property management packet · from within the county in which the property resides. [rcw 59.18]...

“SPOKANE’S PROFESSIONAL LANDLORD…

WHERE YOUR PROPERTY IS OUR PRIORITY”

PROPERTY MANAGEMENT PACKET

910 N. WASHINGTON SUITE #107

SPOKANE, WA 99201 509.465.9052

[email protected]

WWW.MADISONSPOKANE.COM

PROPERTY MANAGEMENT

The management of income producing properties encompasses leasing, service to tenants, maintenance and repairs, hiring personnel, collecting rents, collections, representing owners in unlawful detainer actions, purchasing and accounting. Income properties such as yours are frequently managed by Professional Property Managers who specialize in this field of real estate.

Our leadership has over 80 years of combined Professional Property Management experience. Experience is critical to handling the variety of physical, emotional and legal issues that come up each day in Property Management. We believe our team is unmatched in this vital component of quality property management.

While our experience is second-to-none in the Greater Spokane Area, we believe it is vital to remain up-to-date in our industry. To that end, we are active members in the National Association of Residential Property Managers (NARPM) and the National Association of Realtors (NAR). This is an ever-changing business due to yearly updates in Landlord-Tenant Law and the fast pace at which technology is changing our business. We feel it is imperative for any Professional Property Manager to take the time and effort to stay involved and stay current with the many changes affecting rental property owners each year.

Washington State law requires that a Professional Property Manager be licensed as a real estate Broker/Agent in order to collect a commission and/or fee for his service. Washington State law also requires that you have a local agent represent your rental property and all notices to tenants be mailed from within the county in which the property resides. [RCW 59.18]

Profitable property management is not easy. It requires the knowledge, skills, and daily attention of a trained, experienced, professional management team. Our marketing, maintenance, and management strategy has been carefully planned to maximize your profit during the rental period and upon the resale of the property.

A harmonious Owner-Agent relationship is imperative. It is not enough that both parties are comfortable doing business with one another. There must be a mutual feeling of trust and respect. Since each Party has specific duties and obligations to the other, it is only good business to reduce them to writing. The agreement should clearly define the rights and responsibilities of each Party and the Agent’s compensation. The management agreement, which follows, was custom designed to accomplish that purpose.

~ OUR PROMISE ~

Madison Real Estate and Property Management, Inc. pledges the unconditional honesty and best efforts of our staff in the management of your property. Your interests come first. While the tenant is our customer, you as the owner are our client and we work for you.

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PROPERTY MANAGEMENT AGREEMENT (Herein after referred to as “Agreement”)

IN CONSIDERATION of the covenants herein contained, Ivan Investor (hereinafter called “Owner”), and MADISON REAL ESTATE AND PROPERTY MANAGEMENT, INC. (hereinafter called “Agent”) agree as follows:

WITNESSETH WHEREAS, AGENT is in the business of providing rental financial and property management services to OWNERS of residential properties which are held for Investment purposes as rental properties; WHEREAS, OWNER is a Real Estate Investor who has authority to enter into this exclusive Agreement (“Agreement”) for the residential property identified below and desires to engage AGENT to manage the Property; WHEREAS, AGENT desires to enter into this exclusive Agreement to provide such services on the terms and conditions set forth herein; NOW THEREFORE, the OWNER and AGENT agree to the following:

1. THE OWNER HEREBY APPOINTS THE AGENT, beginning on JANUARY 1, 2019, to exclusively lease, rent and manage the property (hereinafter called the "Premises") commonly known as (if more than one Premises, please see attached Addendum “A” which shall become part of this agreement): Address: 123 S. Primrose Ln. City: Spokane , WA Zip Code: 99223 Tax Parcel ID#: 11111.2222

upon the terms and conditions hereinafter set forth, for a term of One Year and thereafter for yearly periods from time to time, unless on or before Thirty (30) days prior to the date last above mentioned or on or before Thirty (30) days prior to the expiration of any such renewal period, either party hereto shall notify the other in writing that it elects to terminate this Agreement, in which case this Agreement shall be thereby terminated on said last mentioned date. (See also Paragraph 7.)

2. THE AGENT AGREES:

2.1. To accept the management of the Premises, to the extent, for the period, and upon the terms herein provided. To furnish the services of its organization for the rental operation and management of the premises.

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2.2. To render statements on a monthly basis of receipts, disbursements, and charges to the Owner(s), at the e-mail addresses shown below: #1 E-MAIL: [email protected] #2 E-MAIL: #3 E-MAIL:

and to remit on a monthly basis the net proceeds. Agent will remit available net proceeds prior to the end of the month with every effort to have funds disbursed by 15th of the month (or first business day thereafter) for all clients who receive direct deposit. Should any rents or other amounts owed to owner not be available (funds not cleared), they will be disbursed on the following dates (or first business day thereafter) after they are made available for disbursement by our banking institution: 20th, 25th of the current month or 10th of the following month. Payments will be made to the following persons and/or entities, in the percentages specified, via ACH direct deposit into the account of their choice:

#1 NAME: Ivan Investor PERCENTAGE: 100.0% #2 NAME: PERCENTAGE: #3 NAME: PERCENTAGE: PERCENTAGES MUST EQUAL 100.0%

2.3. All written correspondence to Owner(s) shall be delivered to the following address

ADDRESS: 321 Easy St. CITY: Easyville STATE: FL ZIP: 99999

2.4. In the event planned disbursements and other costs associated with the property shall be in excess of the receipts, the Agent shall notify the Owner of said shortfall. The Owner agrees to make payment upon receipt of notice. Nothing herein contained shall obligate the Agent to advance its own funds on behalf of the Owner.

2.5. To collect rents and to collect and disburse security and other deposits; to deposit all receipts collected for Owner in a property management trust account with a qualified banking institution of the Agent’s choice. The current institution is: INLAND NORTHWEST BANK, 421 W. RIVERSIDE AVE., SPOKANE, WA 99201. The Agent may change banking institution without the consent of the Owner, but agrees to keep Owner notified should such change occur. The Owner agrees that all interest earned on all moneys received, if any belong to Madison Real Estate and Property

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Management, Inc. Agent shall not incur any liability for bankruptcy or failure of the depository.

2.6. To market property in accordance with the Agent’s marketing plan. This may include, but is not limited to:

2.6.1. Placing advertisements with interior and exterior photographic and/or audio-visual images of the Premises and related information in any media and on the Internet.

2.6.2. Media and Internet venues may include, but are not limited to: MadisonSpokane.com, Google, Yahoo! Real Estate, Trulia, Oodle, AHRN.com, Craigslist and any other venues deemed appropriate and effective (including YouTube.com, Rentals.com, RentalHomesPlus.com, the Spokesman-Review Real Estate Section, radio programming, etc.);

2.6.3. Placement of a sign in the yard or on the Premises (if allowed);

2.6.4. Search Engine Optimization (SEO) in the effort to place our website and other online marketing at or near the top of Internet searches seeking rental property in the Greater Spokane area;

2.6.5. Networking within real estate trade groups, business advisory groups and other professional associations to which we belong in order to leverage our large and established network of peers and associates who recognize our leadership in the Property Management industry;

2.6.6. Placement on the Multiple Listing Service (MLS) to access and expose available rental, sale and lease-option property to the vast network of local real estate professionals;

2.7. To follow a set of standardized, written guidelines and step-by-step documentation to ensure proper management of the premises and communication with Owner and tenants including, but not limited to:

2.7.1. Company Policy and Procedures Manual;

2.7.2. Employee Handbook and Agreements;

2.7.3. Detailed Checklist System for each step of the Property Management process.

2.8. To be actively involved in local and national chapters of the National Association of Residential Property Managers (NARPM) and National Association of Realtors (NAR) in order to be up-to-date on the latest issues, laws, regulations and trends in the management of rental real estate.

2.9. Comply with the Ethics standards set forth by the National Association of Residential Property Managers (NARPM) and the National Association of Realtors (NAR).

2.10. The only warranty, stated or implied by the Agent, is the unconditional honesty of staff, and to use the organizations best efforts in the management of the Owners property.

3. THE OWNER AGREES to give the Agent the following authority and powers (all or any of which may be exercised in the name of the Owner), agrees to assume all expenses in connection therewith and agrees to the follow:

3.1. To utilize the best and most effective marketing and advertising venues as determined by Agent, in order to rent the Premises in the shortest amount of time possible. To

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cause references of prospective tenants to be investigated; to negotiate and execute leases for terms not in excess of One (1) Year and to renew and/or cancel the existing leases and prepare and execute the new leases; provided, however, that the Agent may collect certain fees and charges from tenants per the Agent’s lease agreement and need not account for such charges, fees, and/or commissions to the Owner; to terminate tenancies and to sign and serve such notices as are deemed needful by the Agent; to institute and prosecute actions to oust tenants and to recover possession of the Premises; to sue for and recover rent; and, when expedient, to settle, compromise, and release such actions or suits, or reinstate such tenancies. Owner shall reimburse Agent for all expenses of litigation, including attorneys' fees; filing fees, and court costs, which Agent does not recover, from tenants. Agent may select the attorney and/or collection agency of its choice to handle such litigation.

3.2. To establish parameters for new tenants and rental terms. Agent is authorized to negotiate, prepare and execute all leases, including renewal and extension of existing leases, to cancel and modify existing leases, utilizing Agent’s forms and Agreements exclusively. Owner agrees to all terms and provisions within Agent forms and Agreements pertaining to tenants and prospective tenants. Agent may also be referred to as “Landlord,” “Management,” and or “Agent for Owner.”

3.3. To establish rents, deposits and move-in specials in accordance to the best professional judgment of the Agent.

3.4. To hire, discharge, and pay all engineers, janitors and other employees and/or independent contractors; to make or cause to be made all ordinary and necessary repairs and replacements and to preserve the Premises in its present condition and to satisfy the lease and/or rental agreement requirements, and to do decorating on the Premises; to negotiate and to enter into agreements for all necessary repairs, maintenance, minor alterations, and utility services; and to purchase supplies and pay all bills. Agent shall secure the approval of the Owner for any expenditures in excess of Three-Hundred Dollars ($300.00) for any one item, except monthly or recurring operating charges and 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 by their tenancy.

3.5. To execute Paragraph 3.4 in the event Agent and Owner agree that the Owner will provide for all necessary repairs, maintenance, minor alterations, utility services, purchase supplies, and pay all bills and should the Owner not do so in a timely manner and/or in the event of an emergency if the Owner cannot be contacted, 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 by their tenancy. Agent and Owner agree that said services will be arranged by the following person(s):

3.5.1. OWNER INITIALS: MADISON REAL ESTATE AND PROPERTY MANAGEMENT, INC. 910 N. WASHINGTON ST. SUITE #107 SPOKANE, WA 99201 (509) 465-9052

3.5.2. The Agent shall contract for or undertake the making of all necessary repairs and the performance of all other necessary work for the benefit of the property to properly carry out this contract. When deemed the better alternative, Agent may use in-house maintenance staff employed by the Agent.

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3.6. To collect rents and/or assessments and other items due or to become due and give receipts therefore and to deposit all funds collected there under in the Agent’s property management trust account.

3.7. To handle tenants' security deposits and to comply, on the Owner’s behalf with applicable state or local laws concerning the Agent’s responsibility for security deposits and interest thereon, if any.

3.8. To provide sufficient turnaround time to enable the Owner to make mortgage payments in a timely manner, and to create an accounting system whereby the actual cost of all late charges may be charged to the tenant as a result of untimely rent payments, with the exception of vacancy periods, the Owner agrees to prepay mortgage(s) One (1) Month in advance and keep it prepaid One (1) Month in advance during the term of this agreement. If the mortgage is not prepaid, the Owner agrees to assume the cost of any and all late charges, which result from untimely disbursements.

4. LIABILITY AND INDEMNIFICATION:

4.1. To indemnify, defend, and save the Agent harmless from all suits related to this property. This shall include but not be limited to suits in connection with the Premises and from liability for damage to property and injuries to or death of any employee or other person whomsoever, and to carry at his (its) own expense public liability, elevator liability (if elevators are part of the equipment of the Premises), and workmen’s compensation insurance (or insurance equal to) naming the Owner and the Agent and adequate to protect their interests and, in form, substance, and amounts reasonable satisfactory to the Agent, and to furnish to the Agent certificates evidencing the existence of such insurance. Unless the Owner shall provide such insurance and furnish such certificate within Thirty (30) days from the date of the Agreement, the Agent may, but shall not be obligated to, place said insurance and charge the cost thereof to the account of the Owner. All such insurance policies shall provide that the Agent shall receive Thirty (30) days’ written notice prior to cancellation of the policy.

4.2. Agent is not responsible or liable in any manner for personal injury to any person or for loss or damage to any person’s real property resulting from any action or omission not caused by the negligence of the Agent, including but not limited to:

4.2.1. Other brokers, their associates, inspectors, appraisers, and contractors who are authorized to access the property;

4.2.2. Act of third parties (for example, vandalism, theft, or other criminal acts);

4.2.3. Freezing or leaking water pipes;

4.2.4. A dangerous condition or environmental condition on the property; or

4.2.5. The property’s non-compliance with any law or ordinance.

4.3. Agent is not responsible or liable in any manner for:

4.3.1. Any late fees or other charges owner incurs to any creditor caused by late or insufficient payments by any tenant in the property; or

4.3.2. Damages to Owner caused by a tenant’s breach of lease.

4.4. Owner agrees to protect, defend and indemnify Agent harmless from any damage, costs, attorney’s fees and expenses that:

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4.4.1. Are caused by Owner, negligently and otherwise;

4.4.2. Arise from Owner’s failure to disclose any material or relevant information about the property;

4.4.3. Are caused by Owner giving incorrect information to any person; or

4.4.4. Are related to the management of the PREMISES and are not caused by the Agent, negligently or otherwise.

4.5. Owner is responsible and liable for all contracts and obligations related to the Premises (for example, maintenance, service, repair and utility agreements) entered into before or during this agreement by Owner or Agent under Agent’s authority under this agreement. Owner agrees to hold Agent harmless for all claims related to any such contracts.

4.6. To pay all expenses incurred by the Agent, including, but not limited to, reasonable attorneys' fees and Agent’s costs and time in connection with any claim, proceeding, or suit involving an alleged violation by the Agent or Owner, or both, of any law pertaining to fair employment, fair credit reporting, environmental protection, rent control, taxes, or fair housing, including, but not limited to, any law prohibiting, or making illegal, discrimination on the basis of race, sex, creed, color, religion, national origin, or mental or physical handicap, provided, however, that the Owner shall not be responsible to the Agent for any such expenses in the event the Agent is finally adjudicated to have personally, and not in a representative capacity, violated any such law. Nothing contained herein shall obligate the Agent to employ counsel to represent the Owner in any such proceeding or suit, and the Owner may elect to employ counsel to represent the Owner in any such proceeding or suit. The Owner also agrees to pay reasonable expenses (or an apportioned amount of such expenses where other employers of Agent also benefit from the expenditure) incurred by the Agent in obtaining legal advice regarding compliance with any law affecting the Premises or activities related thereto.

4.7. To indemnify, defend, and save the Agent harmless from all claims, investigations, and suits, or from actions or failures to act of the Owner, with respect to any alleged or actual violation of state or federal labor laws, it being expressly agreed and understood that as between the Owner and Agent, all persons employed in connection with the Premises are employees of the Owner, not the Agent. However, it shall be the responsibility of the Agent to comply with all applicable state or federal labor laws. The Owner’s obligation under this Paragraph shall include the payment of all settlements, judgments, damages, liquidated damages, penalties, forfeitures, back pay awards, court costs, litigation expenses, and attorneys' fees.

4.8. The Owner hereby releases the Agent and does expressly waive any right or claim against the Agent for loss of rents or loss resulting from damages to the property or the contents thereof.

5. THE OWNER FURTHER AGREES:

5.1. The Owner agrees that the Agent and/or his representative(s) shall have the exclusive right(s) to transact the business of property management with the tenant(s). Should the Owner either directly or indirectly interfere in the Agent-Tenant management relationship, without the prior written consent of the Agent, the Agent may interpret the Owner’s interference as an act of termination and proceed according to the terms of Section 10. The Owner agrees to pay to the Agent the cancellation fee as provided for in Section 10.

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5.2. The Agent shall not be required to advance any moneys for the care or management of said property, and the Owner agrees to advance all moneys necessary therefore. If the Agent shall elect to advance any money in connection with the property, the Owner agrees to reimburse the agent forthwith and hereby authorizes the Agent to deduct such advances from any impound reserves each month for the payment of real estate taxes, insurance, or any other special expenditure. In addition, the Owner agrees to establish a permanent Operating Reserve Account with the Agent in the amount of Two-Hundred Dollars ($200.00), which shall be deposited in a trust account with a qualified banking institution of Agent’s choice (See Paragraph 2.5). Agent may elect to make deductions from this Operating Reserve Account as provided for under Paragraph 3.4. The Owner agrees to reimburse this Operating Reserve Account upon demand.

5.3. To give adequate written notice to the Agent, in advance, if the Owner desires that the Agent make payment, out of the proceeds from the Premises, for any of the following: mortgage indebtedness, general taxes, special assessments, insurance premiums, or other authorized expenses. In no event shall the Agent be required to advance its own money in payment of any such expenses, indebtedness, or assessments.

5.4. To have Agent, in order to comply with insurance policy requirements, prevent undue liability and/or as a general best practice, rekeying and master keying unit at Owner expense by a qualified professional of Agent’s choosing, prior to tenant occupancy and at each subsequent tenant occupancy.

5.5. In the last month of tenancy, the Owner agrees to have Agent hold in reserve an additional Five-Hundred Dollars ($500.00) to be used defray costs associated with the Agent maintaining the property during vacancy, including but not limited to: yard care, snow removal, utility expenses, marketing, and unrecoverable turnover expenses.

6. IT IS MUTUALLY AGREED THAT:

6.1. Agent and Owner agree to follow all Federal, State and Local Fair Housing Laws.

6.2. Agent and Owner agree to follow Chapter 59.18 of the Revised Code of Washington (RCW), commonly known as the Residential Landlord-Tenant Act (RLTA).

6.3. The Owner expressly withholds from the Agent any power or authority to make any structural changes in any building or to make any other major alterations or additions in or to any such building or equipment therein, or to incur any expense chargeable to the Owner other than expenses related to exercising the express powers above vested in the Agent without the prior written direction of the Owner.

6.4. The Agent does not assume and is given no responsibility for compliance of any building on the Premises or any equipment therein with the requirements of any statute, ordinance, law, or regulation of any governmental body or of any public authority or official thereof having jurisdiction, except to notify the Owner promptly or forward to the Owner promptly any complaints, warnings, notices, or summonses received by it relating to such matters. The Owner represents that to the best of his/her (its) knowledge the Premises and such equipment comply with all such requirements and authorizes the Agent to disclose the ownership of the Premises to any such officials and agrees to indemnify and hold harmless the Agent, its representatives, servants, and employees, of and from all loss, cost, expense, and liability whatsoever which may be imposed on them or any of them by reason of any present or future violation or alleged violation of such laws, ordinances, statutes, or regulations.

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6.5. In the event it is alleged or charged that any building on the Premises or any equipment therein or any act or failure to act by the Owner with respect to the Premises or the sale, rental, or other disposition thereof fails to comply with, or is in violation of, any of the requirements of any constitutional provision, statute, ordinance, law, or regulation of any governmental body or any order or ruling of any public authority or official thereof having or claiming to have jurisdiction there over, and the Agent, in its sole and absolute discretion, considers that the action or position of the Owner or registered managing agent with respect thereto may result in damage or liability to the Agent, the Agent shall have the right to cancel this Agreement at any time by written notice to the Owner of its election to do so, which cancellation shall be effective upon the service of such notice.

6.6. Notice may be served personally or by registered mail, on or to the person named to receive the Agent’s monthly statement at the address designated for such person as provided in Paragraph 2.3, and if served by mail shall be deemed to have been served when deposited in the mails. Such cancellation shall not release the indemnities of the Owner set forth in Section 4 and shall not terminate any liability or obligation of the Owner to the Agent for any payment, reimbursement, or other sum of money then due and payable to the Agent hereunder.

6.7. Agreement may be recorded at the discretion of the Agent.

6.8. To promote goodwill and tenant retention, Agent may utilize up to Twenty-Five Dollars ($25.00) per year per unit to provide tenants with a holiday gift on behalf of the Owner and Agent.

7. COMPENSATION TO AGENT. See the attached Compensation Schedule. The schedule of compensation is fixed and guaranteed for the initial contract period of one year. Revisions may be made on an annual basis thereafter. Any future revisions will be sent to the owner for review at least 45 days prior to the annual renewal date of this agreement. See Paragraph 1.

8. IN THE EVENT THE BUILDINGS AND IMPROVEMENTS ON SAID PREMISES ARE INJURED OR DESTROYED by fire or other catastrophe during the continuance of this Agreement, the Owner may, at its option, terminate this Agreement forthwith by written notice to the Agent. The cancellation fee (see Section 10) is then voided; however, all terms of Paragraph 12 remain applicable.

9. THIS AGREEMENT MAY BE CANCELED BY OWNER for bankruptcy, forfeiture or sale of the property, or for any reason whatsoever before the termination date specified in Paragraph 1 with Thirty (30) days advance written notice to the Agent, or as provided for in Paragraph 5.1.

9.1. The Owner agrees to pay to the Agent a cancellation fee of the greater of Six-Hundred Dollars ($600.00) or the Average Monthly Compensation per unit times the number of months remaining under the terms of this Agreement. The average monthly compensation shall be computed as follows:

Total Compensation Earned to Date Divided by Number of Months Under Management

9.2. The cancellation fee is due and payable in full upon cancellation. The Agent is authorized to apply the Owner’s funds not yet disbursed towards the payment of the cancellation fee.

9.3. The Owner agrees to extend the Management Agreement for the balance of existing lease and lease renewal periods.

9.4. Should Owner cancel this agreement prior to the effective termination date herein, Owner shall not be released from his obligation as stated in Paragraph 8.

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9.5. Owner agrees to sign Release Agreement and hold Agent harmless for any actions prior to, during or subsequent to management.

10. THIS AGREEMENT MAY BE CANCELED BY AGENT before the termination date specified in Paragraph 1 with not less than Ten (10) days prior written notice to the Owner for any reason without penalty to either Agent or Owner. Such cancellation shall result in the immediate termination of this agreement as of the date specified by the Agent in said written notice. Such cancellation, however, shall not release the indemnities of the Owner set forth in Paragraphs 4 and 11 and shall not terminate any liability or obligation of Owner to the Agent for any payment, reimbursement, or other sum of money then due and payable to the Agent hereunder, including Paragraph 11.

11. THE OWNER SHALL PAY OR REIMBURSE THE AGENT for any sums of money due under this Agreement for services or actions prior to termination, notwithstanding any termination of this Agreement. All provisions of this Agreement that require the Owner to have insured or to defend, reimburse, or indemnify the Agent (including, but not limited to, Section 4) shall survive any termination and, if Agent is or becomes involved in any proceeding or litigation by reason of having been the Owner’s Agent, such provisions shall apply as if this Agreement were still in effect. The parties understand and agree that the Agent may withhold funds for thirty (30) days after the end of the month in which this Agreement is terminated to pay bills previously incurred but not yet invoiced and to close accounts.

12. LIMITED POWER OF ATTORNEY. OWNER gives AGENT non-revocable "LIMITED POWER OF ATTORNEY" for the purpose of executing all leases, screening, renewals, modifications, enforcing the lease, terminations, negotiating settlements, engaging contractors, initiating repairs and collections all at the sole discretion of the AGENT. OWNER shall be jointly and severally liable for all obligations in such documents

13. FORCE MAJUER. Any delays in the performance of any obligation of Agent under this agreement shall be excused to the extent that such delays are caused by wars, national emergencies, natural disasters, strikes, labor disputes, utility failures, governmental regulations, riots, adverse weather, and similar causes not within the control of the Agent, and any time periods required for such performance shall be extended accordingly.

14. BINDING ARBITRATION CLAUSE. Owner and Agent agree that all controversies and/or disputes between the parties concerning any transaction or the interpretation, performance or breach of this or any agreement between us, whether entered into prior, on, or subsequent to the date hereof, shall be determined by binding arbitration. Arbitration action must be commenced within Ninety (90) days of the termination of the contract or all claims are null and void. The award of the arbitrators or the majority of them shall be final. Judgment upon any arbitration award rendered may be entered in any court, state or federal, having appropriate jurisdiction. Prevailing party is entitled to all awards and damages.

15. IN CASE THIS AGREEMENT IS SUCCESSFULLY ENFORCED by either party, the prevailing party shall be entitle to collect all costs associated with enforcement including but not limited to reasonable attorneys' fees. The venue of any action upon this Agreement shall lie in Spokane County, Washington.

16. THIS AGREEMENT SHALL BE BINDING UPON THE SUCCESSORS and assigns of the Agent. This Agreement shall be binding upon the heirs, administrators, successors, and assigns of the Owner.

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17. COMMENCEMENT OF AGREEMENT. This Agreement shall commence and become effective on the date listed in Paragraph 1 of this Agreement. Management responsibilities or the date the following items are completed and in the possession of the Agent:

17.1. Signed Property Management Agreement

17.2. Property Management Compensation Schedule

17.3. E-Service Agreement

17.4. Credit Authorization Agreement

17.5. IRS Form W-9

17.6. Owner Information Form

17.7. Property Information Form

17.8. Utility Authorization Forms

17.9. Insurance Declaration Page Naming Agent as Additional or Co-Insured

17.10. Lead Based Paint Addendum (if applicable)

17.11. Multiple Premises Addendum “A” (if applicable)

17.12. Owner Preferred Vendors Addendum “B” (if applicable)

IN WITNESS WHEREOF, the parties hereto have affixed or caused to be affixed their respective signatures this day of , 2019. Owner Owner Owner AGENT’S DESIGNATED BROKER MADISON REAL ESTATE AND PROPERTY MANAGEMENT, INC.

910 N. WASHINGTON SUITE #107 SPOKANE, WA 99201 (509) 465-9052 [email protected]

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COMPENSATION SCHEDULE

As referred to in Paragraph 5 of the Property Management Agreement, the Owner agrees to compensate Agent in the form of the following fees and/or charges if applicable and this schedule shall become part of the Agreement:

1. PROPERTY SETUP: The Owner agrees to pay a one-time Property Setup Fee of One-Hundred Fifty Dollars ($150.00) per unit. The Setup Fee covers the cost to setup the property in our system, establish the initial accounting, property condition review, any recommendations to the owner based on our professional assessment, and/or re-writing an existing tenant lease.

2. ***LEASING: To find and place a new tenant Owner agrees to pay Three-Hundred Fifty Dollars ($350.00). This includes, but is not limited to property showings, tenant background checks, rental verification, employment verification, property condition report, property condition photos, initial walk-through with tenant, lease preparation, lease signing, copies of all signed documentation to tenant, lease copy and move-in condition photos to owner, entry into property management software system, etc. Property Setup Fee is waived if property is vacant at the beginning of the management contract and a new tenant needs to be procured under this paragraph.

3. LEASE RENEWAL: For negotiating a lease renewal, preparation of documentation, lease review with tenant, copies of all signed documentation to tenant and providing a copy of the lease to the owner a fee of One-Hundred Fifty Dollars ($150.00) for each lease renewal, not to exceed one Lease Renewal fee per year.

4. MANAGEMENT: The greater of Eighty-Dollars ($80.00) or Ten Percent (10.0%) of the gross amount of money received from the operation of the property during the period provided for herein. The Owner shall not pay a fee for management during periods of vacancy. A Reserve Account of Two-Hundred Dollars ($200.00) shall be established and funded by Owner and maintained by the Agent.

5. MARKETING: Owner agrees to pay a Marketing Fee of Forty-Five Dollars ($45.00) per week for costs associated with marketing the property as referenced in Section 6 of the Agreement.

6. LEASE/OPTION: For negotiating and implementing a two-part Lease/Option Agreement, with price and terms acceptable to Owner, the Owner agrees to pay the Agent a Lease/Option Fee equal to the greater of Five-Hundred Dollars ($500.00) or One Percent (1.0%) of the Option Price. This fee is in addition to the real estate commission for brokerage services and other fees contained in this schedule.

7. MAINTENANCE AND REPAIRS: In the event the Owner requests the Agent to supervise construction, remodeling, and/or repairs provided for under Section 3 of the Agreement, a fee of Ten Percent (10.0%) of the total invoiced amount shall be charged by Agent and payable by Owner.

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8. FINANCING: For successfully procuring, arranging and facilitating new and/or additional real estate financing the Owner agrees to pay the Agent a financing fee of One Percent (1.0%) of the gross loan or mortgage or Five-Hundred Dollars ($500.00), whichever is greater. This fee is considered earned and becomes due and payable once all of the following has occurred: Owner has been advised of the estimated loan costs, interest rate, applies for the loan and receives lender approval.

9. TENANT: The Owner agrees that the agent may collect fees, special charges, and/or commissions from the tenant(s) according to the terms of Paragraph 3.1 in the Agreement.

10. HOURLY RATE: In the event the agent performs professional services related to this property or the Owner’s account, according to the terms of this agreement or at the special request of the Owner for which compensation is not provided for in the Agreement, Owner agrees to pay Agent at the rate of Fifty Dollars ($50.00) per hour.

11. SPECIAL DISBURSEMENT DRAFT: In the event the Owner requests funds outside of the normal disbursement dates, Owner agree to pay Agent Twenty-Five Dollars ($25.00).

12. COPY CHARGE: One copy of any document is available without charge. Owner will receive a copy of the Agreement and copies of all initial and renewal leases without charge. Owner agrees to pay Agent One Dollar ($1.00) per page for all additional copies.

13. UTILITY BILLING: In the event the Agent finds it necessary to bill and collect monthly utility bills from Tenant(s), Owner agrees to pay Agent Ten Dollars ($10.00) per month per unit.

*** Leasing Fees for outside of our normal coverage area are $350.00 to $500.00 depending on OWNER restrictions and the location and type of property.

OF 2 INITIALS

ADDENDUM “A”

MULTIPLE PREMISES ADDENDUM

Address: City: , WA Zip Code: Tax Parcel ID#: ,




Address: City: , WA Zip Code: Tax Parcel ID#:



OF 2 INITIALS

ADDENDUM “B”

OWNER PREFERRED VENDORS ADDENDUM

VENDOR NAME:

QUALIFIED TO HANDLE THESE TASKS:

VENDOR PHONE #:

VENDOR E-MAIL:

VENDOR ADDRESS:

VENDOR NAME:


VENDOR PHONE #:

VENDOR E-MAIL:

VENDOR ADDRESS:

VENDOR NAME:


VENDOR PHONE #:

VENDOR E-MAIL:

VENDOR ADDRESS:

property management packet · from within the county in which the property resides. [rcw 59.18]...

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