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You hereby agree that you are a legal representative or owner of the bank account entered above and authorize Kettle & Oak Inc to debit monthly management fees and other repair, maintenance and miscellaneous fees.
In consideration of the covenants herein contained, the parties hereto agree as follows:

1. Appointment. The Owner hereby appoints the Agent, and the Agent hereby accepts appointment, on the terms and conditions hereinafter provided, as the Owner’s exclusive agent to manage, rent, lease and operate the property/properties as listed in correspondence and/or under management (hereinafter referred to as the “Premises”).

2. Term and Renewal. The term of this Agreement shall be for 1 months, beginning on the date above, and shall thereafter automatically renew for 1 month additional periods on the same terms and conditions as are herein contained unless on or before 30 days prior to the expiration of any period, either party hereto notifies the other in writing that it elects to terminate this Agreement.

3. Responsibilities of Agent. The Owner agrees to give the Agent the following authority and powers (all or any of which may be exercised in the name of the Owner) and agrees to assume all expenses in connection therewith:

3.1. To prepare a management plan with the Owner that includes an operating budget, on-site staffing and market analysis along with recommendations, for approval by Owner;

3.2. To cause to be hired, paid and supervised all persons necessary to be employed in order to properly maintain and operate the Premises who, in each instance, shall be the Owner’s and not the Agent’s employees, and cause to be discharged all persons unnecessary or undesirable and execute and file all returns and other instruments and perform all acts required of the Owner as an employer with respect to the Premises;

3.3. To cause the Premises to be maintained in such conditions as may be deemed advisable by the Owner, and cause routine repairs and incidental alterations of the building to be made, including, but not limited to, electrical, plumbing, carpentry, masonry and other routine repairs and incidental alterations as may be required in the course of ordinary maintenance and care of the Premises. Repairs or alterations involving an expenditure in excess of $500.00 per service and not to exceed $1,000 per calendar month per unit or property with the prior written approval of the Owner, except that emergency repairs, i.e., those immediately necessary for the preservation or safety of the Premises or for the safety of the tenants of the Premises or other persons, or required to avoid the suspension of any necessary service in or to the Premises may be made by the Agent irrespective of the cost thereof, without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner in order to obtain such approval;

3.4. To recommend, and with the approval of the Owner, cause all such acts and things to be done in or about the Premises as shall be necessary or desirable to comply with any and all orders or notice of violations affecting the Premises placed thereon by any federal, state, county or municipal authority having jurisdiction thereover, except that if failure promptly to comply with any such order or violation would or might expose the Owner or the Agent to criminal liability, the Agent may cause such order or notice to be complied with without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner to obtain such approval, it being understood that the Agent shall notify the Owner promptly after receipt of any order or notice of violation, as aforesaid;

3.5. To enter into all necessary or desirable service contracts in respect of the repair and operation of the Premises, including without limitation contracts for electricity, gas, air conditioning, equipment maintenance, water treatment, telephone, janitorial, landscaping, window cleaning, rubbish removal, snow removal, fuel oil, detective agency protection, vermin extermination, architects’ and engineers’ services required for the planning and supervision of alterations and/or improvements made or proposed to be made to the Premises, but any such contract having a term longer than one (1) year or requiring an annual payment in excess of $5,000 (five thousand dollars) must be authorized in writing by the Owner;

3.6. To purchase all supplies which shall be necessary to properly maintain and operate the Premises. The Agent may receive commissions obtained for purchases;

3.7. To check all bills received for services, work and supplies ordered in connection with maintaining and operating the Premises and pay or cause all such bills to be paid from funds furnished by the Owner;

3.8. To advise on the proper insurance coverage for the Premises as well as for the Owner and the Agent in regard to the Premises and the operation thereof, and cause such insurance to be obtained and/or maintained (if obtainable), at the Owner’s expense, in such amounts and through such carriers as the Owner shall designate and approve;

3.9. To list, offer for lease, lease and renew existing leases for space in the Premises on terms to be determined by the Owner, and cooperate with any other brokers with whom the Agent, in its discretion, may list space in the Premises for rent; provided, however, that the commission payable to any other such brokers shall not exceed the commission rate then generally prevailing in the area (typically one month rent for a 12-month lease);

3.10. To prepare, under the supervision of the Owner’s attorneys, lease documents for all space in the Premises which may be rented;

3.11. To supervise the moving in and out of tenants and subtenants and arrange the dates thereof so that there shall be a minimum of disturbance to the operation of the Premises and of inconvenience to other tenants;

3.12. To bill, or cause to be billed, tenants for rent and other charges;

3.13. To use its best efforts to collect or cause to be collected rent and other charges, and, when and if directed by the Owner, serve notices upon tenants to quit and surrender space occupied by them;

3.14. To sue on behalf of the Owner, for rent and other charges which may at any time be or become due, as aforesaid, from any tenant, and institute summary proceedings to recover possession of space in the Premises; and, when expedient, to settle, compromise, and release such actions or suits;

3.15. To handle tenants’ security deposits and to comply with applicable state and local laws concerning the Owner’s responsibility for security deposits and interest thereon, if any;

3.16. To maintain in a manner customary and consistent with generally accepted accounting principles, a system to which shall be entered fully and accurately each and every financial transaction with respect to the operation of the Premises. To prepare and render to the Owner, monthly statements of operations and such other reports on a monthly basis;

3.17. To keep Owner informed of the financial status and physical condition of the Premises and other items that Owner should reasonably be made aware of;

3.18. To consider and, when reasonable and consistent with the Owner’s lease obligations, attend to complaints of tenants;

3.19. To cause to be prepared and filed all necessary forms relating to the maintenance and operation of the Premises required by any federal, state, county or municipal authority having jurisdiction thereover;

3.20. To set up and maintain orderly files containing rent records, insurance policies, leases and subleases, correspondence, receipted bills and vouchers and all other documents and papers pertaining to the Premises and the operation and maintenance thereof, the same to be and at all times to remain the property of the Owner, and the Agent shall upon request of the Owner make same available to the Owner, and the Owner’s accountants and attorneys;

3.21. To cooperate with the Owner’s accountants and auditors in regard to the annual audit or any periodic audits of the books of account of the Owner and the preparation of percentage and escalation rent statements to be delivered to tenants;

3.22. To cooperate with Owner’s accountants in regard to the preparation and filing on behalf of the Owner of federal, state, city and any other income and other filings required by any governmental authority;

3.23. To, when the books of assessed valuations of the taxing authority having jurisdiction over the Premises are opened for public inspection in each year, ascertain the assessment of the Premises and the land on which it is located, report such assessments to the Owner and, if requested by the Owner, cooperate with the Owner’s attorneys or other designated representatives in the preparation of applications for correction of the assessed valuation;

3.24. To generally, do all things reasonably deemed necessary or desirable for the proper management of the Premises; and

3.25. To file for evictions on behalf of the Owner, as well as represent the Owner in legal proceedings and court appearances whereby applicable,

3.26. To perform, for the Owner’s account and on its behalf, any lawful act and everything lawful and necessary or desirable in order to carry out the Agent’s agreements contained in this Agreement. It is expressly understood and agreed that everything done by the Agent under the provisions of this Agreement shall be done as agent of the Owner, and any and all obligations, costs or expenses incurred by the Agent in the performance of its obligations under this Agreement shall be borne by the Owner and not by the Agent. It being expressly understood, however, that the Agent shall not be compensated for (i) the costs incurred by the Agent in maintaining its own office staff, and (ii) its general overhead. Any payments made by the Agent hereunder shall be made out of such funds as the Agent may from time to time hold for the account of the Owner or as may be provided by the Owner. The Agent shall not be obligated to make any advance to, or for the account of, the Owner or to pay any amount except out of funds held or provided aforesaid nor shall the Agent be obligated to incur any extraordinary liability or obligation unless the Owner shall furnish the Agent with the necessary funds for the discharge thereof.

4. Banking. All funds of the Owner in the possession of the Agent shall be held by the Agent for the Owner, in trust, and shall be deposited by the Agent in JP Morgan Chase Bank, in a special account maintained by the Agent, with other funds collected by the Agent for its own account or as agent for others, or with the Agent’s own funds and shall remain on deposit under disbursed in accordance with the terms of this Agreement.

5. Compensation. The Owner Agrees to pay the Agent, during the term of this Agreement, each month:

5.1. An amount equal to $120/unit/month (or the negotiated amount). This applies to both vacant and rented units. Fees are due on the 1st of every month by ACH or EFT. If the transaction is declined, the amount will be added to the outstanding balance. Outstanding balances will incur a fee of $100 on the 10th of each following month. Non-sufficient funds or dishonored checks will also incur a fee of $25 per returned item. Agent has the right to deduct property management fees and other receivables from any monies outstanding to Owner, by Agent or tenant.

5.2. Other Billable Services. The following are other billable services that the Agent may perform after payment by Owner:
1) Install a lock box;
2) Prepare unit for rent – clean home and optimize interior appeal;
3) Manicure landscaping to increase curb appeal;
4) Perform a background check to verify identity, income, credit history, rental history, etc.;
5) Provide and oversee maintenance crew;
6) Maintain outdoor areas (where applicable):
a. Leaf and snow removal;
b. Landscaping;
c. Removing trash and debris;
7) Maintain and monitor a 24-hour emergency repair hot-line;
8) Hire collection agencies when necessary;
9) Larger renovation or rehab projects;
10) Refer to general contractor to oversee the work (where applicable);
11) Clean unit on move-out and perform and needed repairs or upgrades;
12) Re-key the locks;
13) Special services such as video tours of vacant properties;
14) Commissions paid to leasing agents and real-estate brokers;
15) Move-in fees (typically paid by tenants);
16) Other services not covered by the standard property management contract;

5.3. Services Outside Regular Hours and Schedule. Agent will be available to tenants during the following days and times: Mon – Fri: 9AM to 6PM; Sat: 10AM – 3PM; Closed: Sundays and public holidays. If the Agent reasonably expects that the time required to carry out the Agent’s duties will exceed 5 (five) hours in any week, Agent will notify Owner and obtain Owner’s consent before working such extra hours, except in the event of an emergency. Extra hours worked due to an emergency will be reported to Owner within 48 hours and will be billed at $50/hour.

6. Indemnity. The Owner shall indemnify, defend and save the Agent, including its officers, directors, agents, and employees, harmless from and against all claims, losses, costs and liabilities arising out of damage to property, or injury to, or death of persons (including the property and persons of the parties hereto, and their agents, subcontractors and employees) occasioned by or in connection with the use, management, operation, ownership, maintenance or control of the Premises unless caused by the negligence or willful misconduct of the Agent.

7. Termination. This Agreement may be terminated by either party, without cause, upon thirty (30) days written notice to the other. The Owner shall also be entitled to terminate the Agreement upon thirty (30) days prior written notice to Agent should Agent fail to observe the terms of this Agreement. Within 30 days of termination of this Agreement, the parties shall account to each other with respect to all uncompleted business, and the Agent shall deliver to the Owner all leases, subleases, corporate files, books and records and other instruments relating to the Premises and the Owner that may be in the possession of the Agent, against payment to the Agent of all fees required to be paid hereunder through the date of termination of this Agreement.

8. Assignment. This Agreement may not be assigned by the Agent without the prior written consent of the Owner. Subject to the provisions hereof, all of the covenants, conditions and obligations contained in this Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the Owner and the Agent to the same extent as if each successor and assign were in each case named as a party to this Agreement.

9. Severability. If any term or provision of this Agreement or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law.

10. Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Illinois.

11. Notices. All notices, demands, requests or other communications which may be or are required to be given, served or sent by either party to the other, shall be in writing and delivered personally or by certified mail, return receipt requested, with postage prepaid, at the address first above mentioned. A party may change the name or address for the giving of notice provided above by written notice to the other party.

12. Entire Agreement. This Agreement and the documents to which reference in it has been made, shall be construed together and constituted the entire, full and complete agreement between the Owner and the Agent, and there are no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein, which are of any force or effect.

13. Modifications. This Agreement may not be changed or modified except by written document signed by both the Owner and the Agent.

14. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original, but all such counterparts together shall constitute but one and the same instrument.
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