PROPERTY MANAGEMENT AGREEMENT
PARTIES
This Property Management Agreement (hereinafter referred to as the “Agreement”) is entered into on …………….. (the “Effective Date”), by and between Homeland real estate ltd , with an address of ………………. with TIN …………….. management company is represented in this contract by ………………… with ID …………………. (hereinafter referred to as the “property manager ”), and ………………… holding ID number ………………………., with an address of ……………….. (hereinafter referred to as the “property owner ”) (collectively referred to as the “Parties”).
Property Description:
Both parties are interested in the management contract for the property located at ………… sector , …………. District ,……………, with UPI number ………………
- Appointment and Scope of Services
The Owner hereby appoints the homeland real estate to manage the property described above (the “Property”) and homeland real estate ltd agrees to manage the Property in accordance with the terms and conditions set forth in this Agreement.
- Term
Homeland Real Estate Ltd agrees to manage this dwelling for a fixed term of 12 calendar months, beginning on ………………….. and ending on ………………….. At the expiration of the ….-month management agreement, both parties will mutually agree whether to renew the contract or not.
- Term
Any changes to this agreement shall be communicated in writing by one party to the other, with a reasonable explanation provided at least …. days before the change takes effect. Changes may include, but are not limited to, breaches of contract, adjustments to management fees, and other
- Term
In this agreement, homeland real estate ltd will be responsible to manage the dwelling and responsibilities are but not limited to
- PROPERTY ADMINISTRATION
This part will be focusing on all issues regarding tenants and the rental income, by setting the initial rent level, collecting rent from tenants and adjusting the rent, managing tenants. Assigned by the Property Owner, Homeland Real Estate will be responsible to undertake the following:
Rent collection
Homeland Real Estate is responsible for collecting rent from tenants and depositing it into the bank account agreed upon by both parties
Setting Rent-
Both parties will agree on rental prices that are appropriate and attractive based on the market prices and the location of the property. Prices will also be reasonably set in line with similar and comparable properties in the area.
Finding Tenants
Homeland Real Estate will be responsible for marketing the property to fill vacancies, including advertising and preparing advertisements. Homeland Real Estate understands what attracts tenants and will recommend appropriate cosmetic improvements to enhance the property’s appeal
Screening Tenants
Homeland Real Estate will be responsible for selecting and recommending prospective tenant applications to find the tenant that best fits the property. Homeland Real Estate will conduct necessary due diligence to ensure security, loyalty, and sustainability
Handling Leases
Homeland Real Estate and the Property Owner will be responsible for setting the duration of both long-term and short-term leases, ensuring that the rental agreement includes all necessary provisions to protect the owner. This includes determining the required amount for the security deposit.
Handling Move Out or eviction
Upon receipt or issuance of a termination notice for the agreement, a 30-day notice is given to the outgoing tenant. During this period, the Homeland Real Estate Manager is responsible for inspecting the unit, assessing damages, and determining the portion of the security deposit to be refunded to the tenant. After the tenant has vacated, it is homeland real estate responsibilities to clean the unit, repair any damages, and find a new tenant.
Dealing with Evictions
Homeland Real Estate will be responsible for identifying the status and reasons for noncompliance, including refusal or delays in paying rent or honoring other contractual obligations. They will also handle the process of issuing termination notices and managing evictions as outlined in the contract. The Property Manager will be informed as necessary.
- OPERATIONS
This part will be dealing with the physical management of the property, including regular Maintenance and emergency repairs and supervision of other employees;
Maintenance
Homeland Real Estate will be responsible for conducting preventative property maintenance to ensure the property remains in good condition. Both parties will agree on the costs and procedures for maintenance before the property manager initiates any work. For repairs and maintenance, both parties will jointly decide on the technician who will perform the job. If the technician is hired by the property owner, the manager will oversee their work
Vacant Properties
Homeland Real Estate will ensure that vacant properties are promptly occupied to reduce the risk of vandalism. They will conduct regular inspections and maintenance, oversee contractors and repair personnel to ensure timely completion of their work. Additionally, Homeland will supervise the house guard to ensure house security and ensure the fulfillment of their obligations. If the house guard is hired by the property manager, Homeland assumes responsibility for all incidents concerning the property. However, if the house guard is employed directly by the property owner, Homeland will oversee their work but will not be liable for any damages caused by him
- FINANCE
Rental revenues: Homeland Real Estate will ensure that monthly rental payments are deposited into the bank account. This includes collecting bank slips from tenants each month, recording all details in the revenue register, and providing reports to the owner.
Maintaining Records: Homeland Real Estate will preserve all records related to the property. This includes documentation of all income and expenses, deposit slips or receipts, records of inspections, signed leases, maintenance requests, complaints, repair records, repair costs, maintenance expenses, rent collection records, and insurance costs.
Paying Taxes: Homeland Real Estate is responsible for reminding the owner of deadlines for both land and property taxes. They will handle tax declarations, notify the owner of the amount due before the deadline, and assist in organizing the payment method
RESPONSIBILIES OF PROPETY OWNER IN PROPERTY MANAGEMENT CONTRACT
Payment of Expenses: The property owner is responsible for paying all expenses related to the property, including, property taxes, insurance premiums, and any fees associated with property management services.
Funding Reserves: Providing funds for maintenance, repairs, and other unforeseen expenses as agreed upon.
Lease Agreements: Providing accurate information about the property for lease agreements and ensuring compliance with lease terms.
Regulatory Requirements: Providing necessary disclosures and documents required by law to tenants and authorities if necessaries
Decision Making: Participating in decisions related to the property, such as lease renewals, major repairs, or property improvements
Insurance Coverage: The owner is responsible for maintaining adequate insurance coverage for the property, including liability and property insurance. Moreover, any expenses incurred during this agreement, such as lawyer fees, government charges, and other costs, are the owner’s responsibility. If these expenses arise due to the property manager’s malpractice, the manager will be held accountable for them
PAYMENT AND FEES
The Parties agree that the total cost of the services will be 10% of the gross monthly rent, paid monthly to the property manager. Payment to the property manager will be made via cash or bank transfer. Details of the bank account will be communicated at a later date. This payment will only be made from rent income. Therefore, during periods when the property is vacant, the manager will not receive full property management fees. However, the owner remains responsible for paying utilities such as electricity, water, security, and garbage disposal.
SUCCESSION
This Agreement is binding on the property manager and the Owner as well as their successors.
GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of Rwanda
AMENDMENTS
The Parties agree that any amendments made to this Agreement must be in writing and they must be signed by both Parties to this Agreement.
ASSIGNMENT
The Parties hereby agree not to delegate any of the responsibilities in this Agreement to a third party without the written consent of both Parties. Both parties are responsible for fulfilling the terms and obligations of this agreement. Any party failing to fulfill its obligations will bear legal and financial consequences
ALTERNATIVE DISPUTE RESOLUTION
Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to Rwandan court in accordance with, and subject to the laws of Rwanda
SEVERABILITY
In an event where any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain to be enforced in accordance with the Parties’ intention.
SIGNATURE AND DATE
The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout by their signatures below:
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OWNER Name:____________________________ Signature:_________________________ Date:_____________________________ |
Property manager Name:____________________________ Signature:_________________________ Date:_____________________________ |