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Maxfield Property Management Terms of Service for Existing Clients as of July 1, 2023.

Updated 12.01.2024

From time to time, changes in federal, state, and local laws regulating the rental industry, changes in state license law, technology, banking laws, or the economic conditions of the rental business may require certain changes to our Management Agreement.  We may be sending you an updated agreement if your agreement is older than 5 years old, however please be advised that your contract with us is being modified to our new Terms of Service effective January 1st, 2025.  This may or may not impact the fees you pay us.

These terms of service modifications apply to all agreements signed on or before July 1st, 2023.  Clients who have signed agreements prior to this date will be transitioned to our Full-Service plan beginning January 1, 2025. Plan details can be found at www.MaxfieldRents.com/Pricing.

We have outlined all the sections where there has been any change.  Some changes are grammar related, some are more descriptive on how we deal with certain issues. Please refer to this document or the email from us for pricing for your situation, as pricing is based on location, type of property, and other factors, as no two properties or owners are alike. If there is a conflict between your existing agreement and these new Terms of Service, these Terms of Service will apply.

  1. Exclusive Manager and Term.  Our Agreement to provide management services shall automatically renew on a month-to-month term until either party terminates by providing at least 30 days written notice to the other party before the end of the month.
  2. Termination Provisions. An Owner may terminate our Services if the Property is not under a lease, with thirty (15) days’ written notice prior to the end of the month. If Manager has started marketing the Property, and Owner terminates prior to leasing, Owner agrees to pay the actual costs or a $399 marketing fee, whichever is greater, to reimburse Manager’s marketing costs and any fees owed.

Owner may terminate our services if the Property is under a lease, provided the following conditions are satisfied that:

Our services shall terminate immediately and automatically by: (i) the sale, transfer or other disposition of legal and beneficial title to the Property, except for a transfer of the Property to a trust or other legal entity controlled solely by Owner; (ii) condemnation of the Property; or (iii) complete destruction of the Property. Manager’s earned commissions, fees, and other charges shall still apply.

A Document Retention and Storage Fee of $99 to maintain the records will be charged at the end of the agreement to process the closing of the account, the transfer of any necessary documents and funds, and for long-term document retention and regulatory compliance related to Owner's account that Manager is responsible for beyond the termination of this Agreement.

Fees and commissions to Manager under our Terms of Service survive termination or expiration Services with regard to all commissions and fees earned during the time Maxfield has performed services.  Manager may deduct any fees due to Manager under from any funds Manager holds in trust for Owner. If more than one property is being managed, the fees related herein apply to each property or unit separately.

  1. Leasing Fee. Owner shall pay a Leasing Fee of 30% of the First Month’s Rent or a minimum of $399, whichever is greater each time the property is leased to a new tenant.  Owner shall also pay a Leasing Fee if Manager provides a qualified, willing and able tenant, ready to move in, and the Owner has not supplied a property that is deemed to be “move in ready” by Manager.
  2. Management Fee.  Owner shall pay Manager a Management Fee of Five-point Nine percent (6.5%) of the gross annual rents (payable in installments over the term of the Lease), a Minimum of $100 per month, whether or not rent is collected, beginning January 1, 2025 and ending the month after a tenant moves out and Service is terminated. Management fees are deemed earned upon signing of the lease with the Tenant and are payable on the first day of each month so long as Manager is managing the Property. Management Fees are not pro-rated.
  3. Premium Marketing Package Including Zillow® and Other Websites. $250 per vacancy.  Includes professional photos, floor plan creation and ongoing advertising costs. Manager includes Premium Marketing for all rental listings. Rentals that are advertised on these sites lease up to 50% faster. Additional marketing services are available upon request at the then current rates. Example of additional advertising may include pay per click and other services such as video.
  4. Outside Leasing & Referral Fees. We are discontinuing paying any outside Broker/Agent, and the cost for Tenant representation will be the sole cost of the Tenant or will be negotiated prior to acceptance of any Lease Terms.
  5. Lease Renewal Fee: 10% of the monthly rent for each renewed lease or $200, whichever is greater and shall be paid to Manager upon each renewed lease after the initial or subsequent terms.
  6. Owner Advance Fee. If Manager advances funds necessary for the leasing and management of the Property, and Owner fails to make payment within 10 days of Manager’s invoice or statement for same, then Owner shall pay Manager a funding fee of 2% per month on the outstanding balance, a minimum $25.
    Bill Pay Services. Upon Manager’s payment of taxes, insurance, mortgage, HOA fees or any other bill on behalf of Owner, except Utilities, Owner shall reimburse Manager for the actual amount of the invoice plus any bill pay service Fees.

Utilities. At all times, Owner shall be responsible for managing all utilities, including but not limited to power, gas, water, sewer, and trash that affect the Property. Owner promises to keep all utilities on while Property is vacant or if a utility is required to remain in Owner’s name. Owner is responsible for having a valid landlord agreement in place with each utility. If tenant is under obligation to pay for utilities under its lease and is unable to put a utility into tenant’s name (example: city water bill), Manager will bill tenant the utility charges to tenant if, and only if, Owner provides the utility bills to Manager that are to be charged to tenant. Any discrepancies in billing utilities must be brought to the attention of the Manager within 90 days, or the items may not be reimbursable.

  1. Utility Bills:  We know utility bills aren't the most exciting topic, but it's important to discuss. When it comes to utilities like power, gas, water, sewer, and trash, we've found that tenants tend to use 30% less when they're responsible for paying their portion of the bill. That's why our leases often require tenants to pay for these expenses when possible. Some utilities won’t allow us to transfer service into the name of the Tenant and as the Owner you must keep them in your name, however you can have the bills sent to us to forward on to the tenant and make sure you’re the one not flipping the bill.

Now our rule is this, if we're the ones paying the bill, we'll take care of it and seek reimbursement when appropriate. But if you're the one paying, unfortunately you're the one who's stuck with the bill and will have to remember you paid it at tax time.  The simple truth is that we can't bill tenants for utilities we don't know about or don't have access to, so we ask owners contact their utility companies and have all bills be transferred or sent to us at 

Maxfield Property Management

PO BOX 65, Lehi Utah 84043

Trust us, it'll make everyone's lives a lot easier in the long run if you forward the bills to us. We do require bills be sent to us within 90 days if seeking reimbursement from the tenant.

If you do get a utility bill for any reason simple forward it to us at info@MaxfieldRents.com or mail it to us.

  1. Eviction Services Guarantee. Owner shall automatically be enrolled in this service effective the date of this agreement and charged $149 per year. Owner may opt-out at any time within 30 days of the charge appearing on their Owner Statement. However, owners will receive no eviction protection if they opt-out or if the tenant was not placed by Maxfield.
  2. Rental Housing PAC Fee. $50 per year. In October of each year, a $50 Fee will appear.  Owner may opt out at any time within 30 days of the charge appearing on their Owner Statement. This fee helps promote landlord friendly laws and keeps crazy landlord laws and rent control measures out of the State of Utah. Owners that participate in the Rental Housing PAC Fee will receive a $50 credit in October to offset the Eviction Services Guarantee Fee.
  3. Additional Services or Beyond Scope of Services. Manager may provide additional services or may provide Up and Beyond Service Requests at the then current Staff rates or actual costs incurred by Manager on behalf of Owner.
  4. Current Staff Rates: $45 per hour for Staff, $90 per hour for Manager, and $180 per hour for Legal or Insurance related matters.

Owner’s Reserve Account. Owner shall maintain a reserve account operating balance of no less than five hundred Dollars ($500) in the Property Management Trust Account to meet the obligations in the event of a shortage of current rental income or emergencies. Manager may increase this reserve amount at any time to any reasonable amount with notice to Owner, should Manager, in Manager’s sole discretion, determine it is necessary for anticipated property expenses or other reasons as determined appropriate by Manager. Typically, these are times when the property will have a vacancy or if there are large repairs. Manager, at Manager’s sole discretion, may, but shall not be obligated to, advance Manager’s funds (Section 4.7) on behalf of Owner to pay outstanding invoices.

Rent Ready Standards: We are committed to providing safe, clean, and properly maintained homes to our residents. In order to comply with the Utah Warranty of Habitability (Utah Code § 57-22-1 through 6), Utah law, and Maxfield Management standards, there are somethings the property needs.  Before we can advertise, and the property needs to be Rent Ready.  Some of these items would include smoke detector in each bedroom, carbon monoxide detectors on each floor and all appliances operating as they were intended.  Don’t worry we will take care of these items if you want.  A full list of our Full Rent-Ready Requirements can be found at https://www.maxfieldrents.com/rent-ready-standards.

Make Ready and Turn Over Costs: As much as we love getting properties ready for new tenants, there are costs associated with the process. These costs include things like cleaning, touch up painting, and repairs. We call it "make ready" or "turn over" costs. While we always strive to keep these costs as low as possible, they are an inevitable part of renting out a property. However, we promise to be transparent with you about these costs and to always work within your budget to get your property rent-ready in the best condition possible.

Owner Assisted or Owner DYI Repairs: Well, there's nothing like a little home improvement project to make a weekend more interesting! However, when it comes to rental properties, there are some restrictions on when owners can do their own repairs for repairs inside the property. While your property is occupied, we ask that owners do not make any repairs themselves and let us and the professionals handle these to ensure that repairs are done thoroughly, correctly and in compliance with state and federal laws. Additionally, when tenants are living in the property, it can be difficult to schedule repairs around their schedules and access the property when needed.

If Owners have specific contractors, they would like us to contact first, we are happy to add them to our vendor network provided they meet all licensing and insurance requirements by the state. Simply provide their contact information to us at info@MaxfieldRents.com, and we will add them to your property profile. We will reach out first to these contractors, and if not available, then we will find one of our preferred vendors.

Once the property becomes vacant, owners are welcome to make repairs to the property themselves or contract the work to be done. In-between tenants is actually a great time to make updates, as the property will be unoccupied, and there won't be any disruptions to the tenants or scheduling gymnastics. If you want to update the property yourself at the next vacancy period – simply let us know, and we can make that happen.

For those owners who don’t want the hassle, Maxfield will coordinate all the make-ready or renovation work with our extensive network of professionals and handymen within the budget you approve.

Landscaping: We like to keep things green, and common practice is to leave the grass-mowing duties to our tenants. Asking tenants to do more than this is unrealistic as tenants are not professional landscapers or gardeners. For everything else, and when it comes to spring and fall clean-up, that's when the owners step in with their rakes and leaf blowers to keep things looking their very best. Now, if a tenant happens to let the landscaping get a little wild or let the grass die, we will bring in the professionals and bill the tenant for the service. But don't worry, we won't ask your tenants to perform any circus acts like tree trimming or bush pruning, or even “open ground surgery” on the sprinkler system - that's best left to the experts. We'll keep you posted on when it's time to trim those hedges or a required sprinkler repair so you can either DIY, hire your favorite landscaper, or let our trusty vendors handle the job.

In shared spaces, such as duplexes or properties with common areas, we require professional landscaping and snow removal services, of which a large portion will be billed to the tenant.  Also, any landscaping watering timers must be installed on the outside of the building so that landscapers can access it without having to make sure the tenants are home.  Also, no Wi-Fi only timers are allowed.  These are timers that do not have any dials and must have internet or Bluetooth access.  All landscaping we manage must have a timer that crews can access and modify throughout the year as temperatures and seasons change.  If your property does not, a new timer will be installed and billed to you.

In the event that the Owner requires or elects management services for recurring landscaping maintenance, spring and fall cleanup, mulching, bed maintenance, weed and pest control, fertilization, turn management and care for seasonal flower displays, sprinkler repairs or water line breaks that service landscaping, and elects to engage the Manager for such oversight, the Owner agrees to compensate the Manager with a "Landscaping Premium" amounting to twenty percent (20%) of the contractor’s total charge. Alternatively, should the Manager be tasked with obtaining multiple quotes and supervising the work, the Owner shall pay the Manager at their current hourly rate.

Pest Control: For single-family homes, we've got a 30-day window for tenants to notify us of any pre-existing pest problems. If we are notified of any issues, we'll jump on it faster than a cat on a mouse - at the expense of the former tenant or owner. After 30 days, the tenant is generally responsible for the treatment of pests at their own expense.

As for our multi-unit dwellings, we've got a solution that keeps everyone happy (and pest-free). We bill tenants a monthly community fee that covers both exterior and interior pest control. And trust us, one infestation can turn into a full-on infested party real quick - so it's better to take care of it proactively. Plus, with so more than one unit and potential sources of the creepy crawlies, it's hard to point fingers. 

Normal Wear and Tear: As a landlord, it's important to understand the difference between normal wear and tear and actual damages caused by tenants. Normal wear and tear is the inevitable result of a property being lived in and is not the tenant's fault. Actual damages, on the other hand, are caused by a tenant's negligence or intentional actions. Normal wear and tear can be a tough pill to swallow for some landlords, but it's a fact of life. Think of it like aging – we all get a little bit worn down over time. The same goes for your property. Over the course of a tenancy, you may notice that carpets get a little worn, walls get scuffed up, and appliances wear out. These are all examples of normal wear and tear that you'll have to deal with as a landlord.

Building the cost of normal wear and tear into your budget and rental rates to ensure that you can cover any necessary repairs or replacements. Rent is the only compensation an Owner receives for the normal wear and tear and why Maxfield keeps rental rates at market.

Of course, it's also important to know when normal wear and tear crosses the line into actual damages. If a tenant has caused damage beyond what is considered normal wear and tear, Maxfield will withhold a portion of their security deposit to cover the cost of repairs. We won’t let the tenant get off that easy either – for example if the carpet has been depreciated (more than 5 years old) but the carpet still had useful life and the tenant or pet had damaged the carpet, Maxfield would charge the tenant cost for removal and installation of the new carpet which the courts generally accept.  You would be amazed at how many property managers do not want a bad google review never try to recapture legit charges from a tenant.  At Maxfield, we represent the Owner, document those damages, and follow the proper legal procedures to avoid disputes or legal issues.  Maxfield will also escrow all monies from Tenant’s deposits for future repairs if not used immediately.

Planned and Unplanned Maintenance:  Managing a rental property can be like predicting the weather. You never know when a storm will hit, but you can prepare for it. That's why at Maxfield, we recommend budgeting between 5-15% of the monthly rent payments per year for reserves. The amount will depend upon the age of the property and if it’s in an HOA that covers some of the exterior such as roof or painting.  It may sound like a lot, but trust us, it's worth it.

Escrow Reserve Fund: (Required) As a part of our management process, we'll need you to advance $750 per property or per Unit to set up an escrow reserve account with us. The Reserve Amount may be increased if you have HOA or Mortgage being paid by us on your behalf.

Rainy Day Reserve Fund: (Optional but highly recommended) For those who want to take their preparedness to the next level, we have a solution: treat your rental property like it's an apartment community and set up a RAINY-DAY RESERVE FUND! Some owners ask us to escrow a monthly amount from the rent for future repairs, usually around $100-$250 per month. This creates a rainy-day reserve fund for your property, so you can rest easy knowing that you're covered in case of unexpected repairs or updates.

If you're interested in setting up a rainy-day fund for your property, let us know. Trust us, our owners love this option - it's like having an umbrella on a rainy day! Plus, you'll be prepared for any storm that comes your way.

Non-Conforming Uses: This does not apply to all properties. It usually applies to people that are trying to House Hack.  While there are legal ways of House Hacking, some become non-conforming and/or an illegal use which means using your property in a way that goes against local zoning or city ordinances. We're not trying to be party poopers here, but local governments can be strict about this stuff, especially if you have a nosy neighbor or ticked off tenant who reports the property.

An example of Non-Conforming Use would be, if you're renting out a single-family home and someone's living in the basement, attic, or above the garage, you might be breaking the rules. It also may happen when you move out of the home and try to rent the upstairs and downstairs as separate units unless it is a Duplex. We have also seen problems when the Owner didn't get the proper permits to convert their property into a multi-family unit or accessory dwelling unit (ADU).

Now, we're not saying you can't do it. We're just saying that you might get hit with fines or code violations, and your tenants might be entitled to relocation assistance or damages if they have to move out because of illegal use. We recommend that you seek legal counsel if you have questions about Non-Conforming Use or Illegal Use.

Homeowners' Associations (HOAs): Let’s face it – HOAs can be a bit of a headache for property managers and private landlords, wielding their community power. Here are some things a Landlord should note:

Personal Property: We totally understand that life happens and sometimes you might accidentally leave a few things behind when you move out of a rental property. But please keep in mind that we are not responsible for storing or maintaining any personal property left behind. We may be property managers, but we're not professional organizers or storage experts. And the reality is that sometimes things walk off, innocently, during the move in and move out process with tenant’s friends and family helping. So, if you do happen to leave something behind that is of any value or that you cannot replace or live without, please make arrangements to pick it up as soon as possible because anything left is like a donation to your favorite charity without the receipt.

Contact with Tenants: It's important for us to work together as a team to ensure the best experience for everyone involved. We understand that sometimes tenants might reach out to you with concerns or issues, but we kindly ask that you refer them back to us as their trusted landlord. This way, we can make sure that everything is properly documented and addressed.

Visiting the Property: We request that you refrain from dropping by while the tenant is occupying the property.  Not only does this respect the tenant’s privacy, but it also helps maintain a comfortable living environment for them. There are certain legal requirements to arrange to visit the property and we want to do everything legally.

Neighbors: We love having great neighbors! They often have a front row seat to all day-to-day happenings in the community. But we don't want them to be burdened with the task of calling you with complaints. Instead, we'd appreciate it if they could refer any issues directly to us. This will help us to keep a record of everything in our system just in case we need to refer back to it later. Plus, it'll allow us to tackle any issues head-on and resolve them as quickly as possible.

Mortgage, Insurance and HOA Dues Payments: For our Investor Club Members, we are delighted to offer our payment sending services on your behalf, which will simplify your life. You can think of us as your personal bookkeeper or accountant for your rental property.

Full-Service Clients may add this service for a small fee about $100 per year.

Please note the following guidelines for third party payments:

  1. We require a current bill copy to set up recurring payments.
  2. Your Escrow Reserve Account will need to be increased to cover the payments' amounts plus the $500 required in the Escrow Reserve Account.
  3. Since mail can take up to 5-10 days to reach the third party, we typically pay these payments in advance, usually a month in advance if rent arrives by the 5th of the month.
  4. We are not responsible for late fees or delayed reporting of these payments. Please inform us if you receive any communication (text, email, phone calls) regarding a lost check or payment or any other matter.
  5. We may for additional information or authorization to transact these payments on your behalf.
  6. Government Registration. Owner must register the property with the appropriate state, county, municipalities (ex. Business license) and tax authorities pursuant to local laws and ordinances.

Professional Advice. Manager is not trained to provide Owner with legal or tax advice. Manager strongly recommends that the Owner obtain such independent advice. Owner’s failure to do so is contrary to the advice of Manager. Any recommendations for third-party services made by Manager do not guarantee Owner’s satisfaction in the use of those third-party services and should not be seen as a warranty of any kind as to the level of service that will be provided by the third parties.

Lockboxes and Access. Owner authorizes Manager to place a semi-permanent lockbox on the Property to be used in connection with the marketing, showing, inspection and leasing of the Property by Manager, Manager’s licensees and staff, other real estate licensees, vendors, prospective tenants and others who may need access to the Property. Owner authorizes Manager to lend keys, access codes and security codes to such persons to enter the Property. When the property is vacant, manager may use an automated self-showing service which allows prospective tenants to view the property unaccompanied by Manager. Manager uses identification security measures to reduce the risk associated with unauthorized persons gaining access to the property. Showing and advertising properties has inherent risks whether or not they are occupied or vacant. Owner acknowledges that from time to time unauthorized persons may gain or may have gained access to Property with or without potential tenants. Manager is not insuring Owner or occupant against theft, loss or vandalism resulting from same. The wrong people can enter houses through lockboxes to do unlawful acts, so Owner is encouraged to remove all valuables or put them in a secure place and maintain insurance on the property to protect against vandalism and theft. It is possible that vacant properties will attract squatters, which may need to be removed by legal action.

Money and Management. Upon leasing the Property, Manager shall also manage it for Owner, and Manager shall collect and deposit all income into one or more special trust accounts maintained by Manager and registered with the state’s real estate commission. Payment of any interest on trust or non-trust accounts shall be payable to Manager unless prohibited by state law. In the next owner statement cycle, Manager shall remit sums due to Owner, after deducting the appropriate amounts, along with a report as to income and expenses related to the Property.

Disbursements. Manager may withdraw from such trust bank accounts disbursements required to be made on behalf of Owner during the Service period, or the lease, including, but not limited to, Manager’s compensation, Manager’s out of pocket expenses in managing the Property (for example, postage, copies, costs to conduct background/credit checks on applicants, costs associating with evicting tenants) and other expenses as set forth in this Agreement or the lease.  Owner shall have the right throughout the term of service to inspect invoices and other data supporting receipts collected and disbursements made by Manager.  Manager shall retain such invoices and outstanding supporting documents for Owner’s use for three (3) years. All rent belongs to the Owner; all other fees, administrative fees, charges and interest on escrow accounts shall be the property of Manager.  Any rent paid in advance by tenant will be held in Manager’s trust account and disbursed to Owner in the month it is earned. Manager shall disburse Owner’s funds held in Manager’s trust accounts in the following order:

Compensation, commissions and reimbursements due Manager during the Service period;

Lease Terminations and Evictions. Manager is authorized to terminate a lease on Owner’s behalf due to tenant default, and if Manager deems it proper, to reinstate such leases.  Manager is authorized to institute and take legal action in small claims court or district court in Owner’s behalf to collect rent, remove tenants from Property, and for such purposes, Manager may employ attorneys and incur court and legal costs at Owner’s expense.  Manager is also authorized to settle or compromise any such legal action or proceedings if Manager deems it proper to do so. All other legal actions, initiated by the Manager, on Owner’s behalf, shall be done only with specific written permission from the Owner.

Collections. Manager shall use commercially reasonable efforts and due diligence in the collection of rents and other income from the property. Upon termination of this management agreement by either party, owner grants, assigns, transfers to Manager his entire right, title and interest in any past due amounts from former tenant accounts in which Manager managed at the time the tenants vacated whether voluntarily or involuntarily. Owner acknowledges that Manager may assign such accounts to a law office or licensed collection agencies; Owner further acknowledges that collection on such accounts is uncertain but that in the event any monies are collected on such accounts the Owner waives any right to such monies and hereby assigns the account to Manager in consideration of services performed on the account and collection efforts for such.

Repairs and Maintenance. Owner acknowledges that Owner is responsible for the maintenance and repairs of all improvements left on the Property and, in general, may not waive, assign, transfer to the tenant by agreement any repairs or maintenance or otherwise avoid responsibility under the law to keep the Property in good habitable condition. Owner shall pay the greater of $25 or 10% of the Work Order, per maintenance work order.

Repair & Maintenance Authorization. Manager is authorized to hire contractors, handymen, vendors or others to clean, repair, maintain, redecorate, or alter the Property, and make such repairs to the Property as Manager reasonably believes to be necessary to protect Property from damage or maintain services to a tenant as outlined in the lease.  Manager is hereby authorized by Owner, at the Owner’s sole expense, to maintain said Property and keep Property in suitable rental condition (and maintain normal habitability standards), purchase necessary supplies and replacement materials and fixtures that are necessary to maintain the utilities and the services to the Property, including but not limited to electricity, HVAC, water, gas, any and all mechanical system or appliances, refuse disposal, termite extermination, pest control, and other services which Manager considers advisable or necessary to properly maintain the Property and/or comply with any applicable laws, to make ordinary repairs to the Property provided that expenditures for any one line item or repair shall not exceed the sum of $500 (“Work Order Sum”) without prior approval of Owner, unless  the repair or item is deemed necessary by Manager. This may or may not include an emergency or are contingencies of an approved application for lease, or items deemed by Manager to be a safety, habitability issue or health risk to a tenant.  Additionally, prior approval shall not be required for monthly or recurring operating charges, repairs for any damages which are caused by Tenant, paid by Tenant, or, if in Manager’s opinion, emergency expenditures over the maximum that are needed to protect the Property or other properties from damage, prevent injury to persons, avoid suspension of necessary services, avoid penalties or fines or suspension of services to tenants required by a lease or rental agreement or by law. Owner acknowledges that the costs of handling emergency repairs are often higher than for making non-emergency repairs. All labor and contractors shall be deemed sub-contractors of the Owner and not the Manager unless otherwise agreed in writing. Manager shall not be liable or responsible for their acts, defaults or negligence.

Repair and Maintenance Reimbursement. Owner agrees to promptly reimburse Manager for any money Manager paid, or became obligated to pay, for an emergency, contingencies of an approved application, and move in and items Manager determines to be safety, habitability or health risk to a tenant. Manager is expressly authorized by Owner to employ, discharge, and supervise any and all contractors considered by Manager as necessary or desirable for the efficient maintenance and repair of the Property, including contractors, which may be affiliates of Manager.  If an estimate for a required repair exceeds the balance in the Owner’s escrow account, Owner agrees to advance Manager the amount of the estimate prior to the repair, but the Owner agrees to promptly reimburse Manager for the cost of all repairs, which Manager pays for or which Manager becomes obligated, but Owner understands that Manager is under no obligation to make expenditures in excess of Owner’s trust account balance.

Rehab, Renovations, Replacements and Rehab Premium. Manager agrees to manage regular maintenance problems, normal breakdowns, and minor repairs as part of the management fees outlined in this Agreement. Managing larger jobs like rehabs, renovations, replacements, tenant move out damage, insurance claims, or general contractor work are not a part of this Agreement.  Examples of such items may include such things as new septic systems, new roofs, exterior and interior painting, new carpeting, and remodeling kitchens and bathrooms; generally, items over $1,000. Should Owner choose to use Manager to oversee such work, Owner agrees to pay Manager Ten Percent (10%) of the contractor’s price or cost as a “Rehab Premium”; or Manager’s then Current Hourly Rate to manage multiple quotes and oversee the job.

Owner may do any exterior work while the Property is occupied by a tenant and interior work when Property is vacant.

Annual Inspections and Semi-Annual Inspections. Manager will inspect the interior of the Property once per year or as often as Owner requests at the below listed rates. Upon request, Manager shall also perform one (1) semi-annual drive by inspection at no cost to the Owner. Owner agrees to pay Manager for the cost of each inspection or any unscheduled (or Owner requested) trips to the Property.

Performance Standard.  Manager will use reasonable care when exercising Manager’s authority and performing services; and exercise discretion when performing services in a manner that Manager believes to be in Owner’s interest and that will be honest and fair to tenants.

Record Keeping.  Manager will maintain and retain records related to the Property for at least three (3) years; file certain required reports with the Internal Revenue Service (ex: Form 1099); provide Owner with a monthly statement of Owner’s account; and provide Owner with year-end reports. Owner authorizes Manager to send such reports electronically. An Annual 1099 and Cashflow Statement Fee of $99 will be assessed each January for all properties on the Full Service, $49 for all properties on the Investor Club and $99 for the first door and $25 for each door thereafter for multi-family properties that share a same parcel id.


  1. Loss and Damage. Owner hereby covenants and agrees to indemnify, defend and hold and save Manager harmless from and against all liabilities, damages, claims, actions, causes of action, costs and expenses or failure to perform such duties and responsibilities, whether such duties and responsibilities will be express or implied, other than as a result of willful misconduct, recklessness or sole gross negligence of Manager. Manager shall under no circumstances have any liability greater than the amount of commissions paid to Manager by Owner, in the last twelve months.
  2. Inducements and Representations. Owner acknowledges that Manager has made no inducements or representations other than those contained in this Agreement.  Owner acknowledges and agrees that any oral or written statements by Manager or its representatives concerning the benefits or risks of owning or renting or employing Manager to manage the Property or similar residential property, does not constitute inducements, warranties or representations.  Owner covenants and agrees with Manager that Owner has not purchased or will not purchase the Property in reliance upon any such statements.  Manager hereby disclaims any guarantee, representation, warranty or covenant including but not limited to:
  1. Potential Conflicts of Interest. Owner acknowledges and agrees that Manager is engaged in the business of renting and managing residential property.  In the event that Manager is attempting to rent the Property at the same time that it is attempting to rent any other residential property, conflicts of interest may arise between the Owner and the owners of such other residential property.  Manager agrees to use its best efforts to treat Owner, and the owner of each other residential property managed by Manager, in a substantially equitable manner to be determined by Manager in the circumstances.  Nothing contained in this Agreement shall be construed to constitute a promise or guarantee by Manager to equalize the occupancy rates or the amount of income received from the rental of any particular residential property.
  2. Manager’s Services vs Asset Management. Manager’s services hereunder shall be limited to leasing and maintenance of the Property and management of the tenant, including managing normal maintenance breakdowns, but excluding managing replacement, restoration, major renovations, and insurance claims unless agreed to by Owner and Manager in writing.  Managing the Property does not include managing Owner’s previously established third-party relationships or issues of asset management including the Owner’s mortgage, property taxes, insurance, warranties, HOA, HOA meetings, utilities, debt collection, code enforcement or building codes.  Nothing herein contained shall be construed or interpreted to mean that Manager is, in any sense, a general contractor, investment Manager or advisor for Owner, or a manager of any assets or affairs of Owner other than the Property and the tenant.
  3. If Owner instructs or requests Manager to coordinate or communicate with any insurance carrier, or if Owner requests services outside of scope of services, or instructs Manager to appear in any legal proceedings or deposition related to the Property (including but not limited to communicating with attorneys, negotiating with any government authority regarding property taxes, code violations, or other legal matters, evictions, tenant disputes, security deposit disputes, and suits for damages), Owner will pay Manager one (1) hour minimum at Manager’s or Manager’s Staff then current rate (currently $45 per hour for Staff, $90 per hour for Manager, and $180 per hour for Legal or Insurance related matters) for Manager’s and/or Manager’s staff’s time expended in such matters and in preparation of such matters.
  4. Owner also shall reimburse Manager for service of process expenses, court costs, and legal fees in connection with the filing of a complaint and eviction of tenant prior to or pursuant to a default judgment and will pay for Manager’s and/or Manager’s staff’s time for attendance at hearings, with a one (1) hour minimum, at Manager’s then current rate.

Third Party Contracts and Obligations. Owner is responsible and liable for all contracts and obligations related to the Property (for example, maintenance, service, repair and utility agreements) entered into before or during this Agreement by Owner or by Manager under Manager’s authority during the Service period. Owner agrees to hold Manager harmless from all claims related thereto.

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 for damages to Owner caused by a tenant’s breach of a lease.

  1. Rebates, Commissions, Discounts and Referral Fees. Manager may pay (and receive) commissions, co-op commissions, rebates, discounts, bonuses, profits and referral fees to (and from) outside real estate agents, in-house staff and companies, referral companies, rental relocation companies, multiple listing companies, builders, developers, home warranty companies, retailers, tenants, banks, contractors and vendors who assist Manager in the marketing, showing, monitoring, leasing, managing and maintaining of the Property, including companies where Manager may be affiliated or has ownership, including but not limited to Property Mechanic.

Owner Indemnification to Manager. Owner agrees to protect, defend, indemnify, and hold Manager harmless from any damage, costs, attorneys’ fees, and expenses that: are caused by Owner, negligently or otherwise; arise from any repairs performed by Owner or by others hired directly by Owner; arise from Owner’s failure to disclose any material or relevant information about the Property; are caused by Owner giving incorrect information to any person; or are related to the leasing, rental, security deposits, operation, or management of the Property by Manager or any person in Manager’s firm unless caused by Manager’s willful misconduct or sole gross negligence.

  1. Sale of Property. Owner shall have the right to list the Property for sale thirty (30) days prior to a tenant vacating the Property. If Owner sells Property to a tenant (or to a spouse, relative, or roommate of such tenant or to any other entity controlled by any of these parties) obtained by Manager, either during the term of the lease or thereafter, Owner shall pay Manager a commission of 2% of the gross sales price of the Property. Owner shall immediately give notice to Manager if and when: (a) Owner enters into a contract to sell Property; or (b) Owner closes on the sale of Property to another. This obligation shall survive the expiration or termination of this Agreement.
  2. Sales coordination fees. If, during this Agreement, Owner lists the Property for sale with an entity other than Manager, then Owner will pay one (1) hour minimum at Manager’s then current rate (currently $90 per hour) for Manager’s and/or Manager’s staff’s time and services to coordinate showings, inspections, appraisals, repairs, and other related matters.  Fees under this Paragraph are earned at the time such services are rendered and are payable upon Owner’s receipt of Manager’s invoice.
  3. SECURITY DEPOSITS.
  4. Security Deposits held in Manager’s Trust Account. Manager shall manage the tenant’s security deposit in a trust account, registered with the state real estate commission, until tenant moves out and surrenders the Property to Manager.

Application of Deposits. The application of the security deposit(s) shall be at the sole discretion of Manager at all times in accordance with the lease and the state landlord tenant law.

Disputes Over Deposits.   Notwithstanding the above, if there is a bona fide dispute over the security deposit, Manager may, upon notice to all parties having interest in the security deposit, interplead the funds into a court of competent jurisdiction. Owner agrees to indemnify and hold Manager harmless from and against all claims, suits, actions and damages arising out of or related to the actions by Manager in regard to assessing damages, assigning charges and the allocation of the security deposit.

Court Ordered Return of Deposits. Should Manager determine that said deposits, in whole or in part, belong to the Owner, and disburses said funds to the Owner, and at a later date, a court of law rules that some or all the monies must be returned to the tenant, Owner agrees to return said sums as ordered by the court.

Deposits After Management Termination. Except as may be otherwise required during the Service period, after the service period ends, Manager will deliver to Owner or Owner’s designated new manager the security deposit held by Manager under an effective lease of the Property, less deductions authorized by terms of service, and will send written notice to the tenant that states all the following:

Deposit Indemnity. If Manager complies with Deposit After Management Termination, Owner will indemnify Manager from any claim or loss from a tenant for the return of a security deposit. This Security Deposits Section survives termination of services.

Notice of Trustee Sale and Foreclosure. Upon Notice of Trustee Sale, Manager shall suspend payments to Owner until Trustee Sale is canceled or completed. Upon notice of the recording of a Trustee’s Deed foreclosing on the Property, Owner authorizes Manager to deduct from any other funds being held by Manager or Owner any remaining Manager Fees or funds due to Manager related to services performed during the Service period.  Additionally, upon notice of a Trustee’s Deed being recorded on the Property, Owner authorizes Manager to return any security deposit held by Manager to the tenant in addition to any prorated amount of rent being held by Manager and Manager may terminate Services. This paragraph does not preclude the Manager from seeking any other remedies during the Service period or at law.

Insurance and Attorneys.  Manager may not file a claim for a casualty loss with the carrier insuring the Property. Manager may communicate with the carrier to facilitate the processing of any claim Owner may file or other matters as instructed by Owner. Except as otherwise provided herein regarding eviction claims, Manager may not directly or indirectly employ a lawyer to represent Owner. Manager may communicate with Owner’s attorney per Owner’s instructions.

Terminology.  Singular pronouns in our Terms of Service shall be deemed to include the plural and vice versa.

Assignment. Unless prohibited by state law or regulations, Manager may assign any rights or obligations pursuant to management services unless prohibited by law. Owner may not assign any rights or obligations hereunder without Manager’s prior consent, and any attempted assignment without consent shall be void and of no effect.

Signatures, Headings, Faxes and Counterparts. This Agreement supersedes any prior oral or written agreement of the parties; headings shall have no legal significance; this Agreement may be signed in counterparts and by electronic signature. Faxed and digital signatures are deemed originals. Typed signatures on Manager’s online standard documents are considered original signatures. 

  1. Binding Agreement.  Agreeing to use our Services shall be binding upon all the Owners of the Property and shall inure to the benefits of all parties, their respective heirs, successors and assigns until such cancelation is received with 30 days notice.
  2. Joint and several liability. All Owners executing this Agreement are jointly and severally liable. Any act or notice to, refund to, or signature of, any one or more of the Owners is binding on all Owners executing this Agreement.
  3. Governing law, severability. The laws of the state where the Property is located shall govern. If a court finds any clause in this original Agreement or these modified Terms of Service invalid or unenforceable, the remainder will not be affected, and all other provisions will remain valid and enforceable.  Unless otherwise provided for herein, any notices, demands, consents, and reports provided for during the Service period shall be in writing and shall be faxed or emailed OR sent by regular mail; Notices shall be effective as of the date the notice is faxed/emailed /posted/ or five (5) workdays if sent by US mail.
  4.  Mediation.  The parties agree to negotiate in good faith effort to resolve any dispute related to the Terms of Service. If the dispute cannot be resolved by negotiation, the dispute will be submitted to mediation. The parties to the dispute will choose a mutually acceptable mediator and will share the cost of mediation equally.

Attorneys’ Fees. The prevailing party in any legal proceeding brought as a result of a dispute during the Service period will be entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorneys’ fees not to exceed $5,000.

Waiver of Jury Trial and Class Action. Parties agree that a trial of any lawsuit based on statute common law, and/or related to this Management Agreement shall be to a judge and not a jury. Manager and Owner hereby waive their right to a jury trial and also waive their right to participate in a class action against the other party.

Confidentiality. Both parties agree that all disputes and complaints shall be resolved privately and confidentially between Manager and Owner, or individually through the courts and further agrees to refrain from making defamatory statements orally or in writing about the other party and the representatives, partners, or agents of the parties. Both parties agree that it would be impractical and extremely difficult to ascertain the amount of actual damages caused by failure to comply with this provision and liquidated damages of $5,000 shall be payable upon demand.

Intellectual Property License. Owner acknowledges and agrees that all photographs, images, graphics, video, recordings, virtual tours, drawings, written descriptions, remarks, narratives, pricing information, and other copyrightable elements relating to the Property provided by Manager (the “Manager Intellectual Property Content”), or otherwise obtained or produced by the Manager during the Agreement or in connection with this Agreement, may be filed with one or more multiple listing services, included in compilations of listings, and otherwise distributed, publicly displayed and reproduced. Owner authorizes the right to photograph and create intellectual property for marketing and advertising purposes.

Owner hereby grants to Manager a non-exclusive, irrevocable, worldwide, royalty free license to use, sublicense through multiple tiers, publish, display and reproduce the Manager Property Content, to prepare derivative works of the Manager Property Content, and to distribute the Manger Property Content or any derivative works thereof. This non-exclusive license shall survive the termination of this Agreement. Owner acknowledges and agrees that, as between Owner and Manager, all Manager Property Content is owned exclusively by Manager, and Owner has no right, title or interest in or to any Manager Intellectual Property Content.

Errors and Omissions. In the event of any errors or omissions in the accounting or ledger between Owner and Manager, or in the tenant ledger with any tenant, Owner or Manager shall not be obligated to make any adjustments or changes for any errors or omissions which were made 90 days prior to when a party raised the issue in writing with the other party.

  1. Notices.  All notices or other communications except as otherwise provided herein required to be given during the Service period, or otherwise necessary to be given, shall be deemed to have been properly given to Owner and Manager at the respective addresses or email address shown below their signatures. Either party may change the address for receiving such notices by giving the other party ten (10) days prior written notice of any such change through, which may be by email.  All other Notices shall be in writing and personally delivered or sent by certified mail, return receipt requested.  Personal notice shall be effective upon delivery and mailed notice shall be effective three (3) days after the date of mailing.

Conflict between terms of service and prior agreements. Use of our Services is subject to our most current Terms of Service, which are available upon request and on our website and incorporated herein by reference. These Terms of Service, as may be updated from time to time at our sole discretion with notice, and shall prevail over any prior agreements or understandings, whether written or oral, and over any other forms of notice. By continuing to use our services, you agree to be bound by the most recent version of our Terms of Service. It is your responsibility to review these Terms periodically for any changes. Your continued use of the service following the posting of any changes to the Terms of Service constitutes acceptance of those changes.