BEACH PROPERTIES OF HILTON HEAD VACATION RENTAL PROPERTY MANAGEMENT AGREEMENT (Please type or print all requested information) This AGREEMENT, made and entered into this day of, by and between TOWNE VACATIONS, LLC dba BEACH PROPERTIES OF HILTON HEAD, hereinafter referred to as "Company" and also: Name Social Security # or Fed. Id. # ( ) Address Office Phone Number ( ) Address Home Number ( ) City State Zip Code Fax Phone Number ( ) Cell Phone Number Hereinafter referred to as "Owner" Email Address If the property is jointly owned, the Owner named above is hereby designated to receive the monthly statements and to serve as Company's contact for decisions and directions. Additional Owners, if any, must be listed at the end of this Agreement. WHEREAS, the Owner wishes to engage the company's services as the exclusive rental manager for the Premises under the terms and conditions set forth below: and WHEREAS, the Owner wishes to engage the Company to join with Owner in renting the designated Premises: and WHEREAS, it is the intention of the Company to manage and oversee the Premises to the best of its ability, with the primary goal being that of protecting the Owner's investment therein through due diligence and care: and NOW, THEREFORE, in consideration of the terms, conditions and mutual covenants herein set forth, the parties agree as follows: PROPERTY IDENTIFICATION: The Owner hereby employs the Company to manage the improved property on Hilton Head Island, South Carolina, known as: Property Address Property Phone Number/Code # Page 1 of 6
(hereinafter referred to as "Premises"), subject to the terms and conditions set forth herein. The Company hereby accepts the employment offered and agrees to consideration in the form of Management Fees. A.) TERM OF AGREEMENT: The term of this Agreement is for the period of time beginning on the day of and ending the day of Thereafter, the term of this agreement shall continue for one year renewal periods until either party provides to the other party 60 days written notice prior to the anniversary date, of intention to terminate, in which event this Agreement shall terminate on the anniversary date. B.) COLLECTION OF RENTS: The Company is authorized to and shall request, demand, collect, receive and receipt for all rents and other money due from tenant or occupants with respect to the rental of the Premises, accept in payment of rent from tenants, cash, personal checks, or such credit cards as Company may deem advisable. Further, Company is authorized to serve notices, obtain possession, terminate tenancies as required, and promptly thereafter contract inspection of the Premises for theft and damage. Company is authorized to and shall take such action it may deem appropriate in an effort to collect delinquent rents and other sums due from tenants or occupants, including sums due by reason of theft or damage. In no event shall Company be liable to Owner for its inability to collect any such delinquent rents or such other sums so long as the Company has acted in good faith and used reasonable efforts. C.) GENERAL CONDITION OF PREMISES: Owner agrees to maintain the Premises in an updated and clean condition and maintain required inventory, according to the standards established by the Company. The requirement of standards shall be such as Company reasonably believes necessary to compete for top-quality rental guests, these requirements may be amended as Company deems necessary. Company may terminate this agreement without providing further notice of intention to terminate, if Owner fails to correct or authorize Company to correct (at Owner's expense) any defective condition of the Premises. Special restrictions in connection with reservations or rentals must be agreed to in writing by both parties with the signing of this agreement. D.) COMPANIES' DUTIES: The Company will perform the following duties: 1.) Manage and oversee the Premises to the best of its ability. This shall include scheduling housekeeping after each departure and undertake such other cleaning, including a thorough "Spring Cleaning", as may reasonably be required for the rental of the Premises. These duties will also include the scheduling of repairs, and the purchasing of supplies and inventory, as needed to maintain the Premises for rental condition in the judgment of the Company. All charges for said housekeeping, repairs, supplies and inventory will be borne by the Owner. Such direct costs will be deducted from the monthly receipts. Owner shall be responsible for, and pay directly, all Owner expenses related to the Premises, including, but not limited to, all utilities (telephone, cable, electric, water and sewer), taxes, insurance, homeowners' association assessments, and regime fees if applicable. Page 2 of 6
2.) Coordinate all reservations of the Premises. Company will coordinate all rental reservations, whether booked directly by the Owner, his referrals or Company. In the event that a rental guest is secured for the Premises and thereafter Owner desires to book the same period for himself or for another rental guest, Company agrees to undertake reasonable efforts to move the first rental guest to a comparable unit; however, if Company is unable for any reason to do so, Owner shall not be entitled to require the removal of the first rental guest. 3.) Provide monthly statements to the Owner. For each business month, Company will provide to Owner, mailed by the 15th day of the following month, a statement that sets forth in reasonable detail all receipts, expenses and charges. 4.) Provide other services at Company's discretion. Company may provide services, in its sole discretion, beyond normal housekeeping, maintenance and periodic inspections of the Premises, upon the request of the Owner. For such services of Company there will be an additional charge, at Company's option, for each service provided of $25.00 for each hour, or portion thereof, expended to provide such services. The minimum charge is $25.00. 5.) The Company agrees to establish and enforce a "no pets" policy. 6.) The Company shall establish fair, reasonable and competitive rental rates. 7.) Occupancy period runs from 4p.m. on the day of arrival to 10a.m. on the day of departure. E.) MANAGEMENT FEE: Company shall receive monthly as basic compensation for services a fee equal to % of the Gross Rental Income (exclusive of Sales Tax, Amenities Fee, Administrative Fee and 3% Credit Card Fee, which are paid by the Guest) for Company's management, marketing and administrative costs. Company shall be entitled to deduct commissions and reimbursable expenses, as they become due from the gross rental receipts; if there are insufficient rental receipts to do so, Owner agrees to pay the same immediately upon request by Company. Failure to reimburse Company within 20 days of these requested payments hereby authorizes Company to add-on late charges for these delinquencies. F.) OWNER OCCUPANCY, GUEST USE, AND OWNER REFERRAL COMMISSIONS: Subject to the availability of Premises as a result of rental commitments entered into by Company, Owner, or bona fide non-paying guest of Owner, shall have the right to occupy Owner's Premises upon notice to Company of the intended arrival and departure dates of Owner or guest of Owner. A management fee of $50.00 per stay will be charged for all non-paying guests of Owner, plus the cost of cleaning. Owner agrees not to accept money for any rental of the Premises except through the Company for the term of the agreement. Owner agrees the Company may adjust the rental fee charged as a discount in the event the renter experiences difficulties with the Premises and/or has legitimate complaints. The Owner also agrees the renter may be transferred to another rental property if a discount is not acceptable. Page 3 of 6
G.) OWNER EXPENSES: Company agrees to secure prior approval from Owner for all expenditures in excess of $150.00 for any one item purchased, or repaired with the exception of monthly or recurring operating charges and/or emergency repair in excess of the maximum if, in the opinion of the Company, such repairs are necessary to protect the Premises from damage or to maintain services for the rental guest during occupancy. Except as specifically limited by this Agreement, Owner authorizes Company to incur such expenses on Owner's behalf as Company reasonably deems necessary to bring Premises to rental condition, or to maintain such rental condition, according to the standards set by the Company. The Company reserves the right to require a minimum balance (non-interest bearing) be left in the Owner's account to cover future expenditures. H.) HOUSEKEEPING AND CLEANING CHARGES: All housekeeping expenses directly related to rentals will be borne by Owner (such as departure cleaning). Any daily housekeeping service, that guest request, will be borne by guest. Expenses incurred in connection with "spot cleaning" (such as dusting and vacuuming prior to an arrival after prolonged non-use of the Premises) and "Spring Cleaning" will be the obligation of the Owner. An estimate for Spring Cleaning will be discussed with Owner prior to scheduling. I.) INSURANCE: Owner shall provide and maintain throughout the term of this agreement public liability insurance on Owner's Premise with a limit of not less than $300,000 per occurrence. Owner agrees that Owner shall bear the sole risk of any loss, damage or destruction to the Premises, including the contents therein, for any reason including, without limitation, any act or omission of guests renting the Premises. Owner agrees to obtain at Owner's expense, fire and extended coverage insurance covering the Premises and the contents located in the Premises. J.) SUB-CONTRACTORS: Company will hire, discharge and supervise all labor and sub-contractors required for the operation and maintenance of the Premises. It is agreed that such sub-contractors shall be deemed sub-contractors of the Owner and not of the Company, and the Company shall not be responsible for their acts, defaults or negligence if reasonable care has been exercised in their appointment and retention. K.) TERMINATION: In the event that the Owner shall violate any provision of this agreement, Company may terminate this Agreement after providing 30 days notice of "intention to terminate". Company shall incur no other liability or obligation to Owner. In the event that Company shall fail to fulfill its obligations pursuant to this Agreement, Owner's sole and exclusive remedy shall be to terminate this Agreement, after providing 30 days notice of "intention to terminate". Company shall incur no other liability or obligation to Owner. Upon termination of this Agreement, with or without cause, by either party, any rental guests secured for the Premises by Company may be moved to another Premise. If a comparable Premise in the same price category is not readily available, the Owner shall bear the difference in rental rate incurred to relocate the rental guest to a Premise of greater quality and cost. If Company is unable to relocate guest into another Premise, Owner agrees to honor any reservation for use of Premises within the term of this contract after said termination. This would only include reservations that were confirmed prior to said termination. Page 4 of 6
L.) SALE OF PREMISE: Owner shall notify Company of Owner's intent to list the Premise for sale. Owner upon listing of Premise shall immediately furnish Company with name of the Real Estate Company, Listing Agent and any special arrangements that they have agreed to. Company shall have final decision concerning use of a lock box, key disbursement and requests for showing during any guest stay. Owner agrees to honor the rights and privacy of the rental guest and require that their Real Estate Agent does likewise. Owner agrees to reimburse Company for any loss of income Company may incur if Company has to move or cancel any confirmed rental guest(s) due to sale and closing of Premise. Owner agrees to allow Company to hold funds in escrow if necessary until any of the above referenced losses can be determined. This Agreement will automatically terminate with the closing and conveyance of the Premise. M) INDEMNIFICATION CLAUSE: Owner, at Owner's expense, covenants and agrees to defend, indemnify and save Company, its employees and agents, free and harmless from any claim or liability for any loss or damage whatsoever arising from, related to, or in connection with the Premises, including but not limited to any claim or liability for personal injury or damage or loss of property, which is made, incurred or sustained by Owner, any rental guest, any guest or invitee of either, or any person or persons, whatsoever, unless such injury, loss or damage is directly caused by the willful misconduct or gross negligence of Company. This indemnification shall include reimbursement upon demand for all expenses (including legal fees) incurred by Company, its employees or agents, to defend against any claim made against any of them. N.) POWER OF ATTORNEY: Owner hereby makes, constitutes and appoints Company his true and lawful attorney in fact for him and in his name and for his use and benefit to issue and sign confirmed reservations, and secure tenants for Owner's Premises and conversely to take any action which may be needed to evict any such tenant for violating the terms of his tenancy pursuant to such confirmed reservations. O.) SALES TAX: Company, on behalf of Owner, will collect from renters and pay all applicable state and local sales tax. P.) NOTICES, DELIVERY & AMENDMENTS: Notice shall be deemed to be "delivered" upon personal delivery to the other party or upon delivery by the United States Postal Service, properly addressed, for mailing by Certified Mail, Return Receipt Requested. All notices shall be addressed to the appropriate party at the address set forth in this Agreement or at such other address as may hereafter be requested in writing. This Agreement shall be binding upon, and shall inure to the benefit of, the heirs, legal representatives, successors and assigns of the parties. This Agreement shall be construed pursuant to and enforceable under, the law of the State of South Carolina. Page 5 of 6
Q.) SIGNATURES: IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first set forth above. OWNER: (All owners must sign this agreement) Signature Date Signature Date Signature Date Signature Date BEACH PROPERTIES OF HILTON HEAD: Company Representative Date Title Beach Properties of Hilton Head, PO Box 7408, Hilton Head Island, SC 29938 (Mailing address) INFORMATION ON ADDITIONAL OWNERS: (Please print) Name Phone (h) (o) Name Phone (h) (o) Name Phone (h) (o) Address Address Address Page 6 of 6