Bloomington Rentals, Inc

Property Management and Rental Agreement

In consideration of the covenants herein contained______

Hereinafter called “OWNER”and Bloomington Rentals, Inc. hereinafter referred to as “AGENT” agrees as follows:

Exclusive Agency

The owner hereby employs the Agent exclusively to, rent, lease, operate and manage the property know as:______

Upon the rearms hereinafter set forth for the period of ______

Beginning on the ______day of______20______and ending on the ______

day of______, 20______, and hereafter for annual periods unless on or before thirty(30)day prior to the expiration of any such renewal period, either party shall notify the other in writing of an intention to terminate this agreement. Either party may terminate this agreement upon thirty day written notice.

The Agent shall have thirty (30) days after termination to make a final accounting and pay balances (if any) to the Owner after deductions of all expenses by Agent. Under no circumstances shall Agent be held responsible to provide a final accounting and/or balance of said account prior to that time.

Duties of the Agent

The Agent accepts the employment and agrees; to use diligence in the management of the premises for the period and upon the terms herein provided, and agrees to furnish the services for renting, leasing, operating, and managing of the herein described premises. To render monthly bank statements and/or remit to the Owner receipts less disbursements on or about the 15th of the month.

In the event the disbursements shall be in excess of the rents collected by the agent, the Owner hereby agrees to pay such excess of the rents collected by the agent, the Owner hereby agrees that the Agent may make the disbursement and reduce the Owner’s security deposit fund as required under Item 4. The Agent agrees to deposit all receipts collected for the Owner (less sums properly deducted of otherwise provided herein) in an Escrow account separate from Agent’s personal account. The Agent shall disburse funds in the following order:

  1. Payment of Agent’s compensation
  2. Payment of authorized expenses
  3. Payment of net income to owner

Agents Authority

The Owner hereby gives to the Agent the following authority and powers necessary for the day to day Management and Rental Responsibilities for the operation of the properties.

  1. To advertise at the Owner’s expense the availability for the rental of the above described premises or any part thereof, and display “For Rent” signs thereon.
  2. To sign, renew, and/or cancel leases for the premises or any part thereof on forms provided by the Agent, the terms and conditions of which are hereby approved by the Owner.
  3. To collect rents due or to become due and give receipts therefore; Provided that nothing herein contained shall constitute a guarantee by the Agent of the payment of rent by the tenants.
  4. To receive, accept, and retain security deposits into an Escrow Account.
  5. To terminate tenancies and sign in the name of the Owner such notices as are appropriate; to institute and prosecute actions, to evict tenants and to recover rents and other sums due; and when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies.
  6. To make or cause to make and supervise necessary repairs and alterations to the premise, to purchase supplies and pay bills therefore. The Agent agrees to secure the prior approval of the Owner (when possible) on all expenditures in excess of ______Dollars for any one item, except monthly or recurring operation charges and /or emergency repairs necessary to protect the property from damage or to maintain services and/or condition as well as necessary repair needed to comply with health, safety and/or housing code (City Property Maintenance) issues as called for by the tenant’s lease agreement.
  7. To pay monthly association dues for the property (if applicable) out of the collected rent each month.
  8. The Agent shall disburse (from the income of the property or at Owner’s expense if the property is vacant) such sums as are necessary for the payment of the following designated expenses: Water, Electric, Gas, Trash Removal, Yard Upkeep along with Legal services to maintain the property.

In the event the Owner wishes Agent to undertake additional duties regarding the property after the execution of this Agreement, Owner shall so inform Agent in writing and Agent shall accept or reject such duties by written response to Owner within fourteen days of receipt of Owner’s request.

If the Agent is to pay taxes, insurance, mortgage, etc. Owner must furnish Agent with all documents necessary to make such payments, (i.e. payment books, tax duplicates, insurance statements, etc.) Agent is not responsible for any payments until the necessary documents are provided by the Owner and only if the funds are available. The Owner shall pay to the Agent the sum of ______which shall be used as seed money for funds that may be needed prior to leasing the property. This shall be disbursed in the event the Agent must make any disbursements under this agreement and the balance in the Owner’s account shall be insufficient to satisfy the required amount of disbursements. The Agent shall notify the Owner of such deficiency as soon as reasonably possible. It shall be the sole responsibility of the Owner to deliver to the Agent enough money to satisfy the required disbursement and the Agent shall be held harmless of all claims of whatever kind or character resulting directly of indirectly form the Owner’s failure to provide adequate funds to the Agent for the payment of required disbursements.

Owner hereby grants Agent the authority, at Owner’s expense, to take all actions, purchase all products, and procure all services necessary for the accomplishment by the Agent regarding the above described duties. Agent’s authority shall include, but not limited to the following (a) The execution of contract where appropriate for electricity, gas, fuel, water, hauling, snow removal, janitorial service, pest control and any other services or such as the Agent shall deem advisable, (b) The Owner is to assume the obligation of any contracts so entered into at the termination of this agreement.

Agent is not responsible for the acts of Owner’s agents or employees, if reasonable care has been exercised in the appointment and retention of such agents by the Agent, is not responsible to see that any worker (hired by Owner) has insurance and Agent is not responsible for securing any insurance.

Owner’s Obligation to Agent

The Owner agrees to save the Agent harmless from all claims of whatever kind or character resulting directly or indirectly from Agent’s service performed in connection with the management of the above described property.

Agent recommends to the Owner that insurance to find this agreement harmless should be obtained at Owner’s expense, naming both Owner and Agent as insured. In any event, Agent shall be held harmless as provided above with out regard for the existence or amount of such insurance.

Owner, Agent, and Tenant Relationship

It is expressly understood that in entering into a lease agreement with tenants, Agent is acting as Agent of the Owner, who is the actual landlord under all such leases. All responsibilities undertaken by tenants to the landlord pursuant to such leases or any responsibilities implied upon tenants by law or owed by tenants directly to Owner, and Agent shall not be responsible to Owner for any acts or omissions by tenants.

Agent is not a guarantor of collection of rents, and any legal action necessary to collect overdue rent or to enforce any other terms of tenant’s lease is to be undertaken by Agent on Owner’s behalf in Agent’s name, and at Owner’s expense.

In the event that the tenants under the lease for the Owner’s property shall be in default of any terms, covenants, or conditions of the lease the Agent shall notify the Owner of the default. If Owner wishes Agent to undertake any legal action on behalf of Owner, the Owner shall notify Agent of such fact in writing. Upon acceptance of this duty by Agent, Agent shall be immediately authorized to take all actions necessary for the accomplishment of that purpose, including the procurement of legal counsel at Owner’s expense. The Owner shall be solely responsible for the payment of all fees and costs associated with such action. Agent shall handle payment of such amounts in the same method as set forth above with respect to other services where Agent is authorized to procure. The Owner has reviewed the lease form that will be used by Agent and approves the said lease

Agent is hereby authorized to undertake, on Owner’s behalf, with prior permission from the Owner, any emergency legal action necessary to preserve the safety of the other tenants or the condition of the property, and Owner agrees to be solely responsible for any cost and expense associated with such action.

Compensation to Agent

A. For management services of house(s), apartment(s), and/or condo(s), under this agreement, Owner shall pay to Bloomington Rentals, Inc. (Agent) the sum of ______% percentage of the gross monthly income from the aforementioned properties. Gross monthly income means the total amount of the income specified in the current lease agreement and/or any addendums between tenant(s) and owner’s agent along with 50% of one month’s rent due and payable when the lease is signed.

B. For renewing the original lease agreement for another term, the sum of 50% of one month’s rent due and payable when the renewal lease is signed.

  1. For collection of late fees and lease buy-outs the sum of 100% of said late fees and buy-outs shall be paid to Agent.

This agreement shall be binding upon the successors, and assigns of the agent, and the heirs, administrators, executors, successors and assigns of the Owner, until such a time the renewal period begins.

Settlement Upon Termination (Prior To end Of Term)

If this Agreement is terminated by the owner prior to the end of the original term, Agent shall receive twenty five percent (25%) of all management fees that would have been paid to the end of the existing lease(s).

Owner Information

Name(s)______

Address:______City,State,Zip:______Home Phone:______Cell/Office______

Fax:______Email Address______

Owner Signature of Acceptance

X______Date______

X______Date______

Agent Signature of Acceptance

X______Date______

Bloomington Rentals, Inc

PO Box 1327

Bloomington, In 47402

812-360-2288