75 per utility per occurrence

*Save $75 per utility we need to switch in between tenants. If there are 2 utilities (example, electric and heating fuel) that would be $300 per lease without this package.

Free Re-Key between tenants

$50 per lock

*No charge to rekey all locks in unit between tenants. This does not cover the cost of new locks if needed.

Free Basic Pest Control Service

$110 Per Visit

*We will cover the cost 1 pest control visit per quarter


    
By selecting Opt in, Owner agrees they will be charged $570 per unit per year, billed in monthly increments of $47.50 per unit. Owner agrees that all vendor payments for work conducted on property under management must be processed through Manager. Owner agrees to allow Manager to arrange for the yearly cleaning and maintenance of the heating system by a licensed Heating Tech. This service will be performed each year that the property is under management. In the event that issues are found with the system, Manager will direct Heating Tech to fix the issues in accordance with Section 2.6-B above. This service only covers the cost associated with a basic cleaning. By selecting Opt out, Owner agrees that they are opting out of yearly furnace service and that they are responsible for setting up, coordinating, scheduling etc. all yearly maintenance and service on the heating system. Owner holds harmless Manager for any issues that may arise for the heating system being improperly serviced.

2.35 OPTIONAL BILL PAY SERVICE

By selecting Opt in, Owner wishes to have Manager process and pay bills associated with the Property under management, including, but not limited to, utility, mortgage, taxes, insurance etc.. Owner agrees that within 5 days of executing this agreement, they must contact all billing departments for the bills they wish to have Manager process, and update billing address to

Professional Rental Operations
Attn: Accounts Payable
115 Main Street
STE 3A
Bangor, ME 04401


Owner agrees that they are to remain the obligated grantor, but the billing address will be changed. Owner further agrees that they will provide Owner a list of bills to be paid and will receive acknowledgement, within 5 days of executing this agreement. Manager is not responsible or liable in any manner for any late fees or other charges Owner incurs to any creditor caused by a late or insufficient payment made to any creditor by Manager, on behalf of Owner. Owner agrees that Manager will reimburse itself for any bills paid out of the next rent payment. If there is not sufficient rent to cover the cost of bills paid, Manager will send Owner a statement showing the remaining amount due and Owner will remit payment to Manager within 5 days of Manager sending, subject to Section 2.8 C above. Additionally, if opting into this service, Owner agrees that Manager will retain a "reserve" fund equal to $500 per property, in addition to the reserve funds specified in Section 2.13 above. Owner agrees that by selecting opt in, they will be billed $10 per bill paid by Manager.

2.36 INCLUDED DAMAGE GUARANTEE

This guarantee is designed to cover damages exceeding the Security Deposit, caused by a tenant that fall outside of the Home Owners Insurance coverage, and excludes normal wear and tear. These normal wear and tear standards are in accordance with Maine Revised Statutes Title 14, §6031.1. Owner understands this is NOT insurance.

EXAMPLE: Homeowner rents their home for $1,500 per month. The security deposit for this home is $1,500, but there is $3,000 in damages to the interior of the home, excluding normal wear and tear, caused by the tenant and/or occupants. Manager will cover the expenses to complete these repairs that total more than the security deposits to bring the home back to a rentable condition, up to $1,200).

With Damage Guarantee – Manager will cover ALL costs listed above for $120 per unit per year, billed monthly at $10 per month, per unit, to run for the entire course of management agreement and any subsequent renewals to management agreement, caused by a tenant or occupant, considered to be above normal wear and tear, and that exceeds the received security deposit, up to $1,200.

Damage Guarantee is only valid with tenants that Manager has properly screened through our application process, and only applies to those tenants that complete a lease agreement both written and executed by Manager. Damage Guarantee only covers damage caused by approved tenants or occupants and does not cover damage caused by guests or animals, pets or service animals regardless of the approval status of animal. This Guarantee excludes fire claims, water claims, natural disaster claims, Owner negligence, or any damage that can be covered by the homeowner’s insurance policy that Owner is required to carry per this management agreement and is only valid while this management agreement is in effect. Any work done to repair the damage must be done by and overseen by and to the sole satisfaction of Manager using materials of similar quality to original. Manager will not provide funds directly to Owner but will pay contractor or maintenance person/company of Manager's choosing directly. By opting into this guarantee, Owner will subjugate all rights to pursue any and all debts incurred to Manager, against the tenant. This guarantee will automatically renew with any management agreement renewals. This guarantee cannot be terminated unless during the normal course of termination or as laid out in the management agreement. If Owner terminates management agreement, the remaining balance for the yearly fee immediately becomes due, in addition to any other fees under the management agreement.
Damage Guarantee is INCLUDED at NO CHARGE on the Platinum Plan

2.37 EVICTION GUARANTEE

With the cost of an eviction at an extremely high rate, Manager has come up with a solution to further protect you from unexpected costs incurred in removing a tenant from the Property. To provide a higher level of service, Manager offers EVICTION GUARANTEE. If an eviction becomes necessary, Manager will cover the costs incurred in removing the tenant from Property, for an annual cost to Owner of $120 per unit, billed in monthly increments of $10 per unit. Without such a Guarantee, the costs are, on average, between $400 and $2,500, or more, to process an eviction. In comparison, this is a very inexpensive option. Owner understands this is NOT insurance.

With the Eviction Guarantee - Manager will cover these costs and owners can find assurance that they won't be hit with unexpected costs of eviction proceedings.

This Guarantee will only cover the initial charges pertaining to a full eviction process in the court system and does not include physically removing the tenant's personal items. Any damages that are incurred by the tenant either by normal wear and tear or intentional destruction are not covered by this Guarantee. In the event of malicious damage to the Property by an outgoing tenant, Owners are advised to file a damage claim with their Homeowner's Insurance provider.

This Guarantee does not cover jury trials, and only covers one (1) eviction per calendar year with a maximum allowance of $1,500.00.

This Guarantee does not cover early termination fees, tenants vacating with a military or court order clause, abandonment, or mitigated move outs.

Eviction Guarantee is only valid with tenants that Manager has properly screened through our application process, and only applies to those tenants that complete a lease agreement both written and executed by Manager. Eviction Guarantee only covers evictions of approved tenants or occupants and does not cover evictions of squatters or an occupant that has not been approved by Manager. This Guarantee excludes fire claims, water claims, natural disaster claims, Owner negligence, or any portion of an eviction that can be covered by the homeowner’s insurance policy that Owner is required to carry per the management agreement and is only valid while this management agreement is in effect. Owner will allow Manager to negotiate with tenant as Manager deems necessary in order to get tenant to vacate on their own, and avoid an eviction proceeding. If an eviction takes place, Manager will be entitled to use licensed attorney of Manager's choosing to represent Owner in the eviction proceeding. Manager will pay for eviction directly and will at no time provide any money directly to Owner. By opting into this Guarantee, Owner will subjugate all rights to pursue any and all debts incurred to Manager, against the tenant. This Guarantee will automatically renew with any management agreement renewals. This Guarantee cannot be terminated unless during the normal course of termination or as laid out in the management agreement. If Owner terminates management agreement, the remaining balance for the yearly fee immediately becomes due, in addition to any other fees under the management agreement.
Eviction Guarantee is INCLUDED at NO CHARGE on the Platinum Plan.

2.38 RENT GUARANTEE

To coincide with our Eviction Guarantee, Manager also has a solution to help ensure Owner will receive their monthly income even in the case of a full eviction. If an eviction becomes necessary at the Property, and the tenant refuses to leave after notice has been served, Manager offers a guarantee that Owner will continue to receive up to 30 days of rental income. Owner understands this is NOT insurance.

Most evictions take between 20 and 30 days, or more. This Guarantee will further prevent catastrophic and unforeseen rent losses to an Owner should an eviction become necessary. Every effort will be made to mitigate losses by working with a bad tenant. However, with this Guarantee, Owner will receive up to 30 days of compensation when a tenant is being removed.

Manager guarantees Manager will reimburse Owner up to 30 days of rental income if a tenant is evicted by the courts and forced to vacate with a Writ of Possession being executed by law enforcement.

Example:
A tenant does not pay rent by the 15th of the month, tenant will be served with a proper seven (7) day notice to pay or vacate. At the end of the 7-day time period an eviction filing will be started by an attorney if rent has still not been paid, we will attend court proceedings with an attorney, as necessary, and file for a writ of possession.

Manager reserves the right to negotiate with the tenant regarding unpaid rents for up to 15 days during the month that rent is unpaid. Manager will reimburse Owner for any lost rents (up to 30 days) until possession is gained and the Property can be marketed again.

This Guarantee is provided at a yearly cost to Owner of $144 per unit billed in monthly increments of $12 per unit.

In most cases where a tenant willingly vacates, the Property would go back on the market to be re-rented, which would minimize any income losses. This Guarantee only covers lost rent due to an eviction that results in a Writ of Possession being issued and executed by Law Enforcement. This Guarantee can only be used once per calendar year. This Guarantee does not cover early termination fees, tenants vacating with a military or court order clause, abandonment, or mitigated move outs.

Rent Guarantee is only valid with tenants that Manager has properly screened through our application process, and only applies to those tenants that complete a lease agreement both written and executed by Manager. Rent Guarantee only covers rent up to 30 days of rent if a Writ of Possession is issued and served by Law Enforcement on approved tenants or occupants and does not cover squatters or an occupant that has not been approved by Management. This Guarantee excludes fire claims, water claims, natural disaster claims, Owner negligence, or anything that falls under the homeowner’s insurance policy Owner is required to carry per the management agreement and is only valid while this management agreement is in effect. By agreeing to this Guarantee, the Owner will subjugate all rights to pursue any and all debts incurred to Manager against the tenant. This Guarantee will automatically renew with any management agreement renewals. This Guarantee cannot be terminated unless during the normal course of termination or as laid out in the management agreement. If Owner terminates management agreement, the remaining balance for the yearly fee immediately becomes due, in addition to any other fees under the management agreement.
Rent Guarantee is INCLUDED at NO CHARGE on the Platinum Plan

2.39 PET GUARANTEE

Manager charges a monthly Pet Fee to the tenant and offers a Free Pet Protection Guarantee as laid out in section 2.11 at no additional cost to Owner.

This Optional Pet Guarantee will offer an additional reimbursement to Owner up to $1,200. This Guarantee will cover pet related damages caused to the Property, above normal wear and tear, resulting from the approved pet(s) that is not covered by the security deposit and will be reimbursed by Manager to make the necessary repairs on behalf of Owner. Owner understands this is NOT insurance.

This Guarantee is designed to cover specific pet damages exceeding the Security Deposit that fall outside the Homeowner's Insurance policy and excludes normal wear and tear. These normal wear and tear standards are in accordance with Maine Revised Statutes Title 14, §6031.1 (maximum amount of Guarantee, including Free Pet Protection Guarantee will not exceed $1,200.). This Optional Pet Guarantee can only be used once per calendar year and one time per tenancy.

Optional Pet Guarantee is provided for an annual cost to Owner of $120 per unit, billed in monthly increments of $10 per unit.

Optional Pet Guarantee is only valid with tenants and pets that Manager has properly screened through our application process, and only applies to those tenants that complete a lease agreement both written and executed by Manager to include a pet addendum. Optional Pet Guarantee only covers damage caused by a pet that is APPROVED by manager and does not cover non-approved pets or "Service Animals" as defined by Fair Housing regulations. This Guarantee excludes fire claims, water claims, natural disaster claims, Owner negligence, or any portion of a claim that can be covered by the homeowner’s insurance policy that Owner is required to carry per the management agreement and is only valid while this management agreement is in effect. Any work done to repair the damage must be done by and overseen by and to the sole satisfaction of Manager using materials of similar quality to original. Manager will not provide funds directly to Owner but will pay contractor or maintenance person/company of Manager's choosing directly. By agreeing to this Guarantee, Owner will subjugate all rights to pursue any and all debts incurred to Manager, against the tenant. This Guarantee will automatically renew with any management agreement renewals. This Guarantee cannot be terminated unless during the normal course of termination or as laid out in the management agreement. If Owner terminates management agreement, the remaining balance for the yearly fee immediately becomes due, in addition to any other fees under the management agreement.
Pet Guarantee is INCLUDED at NO CHARGE on the Platinum Plan.

2.40 LIABILITY AND INDEMNIFICATION

A. Manager is not responsible or liable in any manner for personal injury to any person or for loss or damage to any persons real or personal property resulting from any act or omission not caused by Manager's willful negligence. This includes but is not limited to injuries or damages caused by: Other managers, their associates, inspectors, appraisers, and contractors who are authorized to access Property on behalf of the Owner or Manager; Acts of third parties (vandalism, theft or other criminal acts); Freezing, leaking, burst or damaged water pipes; Flooding caused by freezing, leaking, burst or damaged water pipes; A dangerous condition or environmental condition of the Property; Hurricanes or Flooding; Heating system malfunctions or failure;, Heating fuel running out; Electricity being shut off; or the Property's non-compliance with any law or ordinance.

B. Manager is not responsible or liable in any manner for any late fees or other charges Owner incurs to any creditor caused by late or insufficient payments by any tenant in the Property or damages to Owner caused by a tenant's breach of lease.

C. Manager is not responsible or liable in any manner for any late fees or other charges Owner incurs to any creditor caused by a late or insufficient payment made to any creditor by Manager, on behalf of Owner.

D. Owner agrees to protect, defend, indemnify and hold Manager harmless for any damage, costs, attorney's fees, and expenses that: (1) Are caused by Owner, negligently or otherwise; (2) Arise from Owner's failure to disclose material or relevant information about the Property; (3) Are caused by Owner giving incorrect information to any person; (4) Related to the management of the Property and are not caused by Manager, negligently or otherwise.

E. Owner is responsible and liable for all contracts and obligations related to the Property for maintenance, service, repairs, and utility arrangements made before or during this Agreement. Owner agrees to hold Manager harmless from all claims related to such contracts, or lack thereof.

F. Property Codes & State Laws: State law may require certain types of locks or security devices on all exterior doors of residential rental properties and requires smoke and Carbon Monoxide detectors in certain locations including all bedrooms. These guidelines may require the security devices to be rekeyed, peep holes on exterior doors, an interior only locking mechanism and the smoke/CO detectors be tested each time a new tenant occupies the property.

G. INDEMNITY PROVISION: IF ANY THIRD PARTY ASSERTS ANY CLAIM AGAINST MANAGER FOR ANY CAUSE OF ACTION RELATED TO THE LEASE AGREEMENT OR THIS AGREEMENT, OWNER WILL INDEMNIFY MANAGER FROM ANY CLAIMS, INCLUDING ATTORNEY FESS INCURRED IN DEFENSE OF ANY CLAIM.

SECTION 2.40 OF THIS AGREEMENT SURVIVES TERMINATION.

2.41 FEDERAL FAIR HOUSING NOTICE

In accordance with the Federal, State and Local Fair Housing laws and the National Association of Residential Property Managers (NARPM) Manager's services must be provided and the Property must be shown and made available to all persons without regard to race, color, religion, national origin, sex, disability, familial status, sexual orientation or gender identity.

2.42 ACH INFORMATION FOR DIRECT DEPOSIT

Manager uses Property Management accounting software to send monthly Owner Disbursements directly to the Owner's account via ACH for NO CHARGE to Owners on the Platinum Plan.

By selecting Opt in from the drop down below, Owner hereby authorizes Manager to electronically credit Owner's account listed below, and, if necessary, to electronically debit same to correct erroneous credits. Owner agrees that ACH transactions authorized comply with all applicable law. Owner understands this authorization will remain in full force and effect until Owner notifies Manager, in writing, that Owner wishes to revoke this authorization. Owner understands Manager requires at least 30 days prior notice in order to cancel this authorization. Owner further agrees that the banking information provided is correct and that Manager will not verify account ownership. Owner understands by selecting Opt in below Owner will hold Manager harmless for loss or damages associated with ACH transactions being erroneously sent to the wrong bank account. By selecting Opt out below, Owner will receive a check in the mail for any disbursements.


If opting out of ACH payments, please type N/A and select any option from drop down.

Bank Name:  
Account Type:  
Routing Number:  
Account Number:  

2.45 GOVERNING LAW JURISDICTION AND VENUE

Owner and Manager expressly submit to the jurisdiction of the State of Maine and agree that venue in any litigation touching or concerning this agreement shall be proper ONLY in Penobscot County, Maine.

2.46 LIMITATION OF MANAGER LIABILITY

Manager’s liability to Owner shall be limited to the amount of Yearly Management Fees under section 2.19 above actually paid by Owner to Manager under the current term of this agreement, and Owner shall not look to any other property or assets of Manager or to the property or assets of any of the Manager Parties (as hereinafter defined) in seeking either to enforce Manager’s obligations under this agreement or to satisfy a judgment for Manager’s failure to perform such obligations or for any claim whatsoever by Owner weather by error, omission or negligence of Manager. Neither the direct or indirect shareholders, partners or members comprising Manager nor the shareholders, partners, members, directors, managers or officers of any of the foregoing (the “Manager Parties”) shall be liable for the performance of Manager’s obligations under this agreement. The terms of this Section 2.46 shall survive the expiration or termination of this agreement.

2.47 NON-DISPARAGING/REPRESENTATIONS

Owner and Manager mutually agree, that as additional consideration, specifically the mutuality of this clause, each is prohibited from making disparaging remarks/statements or publications regarding the other to any third party, internet, web-based, cloud based, or “review” type publication site, effective the date of this agreement. This provision relates to remarks/statements/publications/opinions/evaluations or any other thought process reduced to writing regarding: (1) this agreement; (2) any parties’ performance under this agreement; (3) the Lease Agreement; (4) any duty or obligation or action of or by Manager that relates to or touches upon the management of the property to be managed under Section 2.2 above. If any dispute arises regarding whether any remark, statement, or publication is disparaging, the parties agree that for purposes of this provision, expressly including the enforcement of this provision detailed below, that any remark, statement, or publication shall be irrefutably deemed disparaging if: (1) the other party requests, in writing, that the writing/publishing party remove the remark and/or publication; and (2) the remark and/or publication is not removed within 72 hours of said requests. Owner,  and Manager mutually agree that damages for failure to comply with this provision shall be liquidated at three hundred dollars per day for each remark/statement/representation that is disparaging or is not removed within 72 hours of request to remove said remark/statement/representation. Owner and Manager further agree that enforcement of this provision is appropriate through a temporary restraining order and/or injunctions and permanent injunctions, notwithstanding any rights under the First Amendment to the United States and/or Maine Constitutions or other codified statute, regulation, or code and that any party who prevails on enforcement of this provision, whether for monetary damages or injunctive relief is entitled to recover attorney fees against the other. The parties to this agreement agree that the terms of this Section 2.47 shall survive the termination, expiration or cancellation of this agreement and is enforceable at any time should any party publish a remark/statement/publication or other writing which is subject to this provision.

2.48 RELEASE OF CLAIMS

Upon termination of this Agreement, Owner forever releases and discharges, and by these presents does for themselves, their heirs, executors, successors, and assigns, release and discharge Manager, its members, employees, agents, successors and assigns, of and from all actions, causes of action, claims or demands for damages, suits, claims, demands, fees, judgments, costs, expenses, compensation, commissions, consequential damage, specific performance, attorneys fees, or other thing whatsoever in law and in equity, which the Owner has ever had, now has, or may or shall have in the future, on account of, or in any way growing out of this agreement between Owner and Manager for the property to be managed under Section 2.2 above, owned by Owner (and any and all amendments thereto), the services provided by Manager pursuant to this agreement and any subsequent dispute over this agreement and services. Owner forever agrees, guarantees and warrants that no other party has any claim whatsoever for property to be managed under Section 2.2 above  and agrees to indemnify and defend at Owner’s sole expense and hold harmless Manager and by these presents does for themselves, their heirs, executors, successors, and assigns, agree to defend at Owner’s sole cost and expense Manager, its members, employees, agents, successors and assigns, of and from all actions, causes of action, claims or demands for damages, suits, claims, demands, fees, judgments, costs, expenses, compensation, commissions, consequential damage, specific performance, attorneys fees, or other thing whatsoever in law and in equity, which the Owner has ever had, now has, or may or shall have in the future, on account of or from any 3rd party in any way growing out of this agreement between Owner and Manager for property to be managed under Section 2.2 above owned by Property Owner (and any and all amendments thereto) the services provided by Manager pursuant to this agreement and any subsequent dispute over said agreement and services. This Section 2.48 shall survive the termination, expiration or cancellation of this agreement.

My signature represents that I have read and fully understand and agree to the above terms and conditions.

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Signature Certificate
Document name: Platinum Plan Agreement
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January 19, 2021 6:11 am ESTPlatinum Plan Agreement Uploaded by Michael Conners - mconners@prorentalops.com IP 72.227.69.11
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