Contents of our Property Management Contract

To make it convenient for interested property owners, we have published this page containing all the stipulations in our Property Management Services contract. Our contract lays out all the arrangements that we propose to have with our client property owners.

So, prior to signing up with us, you may review the following terms and conditions first. We hope this will help you decide whether our services are right for your requirements.

Below are exactly every single item included in the “Terms and Conditions” section of our property management agreement:

(Last updated: 28 September, 2017)

1. Warranty

   Owner warrants that he has the right and full power to independently offer the Property for rent or lease and that such act is not prohibited by the Deed Restrictions applicable to the Property or any other agreement Owner is bound to. Owner further declares that he has the right and full power to independently contract the services of a third-party property manager for the management and rental operations of the Property and that such act is not in conflict with any prior agreement the Owner is bound to in any way.

   Owner likewise warrants that the Property is ready for occupancy by tenants and that all repairs and maintenance works due have been carried out, such as but not limited to, servicing of air-conditioning units and cleaning of grease traps, if installed.

2. Introductory Notice

   If applicable, Owner shall duly notify the building or subdivision administration of the Project where the Property is located, about this Agreement. The Owner shall properly introduce the Manager to the Project admin, in writing, so as to apprise the Project admin’s personnel of the role of the Manager and to facilitate convenient access by the Manager to the Property for the conduct of its duties under this Agreement.

3. Rental Market Survey

   Before starting to offer the Property for rent or lease to the public, Manager shall cause a market survey on the prevailing rental rates for reasonably comparable properties in or around the same location where the Property is located. Manager shall submit to Owner a report on this market survey and its recommended rates.

4. Rental Rate

   Manager shall offer the Property for rent or lease at the rate determined after the rental market survey has been conducted by Manager and accepted by the Owner. The proposed rental rates from the market survey will be a recommendation only and the Owner has the option to prescribe different rental rates for the Property by communicating the same in writing, via traditional mail or via electronic mail, provided that in the case of electronic mail, the Manager acknowledges the receipt of the instruction.

   If Owner opts to prescribe a rental rate which is higher than what is recommended by Manager in its rental market survey report, Manager reserves the right to re-negotiate the terms of this Agreement.

   Should there be price and payment terms negotiations between the Manager and a prospective tenant, the prospective tenant must put his counter-offer in writing and the final rental price and payment terms agreed shall be implemented only upon approval by the Owner.

   The rental price shall be inclusive of monthly association dues and real property taxes for the Property unless a different agreement between the lessee and the Manager is approved by the Owner.

5. Scope of work of the Manager

   Manager is hereby appointed by and shall act as the lawful agent and authorized representative of the Owner to do any and all things within the boundaries of the law which may be required to get qualified tenants for the Property.

   In addition, the following exclusive list of responsibilities shall be borne by Manager:

   1. Collection of periodical rental payments from the tenant(s) of the Property and depositing of the rental proceeds to Owner’s bank account, net of the amount for the monthly association dues, real property taxes and other expenses chargeable to Owner’s account as stipulated in this Agreement.

   2. Adjustments of the rental rates, if required, and as approved by Owner.

   3. Payment of regular bills and dues for the Property, except the remittance of income taxes due to the Owner for the rental income from the Property.

   4. Preparation of the Property for marketing purposes, which, if needed, may include general cleaning and dressing up of the Property.

   5. Marketing and promotion through advertisements in both free online classified listings and paid marketing channels for rental properties.

   6. Creation of a virtual tour of the Property which shall be published on Manager’s website.

   7. Screening of prospective tenants-applicants.

   8. Facilitation of actual viewing of the Property by prospect tenants.

   9. Attending to inquiries about the Property from interested prospects.

   10. Handling of concerns and complaints from the tenant(s) of the Property and providing assistance during emergencies related to the operation of the Property.

   11. Facilitation of tenants’ move-in and move-out.

   12. Providing assistance to the Owner in the eviction of the tenant(s), if required.

   13. Facilitation and overseeing of repairs in the Property when required.

   14. Handling of periodical maintenance activities which include but are not limited to quarterly inspections in case of rental contracts of one year or longer, servicing of air conditioning unit(s) if installed in the Property, and servicing of kitchen drainage systems.

   15. Recommendation of improvements for cost-effectiveness.

   16. Maintenance of records of accounts for the Property for up to three (3) years.

   17. Providing assistance in filing of Real Property Tax for the Property.

   Facilitation and overseeing of works related to upgrades and additions to the Property such as interior designing work, installation of new fixtures and additional furniture, and others that cannot be reasonably considered part of maintenance and repair, such as but not limited to, attendance on any Homeowners’ Association meetings, are already outside the scope of work and responsibilities of the Manager and the Owner may be charged a separate fee by the Manager for these services at the rate of Php1,000 per block of 4 hours or any fraction thereof.

   Further, any and all existing damage, fault, deficiency or lacking fixtures or installations in the Property prior to this Agreement which need to be corrected, fixed, repaired or installed before the Property can be offered to prospect tenants or guests, shall be outside the scope of work of the Manager under this Agreement and the Owner may likewise be charged a separate fee by the Manager for these services.

6. Copyright

   The copyright of all photographs, images and marketing materials, digital or otherwise, including the virtual tour if applicable, textual compositions and articles originally produced by Manager for the purposes of this Agreement, shall belong exclusively to and be retained solely by Manager.

7. Accounting Periods and Statements

   Manager’s monthly accounting period follows the calendar months. Manager shall furnish Owner with a summary statement of accounts for the Property every month, on the Twentieth (20th) day of the succeeding month. At the same date, the rental proceeds due to Owner for the corresponding accounting period shall also be deposited to his account. In case the same falls on a Saturday, Sunday or a public holiday, the statement shall be sent on the next working day and the rental proceeds due to Owner shall be deposited on the next banking day.

8. Costs of Repair and Maintenance

   Manager shall, if required, make or cause to be made such repairs, alterations, painting and maintenance work as necessary to preserve and keep the Property in good condition. The maintenance and/or repair costs shall be charged to the account of the Owner.

   Any cost of service and/or materials related to these activities equivalent to or below the amount of ONE THOUSAND PESOS (Php1,000) may be decided upon solely by the Manager. However, any amount required which EXCEEDS ONE THOUSAND PESOS (Php1,000), shall be subject to prior written approval by the Owner, delivered in person or via traditional mail or electronic mail, unless the nature of such repair or maintenance activity requires immediate implementation in order to prevent significant damage to property or injury to persons.

9. Authorities of the Manager

   1. Manager, through its authorized personnel and representatives shall have the authority to access the Property for the following purposes:

      1. Showing the Property to the prospective tenants,

      2. Facilitating the tenant(s) in the move-in and move-out processes,

      3. Conducting the necessary inspections, repair and maintenance activities,

      4. Other reasons and/or purposes related to this Agreement.

   2. Manager, through its authorized representatives, shall enter into lease or rental agreements with qualified tenants for the Property, in behalf of the Owner. Manager shall furnish Owner with a copy of such rental or lease agreements entered into with tenants, if the term thereof exceeds three (3) months.

   3. To effectively and efficiently carry out its responsibilities under this Agreement, Manager shall implement its own house rules and rental or lease policies and terms with tenants, independently from the Owner, provided that the terms of such rental or lease agreements are not in conflict with the purpose of, and any of the terms in, this Property Management Agreement.

   4. Manager shall take charge of the safekeeping of the security deposits of the tenant(s) during the period of their stay to cover for repair and maintenance expenses that may be applicable at the end of a lease or rental contract. Should there be no need for repair and maintenance expenses at the end of a tenant’s lease or rental contract, or when after such expenses, there remains a balance on the security deposits, Manager will likewise be solely responsible for returning the same to the tenant.

   5. Manager may, on its own intitiative, bring proper actions at appropriate forums against the lessees with whom Manager will enter lease agreements. These actions shall include but shall not be limited to, actions for collection of unpaid rent, interests, penalties and damages, and actions for judicial ejectment.

10. Content Insurance

    It is the sole discretion of the Owner to secure insurance for the Property and its content.

11. Setup Fee

    Owner shall pay Manager the amount of TEN THOUSAND PESOS (Php10,000) as setup fee. This amount shall cover Manager’s initial costs in preparing the Property for marketing, for the transportation expenses and allowances of its personnel when showing the Property to prospect tenants and such other initial expenses required in order to get the Property tenanted. The direct costs of paid advertising and promotions for the Property shall also be taken from this amount.

    This setup fee will be paid only once, which is upon the beginning of the effectivity of this Agreement and shall not recur during the uninterrupted effectivity of the same.

12. Compensation of Manager

    Owner shall pay Manager the following compensation for services to be rendered, depending on the length of the rental or lease contract with a tenant:

    1. For yearly contracts or longer, one-month-equivalent rent of the Property, per year, collected at the start of each contract year.

    2. For contracts less than one (1) year but not less than three (3) months, ten per cent (10%) of the whole contract amount, collected at the start of the contract.

    3. For short-term/transient stays, thirty per cent (30%) of each guest’s booking fee. Transient stays are those from 1 night, to 3 months.

    The same arrangements for the Manager’s compensation shall apply if the tenant extends or renews the lease or rental contract. Furthermore, the abovementioned fees are inclusive of applicable business taxes on the part of the Manager.

    If, for reasonable causes, a tenant cannot continue to the end of his rent or lease contract, and the Owner decides to approve the tenant’s request, waiving his right to collect the balance on the unpaid months of the contract, the tenant’s security deposit shall be forfeited in favor of the Owner as compensation for the pre-termination. In such case, Manager shall find another qualified tenant for the Property and shall likewise receive a separate compensation, as stipulated above, for the subsequent rental or lease contract.

13. Pre-Existing Lease

    Should there be a pre-existing lease or rental agreement on the Property prior to this Service Agreement, the preceding stipulation on Manager’s compensation shall apply the same. For the purpose of calculating Manager’s compensation, the length of such pre-existing lease or rental agreement is understood to be its remaining duration from the date of the effectivity of this Service Agreement, to the end of such lease or rental agreement.

    Any and all existing damage, fault, deficiency or lacking fixtures or installations in the Property prior to this Agreement which need to be corrected, fixed, repaired or installed either during the duration of the pre-existing lease, or before the Property can be offered to subsequent prospect tenants or guests, shall be outside the scope of work of the Manager under this Agreement and the Owner shall be charged a separate fee by the Manager for these services.

    In case of default by pre-existing lessees, or other violations of the pre-existing lease agreement, Owner may not oblige Manager to bring legal actions against said lessees in Owner’s behalf.

14. Term and Termination

    The initial term of this Agreement shall be one (1) year from the date of its effectivity and shall be automatically renewed and extended under the same terms then effective, for similar periods thereafter unless terminated pursuant to this Article.

    Either party may terminate this Agreement at any time and for any reason other than those mentioned in the succeeding paragraphs in this Article, by providing written notice forty-five (45) days prior to the date of termination. Provided that, if the party initiating the termination has any outstanding balances payable to the other, the same has to be settled before the forty-five-day notice starts counting. Non-payment of said outstanding balances upon the demand of the entitled party constitutes a breach of this Agreement.

    Manager may terminate this Agreement with thirty (30) days notice for failure of the Owner to pay the Manager the agreed compensation or for breach of any of the terms of this Contract, without prejudice to any claims against Owner which Manager may be entitled to under the law.

    Owner may terminate this Agreement with thirty (30) days notice for failure of the Manager to provide regular accounts on the Property, or for breach of any of the terms of this Contract.

    No notice shall be required for termination due to misrepresentation, fraud or any criminal act affecting the purpose of this Agreement by either party.

15. Delivery of Notices

    All notices required or deemed necessary by the parties shall be written and shall be deemed effective upon personal delivery, mailing by registered or certified mail with return receipt requested or sending via email with acknowledgment of the concerned party. The addresses of Owner and Manager for notice purposes are as follows:

    [addresses of the parties provided]

16. Exclusivity

    This Agreement confers exclusive authority to Manager to market, advertise and offer the Property for rent or lease.

    Notwithstanding the termination of this Agreement, Manager shall nevertheless be entitled to full compensation as herein stipulated, for a signed tenant, provided that the name of the prospective/existing tenant has been registered with Owner in writing during the effective period of this authority.

17. Applicable Law and Construction

    This Agreement shall be deemed subject to the laws of the Republic of the Philippines and the parties hereto consent to subject matter and personal jurisdiction of the courts of Taguig City. This Agreement shall be construed in accordance with the laws of the Philippines and no rule of strict construction shall be applied against either party to frustrate the intent and purpose expressed in this Agreement.

18. Owner’s Discretionary Specifications

    Additional provisions which are subject to the discretion of Owner are contained in “Annex 1” of this Agreement and shall form part hereof.

19. Amendments and Inconsistencies

    Manager may at any time, amend, modify, supplement or revise any of the terms and conditions of this Agreement, upon prior written notice or subsequent notification to Owner. The Owner agrees to be bound by such amendments.

20. Waiver of Rights

    Manager’s failure to demand strict compliance with any of these terms and conditions shall not be construed as a waiver thereof. Any waiver to be effective shall be made in writing and signed by an authorized officer of Manager.

21. Judicial Relief

    Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay to the prevailing party the amount of Php201,000.00 as liquidated damages, in addition to any claimed actual damages in the complaint, and/or other costs and damages which the prevailing party may be entitled to under the law.

22. Entire Agreement

    This Agreement and such other related documents as may be executed by the parties contemporaneously herewith or subsequent, pursuant hereto, constitute the entire agreement of the parties with respect to the subject matter hereof and shall supersede any prior expressions of intent or agreement with respect to the same subject matter not reduced into writing.

23. Severability

    If any part of this Agreement is set aside by a court of competent jurisdiction, the parties agree that the remainder of the Agreement shall be valid and enforceable to the fullest extent possible under the circumstances.