GreatOceanCondos.com Rental Management Agreement
Effective date January 1, 2017
Vacation Property Marketing and Management Agreement
This Agreement made and entered into by and between an “OWNER,” as described in the public records of the Volusia County Property Appraisers page, and GreatOceanCondos.com LLC. The parties hereby agree as follows:
OWNER is the fee simple owner of the registered property. GreatOceanCondos.com LLC is in the business of marketing and managing vacation rental properties and of securing rentals for property owners. Subject to the terms of this Agreement, OWNER desires to engage GreatOceanCondos.com to provide rental marketing and management services for the property, and GreatOceanCondos.com desires to accept such engagement.
1. ACKNOWLEDGEMENT OF OWNERSHIP/AUTHORITY:
By accepting the terms of this Agreement OWNER hereby acknowledges that he/she is the rightful owner of title of the property being listed for management and is therefore designated as the contact person with GreatOceanCondos.com.
2. TERMS OF AGREEMENT AND TERMINATION PROCEDURE:
- This Agreement will grant GreatOceanCondos.com the exclusive right to manage the property captioned below. The Agreement may be terminated by OWNER at any time provided commissions are paid for all reservations made and kept by guests of GreatOceanCondos.com. If property is rented through any other management company after this agreement goes into effect, GreatOceanCondos.com reserves the right to retain 21% of our published rate for that time period from any rental proceeds.
- In the event this Agreement is terminated as set forth above, or the property is sold, OWNER shall honor all confirmed reservations made and kept by guests of GreatOceanCondos.com prior to termination of the Agreement or up to the closing date of the sale.
- GreatOceanCondos.com reserves the right to amend the terms of this Agreement by providing such amendment in writing to OWNER with sixty (60) days notice.
3. RESPONSIBILITIES OF OWNER:
- FURNISHING UNIT: OWNER shall furnish and maintain the property in accordance with the inventory and maintenance standards recommended by GreatOceanCondos.com and guidelines described in Florida Statute 509.
- UTILITIES: OWNER shall maintain all utilities (electric, internet, water/sewer, cable television) and make timely payments to all utilities companies. If a utilities company is planning to interrupt service or has already interrupted service due to nonpayment and such interruption shall affect guest(s) in said property, GreatOceanCondos.com reserves the right to make emergency payment to the utilities company to avoid disconnection or to secure reconnection and to charge OWNER an amount equal to the utility bill plus a $50.00 administration fee. Any inconvenience discounts provided to guest(s) as a result of such interruption will be charged to OWNER.
- TELEPHONE: OWNER shall maintain a private local line installed and maintained at owner expense.
- OWNER agrees to allow GreatOceanCondos.com to set rates and discounts. GreatOceanCondos.com may change base property rental rates to account for seasonal variations and to meet prevailing market conditions for similar properties in the New Smyrna Beach and Greater Daytona areas when it would increase the profitability of the property. The property condition, location, amenities, restrictions, and rates will affect each property’s rentability. GreatOceanCondos.com is committed to assisting OWNER in improving marketability of all properties in the network. Owner agrees to allow GreatOceanCondos.com to purchase and manage an internet advertisement of our choice at OWNER’s expense for the purpose of marketing his/her property. Ads are evaluated and placement is carefully selected to ensure maximum exposure of property. Charges will be placed to OWNER’s account for all annual ad renewals.
- OWNER shall notify GreatOceanCondos.com whenever he/she is planning personal use of the property and will block out dates unavailable for rental as soon as possible. Personal usage is not restricted; however, OWNER will not ask GreatOceanCondos.com to change confirmed rentals to accommodate his/her own personal usage of the property. To avoid double booking, Owner will clear prospective personal use occupancies and Owner guest occupancies with GreatOceanCondos.com. Both parties agree that in the event of a double booking, GreatOceanCondos.com guest reservations will take precedence.
- OWNER shall honor all confirmed reservations. Confirmed reservations are defined as those reservations for which GreatOceanCondos.com has given an acceptance date and secured a down payment.
- OWNER understands that all advance reservations require a down payment of $500 before the reservation is confirmed. Deposits will apply toward the rental charge.
- PROPERTY ACCESS:
- OWNER shall provide GreatOceanCondos.com with 6 sets of keys to the property, mailbox, and accessory areas.
- OWNER agrees not to enter the property or permit any person, whether family member, repairman, sales agent, or guest, to enter the property unless vacant.
- OWNER shall advise GreatOceanCondos.com if the property is listed for sale, immediately upon the execution of such listing Agreement.
- OWNER shall arrange for all routine maintenance including but not limited to ground care, pest control, pool services, etc. (If applicable.)
- OWNER acknowledges that ALL normal and routine cleaning of his/her property is to be performed in a timely manner and on an as needed basis. GreatOceanCondos.com shall arrange for the rental property to be cleaned after each guest departure. The cleaning fees are indicative of housekeeping cleans and are not intended to replace an annual deep clean. It is mandatory that the property be deep cleaned once per year, or additionally if needed, either by OWNER personally or at his/her expense.
- GreatOceanCondos.com shall perform whatever “minor” tasks and repairs that are necessary to maintain the property in a rentable state, including but not limited to replacing light bulbs, changing air filters, and replacing damaged and no longer usable items. The replaced items will be billed to OWNER on an “as needed” basis with OWNER approval for any such replacement or repair over $200.
- OWNER shall be responsible for all costs pertaining to the property including but not limited to; furnishings, inventory, maintenance and specialized cleaning needed to keep the property at the standard necessary to secure rentals. GreatOceanCondos.com may procure subcontractors to carry out necessary work to the property and will make every reasonable attempt to notify OWNER’s of necessary repairs. GreatOceanCondos.com will make decisions based upon the best interest of Owner AND guest with the goal of not moving the guest and protecting OWNER’s income. Any service calls, scheduled maintenance and repairs required to be performed by GreatOceanCondos.com will be billed at $40 per hour with a $20 minimum in addition to any vendor charges. Billing will be charged in 15 minute increments.
- In the event that a renter’s use of the property is made unsatisfactory because of mechanical, electrical, plumbing or other fault, OWNER agrees that GreatOceanCondos.com may offer up to a 50% rebate on the rental rates as compensation, or that the renter may be transferred to another rental property. Such a guest transfer because of dissatisfaction is to be made at the discretion of GreatOceanCondos.com and neither the renter nor GreatOceanCondos.com shall be liable to OWNER for rental revenue other than for the period that OWNER’s property was actually occupied by the renter. Common causes for such action include malfunction of an air conditioning unit, an uninhabitable bedroom, or lack of availability of condominium amenities. Amenities are often limited due to site construction, inoperable pools, or other situations that prevent quiet enjoyment of a vacation rental property.
- Damage Waiver Program
- GreatOceanCondos.com shall make reasonable efforts to protect and preserve the rental property from loss or damage while in the rental program. For this reason, GreatOceanCondos.com has instituted a damage waiver program for accidental damages reported by renter prior to departure. GreatOceanCondos.com shall, at its expense, replace any items that are identified as lost or damaged due to renter or occupants, up to an aggregate total of the current replacement limit. This program does not cover items that are worn or depleted from normal use by renters.
- LICENSING, TAXES, AND FEES:
- The State of Florida Statute requires a Chapter 509 license for a short-term rental property. GreatOceanCondos.com maintains appropriate licensing and a $30 licensing fee will be charged to the OWNER annually.
- All taxes are collected and reported to the Florida Department of Revenue and the Volusia County Tax Collectors Office on the 15th of each month.
4. RESPONSIBILITIES of GreatOceanCondos.com:
- Use its expert marketing services to locate prospective guests.
- Receive, process and disburse funds (bimonthly disbursements). Any costs to enforce collection of amounts due will be at GreatOceanCondos.com’s expense.
- Arrange for emergency or necessary repairs at OWNER’s expense.
- Collect and pay all applicable state and local taxes on behalf of OWNER.
5. GreatOceanCondos.com’s AUTHORITY:
- OWNER hereby authorizes GreatOceanCondos.com as his/her agent to enter into reservation agreements with prospective guests and to accept security deposits and other payments.
- OWNER hereby authorizes GreatOceanCondos.com, as agent, to hire and arrange for services to the real property, or personal property located therein, subject to this agreement. GreatOceanCondos.com is authorized to contract for repairs up to $200.00 without separate authorization from OWNER.
- OWNER must authorize repairs in excess of $200.00 unless it is an emergency presenting risk to the property of the OWNER, guests or OWNER’s neighbors. OWNER further agrees that GreatOceanCondos.com shall not be liable for any claims of those performing services for repairs to the real property or personal property located therein, subject to this agreement.
- OWNER reserves the option to solely initiate, coordinate and contract for repairs at no additional payment owed to GreatOceanCondos.com.
- GreatOceanCondos.com is authorized to direct cable and Internet service providers to disclose, change, or update Internet passwords, SSID (network name) in order to facilitate support for unit Internet service and guests.
- OWNER authorizes GreatOceanCondos.com, as his/her agent, to set, monitor and regulate all rental rates. All rates are based on views, amenities and décor of individual properties.
- OWNER authorizes GreatOceanCondos.com to use his/her location address for marketing purposes on the Internet including capturing the “Google address”.
- OWNER agrees that as a participating property in our management that an online internet ad will be purchased for their specific property on sites such as HomeAway.com, VRBO.com, AirBnB, vacationrentals.com, TripAdvisor, and the like. Charges will be applied to OWNER’s account for the initial ad setup and on the annual renewal dates. GreatOceanCondos.com has control over the management of the ad and is the property of GreatOceanCondos.com.
6. COMMISSIONS AND FEES:
- OWNER agrees to pay the sum of twenty-one percent (21%) of the gross collected rental fee amount on all rentals procured by GreatOceanCondos.com.
- OWNER agrees to pay to GreatOceanCondos.com the sum of fifteen percent (15%) of the “actual established” advertised gross rate on all guest reservations procured by OWNER. It is understood that all returning guests secured by OWNER will be charged a commission rate of 15% of the “actual established” advertised gross rate. Leads generated by an Internet ad not managed by GreatOceanCondos.com will be charged at the normal rate of 21%.
- All commissions and fees due to GreatOceanCondos.com will be deducted from rents collected prior to disbursement to OWNER. Rental income disbursements will be bimonthly.
- GreatOceanCondos.com will provide Internet access to statements giving a summary of rental activity for his property including a year-end report. This statement shall indicate both gross and net incomes and any charges or fees. OWNER will have funds electronically transferred for the property’s net earnings. A year-end report will be provided for tax purposes in the form of an IRS Form 1099.
- OWNER understands that GreatOceanCondos.com reserves the option to charge and to receive revenue for various miscellaneous revenue items in relation to the rental of vacation properties, including but not limited to: booking fee, crib rental and trip insurance. GreatOceanCondos.com reserves the right to offer additional services to all renters.
- There is a $199 initial set-up fee charged to OWNER’s statement. This is to assist with administrative and operational costs including online reservation system, property web page, and photography. There is also an annual licensing fee of $30. This is a fee that is mandated by the State of Florida to place your unit under our license.
- GreatOceanCondos.com provides a concierge service to all owners and guests. There is a $35 trip charge, plus the cost of any items and materials, for our property services manager or cleaning vendor to purchase and deliver items to the rental property.
7. DISCLAIMER OF GUARANTEES:
- OWNER understands and agrees that GreatOceanCondos.com has made no guarantee of occupancy or income levels for the property.
8. INDEMNIFICATIONS AND INSURANCE:
- OWNER shall be responsible for procuring and maintaining at his own cost and expense, liability and contents insurance at all times during the term of this Agreement, and by execution of the Agreement acknowledges that he has consulted with an insurance agent to assure that his coverages are reasonable and adequate. Such liability insurance coverage on the rental property shall be no less than a minimum aggregate amount of $300,000 per occurrence for personal injury and bodily damage occurring at, in or on the rental property.
- GreatOceanCondos.com, LLC shall be named as an Additional Insured on any unit insurance policy, which GreatOceanCondos.com is actively managing. The declaration shall be forwarded to GreatOceanCondos.com, LLC.
- OWNER agrees that GreatOceanCondos.com shall not be liable for any claim for loss or injury to any person or personal property located on the premises covered under this Agreement. OWNER further agrees to release, defend, indemnify, and hold GreatOceanCondos.com, LLC and its officers, owners, and agents (each an “Indemnitee”) harmless from any person or entity who brings a claim against GreatOceanCondos.com for loss of property or injury, or upon any other grounds.
- This Management Agreement shall be governed by and construed in accordance with the laws of the State of Florida and venue for any legal proceedings, litigation, arbitration, mediation or any other method of alternative dispute resolution related to or concerning the enforcement or interpretation of the terms of this Management Agreement shall be exclusively in Volusia County, Florida.
THIS AGREEMENT SHALL BE MADE AND ENTERED INTO BY THE PROPERTY OWNER AND GREATOCEANCONDOS.COM, UPON ELECTRONIC SIGNATURE OR PHYSICAL SIGNATURE OF THE PROPERTY OWNER.
GreatOceanCondos.com LLC | 999 Douglas Ave Suite 2217 | Altamonte Springs, Florida 32714 | 386.478.7863