Property Management Agreement Amendment
Owner: You (“You” or “Your”) refers to the undersigned owner and/or authorized representative for the real property.
Company: Us (“Us” or “Our” or “We” or "IPS") refers to IPS Property Management LLC and/or IPS Realty Group LLC
Our Mailing Address: 18530 Mack Avenue #399, Grosse Pointe Farms, MI 48236
Our Email: firstname.lastname@example.org
Our Telephone: +1.313.977.8700
Amendment to Agreement – This amendment to the Property Management Agreement between You and Us ("Property Management Agreement Amendment" or "Terms of Service") is made effective upon either Your clicking Login to the Client Portal at https://client.enterips.com, https://ipsrealtymi.appfolio.com/oportal/users/log_in, https://ipsrealtymi.appfolio.
If there’s anything you don’t understand in this agreement or Terms of Service, or in Your Property Management Agreement, please contact us by the methods listed above. You are entering into a binding legal agreement with us and you are agreeing to be bound by the terms and conditions of this Terms of Service agreement. If you do not accept and agree to these terms then you must not click Login or access your IPS Property Management LLC owner portal at https://client.enterips.com, https://ipsrealtymi.appfolio.com/oportal/users/log_in, https://ipsrealtymi.appfolio.
By using this portal, you agree that anyone using your credentials to access this portal is an authorized representative of you.
These Terms of Service may be updated from time to time. You agree to review updated Terms of Service by visiting https://ipsrealty.com/management/legal.
The Terms of Service employ Us solely and exclusively to operate, maintain, and manage the property address or addresses you have contracted Us to manage as your representative and agent. You agree to the terms and conditions listed here and additionally permit Us the authority to perform the following terms as We see fit on Your behalf.
The Property Management Agreement, Amendment, Addendum, and Terms of Service, and Conditions will continue until You or We provide written notice of cancellation to the other party. Written notice by You must be submitted to Us by email to email@example.com. Written notice by Us must be submitted to the email address we have on file for You. We will provide a formal mutual release and hold harmless agreement to You after our receipt or delivery of notice of cancellation and management ends, which will include discharge, payments or payment arrangement disbursement terms, including confidentiality and non-disparagement by both You and Us. Settlements will be made after the agreement is fully executed by both You and Us. Large settlement amounts may be released in multiple disbursements. So that we can get an exit package to you, with all the information you will need pertaining to your account and your property, and/or facilitate the transfer to your new management, as well as wrap up any existing business, we will cancel management one month from the date of cancellation. Our management cycle is first of month to last of month, so a cancellation during the month will cause management to cease at the end of the following month. However, in the event You desire to cancel this agreement, we do require Your account to be in good standing and all outstanding monies owed to Us need to be paid in full.
Reserve – We keep a reserve so we do not have to chase you for the funds required to manage and operate your property. We require that You keep a minimum of $500 per unit on reserve with Us. The reserve is to be paid prior to the commencement of service. You are to maintain a minimum balance of $500 per unit with Us for the duration of this agreement. We may as our sole discretion raise the minimum requirement if we feel it is necessary to effectively manage Your property. Vacant or non-performing property will have a minimum reserve of $1000 per unit. We typically require and maintain an additional reserve of $2000 per tenant in eviction. Property that is not compliant with city, state, or federal regulations, or is in need of repair, will have a larger reserve requirement.
Collecting Rent ‐We will collect the rents from the property we manage. Late fees collected are retained by the management company. Collected rent belongs to Us until we have disbursed it to You per the terms of this agreement.
Maintenance Requests – Maintenance requests made by tenants, Us, or anyone else on Your behalf or relating to Your property will be conveyed to You as necessary and appropriate for effective management of your property with an emphasis on minimizing unnecessary communication. Repairs will be made per the terms of this agreement and reported to You on Your Owner Statement.
Accounting – We will maintain the books, accounts, and records that reflect all income and expenses incurred in connection with the management and operating of the property. The books, accounts and records shall be maintained in the cloud and/or at Our principal location. All income and expenses are deemed to be accurate and accepted by Us and You 90 days from the date of posting on the statements. Records are maintained for the fiscal year, which runs concurrently with the calendar year. A final year end statement is prepared for You each year in Quarter 1 of the following year for activity in the previous year. You consent to having your IRS 1099 form sent electronically. There is no additional fee for year end statements. We mean property management software account when we say account or accounts, not bank accounts. You do not have a separate bank account maintained by us. We collect all rent into one bank account, and have a separate bank account for operational expenses. Any interest received is the property of Us. We maintain records of funds deposited and withdrawn from property management accounts. Property management account records shall indicate the date of the transaction, from whom the money was received or to whom it was given, and may indicate other pertinent information concerning the transaction. All money, reserves, income, rent, and/or any and all funds received or held by IPS are the property of Us until it We disburse it and it hits your bank account, except where specifically designated in writing or as required in accordance with State law.
Vacant Property – Monthly management fees for vacant properties are the same as if the property were occupied, based on market rental rates or the rented property rates specified in Your Property Management Agreement. We are not liable for Your loss of income or unreceived rent in vacant properties.
Services Provided at an Additional Charge – All services below are not included in the monthly management fees will be provided to You at an additional Cost, based on hourly rates unless otherwise specified.
Leasing – We will market the Property to potential tenants. We will thoroughly screen any and all potential tenants to our best ability. You understand that We make every effort to lease to quality tenants, but do not guarantee any actions of the tenants, and are not responsible for lost rental income due to tenant performance issues or vacancy except if Your management agreement specifies a guarantee. Our leasing fee is one month rent. Lease renewals are $250.00.
Maintenance ‐ We will coordinate all repairs and maintenance needed. This is to include tenant requests for work, as well as, work deemed necessary by periodic inspections of the property by Us. We will employ and supervise any and all contractors performing work on the Property. We will get the authorization from You for any individual repair over $500.00, except in the case of emergency, or if We in good faith determine that such expenditures are necessary to: protect the property from damage; to prevent injury to persons or loss of life; to comply with laws, regulations, and ordinances; or to provide services to tenants and maintain rental property in a safe, clean, and functional condition. In order to maintain your property in addition to the aforementioned, if you are not responsive to a maintenance request, including repairs to make a vacant property habitable, for a period of greater than three days, we may conduct repairs on Your property as we deem necessary. Repairs shall be done in the manner of similar property in the area Your property is located, maintaining the property in an attractive condition, and in a good state of repair. We shall manage and maintain the property in full compliance with all laws and regulations of any federal, state, county or municipality that have jurisdiction over the property.
Maintenance Expenses ‐ You are responsible for all expenses pertaining to the maintenance and rehab of the property. We will use reasonable efforts to inspect, secure, and maintain the real property, fixtures, and appliances as requested by You or deemed appropriate by Us. All maintenance is to be performed by Us or an affiliated company, or third party maintenance providers contracted by Us. Using third party maintenance services not contracted by and overseen by Us voids any guarantee, if applicable. If you choose to use a third party contractor, you agree that they must be licensed and insured, and that we have first right of refusal to match their bid.
Disbursements - Owner draws will be made by Our property management software transfer into Your USA bank account. Disbursements are only made upon request and We only make them once per month, typically around the middle of the month. Your disbursements may be withheld at our discretion over and above your formal reserves for future use to provide compliance with laws and regulations, to prepare for vacancy and rental turns, if We don't have proper paperwork on file for You, and for deferred maintenance.
Insurance – We are not an insurance provider and do not sell insurance. Unless You provide an insurance policy coverage amount of $1 million/$2 Million liability coverage, naming Us as additionally insured, We may place our own insurance on the Property. When we refer to insurance, You understand that insurance refers to Our insurance cost plus administration and processing fees. This additional expense will be Your responsibility. At your request, a copy of the evidence of insurance may be provided to You, along with processing and administrative cost, once insurance is acquired. Our Insurance is billed once annually, typically for the calendar year January 1st, billed through December 31st. It is not prorated if management ends. We may maintain the insurance for the duration of this agreement, and up to the end of the calendar year in which management ends, as long as funds have been provided to Us from You. Insurance coverage may be cancelled by us in the event of Your account being below reserve amount without additional notice by Us.
Evictions and Enforcement of Lease ‐ We will handle the enforcement of lease and / or eviction if the tenant is in breach of their lease. However, any fees, including, but not limited to, legal, court, bailiff, dumpster, collection, notices, mailings, cleanout, lock change, property securing, negotiation, admin, processing, and filing, incurred throughout the enforcement and / or eviction process are Your responsibility. Failure to maintain adequate funding and reserves during the eviction process may cause US to cancel any and all eviction proceedings.
Operational Expenses – You are responsible for any expenses including administrative time related to interacting with the government, payment of taxes, the utility companies, water department, all third parties including contractors, any city or governmental agencies, documents requested by You beyond those provided such as monthly accounting and statements, excessive communication by You, costs of postage, serving notices, insurance related paperwork, updates or filing of corporate, banking, on-boarding of ownership or property or tenant paperwork, and any other costs or time incurred on Your behalf, determined at Our sole discretion. You are responsible to include any permits required to operate the property as a rental or We will provide them as We are able as Your agents.
Rates – Maintenance, management, facilitation, coordination, and administrative services are to be provided at a base rate of $75 an hour for field and office staff, $150 an hour for Agents, Associates, and Principals. We will coordinate the actions of all contractors at our hourly rate. We may employ third parties and/or affiliated companies to provide services at a fee of 20% of the cost of services and materials plus our hourly rate and we will bill You hourly for the maintenance and management service facilitation expenses outlined above when working with third parties or affiliated companies, or under any of the circumstances listed above not covered in Your monthly management fee.
Property Visits ‐ Should We need to send someone to the Property to check occupancy, meeting for inspections, with utility companies, or any other reason, You are responsible for the expense. We may conduct occasional inspections of the property and grounds as needed to maintain the property to a safe, clean, and functional standard. We do not watch your property all the time, and are not responsible for the damages to the property by any third party ever.
Transfer of Management ‐ Expenses incurred in the transfer of management to and from Us are billed upon termination of management services, with four billable hours per unit except in situations of greater complexity which require more time for processing. Upon cancellation of management, owner draws are withheld until final accounting is done.
Legal – Any disputes arising under or related to the Property Management Agreement and/or Terms of Service will be resolved by the following process. It is Your responsibility to let us know immediately if there is anything that you think we are not doing that we should be doing to manage your property properly. We are not mind readers. Should You feel We are in breach of the Terms of Service or Your Property Management Agreement, You agree to give us written notice and 30 days to cure the breach. Should You feel the breach has not been cured, We and You agree that any matters will be first attempted to be resolved by mediation in Wayne County, Michigan. If formal mediation is unsuccessful, both You and Us agree to binding arbitration. Unless conflicted by the following, the place of arbitration shall be Wayne County, Michigan and You will be responsible for Your expenses and We will be responsible for Our expenses, with the costs of a mediator and/or arbitrator being split between Us and You. Any unresolved controversy or claim arising out of or relating to the Property Management Agreement and/or Terms of Service,or the breach thereof, shall be settled, in accordance with the rules then in effect established by the Michigan Association of Realtors® in conjunction with the arbitration association adopted by the Michigan Association of Realtors® , subject to and incorporating the provisions of Michigan law governing arbitration. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof pursuant to this agreement. IPS and You agree that any legal action against either party related to or arising out of the provisions of the Property Management Agreement, Amendment, Addendum, or Terms of Service or any services rendered or not rendered must be brought within the shorter of the time provided by law or 90 days from the occurrence, event, action, service rendered, service not rendered, or be forever barred.
FIRPTA – If You are not a domestic LLC or Corporation, You represent and warrant that You are not a “Foreign Person” or “Foreign Entity” as defined by the Foreign Investment in Real Property Tax Act (FIRPTA), IRC 1445.
Security Deposits ‐ We will hold and disburse security deposits. For tenants that we place in the property we will collect the security deposit prior to move in. You may only use security deposit funds in the event a renter breaches a lease or causes damage to the Property. We shall have sole discretion to apply the security deposit funds per Michigan State law under any lease and to refund security deposit funds to any renter. We may utilize security deposit surety bonds per state law.
Fair Housing – Fair housing laws require the property to be shown and made available to all persons without regard to race, religion, national origin, sex, disability, or familial status. Local laws may further protect people based on creed, student status, sexual orientation, or age. You acknowledge that You are aware of Federal and Local Fair Housing Laws and understand that We will act in accordance with those provisions.
Limited Power of Attorney – You authorize Us to execute legally binding contracts on Your behalf. You are in agreement that We may sign any documents pertaining to the operation, maintenance, utilities, government, management, and safety of the property as deemed fit by Us.
Hold Harmless – You agree to hold Us harmless for all damages or suits in connection with the management of the property described above, and from liability for injury suffered by any employee or other person. We are also not to be held liable for any error of judgment or for any mistake of fact or law, or for anything which We may do or refrain from doing hereunder, except in cases of willful misconduct or gross negligence. We are not responsible for the actions of affiliates or third parties hired on Your behalf. We are never responsible for damage to Your Property, Your loss of income, or unreceived rent.
Non‐Payment – You are responsible for maintaining Your account with Us. Account statements may be placed in Your portal and/or emailed for Your review at your request and to cure any deficiency on Your part. If You have a balance on your account below Your reserve, We may immediately, at Our discretion, cease active management of the property until the deficiency is cured, during which time management fees and billing will accrue, rents will be collected, accounting maintained, maintenance requests received and logged. We will be held harmless for any liability arising from Your failure to maintain Your account and retain the right to pursue You for any outstanding balance. You grant Us the right to place Claims of Interest or Liens on any real property which You have any Legal or Equitable rights to protect our interests and secure any past, present, or future potential unpaid fees or costs due to Us. All Our collection expenses (including billable time spent attempting collections from You) and actual legal expenses related to collections are Your responsibility.
Affiliates - Disclosed third parties IPS Realty Group LLC, IPS Realty, Live in the D, Metropolis Renovation LLC, Riverfront Development Group LLC, Investment Property Systems LLC, and IPS Property Management LLC are all related, affiliated, associated, parent, and or subsidiary companies, whose members may include licensed real estate brokers and/or agents, and share interest in the companies ownership.
Severability ‐ This agreement has been made and entered into in Wayne County under Michigan Law and the laws of such state shall govern the validity and interpretation of this agreement and the performance due here under. Should any section or any part of any section of this agreement be rendered void, invalid or unenforceable for any reason by any court of law exercising competent jurisdiction, such a determination shall not render void, invalid or unenforceable any other section or any part of any section in this agreement.
Last Updated - July 1st, 2018