EX-10.28 6 d447090dex1028.htm PROPERTY MANAGEMENT AGREEMENT DAKOTA HILL APARTMENTS, IRVING, TEXAS PROPERTY MANAGEMENT AGREEMENT BETWEEN MILESTONE MANAGEMENT, L.P., AND KBS LEGACY PARTNERS DAKOTA HILL LLC Page Recitals 1 EXHIBITS: A - LEGAL DESCRIPTION...
Exhibit 10.28
DAKOTA HILL APARTMENTS, IRVING, TEXAS
BETWEEN
MILESTONE MANAGEMENT, L.P.,
AND
KBS LEGACY PARTNERS DAKOTA HILL LLC
TABLE OF CONTENTS
Page | ||||
Recitals | 1 | |||
ARTICLE 1. DEFINITIONS | 1 | |||
1.01. Definitions | 1 | |||
ARTICLE 2. APPOINTMENT AND SERVICES OF PROPERTY MANAGER | 2 | |||
2.01. Term | 2 | |||
ARTICLE 3. COMPENSATION AND EXPENSES OF PROPERTY MANAGER | 9 | |||
3.01. Fees | 9 | |||
3.02. Expenses to be Borne by Property Manager | 10 | |||
3.04. Nonpayment | 11 | |||
11 | ||||
4.01. Stability of Management Team | 11 | |||
4.02. Fidelity Bond | 12 | |||
4.03. Affiliates | 12 | |||
ARTICLE 5. COMPLIANCE WITH LAWS | 12 | |||
5.01. Compliance | 13 | |||
5.02. Notice | 13 | |||
5.03. Hazardous Wastes | 13 | |||
5.04. Asbestos and Similar Compliance Matters | 14 | |||
ARTICLE 6. ACCOUNTING AND FINANCIAL MATTERS | 14 | |||
6.01. Books and Records | 14 | |||
6.02. Reports and Reconciliation of Accounts | 14 | |||
6.03. Audit | 15 | |||
6.04. Other Reports and Statements | 16 | |||
6.05. Contracts and Other Agreements | 16 | |||
6.06. Final Accounting | 16 | |||
6.07. Tax Returns | 16 | |||
6.08. Certification | 16 | |||
ARTICLE 7. BANK ACCOUNTS | 16 | |||
7.01. Property Accounts | 16 | |||
7.02. Expenses Paid from Property Bank Account | 17 | |||
ARTICLE 8. INSURANCE AND INDEMNITY | 18 | |||
8.01. INDEMNIFICATION | 18 | |||
8.02. Property Manager’s Insurance Responsibility | 19 | |||
8.03. Contract Documents; Indemnity Provisions | 20 | |||
8.04. Ratings of Insurance Companies | 21 | |||
8.05. Owner’s Insurance Responsibility | 21 | |||
ARTICLE 9. RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES | 21 | |||
9.01. Nature of Relationship | 21 | |||
9.02. Communications Between Parties | 22 | |||
9.03. Relationship of Owner and Property Manager with Respect to Leasing | 22 | |||
9.04. No Sales Brokerage Agreement | 22 | |||
9.05. Confidentiality | 23 |
9.06. | Property Manager Not to Pledge Owner’s Credit | 23 | ||||
9.07 | Representations and Warranties | 23 | ||||
ARTICLE 10. TERMINATION | 23 | |||||
10.01. | Termination by Owner Without Cause | 23 | ||||
10.02. | Termination by Owner for Cause | 23 | ||||
10.03. | Termination by Property Manager | 24 | ||||
10.04. | Orderly Transition | 24 | ||||
10.05. | Rights Which Survive Termination or Expiration | 25 | ||||
ARTICLE 11. MISCELLANEOUS | 25 | |||||
11.01. | Governing Law | 25 | ||||
11.02. | Table of Contents and Headings | 25 | ||||
11.03. | Entire Agreement | 25 | ||||
11.04. | Successors and Assigns | 25 | ||||
11.05. | Waiver | 25 | ||||
11.07. | Time | 26 | ||||
11.08. | Attorneys’ Fees | 26 | ||||
11.09. | Further Acts | 26 | ||||
11.10. | No Advertising | 26 | ||||
11.11. | Signs | 26 | ||||
11.12. | Owner Exculpatory Clause; Waivers of Jury Trial and Punitive Damages | 26 | ||||
11.14. | Notices | 27 | ||||
11.15. | Counterparts | 27 | ||||
EXHIBITS: | ||||||
A - LEGAL DESCRIPTION | ||||||
B - RENTAL GUIDELINES | ||||||
C - STANDARD RESIDENTIAL LEASE FORM |
This PROPERTY MANAGEMENT AGREEMENT (this “Agreement”) is made as of October 26, 2010 (the “Effective Date”) between MILESTONE MANAGEMENT, L.P., a Delaware limited partnership, doing business in Texas as TMG Milestone Management, L.P. (“Property Manager”), and KBS Legacy Partners Dakota Hill LLC, a Delaware limited liability company (“Owner”).
A. Owner is the record or beneficial owner of the Property (as defined below) and Property Manager is experienced in the management, operation, leasing, service, repair and supervision of residential apartment projects similar to the Property.
B. The parties desire to enter into this Agreement and set forth the terms and conditions under which Property Manager will manage the Property.
AGREEMENT
“Affiliate” shall mean, when used with respect to any person (a) if such person is a corporation, any officer or director thereof and any person which is directly, or indirectly, the beneficial owner of more than 10% of any class of equity security (as defined in the Securities Exchange Act of 1934) thereof, or if any such beneficial owner is a partnership, any partner thereof, or if any such beneficial owner is a corporation, any person controlling, controlled by or under common control with such beneficial owner or of any officer or director of such beneficial owner or of any corporation occupying any such control relationship, (b) if such person is a partnership, any partner thereof, and (c) any other person which directly or indirectly controls or is controlled by or is under common control with such person. For the purpose of this definition, “control” (including the correlative meanings of the term “controlling,” “controlled by” and “under common control with”), with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such person, whether through the ownership of voting securities or by contract or otherwise. The term “Affiliate” shall also mean, when used with respect to any individual, the parents and grandparents of such individual, the parents and grandparents of any other individual who is an Affiliate of such individual by virtue of any one or more of the foregoing clauses (a), (b) and (c) of this definition, any descendant (whether natural or adopted) of any such parents or grandparents and any spouse of any such descendant.
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“Approved Capital Budget” and “Approved Operating Budget” shall have the meanings described in Section 2.02(b).
“Fiscal Year” shall mean the twelve (12) months commencing January 1 and ending December 31.
“Gross Monthly Collections” shall mean the total gross monthly collections received from the Property, including, without limitation, tenant rental income, pet rents and other charges and miscellaneous income items of Owner as applicable. Any payments by tenants on account of any taxes imposed on rentals collected by Property Manager shall be excluded from Gross Monthly Collections. Any advance rental payments shall be included in Gross Monthly Collections when received. Security and other deposits shall not be included therein unless the same are no longer used for security purposes and are applied to income. Without limitation, any payment of money by a tenant to Owner or Property Manager in consideration for or in conjunction with a rental deposit, the termination, cancellation, expiration, renewal, extension or modification of a tenant’s lease, property insurance loss proceeds, remodeling and tenant improvement charge costs, condemnation proceeds, or proceeds received by Owner in connection with the sale of any portion of the Property or the refinancing of any indebtedness secured by a lien on any portion of the Property, shall be excluded from the Gross Monthly Collections. Proceeds of business interruption insurance shall be included in Gross Monthly Collections.
“Property” shall mean that certain real property consisting of approximately twenty and three tenths (20.3) acres and improvements constructed thereon consisting of five hundred and four (504) residential units (commonly known as the Dakota Hill Apartments) and zero (-0-) square feet of retail space located in the City of Irving, Texas as more particularly described on Exhibit A attached hereto.
“Records Office” shall mean Property Manager’s offices located at the Property and its corporate office in Dallas, Texas.
“Rental Guidelines” shall mean those guidelines attached hereto as Exhibit B, as amended from time to time.
ARTICLE 2. APPOINTMENT AND SERVICES OF PROPERTY MANAGER.
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In the event an annual operating budget for a Property has not been approved by Owner prior to the commencement of any Fiscal Year during the term hereof, the operating budget for each month (the “Current Month”) until the annual operating budget is approved shall be the amount of the most recent Approved Operating Budget for the Property for the same calendar month (“Base Month”), as adjusted to reflect (a) any increase or decrease between the Base Month and the Current Month in the Consumer Price Index for All Urban Consumers for the metropolitan area in which the Property is located (base year 1982-84=100) published by the United States Department of Labor, Bureau of Labor Statistics and (b) any increase or decrease in the occupancy of the Property between the Base Month and the Current Month and (c) any increase or decrease in the taxes, insurance and utilities of the Property.
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Owner may revoke its approval of either Budget at any time upon twenty (20) days’ prior written notice to Property Manager. Owner may amend its approval of either Budget and cause the Budget to be amended to conform to such approval at any time upon twenty (20) days’ prior written notice to Property Manager and, in such event, only the Budget as so amended shall be deemed approved.
With respect to the first Fiscal Year of the term, if not a full twelve months, Property Manager shall submit to Owner for approval an operating and capital budget for the balance of such calendar year as soon as possible and no later than thirty (30) days after the date hereof.
Property Manager shall have the right, from time to time, during each calendar year to submit revised Budgets to Owner for approval. Property Manager agrees to use diligence and all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Operating Budget or the Approved Capital Budget pertaining thereto, as applicable.
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under the terms of its lease, Property Manager shall employ such methods as are commercially reasonable to either collect unpaid rent or to evict the tenant from the premises. Property Manager shall employ a collection agency to pursue payment collection and, except as otherwise required by applicable law, shall utilize legal counsel only if a tenant refuses to vacate an apartment unit following proper notice. The commencement of any litigation (other than for routine residential tenant eviction and residential rent collection matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the name of Owner as an agent with a beneficial interest), shall require the prior written approval of Owner. In connection with all suits or proceedings (other than for routine residential tenant eviction and residential rent collection matters, including bringing suit for and recovery of any delinquent rents or damages and possession of the premises in the name of Owner as an agent with a beneficial interest), only legal counsel approved by Owner shall be retained, but Property Manager shall recommend legal counsel and furnish Owner with the estimated costs of legal services to be incurred in bringing such suit or proceeding.
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Approved Operating Budget. Without limiting the foregoing, each contract entered into by Property Manager pursuant to this Section 2.02(g) shall contain a thirty (30) day (or less) cancellation clause exercisable by Owner without cause and without penalty or fee, unless otherwise approved in writing by Owner. All utility, supply, service, vending and related contracts or equipment leases are to be entered into by Property Manager on behalf of Owner. Property Manager shall assure that any contractor performing work on the Property maintains insurance satisfactory to Owner, including, but not limited to, Workers’ Compensation Insurance (and, when required by law, compulsory Non-Occupational Disability Insurance) and insurance against liability for injury to persons and property arising out of all such contractor’s operations naming Property Manager and Owner as additional insureds. Property Manager shall obtain certificates of insurance for all such insurance before the work begins. Property Manager shall furnish copies of the certificates to Owner if requested by Owner.
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(r) General. Property Manager shall afford such supervision, professional management and in-house staff services as may be necessary or desirable to operate the Property in the same manner as is customary and usual in the operation of other properties of
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substantially comparable location, class, size and standing, and shall provide such services at the Property as are consistent with the Property’s size and existing facilities. Subject only to those express limitations set forth in this Agreement, Property Manager shall have control and discretion in the management and operation of the Property and in the performance of the foregoing services. Without limiting the foregoing, if applicable, Property Manager shall review and, if so directed by Owner, conduct an audit of each retail tenant’s compliance with its obligation to pay a percentage rent or any other amount determined on the basis of the tenant’s sales or gross or net income.
ARTICLE 3. COMPENSATION AND EXPENSES OF PROPERTY MANAGER.
3.01. | Fees. |
(a) Owner shall pay Property Manager, and Property Manager shall accept as full compensation for the property management services to be rendered to Owner hereunder during the term hereof, a sum equivalent to three percent (3%) of Gross Monthly Collections (the “Management Fee”). Such compensation shall be payable monthly on or before the 20th of the subsequent month.
(b) In the event that Property Manager is requested by Owner to coordinate and supervise major repairs or improvements to a Property (after its development is completed) that should be capitalized under generally accepted accounting principles (“Capital Expenditures”), Property Manager shall receive a construction supervision fee equal to a percentage of the hard costs of such Capital Expenditures (the “Construction Supervision Fee”) as follows:
JOB COST: | FEE: | |||
Under $100,000 | 8.0% | |||
$100,000 - $249,999 | 6.5% | |||
$250,000 - $499,999 | 6.0% | |||
$500,000 – 4,999,999 | 5.0% | |||
Over $5,000,000 | Negotiable |
(c) If the Property includes retail space, Owner may agree to pay a leasing commission (the “Retail Commission”) to Property Manager, at a rate to be agreed upon, for retail leases executed during the term of this Agreement between Owner and the retail tenants procured or obtained by Property Manager. Notwithstanding the foregoing, Owner shall have the right in its sole and absolute discretion to reject any prospective retail lease, renewal or extension agreement and, in such event, no Retail Commission or other compensation shall be earned or payable in connection with such proposed retail lease, renewal or extension agreement or the activities of Property Manager, or any other broker in connection therewith.
(d) Except with respect to other services provided by Affiliates of Property Manager in accordance with Section 3.01 (e), which shall be reimbursed by Owner pursuant to Section 3.01(e), Property Manager shall pay from the Management Fee all costs
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associated with or relating to its own office overhead and management personnel not located or employed at the Property, including without limitation, the salaries, wages and all other compensation, together with associated unemployment and social security taxes and contributions, as well as expenses specifically stated in this Agreement to be borne by Property Manager.
(e) If included in the Approved Capital Budget or with the prior approval and direction of Owner, Property Manager may obtain services and materials including, but not limited to, advertising, consulting, training, computer hardware and software, forms for use at the Property, contract services, accounting and bookkeeping services and building materials through the organization, subsidiaries or Affiliates of Property Manager for the benefit of the Property, provided the quality of service and the price thereof is competitive with comparable prices and services offered by third parties, and the costs therefore shall be reimbursed by Owner. All discounts, rebates and other savings realized thereon by Property Manager are to be passed on to Owner, in full.
(a) All costs of gross salary and wages, payroll taxes, insurance, workmen’s compensation and other costs of Property Manager’s corporate office and executive personnel (other than full time or part time personnel whose positions and salaries are specifically authorized in the Approved Operating Budget);
(b) All costs incurred as a result of Property Manager’s breach of this Agreement, and/or the negligence and/or willful misconduct of Property Manager and/or any one or more of its Affiliates, employees, independent contractors, agents and/or other representatives;
(c) Unless otherwise provided in the Approved Operating Budget, all costs of forms, accounting materials, administrative materials, papers, ledgers and other supplies and equipment used in Property Manager’s corporate office, all costs of Property Manager’s data processing equipment located at Property Manager’s corporate office and all costs of data processing provided by computer service companies to Property Manager’s corporate office;
(d) All costs of bonuses, incentive compensation, profit sharing or any pay advances to employees employed by Property Manager in connection with the operation and management of the Property, except for payments to individuals specifically set forth in the Approved Operating Budget or otherwise approved in writing by Owner in advance;
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(e) All costs of automobile purchases and/or rentals, unless provided for in the Approved Operating Budget or Approved Capital Budget or the automobile is being provided by Owner;
(f) All costs of comprehensive crime insurance purchased by Property Manager for its own account;
(g) All costs of meals, travel and hotel accommodations for Property Manager’s home or regional office personnel who travel to and from the Property, unless expressly authorized by Owner; and
(h) All costs (exclusive of fees that are directly property related, e.g., registration fee) of obtaining and maintaining such licenses, permits, consents and authorizations as are required by Section 2.02(n).
3.04. Nonpayment. If Property Manager fails to make any payment when required or fails to perform any act required under this Agreement, to the extent sufficient funds are available, then Owner, after ten (10) days’ written notice to Property Manager (or, in the case of any emergency, without notice) and without waiving or releasing Property Manager from any of its obligations hereunder, may (but shall not be required to) make such payment or perform such act. Owner shall have (in addition to any other right or remedy) the right to offset all costs and expenses incurred in exercising its rights under this Section 3.04 against any sums due or to become due to Property Manager, including, without limitation, the Management Fee.
ARTICLE 4. PERSONNEL AND BONDING.
(a) Property Manager shall, in the hiring of all employees and in retaining
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independent contractors, use reasonable care to select qualified, competent and trustworthy employees and independent contractors. Subject to the provisions of this Section 4.01, the selection, terms of employment (including rates of compensation) and termination thereof, and the supervision, training and assignment of duties of all employees of Property Manager engaged in the operation of the Property shall be the duty and responsibility of and shall be determined by Property Manager. All personnel at the Property shall be employees of Property Manager and/or contractors of Property Manager.
(b) Property Manager shall employ at Property Manager’s sole cost and expense (unless otherwise provided in the Approved Operating Budget) at least the following for the Property:
(i) a manager who works from the Records Office and manages the Property and other properties (the costs and expenses for whom, if provided for in the Approved Operating Budget, shall be pro rated in light of the time spent managing the Property as opposed to other properties); and
(ii) an accountant working on Property matters and other properties (who shall be part of Property Manager’s in-house staff) who works from a central location (the costs and expenses for whom, if provided for in the Approved Operating Budget, shall be pro rated in light of the time spent working on the Property as opposed to other properties).
ARTICLE 5. COMPLIANCE WITH LAWS.
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5.03. |
(a) Property Manager shall not place, cause or permit to be placed on the Property, other than in the ordinary course of performing its obligations under this Agreement and in compliance with applicable law, any hazardous or toxic wastes or substances, as such terms are defined by federal, state or municipal statutes or regulations promulgated thereunder (collectively, “Hazardous Wastes”). If Property Manager discovers the existence of any Hazardous Wastes on the Property (other than Hazardous Wastes used, generated or stored in the ordinary course of business and in compliance with applicable law), Property Manager shall immediately notify Owner. If such Hazardous Wastes were placed or knowingly permitted to be placed on the Property by Property Manager, Property Manager shall, at its cost, diligently arrange for and complete the immediate removal thereof in accordance with applicable laws and Owner’s directions. Except as expressly provided herein to the contrary, Property Manager shall not be responsible for any Hazardous Wastes present on the Property prior to the Effective Date hereof, unless deposited thereon by Property Manager, nor shall Property Manager be responsible for any Hazardous Wastes brought onto the Property by a person other than Property Manager, its agents or employees. Property Manager shall immediately notify Owner of any notice received by Property Manager from any governmental authority of any actual or threatened violation of any applicable laws, regulations or ordinances governing the use, storage or disposal of any Hazardous Wastes and shall cooperate with Owner in responding to such notice and correcting or contesting any alleged violation at Owner’s expense.
(b) Property Manager shall provide its employees, agents, consultants, governmental entities and the public with any notices or disclosures concerning Hazardous Wastes associated with the Property required to be delivered by Property Manager under any applicable laws, including without limitation, any notices or disclosures concerning Hazardous Waste which Property Manager has received from Owner. Owner shall have the right to review such notices and disclosures before their distribution or submission by Property Manager and shall have the right, but not the obligation, to prescribe the form and content of any such notices or disclosures as long as the form and content prescribed by Owner comply with all applicable laws relating to such notices or disclosures. Owner shall provide Property Manager with any notices or disclosures concerning Hazardous Waste associated with the Property required to be delivered by Owner under any applicable laws.
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(c) Without limiting any other indemnification obligations provided by law or specified in this Agreement, Property Manager shall indemnify, defend (at Property Manager’s sole cost and expense and with legal counsel approved by Owner which approval shall not be unreasonably withheld) and hold harmless the Owner, its agents, employees and contractors from and against any and all claims, demands, losses, damage, disbursements, liabilities, obligations, fines, penalties, actions, causes of action, suits, costs and expenses, including without limitation, reasonable attorneys’ fees and costs, and all other professionals’ or consultants’ expenses incurred in investigating, preparing for, serving as a witness in, or defending any action or proceeding, whether actually commenced or threatened, or in removing or remediating any Hazardous Wastes on, under, from or about the Property, arising out of or relating to, directly or indirectly, Property Manager’s breach of any of the terms of this Section 5.03. This indemnity shall survive termination of this Agreement.
ARTICLE 6. ACCOUNTING AND FINANCIAL MATTERS.
6.02. |
(a) On or before the last day of each month, Property Manager shall provide such reports and data to Owner as shall be required from time to time by Owner. Without limitation, Property Manager shall provide the following to Owner for the current calendar month:
(i) A detailed report of all monies collected (identified by tenant or other source) which shall include, but not be limited to, rents collected (including laundry or other vending income, garage or parking income, percentage rent and other amounts payable under any retail leases, if any), rents prepaid beyond the current
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month, and security deposits collected, and of vacancies and delinquent rents.
(ii) A detailed report of all expenses paid.
(iii) A comparison of the current month and year-to-date account of actual revenue and expenses to budgeted amounts; calculations of monthly and year-to-date variances from the Approved Operating and Capital Budgets, appropriate descriptions of any significant monthly or year-to-date variances, and, if requested by Owner, a revised annualized projection of monies to be collected and expenses to be paid for the balance of the calendar year.
(iv) A written report describing any material changes in the Property which occurred during the month or are anticipated to occur.
(v) A reconciliation on of amounts receivable or due to Owner accompanied by payment of same.
(vi) A reconciliation of the Property Bank Account, including a copy of the bank statement.
(vii) Any other special information as required from time to time by Owner.
(b) Property Manager shall provide a monthly management report to be submitted with the applicable monthly financial statements which shall contain without limitation, the recommendations of Property Manager regarding the physical condition or operation of the Property and leasing status reports (which shall include a list of retail leases executed, written lease proposals, security deposits and rents received, and leasing commissions earned on each retail lease). In addition, on or before January 30 after the end of each calendar year, Property Manager shall at its sole cost and expense submit to Owner an annual report summarizing all retail leasing activities, if any.
(c) Periodically, Property Manager shall furnish to Owner as reasonably requested:
(i) Market surveys and any other tenant information in accordance with Section 2.02(q) above.
(ii) Reports covering on-site physical inspections and operating reviews.
(iii) A current inventory of personal property and equipment used in connection with the Property. Such an inventory shall be submitted to Owner no later than thirty (30) days prior to the end of each calendar year.
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be at Owner’s expense unless an error is discovered that is equal to or greater than two percent (2%) of annual gross receipts of the Property for the period audited, in which case Property Manager shall bear the full cost of the subject audit. Any adjustments in amounts due and owing from Owner or Property Manager shall be paid within fifteen (15) calendar days following Owner’s receipt of the audit.
(a) All funds received by Property Manager derived from the operation of the
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Property, as well as working capital furnished by Owner, shall be deposited in an account (the “Property Bank Account”) in Property Manager’s name, as agent for Owner, in an FDIC-insured bank designated or approved by Owner, which such account will be in compliance with applicable law. Owner may direct Property Manager to change depository banks or the depository arrangements. All funds so deposited shall be deemed to be trust funds held by Property Manager for the benefit of Owner and shall be held and disbursed as provided herein. Property Manager shall establish another custodial and/or trust account as required by applicable law or the Owner for the deposit of tenant security deposits (the “TSD Account”).
(b) A Working Capital Reserve equal to Fifty Thousand Dollars ($50,000) (the “Working Capital Reserve”) shall be funded upon execution of this Agreement and maintained in the Property Bank Account at all times throughout the term of the Agreement. A monthly cash payment will be made by Property Manager to Owner solely from funds in the Property Bank Account in excess of the amount of the Working Capital Reserve in an amount equal to the excess, if any, of the current month projected cash receipts less the current month’s budgeted operating and capital expenditures. This payment will be made to Owner on or before the tenth (10th) day of each month. A reconciliation of receipts and expenditures will be prepared by Property Manager in accordance with Section 6.02 above to account for any prior period operating cash overage or shortage and any additional cash payments due to Owner will be made to Owner no later than the twenty-fifth (25th) day of the current month and any overpayments made to Owner will be returned to Property Manager for deposit in the Property Bank Account no later than the thirtieth (30th) day of the current month.
(c) No non-Property funds shall be commingled with the funds in the Property Bank Account or TSD Account (collectively, the “Accounts”). Property Manager may not, under any circumstances, write a check payable to or in favor of, or transfer funds to, Property Manager or any Affiliate of Property Manager from the Accounts other than to (i) reimburse itself or an Affiliate for expenditures made on behalf of Owner and approved by Owner, or (ii) pay itself the Management Fee or other fee payable hereunder; provided that, within fifteen (15) days after payment to itself of the Management Fee or other fee, Property Manager shall provide Owner with a statement setting forth the calculations made in computing the Management Fee or other fee in detail reasonably satisfactory to Owner. Only those persons specifically authorized by Property Manager and approved by Owner shall have authority to write checks from the Property Bank Account. There shall be monetary limits on the checks Property Manager shall be authorized to write. Checks in excess of $25,000 (excluding debt service and those items provided for in the Approved Operating Budget) shall require the prior written consent of Owner.
(a) Any and all costs necessary for the management, operation and maintenance of the Property, provided such costs are provided for and are within the limits of the Approved Operating Budget or specifically approved in writing by Owner;
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(b) Capital expenditures provided for in the Approved Capital Budget or authorized in writing by Owner and directed by Owner to be incurred by Property Manager; and
(c) Any and all costs necessary for emergency expenses as provided in Section 2.02(f).
Property Manager shall not be obligated to make any advance to or for the account of Owner or to pay any sums except out of funds in the Property Bank Account.
ARTICLE 8. INSURANCE AND INDEMNITY.
(A) PROPERTY MANAGER AGREES TO AND SHALL, COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO OWNER), PROTECT AND HOLD OWNER AND ITS RESPECTIVE PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AUTHORIZED SUCCESSORS, AUTHORIZED ASSIGNS AND AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, ACTIONS, FINES, PENALTIES, LIABILITIES, LOSSES, TAXES, DAMAGES, INJURIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ACTUAL ATTORNEYS’, CONSULTANTS’ AND EXPERT WITNESS’ FEES, AND DEFENSE COSTS AT BOTH THE TRIAL AND APPELLATE LEVELS) (COLLECTIVELY, “DAMAGES”) IN ANY MANNER RELATED TO, ARISING OUT OF OR RESULTING FROM (I) ANY FAILURE OF PROPERTY MANAGER TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT CAUSING DAMAGE TO OWNER, BUT ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (II) ANY ACTS OF PROPERTY MANAGER BEYOND THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, (III) ANY NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS OF PROPERTY MANAGER, BUT WITH REGARD TO NEGLIGENCE OF PROPERTY MANAGER (AS OPPOSED TO GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR OTHER WRONGFUL OR INTENTIONAL ACTS OR OMISSIONS) ONLY TO THE EXTENT SUCH DAMAGES ARE NOT COVERED BY THE INSURANCE MAINTAINED BY OWNER UNDER SECTION 8.05 BELOW, (IV) ANY INJURY, DAMAGE OR DEATH TO PROPERTY MANAGER, ITS OFFICERS, DIRECTORS, PARTNERS, EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES, AND (V) ANY INJURY, DAMAGE AND/OR DEATH TO ANY INDEPENDENT CONTRACTORS OF PROPERTY MANAGER. THE OBLIGATIONS OF PROPERTY MANAGER UNDER THIS SUBSECTION (A) SHALL APPLY ONLY TO THE EXTENT DAMAGES OF AN INDEMNIFIED PARTY ARE NOT FULLY PAID BY OWNER’S
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COMMERCIAL GENERAL LIABILITY INSURANCE DESCRIBED BELOW IN SECTION 8.05(B). NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS AGREEMENT TO THE CONTRARY, PROPERTY MANAGER’S OBLIGATIONS UNDER THIS SECTION 8.01 SHALL SURVIVE THE EXPIRATION, TERMINATION OR CANCELLATION OF THIS AGREEMENT, AND SHALL BIND ANY AND ALL OF THE HEIRS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES OF PROPERTY MANAGER. THE RIGHTS OF OWNER UNDER THIS SECTION 8.01 SHALL ALSO INURE TO THE BENEFIT OF ANY AND ALL OF THEIR PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES, AND TO THE BENEFIT OF ANY AND ALL PERSONS AND LEGAL ENTITIES WHO ARE, COULD BE OR ARE ALLEGED TO BE, LIABLE FOR THE OBLIGATIONS OF OWNER OR SUCH PRINCIPALS, OFFICERS, DIRECTORS, SHAREHOLDERS, PARTNERS, MEMBERS, EMPLOYEES, AGENTS, TRUSTEES, HEIRS, BENEFICIARIES, TRUSTS, SUCCESSORS, ASSIGNS, TRANSFEREES AND REPRESENTATIVES.
(B) OWNER AGREES TO AND SHALL, COMPLETELY AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO PROPERTY MANAGER), PROTECT AND HOLD PROPERTY MANAGER (AND ITS EMPLOYEES, AGENTS, SUCCESSORS, ASSIGNS AND TRANSFEREES) HARMLESS FROM AND AGAINST ANY AND ALL DAMAGES IN ANY MANNER RELATED TO OR ARISING OUT OF PROPERTY MANAGER’S PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT WHICH ARE (A) WITHIN THE SCOPE OF ITS AUTHORITY UNDER THIS AGREEMENT, AND (B) NOT WITHIN THE SCOPE OF PROPERTY MANAGER’S INDEMNITY SET FORTH IN SECTION 8.01(A) ABOVE.
(C) THE RIGHTS AND OBLIGATIONS OF INDEMNITY PROVIDED IN THIS SECTION 8.01 SHALL NOT BE EXCLUSIVE AND SHALL BE IN ADDITION TO SUCH OTHER RIGHTS AND OBLIGATIONS AS OTHERWISE EXIST INDEPENDENT OF THE PROVISIONS OF THIS SECTION 8.01.
8.02. Property Manager’s Insurance Responsibility.
(a) The Property Manager shall maintain during the term of this Agreement, and any extensions or renewals thereof, each of the following insurance coverages with deductibles, if applicable:
(i) | Workers’ Compensation Insurance at no less than statutory requirements including employer’s liability with a limit of not less than $1,000,000 each accident for bodily injury accident and $1,000,000 each employee and policy limit for bodily injury by disease. |
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(ii) Non-Occupational Disability Insurance when required by law, if applicable.
(iii) Commercial General Liability Insurance with a minimum combined bodily injury and property damage per occurrence limit of liability of $5,000,000, a products-completed operations aggregate limit of $5,000,000 and a general aggregate limit of $10,000,000. Limits of liability may be satisfied through the maintenance of a combination of primary and umbrella/excess liability policies.
(iv) Automobile Liability Insurance covering owned, hired and nonowned vehicles, separate coverage in an amount not less than $1,000,000 combined single limit for bodily injury and property damage of $1,000,000 each accident.
(v) Errors and Omissions Insurance coverage in an amount not less than $1,000,000 each claim and general aggregate.
(b) Property Manager shall promptly provide Owner no later than three (3) days after the Effective Date with certificates of insurance or other satisfactory documentation which evidence that all required insurance is in full force and effect. Upon request, Property Manager shall provide Owner with a copy of the foregoing insurance policies. The insurance as required in Subsections 8.02(a)(i), (ii) and (v) to be maintained by Property Manager shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of cancellation or material change. The liability policies required by Subsections 8.02(a)(iii) and (iv) shall provide that the insurer shall provide to Owner thirty (30) days’ advance notice of cancellation or material change and shall name Owner and its principals, officers, directors, shareholders, partners, members, trustees, beneficiaries and employees as additional insureds. All liability policies shall be written to apply to all bodily injury, property damage, personal injury and other covered loss, however occasioned, which occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Such liability policies also shall contain endorsements including cross-liability and waiver of subrogation, and shall contain such other endorsements as may be reasonably required by Owner. The liability policies required by Subsections 8.02(a)(iii) shall include broad form contractual liability insurance coverage.
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hereunder.
(a) All-Risk Property Damage Insurance and Loss of Rents Insurance coverage on the Property.
(b) Commercial General Liability Insurance coverage with a minimum general aggregate limit of not less than $10,000,000. Property Manager shall be designated an insured under Owner’s commercial general liability insurance policy while acting within the scope of its authority as Owner’s property manager. All other terms and conditions of this Agreement (including, without limitation, the indemnification provisions of Section 8.01 and Property Manager’s obligation to maintain insurance described in Section 8.02) shall not be affected by this Section 8.05(b).
8.06. Property Manager’s Duties in Case of Loss. Property Manager shall:
(a) Immediately notify Owner of any fire or other damage to the Property; and in the event of any serious damage to the Property or any releases of hazardous materials or contaminants, telephone Owner so that an insurance adjustor may view the Property before repairs are started, but in no event shall Property Manager settle any losses, complete loss reports or adjust losses on behalf of Owner or meet with any federal, state or local regulatory agency without the prior written consent of Owner.
(b) Promptly notify Owner of any personal injury or property damage occurring to or claimed by any tenant or third party on or with respect to the Property; and immediately forward copies to Owner of any summons, subpoena or other like legal document served upon Property Manager relating to actual or alleged potential liability of Owner, Property Manager or the Property.
ARTICLE 9. RELATIONSHIP OF PARTIES and REPRESENTATIONS and WARRANTIES.
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9.07 Representations and Warranties.
(a) Property Manager represents and warrants that (i) Property Manager has full power, authority and legal right to execute, deliver and perform this Agreement and to perform all of its obligations hereunder and (ii) the execution, delivery and performance of all or any portion of this Agreement do not and will not (x) require any consent or approval from any governmental authority, (y) violate any provisions of law or any government order or (z) conflict with, result in a breach of, or constitute a default under, the charter or bylaws of Property Manager or any instrument to which Property Manager is a party or by which it or any of its property is bound.
(b) Owner represents and warrants that it has full power, authority and legal right to execute, deliver and perform this Agreement.
(c) Property Manager acknowledges and agrees that Owner is relying upon the representations and warranties set forth in Sections 9.07 (a) in entering into this Agreement, and Owner acknowledges and agrees that Property Manager is relying upon the representations and warranties set forth in Section 9.07 (b) in entering into this Agreement.
ARTICLE 10. TERMINATION. |
(a) If Property Manager shall suspend or discontinue business;
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(b) If a court shall enter a decree or order for relief in respect of Property Manager in an involuntary case under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal, state or foreign bankruptcy, insolvency or other similar law, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Property Manager or for any substantial part of its property, or for the winding-up, dissolution or liquidation of its affairs, and such decree or order shall continue unstayed and in effect for a period of sixty (60) consecutive days or if Property Manager shall consent to any of the foregoing;
(c) If Property Manager shall commence a voluntary case or action under the federal bankruptcy laws, as now or hereafter constituted, or any other applicable federal or state bankruptcy insolvency or other similar law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Property Manager or for any substantial part of its property, or make any assignment for the benefit of creditors, or admit in writing that it is unable, or fail generally to pay its debts as such debts become due, or take action in furtherance of any of the foregoing;
(d) If Property Manager is grossly negligent or engages in willful misconduct with respect to its duties or obligations to Owner under this Agreement; or
(e) If Property Manager commits any other material default in the performance of any of its obligations under this Agreement, unless such default is cured with thirty (30) days after written notice of such default is given to Property Manager, or, if not curable within thirty (30) days, commenced within such thirty (30) days and diligently prosecuted to completion.
(a) A final accounting, reflecting the balance of income and expenses for the
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Property as of the date of termination or expiration;
(b) Any monies due to Owner and any tenant security deposits held by Property Manager with respect to the Property; and
(c) All keys, property, supplies, records, contracts, drawings, leases and correspondence, in existence at the time of termination or expiration and all other papers or documents pertaining to the Property. All data, information and documents shall at all times be the property of Owner.
ARTICLE 11. MISCELLANEOUS. |
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and signed by such party. In the event of consent by Owner to an assignment of this Agreement, no further assignment shall be made without the express written consent of Owner.
11.07. Time. Time is of the essence of this Agreement.
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Owner: | KBS Legacy Partners Dakota Hill LLC | |
c/o KBS Capital Advisors, LLC | ||
000 Xxxxxxx Xxxxxx Xxxxx, Xxxxx 0000 | ||
Xxxxxxx Xxxxx, Xxxxxxxxxx 00000 | ||
Attn: Xxxxx Xxxxxx | ||
With a copy to: | KBS Legacy Partners Dakota Hill LLC | |
c/o Legacy Partners Residential Development, Inc. | ||
00000 Xxxx Xxxx, Xxxxx 000 | ||
Xxxxxx, Xxxxx 00000-0000 | ||
Attn: Xxxxxxx Xxxxxx, Jr. | ||
With a copy to: | KBS Legacy Partners Dakota Hill LLC | |
c/o Legacy Partners Residential Realty LLC | ||
0000 X. Xxxxx Xxxxxx, Xxxxx Xxxxx | ||
Xxxxxx Xxxx, Xxxxxxxxxx 00000 | ||
Attn: W. Xxxx Xxxxx/Xxx X. Xxxx | ||
Property Manager: | Milestone Management, L.P. | |
0000 XXX Xxxxxxx, Xxxxx 000 | ||
Xxxxxx, Xxxxx 00000 | ||
Attn: Xxxxx Xxxxxxxx | ||
With a copy to: | Milestone Management, L.P. | |
0000 XXX Xxxxxxx, Xxxxx 000 | ||
Xxxxxx, Xxxxx 00000 | ||
Attn: Legal Department |
[remainder of page intentionally left blank]
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OWNER: | KBS LEGACY PARTNERS DAKOTA HILL LLC, a
Delaware limited liability company | |||||||||||
By: | KBS LEGACY PARTNERS PROPERTIES
LLC, a Delaware limited liability company, its sole member | |||||||||||
By: | KBS LEGACY PARTNERS LIMITED PARTNERSHIP, a Delaware limited partnership, its sole member | |||||||||||
By: | KBS LEGACY PARTNERS APARTMENT REIT, INC., a Maryland corporation, its sole general partner | |||||||||||
By: /s/ Xxx X. Xxxx | ||||||||||||
Name: Xxx X. Xxxx | ||||||||||||
Title: Executive Vice President | ||||||||||||
PROPERTY MANAGER: | MILESTONE MANAGEMENT, L.P., a Delaware
limited partnership, doing business in Texas as TMG Milestone Management, L.P. | |||||||||||
BY: | Milestone Management GP, LLC, a Delaware limited liability company, its general partner, doing business in Texas as TMG Milestone Management GP, LLC | |||||||||||
By: /s/ Xxxxx Xxxxxxxx | ||||||||||||
Name: Xxxxx Xxxxxxxx | ||||||||||||
Its: President and COO |
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
BEING ALL of Lot 2R, Block A, of JEFFERSON AT VALLEY RANCH SUBDIVISION, REVISED, an addition to the City of Irving, Dallas County, Texas, described by Plat recorded in Volume 99215, Page 000, Xxxx Xxxxxxx, Xxxxxx Xxxxxx, Xxxxx.
A-1
EXHIBIT B
RENTAL GUIDELINES
Property Manager may enter into new leases for space at the Property and renew or extend existing leases without Owner’s prior written consent provided that each such lease:
1) | for residential apartment units: |
a) | is documented using, and does not materially deviate from, the standard lease form attached as Exhibit D to this Agreement, other than changes required by law or any governmental agency; and |
b) | shall be for initial terms of at least six (6) months and not more than fifteen (15) months, unless a longer lease is included in the Annual Business Plan (as defined in the Operating Agreement). |
2) | provides for rental rates and terms no less than the suggested daily rates provided by YieldStar unless otherwise approved by Owner. |
3) | is not for a corporate apartment unit except that the Property Manager may enter into an arms-length lease for corporate apartment units of up to ten percent (10%) of the total number of apartment units, unless the Annual Business Plan provides for more than ten percent (10%) of the total number of apartment units to be available as corporate apartment units; provided, however, unless otherwise approved by Owner Property Manager will not allow more than 10 corporate leases to expire in any given month. |
4) | is an arms-length transaction with a tenant that is not an Affiliate of Owner or Property Manager (with the exception of apartment units which may be leased to employees of an Affiliate of the Owner or Property Manager as designated in, and at rental rates no less than those set forth in, the Annual Business Plan). |
5) | Equal Housing Opportunity: Property Management will do business in accordance with the Federal Fair Housing Law. |
6) | Resident Income: Excepted as approved by Owner in writing, prospective residents will have monthly income which will at a minimum be three times the monthly rent. |
10) | Rental Guideline Changes: Any material changes in the above guidelines shall be submitted to the Owner for review and approval. |
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EXHIBIT C
STANDARD RESIDENTIAL LEASE FORM
D-2
![]() | Qualifying Criteria The Company and this community comply with all federal, state and local regulations regarding Fair Housing for all applicants and residents regardless of race, color, religion, sex, national origin, familial status or handicap. |
Occupancy Standard
Two persons maximum per bedroom (Exception: Child under 24 months of age, unless otherwise dictated by state or federal law)
Age Requirements
Lease Holders must be at least 18 years of age. All Lease Holders and Occupants age 18 years or older are required to submit an application for approval.
Credit
Bankruptcy history is acceptable if discharged and good credit is reflected for the most recent 12 months. Medical accounts, debts to utility companies (water, gas, and electric) and foreclosures are exempted from the above evaluation. Unpaid collections/debt to no more than one landlord, not exceeding $1500.00, may be acceptable with a one month additional deposit. No credit is considered qualifying credit. International applicants may present a valid passport or other valid government identification in lieu of credit reporting in the U.S.
Additional Deposit
If prospective Lease Holder(s) does/do not satisfy the credit criteria (but not to the point of disqualification), an additional deposit in the amount of the standard application deposit will be required. Deposits are refundable in accordance with the application provisions.
Check Writing
Positive verification of check writing authorization or no checks will be accepted.
Previous Residences
All applicants and occupants must have positive rental history within the past 2 years. No evictions within the past five years will be acceptable. Addresses indicated on the credit report(s) must exactly match residences listed on the rental application.
Criminal
No applicant or occupant may have received deferred adjudication for, or have been convicted of, a felony offense of any kind. No applicant or occupant may have received deferred adjudication for, or been convicted of, a misdemeanor of a violent crime against persons within the previous ten years. No applicant or occupant may have been convicted of, or received deferred adjudication for, a misdemeanor of a property, drug possession under four ounces or weapons nature within the previous three years, or a misdemeanor of a sexual nature within the previous ten years.
Income
The exact income requirement for each application is determined by the credit rating(s) of the applicant(s). On average, the monthly rental amount cannot be more than 33% of the total gross income of all leaseholders. Allowances, third party support and other income require verification. Paycheck stubs covering at least 30 days, the previous year’s W-2 (if self employed) or an offer letter if the applicant has not yet begun employment, are acceptable verification of both income and employment. The income requirement may be modified if required by federal subsidy or financing programs. If a Guarantor is required, monthly rental amount cannot equal more than 14% of the Guarantor’s monthly income.
Employment
Lease Holder(s) must present evidence of stable work history for a minimum of one year. If not employed, must present evidence of regular income. If self-employed must present income tax return from the previous year and bank statements from the previous two months. Persons who hold commission-only or base plus commissions, tips and bonuses jobs are considered self-employed. A letter of intent to hire from the employer should be provided if employment has not yet begun.
Cosigner/Guarantor
If prospective Lease Holder(s) does/do not satisfy the income criteria, a cosigner or guarantor will be required in addition to the above additional deposit. If the prospective Lease Holder(s) is/are also fulltime students, only the guarantor will be required.
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Signature of Applicant Date | Signature of Applicant Date | |||||
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Signature of Applicant Date | Signature of Applicant Date | |||||
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Signature of Owner’s Representative Date |
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LAUNDRY EQUIPMENT ADDENDUM
This ADDENDUM (“Addendum”) shall become a part of the APARTMENT LEASE CONTRACT, (“Contract”) dated the day of , , for apartment number , between Apartments (“Owner”), and , , , and , (“Resident”).
This Addendum also operates as a release, waiver and indemnity agreement between Resident named below, and Owner as of the date set out below.
1. Owner desires to lease to Resident and Resident desires to lease from Owner certain Equipment (“Equipment”) described below that is (check one) included in the rent for his/her/their apartment unit or not included in the rent and is an additional monthly cost of $ , payable to the leasing office on or before the of the month.
RESIDENT(S): | EQUIPMENT: | |||||||
NAME(S) |
| FULL SIZE: ¨ STACKABLE: ¨ | ||||||
| MAKE: | |||||||
| MODEL: | |||||||
| MODEL: | |||||||
APT. # |
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THE PARTIES AGREE AS FOLLOWS:
2. Both parties desire to enter into this Addendum, including the Release, Waiver and Indemnity provisions.
a. UPON EXPIRATION OF THE INITIAL LEASE TERM, THIS ADDENDUM SHALL CONTINUE ON A MONTH-TO-MONTH BASIS, UNLESS CANCELLED BY EITHER THE RESIDENT OR OWNER. AFTER PROVIDING A 30 DAY NOTICE IN WRITING.
b. Resident will pay Owner far the repair of damages (other than normal wear and tear) to, or the loss of Equipment. Resident will clean Equipment before returning.
c. Owner may remove the Equipment at a reasonable hour from the Resident’s apartment if Owner believes the Equipment is being abused by Resident. Resident will pay Owner for the repair of damages to or loss of the Equipment other than normal wear and tear. In addition, Resident will be charged a Fifty dollar ($50.00) retrieval fee.
d. The Equipment will be used only by the Resident’s household and only at the above address.
e. The Equipment remains at all times the sale and exclusive property of Owner and no ownership interest, either legal or equitable, nor any possessory interest in the Equipment shall at any time attach to Resident.
f. Owner agrees to repair the Equipment, if necessary, and keep the Equipment in satisfactory operation at no cost to Resident, except those damages caused by Resident or others. Resident is not authorized to repair the Equipment for any reason. Resident agrees to notify Owner in writing of any Equipment malfunction. Resident agrees to allow Owner, or its authorized agents, representatives and employees reasonable access to the Equipment in Resident’s apartment for the purpose of repair, maintenance, replacement or removal of the Equipment.
g. By this instrument, Resident releases Owner and its agents, representatives and officers, directors and employees of any and all claims, liabilities and actions, of whatever nature, resulting from or arising out of Resident’s lease and use of the Equipment and the presence in Resident’s unit of any representative of Owner for the repair, maintenance or removal of the Equipment.
h. By this instrument, Resident waives any and all claims, liabilities and actions of whatever nature it may have against. Owner, arising out of, or resulting from Resident’s lease and use of the Equipment and the presence in Resident’s apartment of any representative of Owner for the repair, maintenance or removal of the Equipment.
i. Resident agrees to indemnity Owner for any and all damages of whatever nature or kind arising out of the willful or negligent misuse of the Equipment while such Equipment is being leased by Resident.
j. The parties acknowledge that this written addendum is the entire agreement of the parties relative to the Equipment in the above referenced unit. Any agreement that in any way varies the terms of this Addendum shall be unenforceable and completely void unless such agreement is in writing and signed by both parties.
DATED THIS day of .
BY SIGNING THIS ADDENDUM, I/WE AM/ARE GRANTING OWNER PERMISSION TO PROVIDE TEMPORARY ACCESS TO MY/OUR APARTMENT TO REPRESENTATIVES OR AGENTS OF FOR THE SOLE PURPOSE OF DELIVERING AND INSTALLING THE EQUIPMENT OUTLINED IN THIS ADDENDUM.
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Resident |
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Resident |
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Resident |
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Resident |
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Owner’s Representative |
Revised 4/05
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AUTO DEBIT PROGRAM |
MILESTONE’S AUTO PAY PROGRAM
This is a reliable and confidential way to have your rent and other charges paid from your bank account. With this program, your payment is electronically debited from your checking or savings account as a regularly scheduled payment.
NO COST TO YOU
This is a free service to Milestone residents.
PEACE OF MIND
You don’t need to worry about getting your rent check in on time or paying late fees.
EASE OF USE
Your payment will be shown on your monthly bank statement as a debit with date paid, reference number, amount and item description. It typically reads “Ocius ACH” or a variation of.
TO ENROLL:
• | Visit the XxXxxxxxxxXxxxxxx.xxx website after receiving your first Resident Statement in the mail. You will need some important information from your statement in order to create your user name and password. |
• | Follow the instructions for New Resident Sign Up on the website. |
• | Attach a voided check to the authorization form that prints when signing up. |
• | Return enrollment form and voided check to the community leasing office. |
• | Payments will be processed on the 1st business day of each month (if the date falls on a weekend or holiday, payment will be processed on the next business day.) |
• | If payment is denied, all applicable fees will apply. |
• | This enrollment form must be provided to your property management office by the 20th of the month prior to the selected first electronic payment date. |
• | To make a change, notify your Community Director in writing by completing the “Change” portion of this form below at least ten days before the next scheduled payment. |
• | This service will continue until written notice to cancel is received by the Community Director by completing the “Stop” portion of this form below at least ten days before the next scheduled payment. |
CHECK ONE:
¨ | YES – I would like to participate in the Auto Debit Program. |
¨ | STOP – Please stop my participation in the Auto Debit Program. |
Stop month:
¨ | DECLINE – I do not wish to participate in the Auto Debit Enrollment Program, |
Resident signature | Date | Resident signature | Date | |||
Resident signature | Date | Resident signature | Date | |||
Owner’s Representative Signature | Date |
Revised 02-16-10
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CREDIT/DEBIT CARD PROGRAM |
(property name), hereinafter called COMPANY:
To ENROLL:
• | Visit the XxXxxxxxxxXxxxxxx.xxx website after receiving your first Resident Statement in the mail. You will need some important information from your statement in order to create your user name and password. |
• | Follow the instructions for New Resident Sign Up on the website. |
• | You will receive a receipt “Pending” approval of the management office. |
I hereby authorize the COMPANY, to initiate credit/debit card transactions and to initiate, if necessary, any adjustments for any transaction in error, to credit and/or debit the same to such amount. This authority is to remain in effect until COMPANY has received written notification of its termination in such time and in such manner as to afford COMPANY a reasonable opportunity to act on it.
CHECK ONE:
¨ ONE-TIME CHARGE – I would like my credit/debit card charged one-time for the amount due specified by the Company.*
¨ MONTHLY CHARGES – I would like my credit/debit card set up to be charged monthly for the amount due specified by the Company.*
¨ STOP – Please stop my participation in the Credit/Debit Card Program.
¨ DECLINE – I do not wish to participate in the Credit/Debit Card Program.
*YOU WILL BE CHARGED A FLAT FEE PER USE OF THIS SERVICE.
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Owner’s Representative Signature | Date |
Revised 02-16-10
| MILESTONE COMMUNITY POLICIES |
All policies apply to residents and their guests and are subject to change. Please remember your neighbors and help us to maintain a quiet, clean community environment.
Rental Payment
Although your rental payment polices are stated in your Lease Contract, we will explain them further here:
• | Only one personal check will be accepted for apartment rent. No partial payments will be accepted. |
• | As stated in your lease, if the office receives your rent after the date specified in your lease, a late charge will be assessed. |
• | When allowed by law, no personal checks will be accepted for rental payment after the 5th of the month. |
• | A returned check fee plus applicable late charges will be assessed on all checks returned by a bank for any reason. Checks will not be redeposited. Returned checks must be paid by a cashier’s check or money order within 24 hours of notification. |
• | After two returned checks, we may no longer accept personal checks for rental payments (or any other charges). |
• | Cash is never accepted. |
Keys and Locks
The care and maintenance of the keys and locks to your apartment is of critical importance.
• | We do not offer lockout service after business hours. |
• | Our staff will be happy to make a duplicate of your apartment key for a minimum charge of $5.00. The legal resident of the apartment is required to show current photo identification. |
• | If you wish to have your locks changed, a reasonable charge will be levied. Payment in advance of lock change is not required. |
Insurance
The apartment community provides no guarantee of personal safety and security. Renter’s insurance ¨is ¨is not required as a term of residency at all Milestone Communities. A copy of your renter’s insurance policy may be required upon move-in.
Ins. Company: Policy Number: Effective Dates:
Utilities
You are responsible for all utilities, related deposits, and any charges or fees related to utilities for your apartment home. Per your lease contract you must not allow any utilities, other than cable or internet, to be disconnected.
Electric Company: Account Number:
Gas Company: Account Number:
Occupants
If, during the term of the lease, the resident has an additional child either by birth or adoption, and such additional child exceeds the maximum occupancy restrictions of the apartment, the resident must either transfer into a larger apartment or vacate the apartment at the end of the lease term. The addition of any person to the apartment must be reported to the office. The addition of any person, other than infant by birth or adoption, in excess of the maximum occupancy limitation, shall constitute a branch of the lease contract. All occupants over 18 years must be screened for criminal and residency history through the Milestone application process and an application fee must be paid prior to move in.
Transferring
Occasionally residents choose to transfer to another apartment within the Community or to another Milestone Community within the nation.
Community On-Site Transferring
• | A written notice to vacate, in accordance with your lease, must be given. |
• | The Community Director must approve the transfer. |
• | After 4 months of initial lease, no transfer fee applies. |
• | A $200.00 transfer fee applies if within the first 4 months of the initial lease. |
• | Application fee is waived. The community must still screen the resident(s) for the new apartment. |
• | We will waive the reletting fee. |
National Relocation Program
• | Application fee is waived. The new property must still prescreen the resident(s). |
• | The resident must have been in good standing in the present apartment for a minimum of six months. |
• | The transfer fee of half the realized concessions (as documented on the concession addendum) is waived after 6 months of the initial lease term. |
• | A written notice to vacate, in accordance with your lease, must be given. |
• | The new community awards a $100 concession to the resident This concession is in addition to any standing concession already in place at the new community. |
I acknowledge receipt of these additional provisions to the Community Policies, thereby becoming a part of the Lease Agreement.
Resident(s) |
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Revised 7/9/09
LEASE ADDENDUM REGARDING
MOVE-OUT NOTICE
1. | Addendum. This is an addendum to the TAA Lease Contract for Apt. No. in the Apartments in , Texas OR the house, duplex, etc. located at (street address) in , Texas. | intended move out, provided that all other requirements below are met.
• The move-out date in your notice [check one]: must be the last day of the month; or may be the exact day designated in your notice. If neither is checked, the second applies. | ||
2. | Replacement of Lease Contract language. The language of paragraph 37 the TAA Lease Contract is entirely replaced by the language of this addendum. | • Your move-out notice must be in writing. Oral move-out notice will not be accepted and will not terminate your Lease Contract. | ||
3. | Move-out notice. Before moving out, you must give our representative advance written move-out notice as provided below. | • Your move-out notice must not terminate the Lease Contract sooner than the end of the Lease Contract term renewal period. | ||
Your move-out notice will not release you from liability for the full term of the Lease Contract or renewal term. You will sill be liable for the entire Lease Contract term if you move out early (paragraph 22) except under the military clause (paragraph 23). YOUR MOVE-OUT NOTICE MUST COMPLY WITH EACH OF THE FOLLOWING:
• We must receive advance written notice of your move-out date. The advance notice must be at least the number of days of notice required in paragraph 3 or in special provisions—even if the Lease Contract has become a month-to-month lease. If a move-out notice is received on the fist, it will suffice for move-out an the last day of the month of | • If we require you to give us more than 30 days written notice to move-out before the end of the lease term, we will give you one written reminder not less than 5 days nor more than 90 days before your deadline for giving us your written move-out notice. For month-to-month lenses under such circumstances. you acknowledge that you must give us days move-out notice, but we are not required to give you any additional advance reminder notices. | |||
YOUR NOTICE IS NOT ACCEPTABLE IF IT DOES NOT COMPLY WITH ALL OF THE ABOVE. Please use our written move-out form. You must obtain from our representative written acknowledgment that we received your move-out notice. If we terminate the Lease Contract, we must give you the same advance notice—unless you are in default. |
Resident or Residents [All residents must sign here] | Owner or Owner’s Representative [signs here] | |||
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Revised 10/08
Photo Identification
For Identification purposes, attach a Copy of Driver’s License or a traceable photo identification card at time of move-in:
Refusal
I refuse to provide have a copy of my photo identification card made for identification purposes. I know if there is no photo identification in the apartment file, access to my apartment will be denied.
Residents Signature | Date |
4/05
Pest Control Information and Prevention Addendum
It is our goal to maintain the highest quality living environment for our residents. Therefore, know that management has inspected your apartment prior to the lease begin date, and is not aware of any pest control issues in the apartment at the time of move in.
It is important that Resident(s) keep the interior of the unit in a clean and sanitary condition and promptly notify management of any sightings of bed bugs and/or other pest control issues in the apartment home.
Proper bed bug education and cooperation from our residents is very important.
• | Bed bugs are small parasitic insects that feed on human blood. |
• | Bed bugs range in color from dark red to nearly clear in color. At the smallest sizes, bed bugs can be difficult to see and may appear to be translucent yellowish white. Full grown, bed bugs are about the size of an apple seed. |
• | Signs of bed bugs are commonly found beneath or near edges of mattresses and near the xxxxxxx seams. Bed bugs may also congregate near the wall-ceiling juncture, along the floor-wall juncture near or behind molding, behind or near wall hangings, in or near electrical outlets or other such places. |
If you think you have a bed bug infestation contact the property management office immediately so that we can schedule a professional inspection and treatment of your apartment home. |
All Residents agree to the following terms:
1. | Visually inspect apartment home for the presence of bed bugs at the time of move in and report any findings to the management office immediately. |
2. | Keep the apartment home in clean and sanitary condition at all times. |
3. | Acquiring furniture from dumpsters or other unknown or unsanitary sources is not permitted. |
4. | Resident(s) agrees to immediately notify landlord of any pest control issues. |
5. | Resident(s) full cooperation with the pest control company and management in regards to access and treatment is mandatory. |
6. | Resident(s) must allow access to your apartment home for inspection in the event of a bed bug infestation in an adjacent unit. |
7. | Failure of the Resident(s) to comply with reporting information regarding bed bugs, misrepresentation of information, or failure to comply with or pay for pest control treatment as a result of bedbugs in the unit could result in the termination of the lease and would entitle the Owner to pursue any rights and remedies available under the lease terms or applicable law. |
8. | Failure to comply with reporting or recommended treatments could result in the termination of the lease. |
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Community Representative Signature/ Date |
1 | Revised 8/2010 |
Bed Bug Awareness
Bed bugs’ increased presence across the United States in recent decades can be attributed largely to a surge in international travel and trade. While bed bugs are, by their very nature, more attracted to clutter, they are certainly not discouraged by cleanliness. Bed bugs know no social or economic bounds.
Identifying Bed Bugs
What are bed bugs?
Adult bed bugs are small, xxxxxxx-xxxxx colored Insects. They have flat bodies, no wings, and are about the size of an apple seed. Young bed bugs are much smaller and almost colorless. Bed bugs feed on the blood of humans and warm blooded animals. The lifespan of a bed bug is 10 to 18 months. They are nocturnal and feed at night.
How do I know if I have bed bugs?
Bed bugs are very secretive and efficient parasites. They are capable of hiding in the tiniest of places but most are associated near where the host sleeps or rests. Even the most experienced professionals report that it is difficult to find bed bugs in many cases. However, there are “tell tale” signs that you may notice if bed bugs are present and no actual insects are seen. These signs include the presence of staining and fecal matter left by bed bugs.
What exactly should I look for?
If you are concerned that bed bugs may be in your home look for signs. Bed bugs feed on blood and their fecal matter may appear as dark blood stains on your bedding materials including sheets, blankets, pillows, mattresses, or box springs. Such staining may also appear on couches, chairs, or throw pillows where people may sit or lay when watching television. Staining may also be found on walls and furniture around and in areas where bed bugs hide. Bed bugs molt or shed their skin as they grow in a similar fashion as a snake does. You may find bed bug empty “skins” left behind from a bed bug that molted.
Prevention
How can I prevent bed bugs from entering my home?
• | Take a few moments upon arriving at a travel destination to thoroughly inspect your accommodations for evidence of bed bugs. |
• | Thoroughly inspect luggage and belongings before departing for home. |
• | Washing clothing and bedding immediately after returning from a trip can prevent some infestations. |
• | Be aware that reports of bed bug infestations have surfaced in train cars, ships, airplanes and buses. |
Bed Bug Don’ts
• | Do not bring used furniture from unknown sources into your apartment. Countless bed bug infestations have stemmed directly from the introduction into a resident’s apartment home of second-hand and abandoned furniture. |
• | While there are many pesticides available to the public, successful bed bug treatment requires thorough treatment methods best performed by professionals and this professional service treatment is being provided to you by an approved pest control company authorized by property management It may, however, be necessary for you to treat some of your more sensitive items yourself (such as clothing and electronics) with products that can be easily found at your local drugstore or home center. |
What should I do if I think I have bed bugs?
You should immediately call the property management office so that we can schedule a professional inspection and treatment, if needed, of your apartment.
2 | Revised 8/2010 |