414.797.1819 | hello@whmilwaukee.com

1. Term of Agreement

This Agreement will begin on the set date and continue on a monthly basis until terminated by either party.  This Agreement may only be terminated by written notice being delivered to the other party at least thirty (30) days prior to the termination date with the exception given the following conditions, in which case Manager reserves the right to terminate services immediately:

1. Manager can no longer operate the Property in compliance with local, state or federal laws;
2. The personal safety of Manager or Manager’s Employees is at risk by visiting the Property or proceeding under this Agreement;
3. Owner lists property for sale with an agent/brokerage other than Manager.

2. Responsibilities of Manager

The Manager shall be responsible for the following:

1. Manager agrees to advertise for Residents, show and lease the Property,
2. Manager agrees to screen and approve Residents in accordance with Managers screening criteria and in compliance with all federal, state and municipal laws,
3. Manager agrees to accept rental applications, credit check fees, earnest money, security deposits and any other amounts allowed by law.  Manager will hold security deposit funds in a FDIC insured trust account,
4. Manager agrees to prepare, negotiate, renew, and terminate rental agreements and other rental documents.  All rental documents are to be provided to Owner at Owner written request for approval,
5. Manager will collect rent and other amounts from Residents and issue receipts as necessary,
6. Manager will deposit all amounts collected on behalf of Owner into a trust account with a banking institution insured by the FDIC,
7. Manager agrees to maintain accurate and complete records of all income and expenses resulting from the management of Property.  Said records are the property of Owner and are open to inspection by Owner during reasonable times,
8. Manager will provide Owner with a detailed statement of all income and expenses resulting from the management of the Property,
9. Manager will disburse to Owner the net proceeds from the Property less management fees, expenses, and other amounts authorized under this Agreement.  Disbursements are conducted electronically via ACH monthly on the 15th of the month, where a weekend, Holiday or other banking interruption does not delay,
10. Sign and serve notices for Non-Payment of Rent, breach, or termination as Manager deems appropriate and in compliance with all laws,
11. To file and prosecute eviction and/or collection actions to recover possession of the Property and/or past due rent and other sums with Owner’s approval.  All costs of litigation including, but not limited to, court costs and attorney’s fees are to be paid by Owner unless otherwise agreed to in writing,
12. To enter into utility and service contracts including, but not limited to, contracts for trash removal, cleaning, lawn care, water, electric, gas, and pest control, as Manager deems necessary for the maintenance of the Property.

3. Maintenance and Repairs

1. Manager agrees to make all necessary repairs, improvements, and alterations necessary to maintain the Property at competitive market rates,
2. Manager may purchase or rent, at Owner’s expense, all material, equipment, tools, appliances, supplies, and services necessary for proper maintenance and repair of the Property,
3. Manager agrees to obtain prior approval from Owner for any single expense greater than $250 within 6-months of this Agreement and greater than $500 thereafter, except when in the opinion of Manager, such maintenance or repairs are necessary to protect the Property from damage or to maintain services to Resident as required by law and/or their rental agreement,
4. Manager will attempt to contact Owner prior to initiating any emergency maintenance or repairs but if Manager does not receive a timely response from Owner, Manager may proceed with the emergency maintenance or repairs,
5. Manager may hire independent contractors, at Owner’s expense, as deemed necessary, but Manager shall have the responsibility for supervising the independent contractors.  Acting in this capacity will result in a 10% mark-up of the vendor’s invoice, payable to Manager,
6. Manager will handle all Resident inquiries, maintenance, or other requests, and respond in a timely manner in relation to the nature and urgency of the inquiry,
7. Owner shall maintain an Operating Reserve in the amount of at least $500 for each single-family home and $100 per unit additional for multi-family properties. Manager to use reserve for payment of expenses related to the management of the Property.  If the Operating Reserve falls below the established amount at any time, then there will be no net proceeds for Manager to disburse to Owner.

4. Compensation of Manager

Owner agrees to pay Manager the following amounts as compensation for the tasks to be performed hereunder:

1. Monthly Management Fee:
   • $108 per Home
2. $88 flat fee for all new Residents placed by Manager, a 12-Month Eviction Guarantee to accompany this fee as outlined on the Eviction Guarantee Addendum,
3. $208 Flat fee for Resident renewal. Owner may extend the 12-Month Eviction Guarantee for an additional $99 fee at time of Resident renewal, Rent assistance Resident renewals an additional $99,
4. $308 Flat fee for Resident move-out,
5. $108 setup fee per vacant unit, $208 setup fee per occupied unit,
6. Collected late fees paid to Manager and to include certified mailings of 5-day notice notices,
7. $258 Flat fee for eviction coordination, to include all administration tasks and up to one court visit by Manager (attorney, service and Sheriff fees not included),
8. $88 per hour for duties outside of normal property management operations including, but not limited to, account review in excess of 1 hour per month, insurance claim, city fine and appraisal coordinations.  Manager to inform Owner prior to accruing expenses for these charges.

5. Other Manager Compensation

Manager may receive additional compensation, payable by Residents, Vendors or Third Parties, in relation to services under this Agreement.  This compensation may include, but is not limited to:

Credit check fees, Resident benefit packages, returned check fees (NSF), rent processing, lease preparation, pet administration, lease break, lease assignment, utility concierge and risk mitigation.

6. Bill Payment and Owner Funds

On a monthly basis Manager shall deduct management fees, expenses for repairs, any payments made on behalf of Owner, and any other amounts authorized under this Agreement from all amounts collected on behalf of the Owner.  If the amounts collected are less than the amounts to be deducted, then Owner shall submit funds to Manager within ten (10) days of receipt of Owner statement reflecting the shortage.

In the event Owner’s account has a negative balance at any point during a one month period, whether intentional or not, a 1% overdraft fee (12% APR) will be assessed on a monthly basis until the fee is paid and the account balance is restored to more than $0.

7. Business Expenditures

Manager will pay all expenditures necessary for tools, equipment and supplies required to complete Manager’s duties hereunder.  Owner shall reimburse Manager within (10) ten days, upon written request, for all costs expended by Manager for the maintenance, repair and improvement of Property.

8. Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Manager and the administrators, successors, heirs and assigns of Owner. Notwithstanding the preceding sentence, Manager shall not assign its interest under this Agreement except in connection with the substantial sale of its business.  In the event of such sale, Manager shall be released from all liability under this Agreement upon the express assumption of such liability by its assignee.

9. Indemnification

Owner agrees to indemnify and hold Manager harmless for losses, damages, costs, and expenses, including attorney’s fees, arising out of this Agreement unless caused by Manager’s gross negligence or intentional wrongdoing.

10. Insurance

Owner agrees to carry comprehensive insurance covering the Property in an amount that Owner deems appropriate for replacement coverage, with a minimum of $1,000,000 liability coverage, and direct the company issuing the insurance to name Manager as an additional insured under the policy’s liability coverage.  A fee of $49 per month per property to be payable to Manager in the event this certificate is not provided by Owner.

11. Compliance with Laws

Owner shall comply with all laws, ordinances, regulations, and lease terms, present or future, in any way relating to the ownership, use or maintenance of the Property throughout the term of this Agreement, and Owner shall indemnify the Manager against all liability it may incur due to the Owner’s failure to comply with such ordinances, regulations and lease terms.  This means Owner is agreeing to pay for Manager’s attorney’s fees and any fines, fees, penalties, judgements, and/or other costs incurred by Manager as a result of Owner’s failure herein.

12. No Waiver

The waiver or failure of either party to exercise in any respect any right provided in this Agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.

13. Notices

Any notice required by or given in connection with this Agreement shall be in writing and shall be given to the appropriate party by personal delivery or a recognized overnight delivery service such as FedEx, or by e-mail, to the parties hereto as follows:

If to the Owner:

Name
Address
Email

If to the Manager:

Welcome Home Milwaukee
662 S 94th Place
West Allis, WI 53214
Matt.M@mkereis.com

14. Entirety/Governing Law/Severability

The terms and conditions set forth herein constitute the entire agreement between the parties and supersede any communications or previous agreements with respect to the subject matter of this Agreement. There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein. Any change to this Agreement must be in writing and signed by both parties. This Agreement shall be construed and enforced according to the laws of the State of Wisconsin. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable provision had never been included.

15. Default

In the event of a default by either party, this Agreement may be terminated if the default is not cured within fifteen (15) days after service of written notice of default to the other party. In the event that any legal proceedings are filed as a result of any default under this Agreement, the prevailing party is entitled to reimbursement of all costs and expenses incurred, including but not limited to, attorney’s fees.

16. Electronic 1099 Consent

Owner agrees to receive their annual income reporting, IRS form 1099-K, electronically via email delivery to the email address provided on page 4 of this Agreement.

17. Owner Pet Selection

The Property under this Agreement will handle pets as follows:

• Owner shall accept cats
• Owner shall accept small dogs
• Owner shall accept large dogs
• Owner shall accept all types of pets
• Owner will not accept any pets