1.      Qualifying Tenants:  The Property Manager shall use all reasonable efforts to lease the property as described to desirable tenants.  Property Manager shall follow preset guidelines for qualifying potential tenants. (Please see attached rental qualifications)

2.      Rent Collections:  The Property Manager shall take all reasonable and necessary action to collect rents, charges or other income when due from tenants of said property in accordance with the terms of their tenancies and may execute all receipts or other documents reflecting receipt of said sums on behalf of the owner.  Property Manager will file all notices on behalf of owner for non-payment of rent, coordinate with our attorney for the filing of court documents and attend all necessary court appearances.

3.      Trust Account:  All sums received from rents, supplies & services from the property shall be deposited in a “trust account” maintained by the Broker.  The Property Manager shall render to the Owner a monthly statement of receipts and disbursements.  Disbursements may include Mortgage payments, association payments, miscellaneous repairs, commissions and management fees.

4.      Statements:  The Property Manager shall maintain full and accurate records of the accounts of the property.  Property Manager shall supply the owners with a detailed monthly statement.  Said monthly statement shall be deemed accurate and correct between the parties unless owner notifies Property Manager within (30) days after the date of said statement of any claimed error or inaccuracy.  In the event there is a deficit in the account of the property, Property Manager shall notify the Owner of the amount of this deficiency, and Owner agrees to forward this amount to the Property Manager within (24) hours notice.  Property Manager shall provide Owner with an annual statement and a 1099 no later than February 15 of the following year for taxes.

5.      Maintaining Property:  The Property Manager shall do everything reasonably necessary for the proper management of the property, including, without limitation thereto, periodic inspections, handling all tenant requests and negotiations, supervision of maintenance and arranging for such improvements, alterations and repairs as may be required of Owner.  Property Manager shall obtain approval from Owner for any expenditure for repairs, improvements or work in excess of a pre-determined amount according to property management agreement and excluding monthly or recurring operating charges and/or emergency repairs in excess of the maximum.  If in the opinion of the Property Manager, such repairs are necessary to prevent additional damage or a greater total expenditure to protect the property from damage or to maintain services and conditions to the tenants as called for by their tenancy.  The Property Manager shall notify the Owner promptly whenever emergency repairs have been ordered.  Property Managers are available 24 hours a day for emergencies.

6.      Inspections:  All inspections will be completed by at least (2) Property managers.  Property managers will complete a move-in inspection whenever a tenant takes possession and a move-out inspection when tenants leave.  Property Manager will complete a drive-by-exterior inspection every (2) months and an internal inspection every (6) months.  Internal inspections may be completed more frequently if Property Manager suspects potential problems.

7.      Contractors:  The Property Manager shall employ, discharge, supervise and pay, on behalf of the Owner, contractors considered by the Property Manager as necessary for the efficient management of the property.  Property managers diligently interview all contractors to provide the best possible service for the best possible price.  All contractors are licensed and bonded.

8.      Equal Housing Opportunity:  We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation.  We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion or national origin.  We adhere to all Arizona Landlord/Tenant laws.

1.      Tenants must have a combined gross income of 3 times the monthly rent.

2.      Tenants must have a clean credit report.  Any derogatory credit must have a reasonable and verifiable explanation and will have to be cleared with the homeowners.

3.      Tenants must have a clean legal report.  Any items on the legal report must have a reasonable and verifiable explanation and will have to be cleared with the homeowners.

4.      Tenants must have good past rental references.  (Minimum 3 years)

5.      Any past evictions are grounds for immediate rejection.

6.      All parties on the lease must fill out an application completely.

7.      We pull credit and legal reports on all tenants.  All references will be checked.  Falsification of any information on the rental application is grounds for immediate rejection.

Please direct any questions to Judy Sills-Olvera or Trish Morris (623)535-8600.

1.      Large breeds are classified as over 30 lbs.  Small breeds are 30 lbs. And under.

2.      Large breeds must be over 5 years of age.

3.      Small breeds must be over 2 years of age.

4.      Female cats must be fixed and declawed or fixed and outdoor only.

5.      NO MALE CATS.

Certain breeds of dogs must be approved by the owner regardless of age, and carry an extra liability policy naming the owner and RE/MAX Achievers as added insured parties. These breeds are as listed, but not limited to: Pit Bull, German shepherd, Rottweiler, Doberman and Chow.

EXAMPLE: 3BD/2 BATH HOME   RENTAL PRICE: $1000/ MONTH   LEASE: 12 MONTHS    $1000 x 12 mos. = $12000.00 (Gross lease price)   COMMISSIONS   COMMISSION DUE 1ST MONTH OF LEASE : $720.00 ( 6%)   COMMISSION BREAKDOWN: DUE ONLY WHEN TENANT IS FOUND AND MOVED IN (This fee charged only for new tenants, not existing tenants or extending tenants)   $360.00 RE/MAX ACHIEVERS             Listing paperwork             Advertising fees             Sign fees             MLS input   $360.00 LEASING AGENT               This half of the commission is offered out to any licensed real estate agent through the terms listed in the ARMLS agreement you sign.  It allows your house to be shown more frequently and rented more quickly, by offering all participating parties a part of the lease commission.   MANAGEMENT FEES:   10% OF MONTHLY RENT: $1000.00 x 10% = $100.00               This monthly fee covers includes collection of rent, service of notices, internal inspections at least every six months, external inspections at least every two months, a typed accounting statement each month of deposits and payments from your account, an end of the year statement along with your 1099 form, collection of late fees, payment from your account of mortgage, HOA, or any other bills you want us to pay, and balance credited to you by your option of payment: check, wire transfer, or held in management account for later use.   Example:  Deposit                                    $1020.00                     July rent plus tax           (2% rental tax in most cities) Management fee                       $ 100.00                      July Management City sales tax                            $  20.00                       July rental tax mailed to proper officials Mortgage payment                    $ 817.00                      Mailed to your mortgage company Remaining funds                        $  83.00                       Mailed or wired to you or extra principal to your                                                                                   mortgage/ or applied as you prefer to other bills

THIS FORM CONTAINS EXAMPLE FIGURES ONLY.  EACH PROPERTY WILL HAVE DIFFERENT RENT & MORTGAGE AMOUNTS.

SAMPLE FEE STRUCTURE PROPERTY MANAGEMENT RE/MAX ACHIEVERS

 

PROPERTY MANAGEMENT AGREEMENT

PM File#_________

Parties:  In consideration of the covenants herein contained _________________________________   (Hereinafter called OWNER), and RE/MAX Achievers, 14175 W Indian School Rd Suite B-10, Goodyear, AZ, 85338  (hereinafter called AGENT) agree as follows:

A. Employment

In consideration of the acceptance by the undersigned licensed Arizona real estate BROKER of the terms of this contract and BROKER’S promise to endeavor to effect a rental of the property described below, the OWNER hereby employs and appoints the AGENT exclusively to rent, lease, operate and manage the premises known as, __________________________________________________________________ (Legal description)____________________________________________________________________

Hereinafter referred to as the PROPERTY, and any personal property thereon belonging to the OWNER upon the terms hereinafter set forth, commencing as of the ____day of _________, 20___ and ending on the _____ day of ________________, 20____.  This contract will renew automatically for a period of two years on the _____ day of __________________, unless otherwise stated by either party, with (30) thirty days written notice.

B. Termination

Either party may terminate this agreement upon (30) thirty days written notice.  Upon termination of or withdrawal from this Agreement, OWNER shall assume the obligations of any contract or outstanding bill executed by AGENT under this Agreement for and on behalf of OWNER and responsibility for payment of all unpaid bills.  Agent may withhold funds for thirty (30) days after the end of the month in which this Agreement is terminated, in order to pay bills previously incurred but not yet invoiced and to close accounts.  AGENT shall deliver to OWNER, within thirty (30) days after the end of the month in which this agreement is terminated, any balance of monies due OWNER or of tenant security deposits, or both which were held by AGENT with respect to the PROPERTY, as well as a final accounting reflecting the balance of income and expenses with respect to the PROPERTY as of the date of termination or withdrawal.

C. Agent's Responsibilities

1.  The AGENT shall manage, maintain, operate, lease or rent the PROPERTY including negotiating for, entering into, signing, renewing, transferring and/or canceling leases for the PROPERTY or any part thereof, except that the AGENT shall have the authority to execute and sign leases and renewals for terms not in excess of ______ years and a minimum rent amount of ______.

2.  AGENT will inspect the PROPERTY on a regular basis when vacant and exercise supervision of the property when occupied.  AGENT will make a diligent effort to screen potential tenants and to collect rents, but in no way guarantees rent collections nor tenancy, and is not obligated to refund commission in cases of tenant default.

3.  AGENT will collect and deposit all rents, miscellaneous income, and tenant deposits to the RE/MAX Achievers Property Management Trust Account (RE/MAX Achievers PMTA) separate from the funds of RE/MAX Achievers.  AGENT will disburse collected funds, except refundable tenant deposits, to the OWNER monthly, net of the operating expenses, unless instructed otherwise by OWNER.  At no times are any of the funds of said bank account to be intermingled with the funds of the AGENT.  Although monies belonging to OWNER may be co-mingled in such trust bank account with monies of other OWNERS for whom AGENT is rendering managerial services.  AGENT shall not permit monies standing to the credit of the OWNER to be used to satisfy the obligation of any other owner.  The said trust account may earn interest.

4.  AGENT will issue by the 25^th of the following month, an accounting monthly of all funds collected and/or disbursed on the OWNER'S behalf, including the balance of the tenant security deposits, and also a year-end bookkeeping package.

5.  AGENT will pay from OWNER'S funds all fees, bills or charges, including service work, management fees and commissions due from management of this PROPERTY.

D. Owner's Responsibilities

1.        OWNER agrees to save the AGENT harmless from all damage suits in connection with prior

management of the property and/or any deposits not released to RE/MAX Achievers. 

2.        OWNER agrees to maintain a $200 operating balance in the Trust Account as reserves to meet obligations that may occur due to a shortage of current income.  In the event the disbursement shall be in excess of the rents collected by the AGENT, the OWNER hereby agrees to pay such excess upon demand of AGENT.

3.        OWNER has responsibility for meeting all obligations required to maintain services and full use of the property by the tenant, per the rental or lease agreement.

4.        OWNER agrees to save the AGENT harmless from all damage suits in connection with the management of the herein described property and from liability from injury suffered by an employee or other person whomsoever, and to carry, at his own expense, necessary public liability insurance adequate to protect the interests of the parties hereto, which policies shall be so written as to protect the AGENT in the same manner and to the same extent they protect the OWNER, and will name the AGENT as co-insured.  OWNER further agrees to promptly defend at OWNER'S expense any legal action, claim or proceedings brought against the AGENT by the tenant or any other party arising from the management of the subject property, except in cases of willful misconduct and/or gross negligence by the AGENT.  AGENT may advise the OWNER on the general real estate matters, however, if legal assistance is required regarding tenancy or related matters; said assistance will be at the OWNER'S expense.  Under Arizona Law, only an attorney is qualified to give legal advice or represent the OWNER in court.

E. Repairs and Maintenance

AGENT will contract for repairs and maintenance at fair market rates as is deemed necessary.  The AGENT shall secure the approval of the OWNER on all expenditures in excess of $_______ for any one item, except monthly or recurring operating charges and/or emergency repairs in excess of the maximum, if in the opinion of the AGENT such repairs are necessary to protect the property from damage or to maintain services to the tenants as called for in their leases.

F. Contractors

AGENT to hire, discharge and supervise all labor and contractors required for the operation and maintenance of the premises: it being agreed that all contractors shall be deemed contractors of the OWNER and not the AGENT, and that the AGENT may perform any of its duties through OWNER'S attorneys, agents or contractors and shall not be responsible for their act, defaults or negligence if reasonable care has been exercised in their appointment and retention.

G. Fees

OWNER grants the AGENT exclusive right to manage and lease the property at fair market rents, for these fees:

                A.  A Management fee equal to 10% of the monthly rent.

                B.  A leasing commission based on 6% of the gross lease payable in full at occupancy.

                C.  A 6% sales commission based on the sales price if the property is contracted to be sold to a 

                      Tenant procured by the AGENT within 90 days of the end of said tenancy.

                D.  The AGENT will retain all NSF fees, however these fees will not be considered revenue

                      source.

This agreement is not transferable and terminates immediately upon sale or transfer of title.  If the agreement is terminated, refundable tenant deposits will be forwarded to the OWNER upon receipt of a signed release by the tenant.

RE/MAX Achievers Agents are licensed by the Arizona Department of Real Estate and are members of Local, State and National Associations of Realtors, and pledged to Fair Housing for all qualified tenants without reference to race, color, religion, sex, national origin, or familial or handicap status.

This agreement shall be binding upon the successors, heirs, administrators, executors, and assigns of the OWNER.

________________________________________      __________________________________________

Owner                                                        Date          Owner                                                           Date

_______________________________________        __________________________________________

Agent                                                         Date         Broker                                                            Date

All cabinets and drawers need to be wiped down inside and out.

Clean off top of all cabinets.

All appliances must be cleaned inside and out.

All gasket seals must be cleaned (i.e., stove, refrigerator, and dishwasher).

Ice trays must be cleaned out.  If automatic, please dump ice, wash tray and replace.

Water and ice area in door must be cleaned out.

Drip pans, oven racks and exhaust fan for stove must be cleaned.

Counter tops and sink must be clean.  Please remove all hard watermarks, stains, and soap scum.

Floors must be clean.  Please pay special attention to corners, under refrigerator and under stove.

Tub, shower and sink must be thoroughly cleaned.  Please remove all hard watermarks, stains and soap scum.

All grout in bathroom must be cleaned and free of mold, mildew, etc.

Toilet must be cleaned inside and out.  All hard water rings and build-up must be removed even under the rim.

Medicine cabinet must be wiped down inside and out.

Mirrors must be cleaned and free of spots.

Cabinets must be wiped down inside and out.

Exhaust fan must be cleaned.

Floor must be clean.  Please pay special attention to corners.

All carpets must be professionally cleaned by one of our approved suppliers and a receipt provided or you may have us clean them for you and the cost will be deducted from your deposits.  Owners must also have carpets professionally cleaned when moving out or we can do this for you and deduct it from your first month’s rent.  Make sure you vacuum thoroughly or the carpet person will charge an extra fee.  Nails, coins, etc. that are in the carpet due to moving will break the cleaning machine.  Please remove them.

___________________Tenant initial

UTITLITES MUST REMAIN ON FOR WALK-THRU AND MUST REMAIN ON FOR 72 HOURS AFTER WALK-THRU FOR CLEANING AND REPAIRS.  IF UTILITIES HAVE TO BE TURNED ON FOR CLEANUP AND REPAIRS, IT WILL BE DONE AT TENANTS’ EXPENSE.

AIR CONDITIONG/HEATING UNITS

All AC filters must be changed or cleaned if they are permanent.  AC filter covers and vent covers are to be cleaned and or vacuumed.  If we find an AC unit with an excessively dirty filter, tenants will be charged to have the unit checked by a licensed AC company.

All plant shelves and closet shelves must be wiped down and free of dust and debris.

All ceiling fans and light fixtures must be cleaned and in working order.  This includes light bulbs.

Baseboards must be wiped down.

Please brush all walls with broom.  No spider webs please.

Al nails are to be removed.  Please do not patch nail holes.  It is easier for our painters to do this.

Please clean top of all doors.

Please clean all windows inside and out.  This includes all blinds and windowsills.

All plants and shrubs neatly trimmed and manicured.

All weeds and debris must be removed from rock areas.  Rocks must be raked.

Grass mowed and edged.

Driveway, garage and patio must be cleaned.  All grease and debris removed.

Please brush outside of house with broom to remove all spider webs, etc.

All pet debris must be removed.

All trash and debris must be removed from property.

If you are leaving anything behind, please OK this with management.

___________________________           _______________________________

Tenant                                    Date                Tenant                                                Date

___________________________           ________________________________

Landlord