Terms and Conditions
Here are our current terms and conditions for Option #1, our full property management service:
This Agreement is made effective as of _______________ by and between ___________________________ of ______________________________________________________ (Hereinafter called "Owners") and Agape Vacation Rentals of 7799 Crystal Drive, Beulah, MI 49617 (Hereinafter called "AVR").
AVR is experienced in the operation and management of real estate and has the necessary staff and is otherwise completely able to competently manage real estate properties, and is willing to undertake the management and operation of the real estate properties of the Owners under the terms set out in this agreement:
- DESCRIPTION OF THE PROPERTY: This Agreement is made with respect to the following properties:
- _________________________________________________
- RESPONSIBILITIES OF AVR: AVR will serve, as an independent contractor, as the Owners' exclusive agent. Beginning on _______________________, AVR will provide to Owners the following services (collectively, the Services):
- GENERAL: AVR will pursue renting out the property for vacation rentals and will manage the care, cleaning, and maintenance of the property.
- MARKETING, ADVERTISING, AND PRICING: AVR will manage all aspects of marketing, advertising, and pricing of the property, with the objective of maximizing income for Owners and AVR.
- GUEST MANAGEMENT: AVR will manage all communication with guests and will manage all aspects of their stay including payment, check-in, check-out, damage deposit refunds, and guest reviews.
- USAGE TAXES: For reservations received by AVR, AVR will collect the required 6% State of Michigan Usage Tax from guests and, at Owners’ discretion, will either provide these funds to the State of Michigan on Owners’ behalf or will provide these funds to Owners for them to provide to the State of Michigan.
- INCOME REPORTING: To comply with federal tax laws, AVR will also provide Owners with an IRS 1099 form each year summarizing the net rental income obtained by AVR for the property. For tax purposes, the following tax ID number of the Owners will be used: ___________________________________________
- RESPONSIBILITIES OF OWNERS: As of the signing of this agreement, Owners agrees to halt all advertising of the property for vacation rentals on the Internet and in print and for all future vacation rental reservations for the property to come through Agape Vacation Rentals. (It is understood that the property may be used by Owners and his friends and family without any payment through AVR. For these reservations for the Owners and/or his friends and family, Owners will simply let AVR know of the dates for these reservations before they are booked by other parties and AVR will reserve the dates accordingly.)
- COMPENSATION: For reservations with a check-in date between ______________________ and ______________________ (i.e. the first year of the agreement), AVR will be provided with 20% of the gross rental income obtained for vacation rentals (with gross rental income including any cleaning, pet, or other fees that have been paid by the guest other than usage taxes) for the services provided in terms of marketing the property for vacation rentals, managing all aspects of the vacation rentals, and managing the property in terms of cleaning, care, and maintenance. Of the remaining 80% of the rental income associated with check-in dates prior to ________________________ (i.e. the first day of the second year of the agreement) all funds will be provided to Owners each month minus any expenses that are paid for by AVR as discussed in this agreement. All compensation to Owners will be done via ACH electronic payments to Owners’ bank account. A monthly report will be provided to Owners by AVR each month detailing rental income and expenses for the property. This report for each month will be provided to Owners each month by the 15th day of the following month. Electronic disbursement to Owners’ bank account of all applicable rental income (after compensation to AVR and expenses are paid) for each month will likewise be paid to Owners by the 15th day of the following month. Effective ______________________ (i.e. the first day of the second year of the agreement), the management commission provided to AVR will increase to 25% of gross rental income. Disbursement of the remaining 75% of gross rental income minus any expenses paid for by AVR will be distributed to Owners in the same manner as indicated above.
- EXPENSES: AVR will pay for all of the following expenses out of the rental income obtained for the property:
- Cleaning services, for which cleaning personnel will be paid a fair market rate
- Laundry services (in the event laundry is not done at the property itself)
- Cleaning supplies
- Trash service (if paid for by AVR and not by Owners)
- Snow removal
- Lawn care and gardening (flower planting, weeding, etc.) if needed
- Minor maintenance and repair items
- Minor toiletries and accessories for the property (toilet paper, shampoo, soap, paper towels, coffee, filters, etc.)
- Utility bills (if paid for by AVR and not by Owners)
- Credit card fees (through use of PayPal or other provider)
- Sales commission fees or any other fees from websites that are directly related to the specific property. (Advertising of AVR as a whole across different tourism-related websites, AVR’s own website (www.AgapeVacationRentals.com), membership in Chambers of Commerce and tourism services, or any other advertising, marketing, or promotion that is not specifically related to the property itself will be paid for solely by AVR and these expenses will not be paid for out of the rental income for the property.)
- Reservation cancellation fees, should they arise for any reason
- Any “enhancements” to the property for the purpose of increasing rental income. Any enhancements over $50 will be discussed with Owners and approved by them prior to purchase. All enhancements will remain with the property and belong to Owners.
- MAJOR REPAIRS AND/OR IMPROVEMENTS: Any major repairs or improvements above $500 in cost (should they occur) will be paid for and managed directly by Owners, working through their insurance agency as appropriate. AVR will provide assistance as deemed appropriate by AVR, including the initial covering of costs with future reimbursement out of rental funds.
- TAXES AND INSURANCE: Taxes and insurance for the property will be paid for and managed directly by Owners.
- ACCEPTABLE DATES FOR RENTING PROPERTY: Property will only be rented out for the dates specified by the Owners (i.e. property can be blocked out for any dates specified by the Owners).
- RELATIONSHIP OF PARTIES. It is understood by the parties that AVR is an independent contractor with respect to the relationship between the parties, and not an employee of the Owners. Owners will not provide fringe benefits, including health insurance benefits, paid vacation, or any other employee benefit, for the benefit of anyone employed by AVR.
- TERM: This agreement will continue from ______________________ until terminated by Owners and/or AVR. The agreement may be terminated at any time by either party with or without cause provided at least 60 days' prior written notice is delivered by the terminating party to the other party. As indicated in the “EXPENSES” section, any cancellation fees associated with cancelling reservations as a result of terminating this agreement would be treated as expenses paid for by AVR which are subtracted out of rental income.
- INDEMNIFICATION: AVR agrees to indemnify and hold Owners harmless from all claims, losses, expenses, fees including attorney fees, costs, and judgments that may be asserted against Owners that result from the acts or omissions of AVR and/or AVR's employees, agents, or representatives.
- GUEST ACTIONS: Guests will bear full responsibility for their own actions. AVR bears no responsibility for the actions of guests.
- DEFAULT: The occurrence of any of the following shall constitute a material default under this Contract:
- The failure to make a required payment when due.
- The insolvency or bankruptcy of either party.
- The subjection of any of either party's property to any levy, seizure, general assignment for the benefit of creditors, application or sale for or by any creditor or government agency.
- The failure to make available or deliver the Services in the time and manner provided for in this Contract.
- REMEDIES: In addition to any and all other rights a party may have available according to law, if a party defaults by failing to substantially perform any provision, term or condition of this Agreement (including without limitation the failure to make a monetary payment when due), the other party may terminate the Agreement by providing written notice to the defaulting party. This notice shall describe with sufficient detail the nature of the default. The party receiving such notice shall have 30 days from the effective date of such notice to cure the default(s). Unless waived by a party providing notice, the failure to cure the default(s) within such time period shall result in the automatic termination of this Agreement.
- FORCE MAJEURE: If performance of this Agreement or any obligation under this Agreement is prevented, restricted, or interfered with by causes beyond either party's reasonable control ("Force Majeure"), and if the party unable to carry out its obligations gives the other party prompt written notice of such event, then the obligations of the party invoking this provision shall be suspended to the extent necessary by such event. The term Force Majeure shall include, without limitation, acts of God, fire, explosion, vandalism, storm or other similar occurrence, orders or acts of military or civil authority, or by national emergencies, insurrections, riots, or wars, or strikes, lock-outs, work stoppages. The excused party shall use reasonable efforts under the circumstances to avoid or remove such causes of non-performance and shall proceed to perform with reasonable dispatch whenever such causes are removed or ceased. An act or omission shall be deemed within the reasonable control of a party if committed, omitted, or caused by such party, or its employees, officers, agents, or affiliates.
- MEDIATION: Any controversies or disputes arising out of or relating to this Agreement shall attempted to be resolved through mediation. Any issues that cannot be resolved through mediation will be resolved at 85th District Court in Beulah, Michigan.
- CONFIDENTIALITY: AVR, and its employees, agents, or representatives will not at any time or in any manner, either directly or indirectly, use for the personal benefit of AVR, or divulge, disclose, or communicate in any manner, any information that is proprietary to Owners. AVR and its employees, agents, and representatives will protect such information and treat it as strictly confidential. This provision will continue to be effective after the termination of this Agreement.
- INTELLECTUAL PROPERTY RIGHTS: AVR shall maintain all property rights of any intellectual property created by AVR for purposes of renting the property. This includes any photos, descriptions, and website listings created by AVR for purposes of marketing the property.
- NOTICE: Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered via e-mail to the following e-mail addresses:
- OWNERS: __________________________
- AVR: [email protected]
- ENTIRE AGREEMENT: This Agreement contains the entire agreement of the parties, and there are no other promises or conditions in any other agreement whether oral or written concerning the subject matter of this Agreement. This Agreement supersedes any prior written or oral agreements between the parties.
- AMENDMENT: This Agreement may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.
- SEVERABILITY: If any provision of this Agreement will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.
- WAIVER OF CONTRACTUAL RIGHT: The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
- GOVERNING LAW: This Agreement shall be construed in accordance with the laws of the State of Michigan and the 85th District Court of Michigan in Beulah, Michigan.
- SIGNATORIES: This Agreement shall be signed on behalf of Owners by _____________________________ and _________________________________and on behalf of AVR by Eric R. Haan, General Manager and shall be effective as of the date first written above.
Signature Page
Owners:
By: ________________________________________ Date: ___________________________
Printed Name: _______________________________
By: ________________________________________ Date: ___________________________
Printed Name: _______________________________
AVR:
By: ________________________________________ Date: ___________________________
Eric R. Haan
General Manager, Agape Vacation Rentals