AI Property Management Agreement

1. Recitals

Owner is the legal owner of the real property (or properties) described in Exhibit A attached hereto (collectively, the "Properties" or individually a "Property").

Owner desires to engage Manager to manage the Properties on Owner's behalf, and Manager desires to provide such management services, subject to the terms and conditions set forth in this Agreement.

Owner acknowledges that Manager is (or employs or is affiliated with) a licensed real estate broker or property manager as required by the real estate licensing laws of the jurisdiction(s) in which the Properties are located. Manager represents that Manager and all individuals performing management services under this Agreement hold all licenses, permits, and certifications required by applicable state and local law.

2. Definitions

"Collected Rent" means all rent, additional rent, fees, and other charges actually received by Manager from tenants of the Properties, net of any refunds or adjustments required by law or the lease.

"Gross Receipts" means all income received from the Properties including rents, parking, laundry, late fees, application fees, and other charges.

"Net Operating Income" means Gross Receipts less operating expenses paid on Owner's behalf, excluding Manager's fees.

"Lease" means any residential or commercial lease or rental agreement for space in the Properties.

3. Properties Subject to Management

The Properties to be managed under this Agreement are listed in Exhibit A, including addresses, unit counts, and current rent rolls (as updated from time to time). Owner represents that Owner has full authority to enter into this Agreement and to grant Manager the rights and authority described herein.

Manager shall have no obligation to manage any property not listed in Exhibit A unless added by written amendment signed by both parties.

4. Scope of Management Services

Manager shall provide the following services in a professional, diligent, and workmanlike manner consistent with the standard of care applicable to licensed property managers in the jurisdiction:

A. Tenant Relations and Leasing
1. Market the Properties using commercially reasonable efforts, including listing on MLS (where permitted), internet portals, signage, and broker networks.
2. Screen prospective tenants using credit, criminal, eviction, and reference checks consistent with applicable fair housing and consumer protection laws.
3. Negotiate and execute Leases on forms approved by Owner (or Manager's standard forms if Owner has not provided forms), subject to Owner's prior written approval of rental rates and material terms.
4. Collect security deposits, pet deposits, and other move-in funds and hold them in accordance with applicable law and Section 7.
5. Coordinate move-ins and move-outs, including unit inspections and preparation of condition reports.

B. Rent Collection and Accounting
1. Collect all rents and other charges when due.
2. Pursue delinquent accounts with notices as required by law and, where authorized, coordinate eviction proceedings through Owner's attorney or Manager's approved counsel.
3. Deposit all Collected Rent into the Trust Account described in Section 7 within the time required by law (typically no later than the next banking day).

C. Maintenance and Repairs
1. Arrange for routine maintenance, repairs, and replacements necessary to keep the Properties in good working order and in compliance with applicable codes and the terms of the Leases.
2. Obtain competitive bids for work exceeding $[[Maintenance Bid Threshold - e.g., 500]] per occurrence and obtain Owner's prior written approval for any single repair or capital item exceeding $[[Owner Approval Threshold - e.g., 1,000 or 5% of monthly rent per unit]], except in emergencies threatening life or property.
3. Maintain a network of licensed, insured vendors and contractors.
4. Perform or arrange for periodic property inspections (at least [[quarterly / semi-annually]]) and provide Owner with written reports.

D. Compliance and Legal
1. Comply with all applicable federal, state, and local laws, including but not limited to the Fair Housing Act (42 U.S.C. § 3601 et seq.), state fair housing statutes, landlord-tenant acts, rent control or stabilization ordinances (if any), and lead-based paint disclosure rules.
2. Maintain required licenses and ensure all advertising and practices comply with applicable regulations.
3. Upon Owner's direction, coordinate with legal counsel for evictions, lease enforcement, and other legal matters. Manager is not authorized to practice law.

E. Recordkeeping and Reporting
1. Maintain accurate books and records for each Property.
2. Provide reports to Owner as specified in Section 8.

5. Authority and Limitations

Manager is authorized to act as Owner's agent with respect to the day-to-day operation of the Properties within the scope of this Agreement. Manager shall not, without Owner's prior written consent:

1. Enter into any Lease for a term longer than [[Max Lease Term - e.g., 12 or 24 months]] or at rents below Owner-approved minimums.
2. Make any capital expenditure or repair exceeding the thresholds in Section 4.C.
3. Institute legal proceedings in Owner's name (except as expressly authorized for routine collections or as directed).
4. Borrow money or pledge the Properties or their income as security.
5. Make any representation or warranty regarding the Properties that is not authorized in writing by Owner.
6. Sell, exchange, or otherwise dispose of any Property.

Manager shall at all times act in Owner's best interest and shall disclose to Owner any actual or potential conflicts of interest.

6. Compensation and Fees

Owner shall pay Manager the following fees:

Manager may also charge tenants application fees, late fees, and other charges permitted by the Lease and law; such fees may be retained by Manager or shared as disclosed in writing.

All fees are earned when the corresponding service is rendered or rent is collected. Manager shall provide Owner with a detailed monthly statement showing all fees charged.

7. Trust Accounts, Funds Handling, and Owner Distributions

Manager shall maintain one or more separate trust or escrow accounts ("Trust Account") in a federally insured depository institution for all security deposits, prepaid rents, and other funds belonging to Owner or tenants, as required by state law. Manager's operating funds shall not be commingled with trust funds.

Manager shall:

1. Deposit all Collected Rent and tenant funds into the Trust Account promptly.
2. Pay operating expenses, mortgage payments (if authorized), taxes, insurance, and other approved disbursements from the Trust Account or Owner's operating account as directed.
3. Remit Net Operating Income (or other agreed distribution amount) to Owner on a [[monthly / quarterly]] basis, less any reserves or holdbacks authorized by Owner, within [[10 - 15]] business days after the end of each accounting period.
4. Maintain detailed ledgers for each Property and each tenant security deposit.
5. Reconcile the Trust Account monthly and provide Owner with bank statements upon request.

Owner authorizes Manager to retain from Gross Receipts sufficient funds to cover anticipated operating expenses, reserves, and Manager's fees. Any shortage shall be funded by Owner within [[10]] days of notice.

Security deposits shall be handled strictly in accordance with applicable state landlord-tenant law. Interest, if required, shall be paid or credited as mandated.

8. Reporting and Owner Statements

Manager shall furnish Owner with the following reports:

1. Monthly Statement - within [[10 - 15]] days after month-end: rent roll, collections, delinquencies, disbursements, fees, and cash position for each Property.
2. Quarterly / Annual Operating Statement - summary of income and expenses vs. budget (if budget provided by Owner).
3. Year-End Tax Package - Form 1099 and summary information as needed for Owner's tax preparation (by [[January 31]] or as required).
4. Inspection Reports - written reports following each scheduled property inspection.
5. Ad-Hoc Reports - upon reasonable request, at Owner's expense if significant additional work is required.

Owner shall have online portal access (if provided by Manager) for real-time rent rolls and document access. All reports shall be in a form reasonably acceptable to Owner.

9. Insurance

Manager shall maintain, at Manager's expense:

• Professional liability (errors & omissions) insurance with limits of at least $[[1,000,000]] per claim / $[[2,000,000]] aggregate.
• General liability insurance of at least $[[1,000,000]] per occurrence.
• Workers' compensation as required by law for Manager's employees.
• Fidelity / crime coverage for employee dishonesty in an amount not less than $[[100,000]] or one month's gross rents, whichever is greater.

Owner shall maintain property insurance, liability insurance, and any other coverage required by lenders or law on the Properties, naming Manager as additional insured where appropriate. Manager shall be named as additional insured on Owner's liability policy with respect to Manager's management activities.

10. Term and Termination

Initial Term: This Agreement shall commence on [[Start Date]] and continue for an initial term of [[12 / 24 / 36]] months (the "Initial Term"), and shall automatically renew for successive [[12]]-month periods unless terminated as provided herein.

Termination by Notice: Either party may terminate this Agreement for any reason upon [[30 / 60 / 90]] days' prior written notice to the other party.

Termination for Cause: Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure within [[15 / 30]] days after written notice specifying the breach (or immediately if the breach is not curable).

Effect of Termination:
- Manager shall deliver to Owner or Owner's designee all keys, leases, records, funds, security deposits (with ledgers), and other property of Owner within [[10 - 15]] business days after termination.
- Manager shall cooperate in an orderly transition.
- Owner shall pay all accrued but unpaid fees through the effective termination date.
- Provisions regarding indemnification, records, and trust account reconciliation shall survive termination.

11. Default and Remedies

If either party defaults in the performance of any material obligation and fails to cure after notice as provided above, the non-defaulting party may pursue all remedies available at law or in equity, including termination and recovery of damages. Manager's liability for any single loss or series of related losses shall be limited to the fees actually received by Manager under this Agreement during the [[12]] months preceding the claim, except in cases of gross negligence, willful misconduct, or fraud.

12. Indemnification

Owner shall indemnify, defend, and hold harmless Manager and its officers, employees, and agents from and against any and all claims, damages, losses, costs, and expenses (including reasonable attorneys' fees) arising out of or related to the ownership, condition, or operation of the Properties, except to the extent caused by Manager's gross negligence, willful misconduct, or material breach of this Agreement.

Manager shall indemnify, defend, and hold harmless Owner from and against claims arising solely from Manager's gross negligence, willful misconduct, or material breach of this Agreement or applicable law in the performance of its duties hereunder.

The indemnification obligations shall survive termination of this Agreement.

13. Licensing Disclosure and Professional Standards

Manager represents and warrants that Manager holds a current real estate broker's license (or property manager license where required) in good standing in the state(s) where the Properties are located. License number(s): [[License Number(s) and State(s)]].

Manager shall comply with the Code of Professional Ethics of the Institute of Real Estate Management (IREM) or equivalent professional standards. Manager shall not engage in any activity that would constitute a violation of state real estate licensing law or consumer protection statutes.

Owner acknowledges that Manager may represent other property owners and that such representation does not constitute a conflict unless it involves the specific Properties covered by this Agreement.

14. Notices