General Property Management Agreement Updated March 2024
Managing Owner (primary contact person who is authorized to act on behalf of all owners and make and receive payments on behalf of all owners), _______________________________, hereafter known as “Owner” and Beckon LLC, hereinafter called “Manager” hereby covenant and agree:
Right to Manage: Owner hereby makes, constitutes and appoints the Manager with full power of substitution, its true and lawful attorney-in-fact to sign and acknowledge any rental of said property pursuant to the terms hereof, and take any action, including eviction of any tenant, necessary to enforce compliance with such rental agreements. The foregoing grant of authority is a Special Power of Attorney granted for the term of this agreement and shall survive the incapacity or death of the Owner.
This agreement shall be effective beginning on ____________________________, _________
Management Responsibilities: Manager will be responsible for the following:
Responding to reservation inquiries.
Processing reservations, cancellations and personally handling disputes.
Renter management and relations.
Scheduling housekeeping, maintenance and laundry services.
Check-in and check-out services.
Preparation and personal enforcement of rental agreements.
Broad walk-through of home no less than every two weeks.
Owner rental statements and disbursements.
Marketing Commitment: As part of our commitment to maximize your property's visibility, MANAGER guarantees marketing on www.BeckonHomes.com and mandates the utilization of Airbnb for advertising. We also highly suggest leveraging VRBO/HomeAway and their 35 affiliate sites to broaden your property's reach. It's important to note that Beckon often collaborates with marketing firms chosen and financed by the Owner to enhance marketing strategies. Although Beckon is not obligated to run ads for the Owner specific property listing, we are open to investing in targeted ads for your property at an additional charge, which will be borne by the Owner.
Owner is responsible for all advertising costs and booking fees associated with listing the property on platforms such as Home Away, VRBO, or any other platforms requested, in addition to the Processing Fees charged by these sites. Booking fees may vary from $0 (Airbnb) to up to 30% of the total reservation cost on platforms like booking.com, with processing fees generally around 3.5% of the total reservation cost, including cleaning fees.
To mitigate these costs, Manager will adjust the base rates to cover typical platform fees. However, this markup will not be itemized separately in financial statements. Manager will handle all aspects of advertising, including the creation and management of listings, at no additional cost for the duration of this agreement. This comprehensive service includes editing descriptions, setting rates, updating photos, and managing rental inquiries. It's essential to understand that Manager maintains control and ownership of the listing profiles, and should the Owner decide to terminate the management agreement, access to these listings and marketing materials created by Manager remain intellectual property of Beckon LLC will not be retained by the Owner.
Management Fees: The following financial obligations are agreed upon by the Owner:
Subscription Fee: The Owner will pay the Manager a fixed monthly management fee of $________ (________ dollars), which is due every month regardless of property rental activity. This fee is automatically charged to the OWNER's credit card on the first of each month. A $500 late fee will be applied if the payment is not successfully processed within the first 5 days of the month. Failure to process payment by the 8th day grants Beckon the right to deduct the overdue amount from any rental income generated by the property. This fee is subject for review on an annual basis. This fee is in place to consistently apply the terms of our management agreement and includes, regardless of bookings:
Beckon Residential Enhanced Plus Membership, available only to Beckon Homes Clients.
Regular air filter, battery and lightbulb changes that do not require a ladder.
Management and payment of all household vendors.
Tidying of exterior furnishings and spaces.
Trash roll out and roll in.
Smart Tech with 24/7 monitoring to ensure safety for your guests and security for your property.
Dynamic pricing algorithm software that maximizes revenue and occupancy.
Listing distribution across 50+ sites, including Airbnb, VRBO, Expedia, Booking.com TripAdvisor, Google, Hopper and Marriott Homes and Villas.
Local on-the-ground support.
24/7/365 in-house hospitality and customer service support trained on your properties and our distinctive brand of Beckon Hospitality.
Online account and owners portal.
Hot tub/pool maintenance and management.
Year round revenue optimization that runs your property like the income-producing business it is.
Custom concierge-centric guest app to allow for superior hospitality, add-on guest services and access to local partnerships to delight guests and retain repeat visitors.
Off-season property improvement project management that preserves your capital investment.
Nationwide leadership and marketing team to optimize your portfolio growth, but local-to-your-property on the ground management team and crew who knows your property in and out.
A family-owned, women-led team of professionals with a collective 50+ years of experience.
Revenue Share Commission: In addition to the subscription fee paid by the Owner, this agreement incorporates a revenue share commission structured to align the financial interests of both the Owner and Manager. This commission is calculated as a percentage of the gross accommodation rates collected by the booking platform for each reservation. This model ensures that the Manager shares in the financial success of the property, incentivizing the maximization of occupancy rates and overall revenue. This commission of _____% ( percent) is designed to complement the subscription fee, with any guest-specific fees being remitted directly to the MANAGER, ensuring a comprehensive approach to revenue management and property management.
Setup Fee: A one-time setup fee of $________ ( dollars) covers the creation of all marketing materials, a physical walkthrough and inspection of the property, and a property condition assessment. Please note, any necessary repair work identified during the inspection or additional items required for the property will incur separate charges.
Cleaning Fee: Each rental period will incur a cleaning fee, set by Manager and service providers, payable by Guests. This fee applies whether the unit is occupied by a rental tenant, the Owner, or the Owner’s guests.
Financial Management: Manager will deduct any property-related expenses, services, or repairs from the Owner’s monthly earnings, providing the Owner with a net payout from the gross pre-tax accommodation rates minus these expenses.
Decision-Making Authority: The Owner authorizes Manager to make financial decisions affecting the property's structural integrity or guest experience on the Owner’s behalf. In urgent situations requiring immediate attention, decisions may be made without prior communication to the Owner. For non-emergent issues, Manager has discretion to spend up to $______ without Owner’s prior approval, with costs reflected in the subsequent month’s statement.
Incidental Charges: A fee of $55 per hour will be charged for incidental activities, including but not limited to, scheduling and overseeing repairs, restocking supplies, or replacing household items and furnishings. For expenses under $300, Beckon may opt to apply a markup instead of the hourly rate.
Guest Consumables Management: In alignment with our commitment to providing guests with high-quality amenities and essentials, Owner will be billed based on the actual consumption of guest-necessitated consumables. This billing approach ensures that charges accurately reflect the consumables used during guest stays, fostering a fair and transparent pricing model. Annually, costs for these consumables will be evaluated to account for any adjustments due to supplier changes or supply chain fluctuations. Beckon is dedicated to stocking the following premium items for guest use:
Natural, high-end shampoos, conditioners, and body washes
Hand soap in every bathroom and kitchen
Dishwasher pods and dish soap
Laundry detergent (where applicable)
Paper towels (2 rolls per stay)
Toilet paper (3 rolls per bathroom, per stay)
Trash bags
Olive oil, salt, pepper
Coffee, tea, creamers, and sugar packets
General cleaning supplies (all-purpose sprays, antibacterial wipes, etc.)
Owners have the option to request additional non-perishable items to be included, provided they are compatible with room temperature storage in an owner's closet or a similar storage solution. Such requests should be made in writing and are subject to availability.
To accommodate these consumables, Manager will designate a secure, coded storage area within each property. Should a suitable storage area not exist, the Owner may be responsible for the costs associated with securing an appropriate storage solution or renting a storage unit specifically for their property.
Rental Rates Strategy and Optimization: Manager, in collaboration with the Owner, will establish the initial rental rates and terms for the property. Recognizing the dynamic nature of the rental market, influenced by competitive conditions, tourist trends, and demand fluctuations, Manager maintains the flexibility to adjust rates and terms as necessary. This proactive approach is designed to enhance the Owner’s rental income and occupancy rates effectively.
Dynamic Pricing and Availability Optimization: Included in the subscription cost, Owners and their properties benefit from advanced algorithmic software for dynamic pricing and availability management. Beckon leverages this technology to strategically optimize revenue, positioning us as pricing experts in the vacation rental market. While we are always open to discussing our strategies with Owners, our expertise in navigating market dynamics allows us to confidently make decisions on special offers, concessions, and other revenue-driving initiatives. Our goal is to ensure maximum profitability and occupancy for your property, trusting in our proven ability to adjust to market demands effectively.
Acknowledgement of Risk and Disclaimer of Guarantees: By entering into this agreement, the Owner acknowledges and accepts that Manager has not provided any guarantees, whether in writing or verbally, concerning the potential occupancy or income levels for the property. Furthermore, the Owner understands that the Manager does not promise specific outcomes regarding expense amounts and has not offered any assurances or representations about possible tax advantages.
The Owner is fully aware of the dynamic and regulatory changes within the short-term rental industry, which may impact the property's eligibility for permits or its marketability at any time. Consequently, the Owner agrees that Manager shall not be held responsible for any resultant financial losses, whether due to decreased revenue, diminished property value, or the property’s failure to secure necessary permits or marketing opportunities. This acknowledgment underscores the inherent risks involved in the short-term rental market and the absence of guarantees in such a fluctuating environment.
Guest Insurance and Property Maintenance Policy: Our comprehensive approach is designed to ensure property protection while clearly defining the responsibilities of Manager and homeowners.
Mandatory Guest Insurance for Short Stays: For guests staying less than 30 days, it is required to purchase an insurance policy covering up to $3,000 for damages, not including natural wear and tear or items under $20 in value. This policy ensures coverage for the most common guest-related damages, providing peace of mind for both guests and homeowners.
Security Deposits for Longer Stays: For longer stays, particularly those exceeding 30 days but less than 90 days, MANAGER can hold a nominal security deposit in escrow to cover potential damages. This deposit provides a financial safeguard, ensuring that funds are available for any necessary repairs or cleaning following a guest's departure.
Renter's Insurance for Extended Stays: For stays of 90 days or more, we encourage guests to purchase renters insurance. This insurance is intended to cover the guests' personal property losses and provide additional liability coverage, offering a layer of protection for both the guest and the homeowner.
Proactive Damage Management: In the event of significant property damage, our team will promptly address the issue to maintain the property's integrity. Although MANAGER will document damages, we cannot be held liable for any impact on the homeowner's ability to claim their insurance.
Homeowner Responsibilities: Understanding that not all owners can regularly visit their property, MANAGER will conduct inspections at the homeowner's expense, if requested or deemed necessary, on a semi-annual basis. This service is provided to ensure ongoing maintenance and property integrity but it's important to note that while our team possesses extensive property management expertise, we are not licensed home inspectors. As such, we may not identify all potential issues. Homeowners are encouraged to engage licensed professionals for comprehensive inspections, especially if they seldom spend time at the property.
Maintenance and Property Standards: The Owner is obliged to uphold the property in a condition that not only meets but aims to exceed guest/tenant expectations, ensuring the property's integrity. This commitment involves timely updates and maintenance across various aspects of the property, including but not limited to, paint, furnishings/bedding, any damaged or dysfunctional systems, and exterior landscaping, all at the Owner’s expense.
Acknowledgement of Relationship: As part of maintaining the property to the highest standards, the Owner acknowledges the role of Beckon as a comprehensive Rental Property Management company. Our services include managing tenant/guest relations, addressing maintenance issues essential for the rental's operation, organizing regular cleanings, handling financial transactions, and strategizing to enhance property profitability. It is essential for the Owner to recognize that while Beckon provides extensive property management services, our capabilities do not substitute the specialized skills and knowledge of licensed professionals in fields such as legal, taxation, and specific maintenance areas.
Mandatory Professional Relationships: The Owner must ensure that the property has established relationships with local, licensed professionals in critical maintenance fields, including HVAC, plumbing, and electrical services. Beckon will assist in managing and facilitating these relationships to address maintenance needs promptly and efficiently, with all expenses borne by the Owner. This requirement underscores the importance of professional expertise in maintaining the property's operational integrity and compliance with all regulatory standards.
Pet Policy Opt-In Clause:
The Owner has the option to allow pets at the rental property, subject to the conditions outlined below. Opting into the pet policy enables the property to accommodate guests with pets, potentially increasing its appeal and rental demand. The decision to allow pets is at the sole discretion of the OWNER and can be indicated as follows: Opt-In to Pet Policy: By opting into this pet policy, the Owner agrees to permit guests to bring pets into the rental property under specified terms and conditions. The Manager will communicate these terms to potential guests, including any restrictions on pet size, breed, or number of pets allowed. Pet Fee and Deposit: To cover the additional cleaning and maintenance costs associated with hosting pets, a pet fee or deposit may be charged to guests bringing pets. This fee will be determined in consultation with the Manager and clearly outlined in the property listing and rental agreement. Property Preparation and Maintenance: The Owner is responsible for ensuring the property is prepared to accommodate pets, including securing any breakable items and ensuring outdoor spaces are safe and secure for pets. Following a pet-inclusive reservation, the property will undergo a thorough cleaning to maintain high cleanliness standards for future guests. Liability and Damage: While allowing pets can enhance the rental's marketability, the OWNER assumes responsibility for any damage or liability arising from pets staying at the property. The pet fee or deposit collected will contribute to covering these potential costs, but the OWNER should also consider maintaining appropriate insurance coverage. Opting Out: The OWNER may choose to opt out of the pet policy at any time by providing written notice to the MANAGER. Upon opting out, the MANAGER will update the property listing and rental agreements to reflect the change in pet policy.
I, Owner, elect to allow pets at my property/properties.
I, Owner, decline allowing pets at my property/properties.
Payments and Account Settlements: Reflecting our commitment to transparency and efficiency in financial management, the following payment structure is established to ensure clear communication and accountability between Manager and Owner:
Monthly Statements and Disbursements: Manager will provide the Owner with a detailed statement of accounts within 20 days following the end of each calendar month. This statement will include all accommodation rate income collected and expenditures incurred during the preceding month. Concurrently, Manager will disburse to the Owner any rents collected, after deducting applicable fees or expenses and any disbursements made on behalf of the OWNER.
Subscription Fee Deduction: As previously agreed, the Owner’s monthly subscription fee will be automatically deducted from their credit card each month. This process ensures a seamless and consistent management fee payment, even in months when the property generates no revenue.
Handling of Negative Balances: In scenarios where no revenue is collected or when the total monthly expenses and fees assessed exceed the revenue generated from the property, the Owner is required to cover these costs. Manager will issue an invoice or a statement of accounts detailing the funds due, and the Owner shall remit payment to Manager within 15 days of receiving this invoice. This ensures that all operational costs and management fees are adequately covered, maintaining the financial integrity of the property management agreement.
Late Fee Policy for Negative Balances: To encourage timely settlements, a late fee will apply to any outstanding balances not paid within the 15-day window. A late fee of $100 will be added to the total due for each week that the balance remains unpaid, emphasizing the importance of adhering to the agreed financial timelines.
Reserve Funds and Owner Credit Card Usage: To ensure seamless management and upkeep of the property, the following provisions are established regarding the use of reserve funds and the Owner’s credit card:
Credit Card as a Backup: Owner agrees to provide credit card information to Manager to be held as a secondary source of funds. This card may be utilized at Manager’s discretion, particularly in instances where rental income is insufficient to cover the property's expenses or in lieu of maintaining a reserve fund.
Use of Funds for Maintenance and Services: Manager is authorized to use the reserve funds or the Owner’s credit card for the repair or replacement of furnishings, equipment, or sundries necessary for maintaining the property's appeal and functionality for occupants. This includes, but is not limited to, paying for Manager’s hourly incidental fees, selected optional services, and required annual advertising expenses.
Priority Use of Rental Income: Manager commits to prioritizing the use of any rental escrow funds collected from the property's rental income before resorting to charging the Owner’s credit card. This approach maximizes the use of generated revenue for operational costs and minimizes direct charges to the Owner.
OWNER Credit Card Information: To facilitate the above arrangements, OWNER will securely provide the following credit card information to MANAGER:
Owner Financial Responsibilities: The Owner acknowledges and agrees to the following financial obligations to ensure the property is well-maintained and operational for guests:
Property Maintenance and Furnishings: The Owner will supply and maintain all necessary furnishings and keep the property in good condition, adhering to high standards of order and repair suitable for short-term rentals.
Operational Costs: All operational expenses associated with the property, including utilities, pest control, pool/spa service, trash collection, lawn care, and homeowners' association (HOA) fees, are the responsibility of the Owner. Manager will contract all necessary vendors on the Owner's behalf, and will not be able or responsible for management of vendor relationships outside of Beckon preferred contractors. Unless otherwise directed, Manager will contract vendors to maintain basic property and grounds conditions, but will primarily rely on the Owner for direction on property or landscape improvement efforts.
Internet and Entertainment Access: The Owner must provide reliable internet access and entertainment options (cable or live streaming services) for guests.
Wear and Tear: The Owner is responsible for all maintenance and replacements due to normal wear and tear, consistent with short-term rental industry standards. To maintain the property at a level befitting a high-quality rental, Beckon reserves the right to advise on or undertake the remediation of household items, paint, flooring, or other considerations. These actions may be carried out with or without the Owner’s explicit consent, ensuring the property meets our guests' and the industry's expectations.
Restocking Guest Supplies: Costs associated with the restocking of items used by guests during their stay are covered by the Owner.
Platform Fees and Taxes: The Owner is responsible for any fees assessed by rental platforms, as well as city and state taxes. These will be deducted and remitted monthly.
Utilities Management: While not directly managed by us, we strongly recommend setting up auto withdrawals for all applicable utility payments to ensure uninterrupted services.A failure to maintain active utility services may result in additional fees to address guest concerns, relocate guests to serviceable properties, or to facilitate our team's coordination with vendors to remediate any issues arising from the lack of utilities.
Reimbursement of Additional Expenses: Should the Manager incur any additional expenses on behalf of the Owner, permission is granted to deduct these from any amounts due to the Owner. If the funds in the Owner’ Management Account are insufficient, the Owner agrees to promptly reimburse the Manager upon request.
Linens and Supplies: The Owner is required to supply two complete sets of linens, including sheets, towels, washcloths, hand towels, enough kitchenware for a fully equipped kitchen and dining experience for their maximum occupancy and other basic household goods to ensure the property is adequately equipped for guest turnover. As these items undergo wear and tear or become otherwise unusable, Beckon will replace them as needed. The costs for replacements will be itemized and deducted from the Owner’s monthly revenue, ensuring transparency and continuity in the provision of high-quality guest amenities.
Repairs and Emergency Responses: Manager will strive to consult with the Owner before initiating any major repairs that are not urgent. However, it is acknowledged that waiting for an Owner’s response is not always practical or feasible, especially in situations that require immediate action to ensure safety or to prevent significant property damage. In such cases, Manager is empowered to proceed with emergency repairs at the Owner’s expense, regardless of cost, to address any immediate dangers to life, property, or to preserve the safety of occupants without prior approval.
While tenant agreements specify that there is no compensation for temporary disruptions of essential services, Manager retains the discretion to offer rental rebates or adjustments as deemed appropriate to maintain guest satisfaction and uphold the property's reputation. Manager commits to promptly addressing and resolving such issues, employing best efforts to minimize impact on rental income.
Should repairs or emergency interventions be necessary during periods without rental income, the Owner’s provided credit card will be charged, or the Owner will receive a direct bill for these expenses, ensuring that property integrity and guest safety are always prioritized.
Smart Home and Hospitality Tools Requirement: To enhance the safety, security, and overall guest experience, this agreement mandates the installation of specific smart home and hospitality tools at the property, at the Owner’s expense. These tools include:
Smart Lock System: A key component of our property management strategy involves the implementation of a smart lock system. This system enables Manager to generate a unique entry code for each guest, ensuring secure access to the property while enhancing guest convenience and safety. The ability to change codes remotely for each reservation significantly reduces the risk of unauthorized access, aligning with our commitment to guest and property security.
Noise Monitoring System: Additionally, Manager will select and install a noise monitoring system designed to safeguard the property against potential disturbances and to ensure compliance with local noise ordinances. This system will monitor noise levels without compromising guest privacy and will alert Manager to any instances of excessive noise, enabling proactive management of the situation.
The installation of these smart home technologies is a critical step toward modernizing the property, ensuring it meets current hospitality standards, and maintaining a high level of guest satisfaction. The Owner is responsible for covering the costs associated with the purchase, installation and subscription of these systems, recognizing it as an investment in the property's appeal and operational efficiency.
Regulatory Compliance, Permitting, and Financial Obligations: To facilitate seamless operations and compliance with local regulations, the following protocols and responsibilities are established:
Tax Remittance: Manager, or the designated rental platforms, will handle the remittance of hotel, occupancy, and sales taxes on behalf of the Owner, contingent on receiving the necessary documentation to do so. It is the Owner responsibility to cover any applicable business or property taxes.
Documentation for Tax Setup: To enable prompt tax setup and property marketing, Manager requires the following from the Owner before listing the property:
Clear copy of the Owner’s driver's license
Proof of property ownership
Power of Attorney, as provided by Manager
Completed W9 form
Social Security or FEIN number
LLC/Incorporation Documents, when applicable
Tax Liability Acknowledgment: The Owner recognizes that engaging in short-term rentals constitutes a taxable activity. Accordingly, the Owner is ultimately liable for any applicable Sales and Use taxes, as well as any Transient Room taxes. Failure to provide Manager with the necessary documentation will result in Manager ceasing to attempt file taxes on the Owner’s behalf until such documentation is provided.
Short-term Rental License: Compliance with local regulations may necessitate a short-term rental license. The Owner is responsible for acquiring and renewing this license, including the payment of all associated fees. The cost of a permit can range from $350 to several thousand dollars annually, varying by jurisdiction. In addition to the permit fee, Owner should also anticipate incidental charges billed by Beckon for the time spent managing the renewal process.
Permit Renewal Service: On specific request, Manager offers a service to apply for or renew the short-term rental license on behalf of the Owner for an additional fee. While our team diligently tracks and manages renewal applications to ensure permits are kept current, Owners are encouraged to verify with us that this crucial task has been completed.
Changing Regulations: The Owner acknowledges the dynamic nature of short-term rental regulations. In instances where Manager cannot secure a permit on behalf of the Owner, due to changing laws or other factors, the Manager is to be held harmless for any permit denials or complications.
Manager’s Commitment to Regulatory Compliance: In our role as your property management partner, we prioritize compliance with all local and state regulations governing short-term rentals.
Marketing of Permitted Properties Only: Manager is dedicated to marketing and promoting only those properties that have valid permits. Should a property's permit fail to be renewed, be revoked, or come under review, Manager will immediately halt all marketing efforts for that property. This stance underscores our commitment to legal and ethical business practices.
Owner's Responsibility for Legal Operation: While Manager plays a pivotal role in the business operations, booking, and service provision aspects of the rental, the legal responsibility for operating the rental within regulatory frameworks rests with the Owner. It is the Owner’s duty to ensure their property complies with all relevant laws and regulations.
Advisory Role of Manager: Manager offers guidance and support in the business and operational aspects of managing a short-term rental, drawing on our expertise in hospitality and property services. However, it is essential to recognize that any insights or advice offered by Manager regarding the rental's viability are provided from a business operations perspective and should not be interpreted as legal counsel.
Our goal is to assist you in navigating the complexities of property management while ensuring that your rental operations remain within the bounds of legal requirements. We encourage owners to consult legal professionals for advice on regulatory compliance and legal matters related to their rental properties.
Owner Usage and Reservation Guidelines: The Owner, their family, and personal guests have the right to use the property, provided there are no existing reservations made by Manager and that the reservation process outlined by Manager is followed. This ensures that the property's use is properly scheduled and recorded.
Making a Reservation: To secure the property for personal use, the Owner must submit a reservation request through a dedicated portal (when available) or by emailing team@beckonhomes.com. This procedure is critical to ensure that the reservation is officially logged and recognized. Attempts to book the property through other means may result in the reservation not being acknowledged.
Exclusivity of Revenue Generation: The Owner agrees not to engage in any activities that generate revenue from the property outside of the arrangements with Manager. All reservations, particularly those involving payment, must be processed through Manager to maintain operational integrity and financial clarity.
Applicability of Fees: Subscription fees not based on commission will be charged as per the agreement, irrespective of whether the reservation is for a paying guest or for the Owner’s personal use. This policy is in place to consistently apply the terms of our management agreement.
Cleaning Fees and Liability: Following the Owner’s use of the property, a cleaning fee will be charged to the Owner’s account unless a different payment arrangement is pre-agreed with Manager. Security deposits are not required for the Owner or their personal guests, although insurance can be purchased by the owner or their guests if requested. However, the Owner bears all liability for any damages or incidents that occur during their stay or that of their guests.
Check-in and Check-out Compliance: The Owner and their guests are expected to adhere to the standard check-in and check-out times. Any requests for exceptions must be arranged in advance, in writing with Manager.
Restriction on Direct Guest Bookings: The Owner is not permitted to directly rent out the property. This ensures that all guest accommodations are managed through Manager, maintaining quality control and service standards.
These guidelines are established to facilitate the organized and fair use of the property by the OWNER while upholding the principles of our management agreement and ensuring the property is managed professionally for all guests.
Mail Management Policy: Manager does not undertake the collection or management of mail at the property. To avoid any potential issues with missed correspondence crucial to their property, Owners are strongly advised to set up mail forwarding to their primary residence or another preferred address. Manager cannot be held accountable for any negative consequences resulting from the Owner’s failure to arrange proper mail forwarding, ensuring that all important mail reaches them in a timely and secure manner.
Limitation of Liability for Losses: Manager is not responsible for any loss of the Owner’s personal property located within the rental premises or for any loss of rental income arising from theft, dishonored checks, uncollectible payments, bank failure, declined credit card transactions, natural disasters (including wind and storms), accidents, or any other events or causes beyond Manager’s control. Additionally, Manager is not obligated to undertake legal actions or engage legal counsel for the collection of unpaid rents, damages, eviction of tenants, or any related matters unless expressly requested by the Owner. Should the Owner direct Manager to pursue such actions, all associated collection and legal fees will be borne by the Owner. This provision is designed to clarify the scope of Manager’s liability and to ensure that the responsibilities for legal and collection activities are understood to be the Owner’s, in compliance with applicable laws and regulations.
Additionally, it is a requirement for the Owner to maintain personal liability insurance covering the property, with a minimum coverage of $1,000,000 per occurrence, in alignment with state laws. The Owner must provide the Manager with a copy of this insurance policy. The Owner also agrees to indemnify and hold Manager harmless from any claims, damages, losses, or expenses arising out of the Owner’s failure to fulfill these obligations or from any actions taken by Manager within the scope of their duties as outlined in this agreement.
Owner Communication and Procedure for Property Sale: Upon deciding to list the property for sale, the Owner is required to notify the Manager in writing. Property showings will be scheduled either during vacancy periods or in coordination with Manager, prioritizing minimal disruption to the rental operations and maintaining the tenants' quiet enjoyment.
Integration of Sale with Rental Operations: Manager maintains the discretion to terminate the management agreement without prior notice if it is deemed that the property's sale and showings cannot be seamlessly managed alongside rental operations, potentially affecting tenant satisfaction. In such instances, the Manager may opt to reassign any existing reservations to alternative properties under its management.
Advance Notice of Closing: A minimum of 30 days' notice before the closing date of the sale is required from the Owner to Manager. It is important to note that existing reservations cannot be assured to transfer to the new owner unless the new owner enters into a management contract with Manager. These reservations should not be promoted as a sale incentive, as their transfer cannot be guaranteed.
Future Reservations and Ownership Change: If the property changes ownership and the new owner chooses not to contract with Manager, Manager reserves the right to either cancel these reservations or transfer them to other properties it manages. In scenarios where reservation transfer is not feasible, the Owner will incur a cancellation fee equivalent to 10% of the gross pre-tax rental rate for all affected bookings within three months post-sale.
Additional Fees for Showings and Walkthroughs: To ensure the property remains in pristine condition post-showings and buyer walkthroughs, the Owner will be subject to additional cleaning and inspection fees. These measures allow Manager to maintain the property's cleanliness and readiness for subsequent guests or operations.
HANDLING PERIODS OF NO RENTAL INCOME: There may occasionally be times when a property does not generate rental income due to regular market fluctuations or unforeseen events such as natural disasters, pandemics, or significant issues impacting the property’s functionality. In these instances, Manager is committed to efficiently managing and minimizing expenses while ensuring the property remains operational and attractive to potential renters.
Subscription Fee: During months where no rental revenue is generated, the Owner is required to fulfill the agreed-upon subscription fee as part of our ongoing management commitment. This fee, established in the management agreement, is designed to cover the continuous efforts to manage the property effectively, including budgeting expenses, performing essential maintenance, and marketing the property to secure future bookings.
Responsibility for Operational Expenses: In addition to the subscription fee, the Owner is responsible for all operational and maintenance costs incurred during these periods. This ensures that despite the lack of immediate rental income, the property is maintained in top condition and ready for when rental activities can resume.
Indemnification: The Owner agrees that the Manager shall be exempt from liability for any claims arising from loss, accidents, injuries, or illnesses incurred by any person or property on the premises or utilizing its facilities. Additionally, Manager bears no responsibility for the loss of personal belongings or valuables belonging to the Owner, renters, or their guests. The Owner, along with all renters and guests, acknowledges and assumes the risk of any potential harm resulting from their use of the premises or that of individuals they invite to the property. Furthermore, the Owner shall indemnify and absolve the Manager and its representatives from any claims, liabilities, damages, injuries, costs, and expenses that may occur on, about, or in relation to the property. This includes any incidents arising from the Manager’s presence or activities on the property, any violation of the rental agreement by renters, or any actions or inactions by the Manager on the property.
Arbitration: The Owner and Manager agree to resolve any claims, disputes, or controversies related to or arising from this Agreement through binding arbitration, to be conducted by a recognized judicial arbitration and mediation service. Both parties consent to arbitration as the exclusive forum for dispute resolution and agree that any arbitration proceedings initiated under this Agreement will take place in Nashville, Tennessee, the headquarters of Beckon LLC. This clause ensures that all disputes are resolved in a manner that is both efficient and legally compliant, reflecting the mutual agreement to settle differences through arbitration rather than through court proceedings.
Termination of Agreement, Reviews and Subscription Pause Options: The terms for the termination of this agreement and options for pausing the subscription are as follows:
Early Termination by Owner: If the Owner chooses to terminate this agreement before the completion of the initial six-month term, they will incur an early termination fee equal to two months of the agreed management fees. This measure is to offset the administrative and operational adjustments required by the early termination.
Termination Consequences: Upon termination of this agreement by the Owner, the Owner agrees to relinquish all rights to past guest reviews and the property's listing history managed under Manager. This decision underscores the significance of the continuous partnership between the Owner and Manager in maintaining and enhancing the property's marketability and reputation.
Subscription Pause Option: After fulfilling the initial six-month term, the Owner has the option to "pause" their subscription with Manager instead of terminating the agreement. This pause, which requires 60 days' notice, allows the property to be temporarily removed from active marketing and reservation servicing while preserving the property's listing, marketing materials, history, and guest reviews within Manager’s system.
Pause Fee: During the pause period, the OWNER will be charged a monthly fee of $19.99. This fee ensures that the property's digital footprint, including valuable guest reviews and listing history, remains intact and ready for reactivation upon the Owner’s request to resume the subscription and property marketing.
Mutual Termination Post-Initial Term and Responsibilities: After the initial term, either party may end the agreement with 60 days' written notice, without penalties. Termination does not absolve the Owner of fulfilling existing rental bookings. Manager will assist in transitioning reservations for 30 days post-termination to ensure guest continuity. Any pending financial obligations from the Owner at the time of termination will be settled, including the potential early termination fee.
Financial Records and Tax Responsibilities: The Owner is hereby informed that Manager does not offer bookkeeping services or tax advice for the property or any other investments. Instead, Manager’s role includes the provision of basic monthly financial statements and the execution of net rental revenue deposits into the Owner’s designated account, on or around the 20th of the month subsequent to the revenue period.
Year-End Tax Documentation: Annually, the Manager will issue a 1099 form reflecting the property's gross post-tax rental revenue for the year. It is the responsibility—and to the benefit—of the Owner to accurately report to tax authorities all deductible expenses. It is important to note that the Manager will report gross income and cannot issue 1099 forms based on the net value deposited to the Owner.
Advisory: Owners are strongly advised to consult with a knowledgeable Certified Public Accountant (CPA) or bookkeeper before entering into real estate investment ventures. This professional partnership is essential for ensuring compliance with tax laws and optimizing financial outcomes.
Supporting Documentation: Upon request, Manager will provide a W9 form to the Owner, facilitating the issuance of a yearly 1099 form to Manager for any management fees paid and expenses incurred by Manager on behalf of the property.
Staff Onsite Evaluation: The Owner acknowledges and agrees to Beckon staff utilizing the property during non-peak vacancy periods. This agreement is aimed at enabling a comprehensive evaluation of the guest experience and operational functionality from the perspective of Beckon’s dedicated team.
Objective of Staff Stays: The primary goal of permitting Beckon staff to stay at the property is to conduct thorough inspections and firsthand assessments, ensuring any issues are promptly identified and remediated. This initiative serves as a proactive measure to uphold and enhance the quality of the guest experience, aligning with Beckon's commitment to exceptional property management.
Stays at Beckon's Discretion: It is understood that the option for Beckon staff to conduct on-site stays is not guaranteed for every property or period. These stays are subject to Beckon’s operational discretion and property availability, intended as a flexible option for enhancing property oversight.
Financial Considerations: The Owner acknowledges that no rental revenue will be generated from Beckon staff stays during these assessment periods. Moreover, any expenses directly associated with these stays, including cleaning services post-departure, will be fully covered by Beckon, ensuring no additional financial burden is placed on the Owner.
Value to the Property: Such evaluations are invaluable, providing immediate, actionable insights that contribute to the ongoing improvement and maintenance of the property. Beckon will share all relevant findings and recommendations with the Owner, fostering an environment of transparency and continuous enhancement.
This clause confirms the mutual understanding between Beckon and the Owner that staff stays are conducted solely for property assessment purposes, with no expected revenue for the Owner and all related expenses borne by Beckon. These stays are instrumental in maintaining the highest standards of property care and guest satisfaction.
Notifications and Communication Preferences: For all communications between the parties, notices must be given in writing and can be delivered through one of the following methods for assured documentation and clarity: (1) personal delivery, (2) mail (registered or certified, with postage prepaid and return receipt requested), (3) overnight delivery, (4) email with acknowledgment of receipt, or (5) facsimile with a subsequent confirmation copy sent by regular mail (registered or certified, with postage prepaid and return receipt requested).
Preferred Email Communication: To ensure prompt and efficient communication, the OWNER is advised to default to email correspondence, directing any inquiries or requests to team@beckonhomes.com. This method facilitates the fastest response time from our team.
Scheduling Calls: Should the Owner wish to schedule a call for further discussion, requests for such calls should also be submitted via email to the aforementioned address. This allows for the proper prioritization and scheduling of conversations, ensuring that each Owner receives the attentive and detailed communication they require.
Addressing Notices for Mail or Overnight Delivery: Notices sent via mail or overnight delivery should be directed to the respective addresses provided below by each party. Similarly, facsimile notices must be sent to the designated telephone numbers listed.
Updating Contact Information: Either party may update their contact information or preferred delivery method for notices by issuing a written notification in accordance with the stipulations outlined above.
Effective Date of Mailed Notices: For notices sent via mail, they will be considered duly given on the third day following their deposit in the mail, ensuring a clear understanding of the timelines for official communications.
To Manager: Beckon Homes 3744 Annex Avenue, Suite B6 Nashville, TN 37209
To Owner:Name: _________________________________________ Address: ________________________________________ Email: ____________________________________________
General Provisions and Agreement Terms:
Waiver: The failure of Manager to enforce at any time any of the provisions of this agreement shall not be considered a waiver of such provisions nor of the right of Manager to enforce each and every provision.
Governing Law and Legal Recourse: This Agreement is governed by the laws of the State of Tennessee. Should any disputes arise from this agreement, the prevailing party in any legal action or proceeding is entitled to recover reasonable attorney fees and costs. This ensures that both parties are aware of their legal standing and the implications of their contractual relationship.
Assignment and Transferrability: Included within the general provisions of this agreement is the understanding that, while the primary intent is for Manager (Beckon) to directly oversee the property's management, Manager reserves the right to assign or transfer this contract to another qualified operator under certain conditions, such as a corporate merger, acquisition, or reorganization, without the need for explicit prior consent from the Owner. This clause ensures continuity of service and management obligations, safeguarding both the property's interests and the OWNER's expectations under new management, should such a corporate event occur. This assignment or transfer will be conducted in a manner that maintains the integrity and terms of the existing agreement, ensuring a seamless transition and continuity in the management and operational standards of the property.
Entire Agreement and Severability: This document embodies the entire agreement between the Owner and Manager, superseding all prior agreements, whether written or oral. Modifications to this agreement may be either made in writing and signed by all parties involve, or may be submitted via a general “Terms and Conditions” update sent via email or link. Each section or part of this agreement is independent and severable; should any portion be found unenforceable, it does not affect the validity or enforceability of the remainder. This agreement, along with any amendments, may be executed in multiple counterparts, each considered an original but all constituting the same agreement. In instances involving multiple renters, all are jointly and severally liable under this agreement.
If multiple owners, please list names, email address and contact phone.
Name ____________________ Email: ___________________________ Phone: _________________ Name ____________________ Email: ___________________________ Phone: _________________ Name ____________________ Email: ___________________________ Phone: _________________ Name ____________________ Email: ___________________________ Phone: _________________
MANAGER: Beckon LLC Business Phone: 833-4BECKON Email: team@beckonhomes.com
Signature: _______________________________________________________ Date: _____________ Position at Beckon: _______________________________________________________