This Vacation Property Management Agreement (the “Agreement”) is made and effective,
BETWEEN: M(the "Owner"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: or an individual residing at :
AND: VILLAGE HOSPITALITY MANAGEMENT (the "VHM"), a business registered under the laws of Ontario with its head office located at: 116 Jewel Street, Clarksburg, Ontario N0H 1J0
A. Owner holds title to the following-described real property: 000 AAAA Street, Clarksburg, Ontario N0H 1J0, here referred to as the property.
B. VHM is offering services in the business of operating and managing vacation property.
C. Owner desires to engage the services of VHM to manage and operate the property, and VHM desires to provide such services on the following terms and conditions.
In consideration of the mutual covenants contained herein, the parties agree:
1. EMPLOYMENT OF VHM
VHM shall act as the exclusive agent of owner to manage, operate and maintain the property.
2. BEST EFFORTS OF VHM
On assuming the management and operation of the vacation property, VHM shall thoroughly inspect the property and submit a written report to owner. The report shall contain the opinion of VHM concerning the present efficiency under which the property is being managed and operated, and recommended changes, if necessary, in the management structure of the property, in the rehabilitation of the property, and any other matters that will improve the efficient management and operation of the property.
3. OCCUPANCY OF PROPERTY
VHM shall make reasonable efforts to lease available space of the property and shall be responsible for all negotiations with prospective guest. VHM shall also have the right to execute and enter, on behalf of owner, month-to-month accommodation of the property. VHM may negotiate all extensions and renewals of such month-to-month accommodations. VHM shall not, without the prior written consent of owner, enter any term less than one month or more than six months. VHM shall have the right to make concessions, including payment concessions, as inducements to prospective guests to occupy the property.
4. ADVERTISING AND PROMOTION
VHM shall advertise vacancies by all reasonable and proper means; provided, VHM shall not incur expenses for advertising in excess of three hundred dollar during any calendar quarter without the prior written consent of owner.
5. MAINTENANCE, REPAIRS AND OPERATIONS
Owner shall use its best efforts to insure that the property is maintained in an attractive condition and in a good state of repair. In this regard, owner shall use its best skills and efforts to serve the guests of the property and shall purchase necessary supplies, make contracts for, or otherwise furnish, electricity, gas, fuel, water, telephone, window cleaning, refuse disposal, pest control, and any other utilities or services required for the operation of the property.
6. GOVERNMENT REGULATIONS
VHM shall manage the property in full compliance with all laws and regulations of any federal, state, county or municipal authority having jurisdiction over the property.
7.1. Owner shall obtain the following insurance at their own expense and such insurance shall be maintained in force during the full term of this agreement:
7.1.1. Comprehensive public liability property insurance of one million per occurrence single limit for bodily injury, death and property damage;
7.2. All the policies shall name VHM and owner as co-insureds as their respective interests may appear. Owner shall deliver certificates evidencing such insurance coverage to VHM within seven days of signing this agreement.
8. COLLECTION OF INCOME; INSTITUTION OF LEGAL ACTION
8.1. VHM shall use its best efforts to promptly collect all payments. It is understood that VHM does not guarantee the collection of payments.
8.2. VHM shall, in the name of owner, execute and serve such notices and demands on delinquent guests as VHM may deem necessary or proper. VHM, in the name of owners, shall institute, settle or compromise any legal action and make use of such methods of legal process against a delinquent guest or the property of a delinquent guest as may be necessary to enforce the collection of outstanding amounts or other sums due from the guests, to enforce any covenants or conditions of any occupancy terms, and to recover possession of any part of the property. No other form of legal action will be instituted, and no settlement, compromise, or adjustment of any matters involved therein shall be made without the prior written consent of owner, except when VHM determines that immediate action is necessary.
9. BANK ACCOUNTS
VHM shall deposit (either directly or in a depositary bank for transmittal) all revenues from the property into the general property management trust fund of VHM, here referred to as the trust account. VHM shall not commingle any of the above-described revenues with any funds or other property of VHM. From the revenues deposited in the trust account, VHM shall pay all items with respect to the property for which payment is provided in this agreement, including the compensation of VHM and deposits to the reserve accounts. After such payments VHM shall remit any balance of any monthly revenues to owner concurrently with the delivery of the monthly report.
10. RECORDS AND REPORTS
a. VHM will keep books, accounts and records that reflect all revenues and all expenditures incurred in connection with the management and operation of the property. The books, accounts and records shall be maintained at the principal place of business of VHM. VHM shall, during regular business hours, make the books, accounts and records required to be maintained hereunder available to owner or the representatives of owner for examination and audit by appointment on no less than fifteen days’ prior notice. All such audits shall be at the expense of owner.
b. VHM shall furnish owner, no later than the end of the next succeeding month, a detailed statement of all revenues and expenditures for each preceding month, a summary of all concessions and amounts concessions given to induce prospective tenants to occupy the property, the original copy of all invoices, statements, purchase orders and billings received and paid during such preceding month, as well as such other information relating to the operation or management of the property that, in the opinion of VHM, requires the attention of owner.
11. COMPENSATION OF VHM
VHM shall receive a management fee equal to % of the gross receipts collected from the operation of the property. The VHM is irrevocably authorized to deduct the management fee from the gross receipts. The owner shall provide his / her account information to enable VHM direct deposits.
12. ADDITIONAL DUTIES AND RIGHTS OF VHM
In addition to the foregoing, VHM shall perform all services that are necessary and proper for the operation and management of the property and shall report to owner promptly any conditions concerning the property that, in the opinion of VHM, require the attention of owner.
In order to properly perform the services required by this agreement, VHM is authorized to engage on behalf of owner, any entity that is an affiliate of VHM, provided that the compensation paid for the services shall be competitive with nonaffiliated entities providing the same or similar services.
13. TERMINATION AND RENEWAL
This agreement shall be for a term commencing on and ending on At the termination of this agreement, it shall be renewed automatically on a month-to-month basis that may be terminated by either party by giving not less than sixty days’ notice in writing to the other party. If VHM has committed to a guest then the termination notice shall commence after the completion of guests term.
14. TERMINATION FOR CAUSE
If VHM breaches any of the terms of this agreement, owner shall give VHM written notice of such breach. If VHM fails to remedy the breach within sixty days after receiving the above-described notice, owner may terminate this agreement.
15. SALE OF PROPERTY
On the voluntary sale of the property by owner and the delivery of the deed of conveyance therefore, this agreement shall automatically terminate. Owner shall notify VHM of the sale of the property as soon as such sale is negotiated. Any occupancy contracts negotiated before the sale of the property shall be honored by the owner.
This agreement shall terminate in the event of a total condemnation of the property. If there is a partial condemnation of the property, this agreement may be terminated at the option of VHM.
If bankruptcy proceedings, whether voluntary or involuntary, are commenced against either owner or VHM, or if either party enters into a composition agreement with its creditors, either party may terminate this agreement by giving thirty days’ written notice to the other party.
18. NO PROPERTY INTEREST CREATED
Nothing contained in this agreement shall be deemed to create or shall be construed as creating in VHM any property interest in or to the property.
19. LICENSING OF VHM
VHM shall at all times during the term of this agreement maintain such licenses and permits as are required for any of the various services to be performed by VHM on behalf of owner.
20. RELATIONSHIP OF THE PARTIES
VHM is an independent contractor and not an employee of owner for any purpose.
21. COVENANTS AND CONDITIONS
All of the terms and conditions of this agreement are expressly intended to be construed as covenants as well as conditions.
All notices, requests, demands or other communications hereunder shall be in writing, and shall be deemed to have been duly given if delivered in person, or within seven days after deposited in the mail, postage prepaid, certified, with return receipt requested, or otherwise actually delivered to owner at:
ATTN. [NAME], [YOUR COMPANY NAME], [YOUR COMPLETE ADDRESS], [YOUR FAX NUMBER].
or to VHM at
ATTN. , , , .
Either party hereto may change the address at which it receives written notices by so notifying the other party hereto in writing.
23. PARTIES BOUND; ASSIGNMENT
This agreement shall be binding on and inure to the benefit of the successors and assigns of the parties hereto, and their respective successors and assigns; provided, however, that this agreement may not be assigned by VHM without prior written consent of owner, or by owner without prior written consent of VHM. Anything in the foregoing to the contrary notwithstanding, VHM may, without the consent of owner, delegate the performance of (but not responsibility for) any duties and obligations of VHM to any independent contractor or entity.
24. EFFECT OF PARTIAL INVALIDITY
Should any section or any part of any section of this agreement be rendered void, invalid or unenforceable for any reason by any court of law exercising competent jurisdiction, such a determination shall not render void, invalid or unenforceable any other section or any part of any section in this agreement.
25. GOVERNING LAW
This agreement has been made and entered into in the Province of Ontario, and the laws of such state shall govern the validity and interpretation of this agreement and the performance due hereunder.
The drafting, execution and delivery of this agreement by the parties have been induced by no representations, statements, warranties or agreements other than those expressed in this agreement. This agreement embodies the entire understanding of the parties, and there are no further or other agreements or understandings, written or oral, in effect between the parties relating to the subject matter hereof unless expressly referred to in this agreement.
In case of any dispute regarding any terms or performance of the terms of this agreement, the dispute shall be subject to arbitration in accordance with the rules and regulations of Ontario.
This agreement may not be modified unless such modification is in writing and signed by both parties to this agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
MY SIGNATURE CERTIFIES THAT I HAVE READ AND I AM IN AGREEMENT WITH THE TERMS SPECIFIED IN THIS RENTAL AGREEMENT.
Print Name and Title