RECITALS
WHEREAS, the Owner owns certain real property located at the address listed above ("Property") and desires to engage the Company to manage and operate the Property for short-term rental purposes;
WHEREAS, the Company agrees to provide management services to the Owner for the Property under the terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties agree as follows:
1. Scope of Services
The Company agrees to perform the following services on behalf of the Owner:
- Listing and Marketing: Create and manage listings for the Property on short-term rental platforms. This includes taking professional pictures of the place.
- Guest Management: Handle all communication with potential and current guests, including inquiries, bookings, check-in/check-out processes, and addressing guest issues or concerns.
- Pricing Strategy: Set rental prices based on market trends, seasonality, and demand to maximize occupancy and income.
- Maintenance and Repairs: Arrange for routine maintenance, repairs, and cleaning services necessary to keep the Property in good condition.
- Upgrades and Improvements: Coordinate any agreed-upon upgrades or improvements to the Property using the Company's share of rental income.
- Insurance: Ensure the Property is covered by appropriate insurance policies for short-term rental activities, including liability coverage.
- Compliance and Taxes: Ensure compliance with local regulations and assist with tax documentation related to short-term rental income.
- Cleaning: Ensure proper and timely cleaning of rental units when they vacate.
- Furnishing: Ensure the units are properly and tastefully furnished before renting them out. The costs for furniture will be divided between the Property Owner and the Company, while each party's share will be determined mutually and separately for each unit.
2. Term and Termination
- Term: This Agreement shall commence on the date signed and continue until terminated by either party.
- Termination: Either party may terminate this Agreement at any time by providing thirty (30) days written notice to the other party. However, any existing bookings must be honored, and the Agreement will remain in effect until all booked reservations are completed.
3. Compensation and Payment
- The Company shall share the profit generated as a percentage of the net rental income from the listed Property(ies).
- The Company’s share of income shall be used for agreed-upon upgrades, furniture, and operational expenses related to the Property.
- Payments to the Owner of the Owner's share will be made with each new booking.
4. Owner's Responsibilities
- Property Access: Provide the Company with necessary access to the Property for management, maintenance, and guest services.
- Utilities and Expenses: Remain responsible for all utility costs and other expenses not covered by the Company’s share of rental income.
- Insurance: Maintain adequate homeowner's insurance coverage for the entire Property.
- Compliance: Ensure the Property complies with all applicable laws, regulations, and zoning requirements.
5. Upgrades, Maintenance, and Repairs
- Mutual Agreement: The owner and the company must mutually agree upon all upgrades or significant repairs to the Property.
- Funding: Unless otherwise agreed, the Company’s share of rental income will pay for upgrades and repairs.
- Responsibility for Repairs: The Company will handle minor repairs and maintenance; the Owner shall be responsible for any significant structural repairs unrelated to the short-term rental operation.
6. Insurance Coverage
The Company will ensure that the Property is adequately insured for short-term rental purposes, including liability coverage for guest injuries or damages to guest belongings. The Owner is responsible for maintaining general homeowner's insurance coverage.
7. Indemnification
- The Owner agrees to indemnify and hold the Company harmless from any claims, damages, or liabilities arising from the Owner's failure to comply with applicable laws or regulations.
- The Company agrees to indemnify and hold the Owner harmless from any claims, damages, or liabilities arising from the Company’s negligence or willful misconduct in managing the Property.
8. Dispute Resolution
In the event of any dispute arising out of or relating to this Agreement, the parties agree to first attempt to resolve the dispute through good-faith negotiations. If the dispute cannot be resolved, it shall be submitted to mediation or arbitration as mutually agreed by the parties.
9. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located, without regard to its conflict of law principles.
10. Entire Agreement
This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior discussions, agreements, or understandings of any kind. Any amendments or modifications to this Agreement must be in writing and signed by both parties.
11. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
6. Photography and Listing
- The Company will handle all photography and listing tasks required to market the property effectively on short-term rental platforms.
7. Earnings
- Earnings from the rental income will be shared between the Homeowner and the Company as agreed. The Company’s share will cover upgrades, furniture, and other operational costs.
8. High-Speed Internet
- The Company will ensure the property has high-speed internet to meet guests' expectations.
9. Electric Vehicle Charger
- If mutually agreed upon, the Company will arrange to install an Electric Vehicle (EV) charger at the property, funded through the Company’s share of the rental income.
10. Bookings and Homeowner Usage
- The Company will manage all guest bookings. The Homeowner may reserve the property for personal use by notifying the Company in advance. The Homeowner can access the booking calendar to view all active and upcoming reservations. Since new bookings may be accepted without prior notice to the Homeowner, it is recommended that desired dates be reserved well in advance or that the booking calendar be regularly monitored.
11. Pricing and Guest Screening
- The Company will set pricing according to market trends and seasonal demand. All guests will be screened before bookings are accepted to ensure the property is well-maintained and respected.
12. Taxes
- The Company will apply all city tax rules and pay local tax for all guest bookings. The Homeowner is responsible for understanding and complying with local tax laws related to their share of the rental income generated by the property. The Company will assist with documentation as required.
13. Cleaning
- The Company will arrange professional property cleaning services between guest stays to ensure it remains in top condition. The cleaning is limited to the spaces and units of this agreement.