Property Management Agreement

Last updated 19/01/24

(the “agreement”) between __________ (list all owners)(“you” or the “owner”) and Propped Canada Inc. (“agent” or “Propped”) for the property located at ___________ (the “property”) This agreement made on the _____ day of ______________, 2024.

High-Level Summary of our Relationship

(Please review the entire Agreement carefully, as additional detail will follow. Terms are defined in the Agreement)

Starting Rent $ _________ per month. The amount at which Propped will begin listing the Property.
$199 Monthly Management Fee Propped charges a flat monthly fee of $199 for condos, replacing the typical rent percentage model, and offers property protection guarantees for a mutually beneficial arrangement. No matter your property's monthly rent, the cost of our services stays the same.
50% Tenant Placement Fee 50% of one month’s rent. This is the fee Propped receives for our services related to sourcing and placing a tenant in the Property.
High-Level Process Overview
Rental Evaluation - Propped will evaluate the Property and identify repairs required to meet Propped’s Rent-Ready checklist.
Maintenance and Repairs - You’ll approve and pay for recommended and required maintenance and repairs to make the Property Rent-Ready (including safety and habitability), which will be managed by Propped.
Property Management - Propped will qualify, place a tenant, and respond to all tenant requests. Propped will provide full-service property management, including maintaining the Property.
Payment - Propped will initiate your payment by the 10th of each month. Any fees payable to Propped, independent contractor, or vendor payments will be charged to your card on file.
1. IN CONSIDERATION

of the mutual covenants herein contained, the parties agree as follows:

  1. The Owner hereby employs the Agent to exclusively manage the Property with terms set forth in this agreement, effective for a one-year period commencing on the Tenant Placement Date.
  2. This agreement shall remain in full force and continue on a month-to-month basis following the one-year period.
  3. The agreement shall endure to the benefit of and be binding upon the parties hereto and their successors.
  4. Any addendum to this agreement shall be agreed upon in writing and duly signed by both parties.
2. PROPERTY PREPARATION AND RENTAL

below are the steps we generally take as we prepare and then rent out your Property:

  1. Rent-Ready Standard: Before the initiation of our property management services, the Property Owner is obligated to ensure that the Property complies with our "Rent-Ready" standard. This standard serves as a basic set of criteria aimed at preparing the Property for market-rate leasing and is not to be considered an in-depth inspection. To satisfy the Rent-Ready standard, the Property Owner shall: Ensure the Property is clean, Complete all necessary repairs and maintenance, and Ensure the Property is free of occupants and pets. (Note: For unfurnished rentals, the term "clean" specifically includes the removal of all personal belongings and furniture.) The Property Owner is solely responsible for all costs associated with meeting and maintaining the Rent-Ready standard. Failure to meet this standard may adversely affect the ability to generate income from the Property. Additionally, the Property must be professionally cleaned to provide an appropriate welcome for a new tenant.
  2. Self-managed Repair and Maintenance. In limited instances throughout the lifecycle of a lease (including, but not limited to, during the Rent-Ready process or when a tenant turns over), you may decide, with our agreement, to complete or manage some of the repair work yourself or through vendors you choose. After completion, Propped will determine whether that work is sufficient to ensure that the Property is ready to be leased and will charge a quality assurance fee of $100 to partially cover our costs for doing so.
  3. Listing/Advertising/Marketing. The Property will be considered Rent-Ready once we have determined that all repairs and cleaning have been completed and quality assured, and once you have completed and submitted all required onboarding material. We will take professional photos of the Property and list the Property on various websites and marketing channels at our discretion. We conduct tenant showings, screen, and select tenants in accordance with our guidelines and applicable law including the Fair Housing Act. You agree that you will not post, list, advertise or market the Property during the Term of this Agreement because this may interfere with our ability to do the same.
3. THE AGENT ACCEPTS THE EMPLOYMENT AND AGREES
  1. To manage the property and its affairs as set forth in this agreement and from time to time as directed by or authorized by the Owner.
  2. To distribute monthly income and expense statements to the Owner by no later than the 10th of each month. To maintain a record of books for the Owner on a monthly basis and to provide the Owner with an annual year end operating statement by no later than January 31st.
  3. Our regular tenant placement fee includes photography, professional editing, property tours, application screening, credit bureau checks, tenancy agreement, move-in inspection, and all marketing costs.
  4. To deposit all rents and monies collected of the Owner into a trust account as required under the Real Estate Services Act of British Columbia. The balance of the monies collected are to be paid to the Owner no later than the 10th of each month by direct deposit.
  5. To assist the Owner in maintaining the property, the Agent shall coordinate or perform necessary repairs. The Agent will consult with the Owner to discuss and obtain approval for any maintenance or repair activities, except in situations deemed urgent or essential to prevent potential damage to the property, as judged by the Agent. The Owner has the flexibility to either pay all invoices related to maintenance directly to the vendor or to authorize Propped to handle these expenses. Should Propped pay for the repairs, the cost will be deducted from the next month's rent or billed directly to the Owner.
  6. Not to accept any rebate, discount or undisclosed fee. Any such fee shall be held in trust of the Owner and paid directly to the Owner.
  7. Conduct annual property inspections and to provide written property inspection reports to the Owner, once per year.
  8. Unless otherwise noted in writing; all records, and written correspondence shall be forwarded to the Owner.
4. THE OWNER AGREES WITH THE AGENT
  1. To pay the Agent as compensation for services rendered as in accordance with this agreement a monthly management fee of $199 per month. The monthly management fee excludes GST for the services rendered. (Rates are subject to review annually)
  2. For tenant placement services; the Owner shall pay as compensation to the Agent for services rendered one-half of the gross monthly rent; or a minimum tenant placement fee of $1000.00, whichever is the greater sum. The tenant placement fee excludes GST for services rendered and shall be payable to the Agent at the time of tenant placement.
  3. As part of the onboarding process, the Owner agrees to provide the Agent with a valid credit card for the purpose of charging the monthly management fee and tenant placement fee. The credit card information will be securely stored in a manner that is PCI (Payment Card Industry) compliant. The stored card will be used exclusively for the automatic charging of the monthly management fee on the 1st of every month, the tenant placement fee at the time of tenant placement, as well as for any other charges or fees as agreed upon in this Agreement. Failure to provide a valid credit card may result in delays or disruptions in the services provided by the Agent under this Agreement.
  4. In the event that the Owner terminates this Agreement after photography services have been rendered but before a tenant has been placed in the Property, and provided that such termination occurs before the Agent has had 3 weeks to advertise and show the property, the Owner agrees to pay the Agent a cancellation fee of $500. This fee is due immediately upon the termination of this Agreement and serves to compensate the Agent for the resources and efforts expended in marketing the Property and identifying prospective tenants.
  5. When renting a strata lot the Owner understands and assumes responsibility for ensuring the Strata has given written permission for the Owner to do so. Failure to obtain proper written permission could result in the strata fining the Owner a maximum of $500.00 per week as per the Strata Property Act.
  6. Property insurance is the sole responsibility of the Owner and appropriate insurance coverage is to be arranged for the Property by the Owner. A copy of the insurance policy is to be provided to the Agent and kept on file in case of emergencies.
  7. The Owner agrees to maintain their property in accordance with health and safety standards and as set forth by the Residential Tenancy Act. The Owner understands that failure to comply with this may result in the Agent terminating this agreement immediately. The Owner shall be responsible for any damages, fines, penalties or monetary orders awarded by the residential tenancy branch to the tenant(s) or any third parties for non-compliance.
5. NON RESIDENT OWNER(S)
  1. Under the Income Tax Act, the Agent must collect 25% of collected gross monthly rents for all non-resident owners and remit directly to the CRA.
  2. Should the owner request, the Agent will forward all applicable statements to a certified accountant on behalf of the Owner and at the Owner(s) request.
  3. The Owner agrees to pay the Agent a fee in the amount of $350.00 for the annual filing of the NR4 forms. The fee is payable at the time of filing and the Owner authorizes the Agent to automatically charge the Owner(s) card on file.
  4. If at any time a resident Owner becomes a non-resident Owner; the Owner(s) agree to notify the Agent immediately in writing.
6. INDEMNITY

The owner shall, during and after the termination of this agreement, indemnify and save the Agent from any damages or injuries to persons or property, or claims, costs, expenses and fees arising from the any cause whatsoever (except if due to the gross negligence or wilful misconduct of the Agent), provided the Agent is carrying out provisions of this agreement or is acting on the subsequent directions of the Owner. Under no circumstances shall the Agent be liable to the Owner for the amount of any loss or damage to the property or its contents against which the Owner is insured and entitled to indemnification.

7. PROTECTING PERSONAL INFORMATION AND OTHER RECORDS
  1. All personal information collected from you as a result of us conducting business together will be protected as an essential part of the relationship we wish to establish with you. Propped will only disclose this information in accordance with the provisions of the Privacy Act.
  2. Use and Disclosure of Personal Information: In the normal course of business activities Propped will collect personal information, at times which could include sensitive information. Proppedwill use this personal information to provide its services as set out in the management agreement. Propped may also be required to disclose personal information where the law requires such disclosure.
  3. The Agent shall maintain comprehensive and accurate records on behalf of the Owner. These records shall include, but are not limited to, copies of all leases and other contracts related to the Property, records of all financial transactions including income received and expenses incurred, records of all maintenance and repairs carried out on the Property, and records of all communications with tenants and service providers. Propped shall also maintain records of all security deposits, pet damage deposits, and other deposits received and refunded. These records shall be kept in a secure and confidential manner and shall be made available to the Owner upon request. Propped shall retain these records for a minimum of seven (7) years, or for any longer period required by law.
8. APPOINTING AGENCY
  1. The Owner has appointed Agency to Propped for rental property management services for the property effective the date the agreement is made on.
  2. This is to confirm that the Owner of the above noted property has in fact appointed Propped, as Agent and representative with respect to management, leasing and maintenance of the property described above.
  3. Propped (or representative of) is authorized to obtain keys, security passes, communications, or make any other arrangements as may be necessary.
  4. The Owner hereby grants the Agent the authority to act on the Owner's behalf in all matters related to the management of the Property, including but not limited to, signing cheques, making disbursements for the Owner, entering into contracts, and making decisions regarding the maintenance and repair of the Property. Propped shall exercise this authority in a manner consistent with the Owner's best interests, the terms of this Agreement, and all applicable laws and regulations.
9. DISBURSEMENTS

All disbursements shall be deposited at the financial institution of the Owner's choice through Stripe Connect.

10. HANDLING OF SECURITY DEPOSITS, PET DAMAGE DEPOSITS, AND OTHER DEPOSITS

Propped (Agent) shall collect, hold, and refund security deposits, pet damage deposits, and other deposits in accordance with the Residential Tenancy Act of British Columbia. The Agent shall place all such deposits in a trust account and shall not commingle these funds with the Agent's own funds. The Agent shall provide the Owner and the tenant with a receipt for each deposit received. Upon the termination of a tenancy, Propped shall conduct a final inspection of the Property and shall use the deposit funds to cover any unpaid rent, damages beyond normal wear and tear, or other amounts owed by the tenant under the terms of the lease. Any remaining deposit funds shall be returned to the tenant in accordance with the law.

11. ACCOUNTING STATEMENTS AND RECORDS

The Agent shall provide the Owner with detailed accounting statements on a monthly basis. These statements shall include all income received and expenses incurred in connection with the Property, as well as the beginning and ending balance of any funds held by the Agent on the Owner's behalf. The Agent shall also maintain complete and accurate records of all transactions related to the Property and shall make these records available to the Owner upon request.

12. TERMINATION

This Agreement may be terminated by either party by providing written notice of termination as follows:

  1. Termination Without Cause: Either party may terminate this Agreement without cause upon providing at least thirty (30) days written notice to the other party. Upon termination, the Owner shall pay to the Agent all management fees and other amounts accrued up to the effective date of termination.
  2. Termination for Cause: If either party breaches any terms of this Agreement, the non-breaching party may terminate this Agreement upon providing written notice to the breaching party. The notice must specify the breach and the date of termination.
  3. Termination Upon Bankruptcy or Insolvency: Either party may terminate this Agreement with immediate effect if the other party becomes bankrupt or insolvent, or enters into any arrangement with its creditors.
  4. Duties Upon Termination: Upon termination of this Agreement for any reason, the Agent will provide to the Owner all property keys, contracts, records, and other materials related to the Property.
  5. Survival of Certain Provisions: Notwithstanding the termination of this Agreement, any obligations which by their nature should survive termination, including but not limited to indemnification obligations, will remain in effect beyond termination.
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Acknowledged and Agreed to:

Propped Canada Inc.
BC License: REX603359
Level 5, 410 W Georgia St, Vancouver, BC V6B 1Z3

Title: Managing Broker

Name: Kevin Weiler

Signed: ____________________________

Date: ______________________________

OWNER(s):

Title: ______________________________

Name: _____________________________

Signed: ____________________________

Date: ______________________________

Additional Signature if Required (if more than one owner)

Title: ______________________________

Name: _____________________________

Signed: ____________________________

Date: ______________________________

Additional Signature if Required (if more than one owner)

Title: ______________________________

Name: _____________________________

Signed: ____________________________

Date: ______________________________