Prroperties Investor Terms of Service

Residential Tenancy Agreement With Subletting

Owner (“Owner”) and Prroperties LLC, (“Tenant”), agree on this _____ day of ______________ (“Agreement Date”) as follows:

1. INTRODUCTION: Owner hereby rents and grants Tenant the exclusive right to rent, operate and sublease the property known as:

______________________________________________ (property address, city, state, zip)

(the “Premises”) upon the terms below. No other portion of the building (the “Building”) where the Premises is located is included for lease unless expressly provided for in this Residential Tenancy Agreement (the “Agreement”).

Furniture: _____________ Storage: _____________

Parking: _____________

2. TERM: The term of this rental shall begin on _____________ and end on _____________, and thereafter shall be month-to-month on the same terms and conditions as stated herein, save any changes lawfully made until terminated. Owner agrees to deliver keys for and possession of the Premises to Tenant by 9:00 AM on (the “Key Handoff Date”) to allow Tenant to inspect, repair, furnish, install utilities in, and test the Premises before the commencement of the term of this rental.

3. RENT: The initial monthly base rent for the Premises shall be US $_____________ for the first year of the Agreement and will increase by 2.5% annually for the duration of the Agreement. All rent is due and payable on the 8th day of each month (the “Due Date”) without offsets, deductions, or credits. All rent shall be payable to Owner, or Owner’s designated representative. Tenant agrees always to

pay rent by direct deposit, or online if online payments are made available by Owner, the choice of which is at Tenant’s discretion, and not use personal check, cashier’s check, money order, or cash unless specifically requested by Owner and agreed to by Tenant. Rent paid via personal check, cashier’s check, money order or cash shall be paid to Owner, or Owner’s designated representative, at the following address:

during normal business hours, or at such other place designated by Owner. Rent for any partial month shall be pro-rated at the rate of 1/30th of the monthly rent per day.

Tenant shall receive an incentive of free rent (the “Prroperties Fee”) for the first month of this Agreement. Tenant’s first payment of rent will be on _____________ and in the amount of: $_____________.

Tenant shall pay owner a 2.5% annual increase for the duration of the contract. The proposed rent schedule for the Premises is as follows:

4. LATE PAYMENTS: Tenant and Owner agree that Owner will sustain costs and damage as a result of any late payment of rent but that it will be impracticable or extremely difficult to fix the actual damage. Therefore, the following sum represents a reasonable and fair estimate by Owner and Tenant of the actual damage that would be sustained. Tenant agrees to pay a late charge equal to US $120 for any payment of rent not received by Owner within seven (7) calendar days of the Due Date. Owner may not impose interest on the nonpayment of the late charge or impose the late charge more than once for the particular late payment of Rent. The provision for payment of a late charge does not constitute a grace period, and Owner may serve a Three-Day Notice to Pay Rent or Quit on the day after the Due Date. Owner and Tenant agree that Tenant paying rent late on four (4) separate occasions within any twelve (12) month period shall constitute habitual late payment of rent and may be considered a just cause for eviction.

5. ASSIGNMENT AND SUBLETTING: Tenant shall be permitted to assign this Agreement to any affiliate or subsidiary by giving Owner five (5) calendar days advance written notice of any such assignment. Owner agrees that Tenant may sublet the Premises or any portion of the Premises and

that this Agreement and Owner’s initials directly below this Paragraph signify written consent of Owner to allow Tenant to sublet the Premises.

Owner’s Initials:

6. SUBLETTING TERMINATION: Tenant shall have the authority to sign and serve notices and terminate sublets as deemed reasonable by Tenant and to initiate and prosecute eviction actions to remove Subtenant and recover possession of the Premises. Tenant is further authorized to sue for and recover rent and when expedient, to compromise, settle, and release such actions or suits or reinstate such tenancies.

7. SUBLETTING ADVERTISING: Tenant may advertise the Premises to prospective subtenants as is available for rent and may arrange for ads, signs on the Premises, photographs, MLS Listings, email blasts, and other forms of advertising.

8. SUBLETTING NEGOTIATION: Tenant shall handle all negotiations with the Subtenant and prospective Subtenants. Tenant shall handle all negotiations with Subtenant with respect to leases. Owner agrees to promptly forward all inquiries about leases to Tenant. Tenant is authorized to establish and change or revise all rents, fees, or deposits, or any other charges chargeable with respect to subletting the Premises.

9. SUBTENANT RENT COLLECTION: Upon execution of a sublet lease with Subtenant, Tenant shall collect from the Subtenant all prorated rents plus any Security deposits. Tenant shall collect the rents from Subtenant and other income from the Premises promptly when such amounts come due. These funds shall go directly into Tenant’s accounts.

10. SUBTENANT SECURITY DEPOSITS: Security deposits from Subtenants shall be placed in Tenant’s account and, if held in Tenant’s account, pay from such account all interest on subtenants’ security deposits if required by local law or ordinance. Owner shall not be responsible to subtenants for return of security deposits and all interest due on security deposits held by Tenant.

11. MAINTENANCE: Tenant shall, at Tenant’s expense, at all times maintain the Premises, furnishings and appliances, if any, in a clean and good condition and shall surrender the same upon termination of tenancy in the same condition as received (excepting normal wear and tear and other items detailed in any addendums to this Agreement). Tenant is not responsible for normal wear and tear and is also not responsible for furniture and appliance failures not caused directly by Tenant, Tenant’s subtenants, Tenant’s guests, or Tenant’s invitees. Tenant shall contract for or undertake the making of all necessary repairs and the performance of all other necessary work for the benefit of the Premises including all required alterations to properly maintain the Premises. Tenant shall make no improvements, alterations, or repair work costing more than $500.00 without the prior authorization of the Owner. Should Owner elect to undertake any repair work, Owner must complete the work within seventy-two (72) hours of committing to undertake the work, unless the repair is essential to habitability and requires immediate remedy under applicable law. Tenant reserves the right to withhold rent due to Owner’s delay. Tenant is authorized to make emergency repairs in order to keep the Premises habitable according to Department of Real Estate regulations. Tenant shall take reasonable precautions to safeguard the Premises and its contents; however, it is agreed that Tenant shall not be held liable for the cost of replacement of Owner’s personal property in case of theft or vandalism. Owner shall not hold Tenant responsible for the maintenance or upkeep of

any property held in common within a larger association (condo HOA’s, TICs), the yard or lawn. Any maintenance expenditure by Tenant will either be invoiced separately or be deducted from a following month’s rent.

12. INSPECTION CONTINGENCY: This Agreement is contingent upon the Tenant having the right to engage an inspector to determine the structure, condition, utilities access, lighting conditions, neighborhood traffic, current and planned neighborhood construction, neighborhood safety and noise levels of the Premises and Building as well as the behavior of occupants, tenants, neighbors, contractors, vendors, managers, agents, and owners of the Building and other units in the Building, if any. Tenant will also inspect any association (HOA’s, TICs, etc.) rules and regulations, including restrictions on leasing, advertising, and installing lockboxes or digital locks. The inspection shall be conducted and the contingency concluded within 21 days of the lease start date. The inspection report and association rules and regulations must be satisfactory to Tenant and should Owner and Tenant fail to reach an agreement on repairs/replacements to be made and/or abatement of rent due by Tenant, all deposit monies will be immediately refunded and all Agreement obligations considered null and void.

13. CONTRACTS/SERVICES: Tenant may contract, hire, supervise and/or discharge firms and persons, including utilities, required for the operation and maintenance of the Premises. Tenant may perform any of these duties through attorneys, agents, employees, or independent contractors, and shall not be responsible for their acts, omissions, defaults, negligence, and/or costs of same.

14. DAMAGES TO PREMISES: If the Premises is damaged by fire, flood, earthquake, or from any other cause so as to render them uninhabitable and therefore destroyed, the tenancy is terminated, unless restored pursuant to law.

15. ENTRY AND INSPECTION: Owner shall give Tenant reasonable notice of the intention of Owner/Owner’s agent to enter the Premises and shall enter only during normal business hours, unless otherwise agreed by Tenant. For purposes of this Paragraph, normal business hours shall be defined as 9:00 AM to 5:00 PM, every day of the week. Tenant may not place any unreasonable restrictions upon such entry. If, however, Owner reasonably believes that an emergency exists (such as a fire or flood) which requires immediate entry, such entry may be made without prior notice to Tenant. If Tenant has, after written notice to cease, continued to deny Owner access to the Premises, as required by law, such failure is a substantial breach of this Agreement and is a just cause for eviction. If the Premises or the Building is required by any government agency or insurer to undergo inspections, repairs or alterations, Tenant agrees to cooperate fully with Owner so that all such inspections, repairs or alterations are made in as expeditious and efficient a manner as possible.

16. SMOKING: Smoking of any substance is not permitted in the Premises or in any common area of the Building. Tenant shall inform his or her guests or invitees of this smoking prohibition. Any breach of this provision by the Tenant shall be deemed a material breach of the Agreement and may be just cause for eviction. Tenant shall promptly notify Owner in writing of any incident where smoke is migrating into the Premises from sources outside of the Premises. Tenant is hereby informed that there may be rental units in the Building where smoking is permitted. Owner shall not be liable for any damages or injury to Tenant’s health or personal property, or any other person’s health or personal property, occurring on the Premises or any part thereof, in connection with the use of tobacco or tobacco products by any other resident or occupant in the Building.

Tenant acknowledges that other residents in the Building may be permitted to smoke inside of their units.

17. PETS:OwneracknowledgesTenantandTenant’ssubtenantsareallowedtohavepetsinorabout the Premises, even temporarily or with a visiting guest, at Tenant’s sole discretion. Owner shall not be liable for any damages or injury to Tenant’s health or personal property, Subtenant’s health or personal property, or any other person’s health or personal property, occurring on the Premises or any part thereof in connection with the presence of Tenant’s or Subtenant’s pets in or around the Building. Whether or not pets are allowed by Tenant under this Agreement, service animals shall be permitted as required or permitted by applicable law.

18. UTILITIES: Owner shall pay for the following utilities and services provided to the Premises: Water/Sewer, Garbage/Recycling, Gardener/Landscaping, Pool/Spa Servicing, Snow and Ice

Removal

Tenant shall pay directly for all other utilities, services and charges provided to the Premises. For utilities required to be paid directly by Tenant, Tenant must place all utilities in his or her name promptly. Nothing contained herein prevents Owner from passing through to Tenant utility costs as provided by law. To the extent that any utilities, services and charges provided to the Premises are not paid by Tenant as set forth above, Tenant agrees to only use such utilities, services and charges provided to the Premises which are reasonably necessary for the ordinary comfort and safety of Tenant to reside in the Premises. Excessive use of such utilities and services and charges provided to the Premises shall constitute a material breach of this Agreement. Use of utilities, services and charges caused by leaks, faulty equipment, faulty meters, or unknown or ambiguous causes, or any cause that is not the intentional act of the Tenant or any Subtenant, shall not be considered excessive use, and any charges associated with such use such shall be the responsibility of Owner. Tenant may not charge any device, including vehicles, in Building common areas or in designated parking/storage spaces without Owner’s express written consent. If Tenant sublets the Premises to a Subtenant, Tenant may allow Subtenant to place some or all utilities in Subtenant’s name. Nothing contained herein prevents Tenant from passing through to Subtenant utility costs as provided by law. If Owner pays for or provides Gardening, Landscaping, and/or Spa/Pool service, such service should be provided by professionally certified or licensed vendors approved by Tenant. If utilities or services required by this Agreement to be provided by Owner are deemed unsatisfactory to Tenant, Tenant may, at its sole discretion, pay for, provide, and charge back to Owner the cost of such utilities or services, including any additional fees or penalties charged by providers of such utilities or services, as well as an additional $500.00 reconnection fee.

19. OWNER RESPONSIBILITIES: Owner agrees to provide all necessary documents and records and fully cooperate with Tenant in all matters with respect to this Agreement as set forth herein, including but not limited to the following:

A. Owner's Representations: Owner acknowledges that entry of the Premises by Owner while the Premises is rented is in most cases not advisable and may be illegal. Owner represents that Owner holds title to the Premises and holds legal capacity to lease the Premises. Owner represents

that Owner is not bound by an agreement with another party for the sale, lease, management, or exchange of the Premises for the term of this agreement. Owner is legally obligated to disclose to Tenant any known condition that may materially affect the health or safety of an ordinary tenant. Owner represents that Owner has no knowledge of a condition concerning the Premises that materially affect the health or safety of tenants, except as stated herein or in the following addendum:

Owner represents that: (1) Owner has valid and rightful legal title and peaceable possession of the Premises and all its improvements and fixtures, unless rented, and has the legal capacity to rent the Premises; (2) Owner is not now a party to a listing agreement or a property management agreement with an agent for the sale, lease, rental, or management of the Premises;
(3) no person or entity has any right to purchase, lease, or acquire the Premises by virtue of an option, right of first refusal, or other agreement; (4) no delinquencies or defaults exist under any deed of trust, mortgage, or other encumbrance affecting the Premises; (5) the Premises is not under the direction of any court; and (6) all written information relating to the Premises provided to Tenant by Owner is true and correct. If Owner becomes delinquent under any lien, mortgage, deed of trust, or other encumbrance affecting the Premises, Tenant may inform any Subtenant occupying the Premises of such delinquency and/or Tenant may terminate this Agreement with seven (7) days prior written notice. If at any time during the term of this Agreement, Owner files for bankruptcy protection or undergoes an assignment for the benefit of creditors, Tenant at Tenant’s sole discretion, may terminate this Agreement with seven (7) days prior written notice.

Owner must at all times this agreement is in effect: (1) cooperate fully in good faith with Tenant to facilitate the showing and marketing of the Premises to prospective Subtenants and (2) not list the Premises or reproduce or use Tenant’s listings, descriptions, video, 3D tours, or photography of the Premises without the express written consent of Tenant and (3) not take or allow vendors or agents to take photographs, video, or 3D tours of the Premises without the express written consent of Tenant and (4) only enter into a listing or property management agreement with an agent for the sale, rental, leasing, or management of the Premises with agents approved by Tenant.

Owner understands that due to the expectations of Tenant’s subtenants, Tenant will incur costs due to any entry into the Premises, during the term of this Agreement, by Owner, Owner's agents, or vendors hired by Owner. Owner agrees to pay Tenant $250.00 per occurrence of open house, private showing, photography, appraisal, inspection, and/or similar related to the financing, refinancing, or listing for sale or lease of the Premises. Owner must still give 24 hour notice for such entry. The Premises is offered in compliance with Federal, State and Local anti-discrimination
laws.

B. Indemnification: Tenant shall not be liable for any damages or injury to any person, or to any property, occurring on the Premises or any part thereof, or in common areas thereof, unless such

damage is the proximate result of the negligent, intentional or unlawful act of Tenant, Tenant’s agents, or Tenant’s employees. Owner hereby expressly releases Tenant and/or Tenant’s agents from any and all liability for loss or damage to Owner’s property or effects whether in the Premises, garage, storerooms or any other location in or about the Premises, arising out of any cause whatsoever, including but not limited to rain, plumbing, leakage, fire or theft, except in the case that such damage has been adjudged to be the result of Tenant, Tenant’s employees, heirs, successors, assignees, subtenants and/or agents. Tenant assumes no liability whatsoever for any acts or

omissions of Owner, or any previous owners of the Premises, or any previous management or other agent of either. Owner shall indemnify, defend, and hold Tenant and its employees, agents, officers and directors harmless from liability for any and all claims, costs, suits and damages, including attorney’s fees, arising from any acts or omissions of Owner, or any previous owners of the Premises, or any previous management or other agent of either. Nor does Tenant assume any liability for previously unknown violations of environmental or other regulations which may become known during the period this Agreement is in effect. Any such regulatory violations or hazards discovered by Tenant shall be brought to the attention of Owner in writing, and Owner shall promptly cure them.

C. Insurance: Owner shall carry, at Owner’s own expense, public liability and extended coverage insurance and other such insurance as may be necessary or appropriate. Such insurance policy shall name Owner as insured, and their coverage shall be adequate to protect the interests of the Owner, substance and amounts reasonably satisfactory to Tenant. Owner agrees to provide Tenant with copy of the declaration page or duplicate copies of such documents within 30 days from the date of this Agreement. If the Premises is covered by a blanket policy with a condominium Homeowners Association, Owner shall provide Tenant with information regarding this policy, including, but not limited to, all information necessary to file a claim. Owner should check with their insurance agent as to the type of coverage needed on a “rental” property and a vacant property.

D. Compliance with Laws: Owner shall maintain the Premises in a condition that is fit for human habitation as required by any applicable civil codes or laws. Owner agrees to comply with or abide by any law prohibiting, or making illegal, discrimination on the basis of race, sex, creed, color, religion, national origin, familial status, or mental or physical handicap. If Owner shall fail or refuse to comply with or abide by any rule, order, determination, ordinance or law of any federal, state or municipal authority, or fail to authorize expedient repair or replacement of equipment necessary for the health, safety or welfare of Tenant or Subtenant, Tenant, upon giving twenty-four
(24) hours written notice may terminate this agreement. Tenant does not assume and is given no responsibility for compliance of the Premises or any building thereon or any equipment therein with the requirements of any building codes or with any statue, ordinance, law, or regulation of any government body or of any public authority or official thereof having jurisdiction, except to notify Owner promptly or forward to Owner promptly any complaints, warnings, notices, summonses received by Tenant relating to such matters. Owner represents that to the best of Owner’s knowledge the Premises and all such equipment comply with all such requirements, and Owner authorizes Tenant to disclose the ownership of the Premises to any such officials and agrees to indemnify and hold Tenant, its

representatives, servants, and employees, harmless of and from all loss, cost, expense, and liability whatsoever which may be imposed by reason of any present or future violation or alleged violation of such laws, ordinances, statues, or regulations.

E. Premises Condition: Owner should make Tenant aware of any material defect, environmental hazard, and any violation of any statute, ordinance, law, regulation of any governmental body or deed restriction on the Premises that would affect the health or safety of any tenant. Owner will remedy any conditions that affect the safety or health of a person on the property. If the Premises was built before 1978, Owner will complete an addendum regarding lead based paint. Owner authorizes Tenant to disseminate to prospective subtenants copies of the addendum completed by Owner.

Owner will protect, defend, indemnify, and hold harmless Tenant, Tenant's associates, and any prospective subtenants from any damages, costs, attorney's fees, and expenses arising from:
(i) Owner's failure to disclose, repair, or remedy any material defect or any condition affecting the health or safety of Tenant or a Subtenant: or (ii) Owner providing any incorrect information to Tenant, Tenant's associates, or any prospective subtenants.

F. Covenants, Conditions and Restrictions: If the Premises is in a community subject to Covenants, Conditions and Restrictions (CC&R's), Owner is responsible for providing Tenant with a copy of the CC&R's for the community within 5 days of commencement of Tenant’s lease. If Owner does not provide CC&R's, Owner agrees to be responsible for any and all HOA fees incurred by Tenant until CC&R's are provided to Tenant, and Owner may also be liable for the costs of re- leasing the Premises and/or Tenant’s leasing costs if the Tenant is unable to cure a persistent violation and must void the lease. Regardless of when CC&R’s are provided to Tenant, if community approval is required for Tenant to lease. sublease, or install digital locks or lockboxes on the Premises, Tenant shall not be liable for any rent until written approval is given and any Prroperties Fee or rent incentive will be extended by one additional day for each day of delay. If during term of Agreement, the CC&R’s or other community rules are amended, or if changes occur in the enforcement of the CC&R’s or other community rules, in any way such that Tenant’s use of the Premises is made more difficult or impossible, including but not limited to changing minimum lease lengths, changes to access restrictions, or preventing subleasing entirely, Tenant may, at Tenant’s discretion, terminate this Agreement early with respect to the entire Premises, so long as Tenant delivers to Owner at least seven (7) days prior, written notice that Tenant has elected to exercise this right.

G. Lead-Based Paint: Owner hereby represents that if Owner knows of any lead-based paint or lead-based paint hazards at the Premises that Owner will immediately notify Tenant so that Tenant can disclose any known information to subtenants and provide to subtenants any records available. Tenant may inform subtenants of any known hazards or records pertaining to lead-based paint and lead-based hazards.

20. TENANT RESPONSIBILITIES:

A. Communication with Owner: Tenant agrees to maintain communication with Owner regarding developments and interests related to the Premises. If Owner is unavailable or unresponsive for more than 24 hours through repeated inquiries in situations that require timely response, such as approval of a waiting applicant or coordination of urgent maintenance to the Premises, Tenant agrees to act on Owner's behalf in a diligent and judicious fashion.

B. Limitation of Liability: Tenant is not responsible in any manner for: (1) Personal injury to Owner or any subtenant resulting from acts of third parties

(2) Loss or damage of personal or real property due to vandalism, theft, or freezing water pipes If any loss, damage, or injury to the Premises or any person is caused by Tenant or Tenant's negligence and such loss or damage is covered and compensable under any insurance policy related to the Premises, Owner agrees, to the extent permitted by law, to hold Tenant liable only for Owner's deductible in such a policy and any other out-of-pocket expenses.

C. Insurance: Tenant shall carry, at Tenant's own expense, commercial liability insurance as may be necessary or appropriate. Such insurance policy shall name Tenant as insured, and their coverage shall be adequate to protect the interests of Tenant. Tenant shall provide Owner with copy of declaration page or duplicate copies of such documents upon Owner's request, within 30 days of Owner's request.

21. FAIR HOUSING: Owner/Agent and Tenant understand that the state and federal housing laws prohibit discrimination in the sale, rental, appraisal, financing or advertising of housing on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, age, mental or physical disability.

22. TERMINATION: If Tenant intends to vacate at the end of the original term of this Agreement, or for any other reason after the original term of this Agreement, Tenant must give owner at least thirty (30) days prior, written notice of Tenant’s intention to terminate the tenancy and vacate the Premises. Upon termination, Tenant shall completely vacate the Premises and any parking or storage areas; give written notice of Tenant’s forwarding address; and deliver all keys, furnishings, if any, and the Premises to Owner in the same condition as received excepting normal wear and tear. Rent shall be due and payable through the end of the notice period or the date Tenant vacates, whichever comes later. Tenant may rescind said notice within fourteen (14) calendar days after it is served on Owner without incurring liability to any person. Such rescission must be in writing, and delivered to Owner. Thereafter, if Tenant fails to vacate the Premises on or before the date set forth in Tenant’s notice, Tenant shall be liable for any costs incurred by Owner or any third parties who relied upon Tenant’s notice terminating the tenancy, and failure to vacate as agreed is a substantial violation of the terms of the tenancy and is a just cause for eviction. Tenant further agrees to defend, protect, indemnify and hold Owner harmless from any and all damages, lost rents, costs, expenses, losses, claims and liabilities, including attorney’s fees, arising in any way out of Tenant’s failure to comply with the provisions of Tenant’s notice. Tenant’s failure to pay any such sums within twenty (20) days after demand shall be deemed a material breach of the Agreement. It is agreed by the parties to

this Agreement that delivery of possession shall be deemed to occur when Tenant delivers the keys to the Premises to Owner or Owner’s agent during normal business hours as stated in this Agreement. After the expiration of the original term of this Agreement, Owner may terminate the tenancy, in accordance with applicable law, by giving Tenant at least sixty (60) days prior, written notice of Owner’s intention to terminate the Agreement, provided further that such termination shall be effective upon the latter of (a) sixty (60) days following Owner’s written notice to Tenant or (b) five (5) business days following the last day of tenancy of any of Tenant’s subtenants occupying the Premises.

23. EARLY TERMINATION RIGHT: NOTWITHSTANDING ANY OTHER TERM OF THIS AGREEMENT TO THE CONTRARY, Tenant shall have the ABSOLUTE RIGHT TO terminate this Agreement early with respect to the entire Premises, so long as Tenant delivers to Owner at least sixty (60) days prior, written notice that Tenant has elected to exercise this right. When Owner has received the written notice, the Agreement termination date will be amended. The new termination date will be the date specified in the notice. Exercise of the early termination right will affect only Tenant’s rent obligations after the accelerated termination date; Tenant must comply with all other Agreement obligations. Tenant shall return the Premises to Owner in broom-clean condition on the new termination date. If Tenant exercises this early termination within one (1) year of the lease start date, Tenant shall refund a prorated amount of 1/365th of any Prroperties Fee per day for each day between the new termination date and 365 days after the lease start date. If Tenant exercises this early termination after one (1) year of the lease start date, Tenant shall refund a prorated amount of 1/365th of any annual, recurring incentive fee paid to Tenant (not including the initial Prroperties Fee) per day for each day between the new termination date and the earlier of 365 days after the incentive fee due date and the lease end date.

24. REGULATORY CHANGE TERMINATION RIGHT: NOTWITHSTANDING ANY OTHER TERM OF THIS AGREEMENT TO THE CONTRARY, in the event that regulatory changes occur that may further or newly hinder or limit Tenant’s ability to sublease the Premises, including but not limited to changes in or changes in enforcement of local, state, or national laws and/or ordinances regarding rent control, rent stabilization, evictions, furnished housing, corporate housing, vacation rentals, subleasing, and/or minimum lease length, Tenant, at its sole discretion, may terminate this agreement with seven (7) days prior, written notice.

25. PHYSICAL POSSESSION: If Owner is unable to deliver possession of the Premises at the earlier of the commencement of the term or Key Handoff Date (if negotiated), Owner shall not be liable for any damage caused thereby, nor shall this Agreement be void or voidable, but Tenant shall not be liable for any rent until possession is delivered and any Prroperties Fee or rent incentive will be extended by one additional day for each day that possession is delayed. Delivery of possession of the Premises shall be defined as delivering keys to Tenant by 9:00 AM; if keys are delivered after 9:00AM, possession will be considered to have been delivered the following day. Owner agrees to provide at least two (2) complete sets of keys per bedroom, with each set containing keys to the Building, Premises, mailboxes and amenity areas, if any.

26. MISCELLANEOUS:

A. Headings: All headings and subheadings employed within this Agreement are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.

B. Force Majeure: Any delays or defaults in the performance of any obligation of Tenant under this Agreement shall be excused to the extent that such delays or defaults are caused by wars, pandemics, national emergencies, natural disasters, strikes, labor disputes, utility failures, governmental regulations, riots, adverse weather, and other similar causes not within the control of Tenant, and any time periods required for performance shall be extended accordingly. Tenant may terminate this Agreement immediately upon written notice to Owner if any event set forth in this paragraph makes continued performance under this Agreement commercially unreasonable.

C. Applicable law and partial invalidity: The execution, interpretation, and performance of this Agreement shall in all respects be controlled and governed by the laws of the State of California. If any part of this Agreement shall be declared invalid or unenforceable, Tenant shall have the option to terminate this Agreement by notice to Owner.

D. Notice: If it shall become necessary for Tenant or Owner to give notice of any kind, notice shall be written and served by sending such notice by regular mail or email to the address indicated herein.

E. Direct Deposit Authorization: Owner hereby authorizes Tenant to initiate credit entries or adjustments to correct credit errors to bank account provided by Owner. Owner acknowledges that the origination of Direct Deposit transactions to Owner's account must comply with the provisions of U.S. law. This authority is to remain in full force and effect until Tenant has received written notification from Owner of its termination and the subsequent monthly statement closing date has passed.

27. MEDIATION: The parties agree to negotiate in good faith in an effort to resolve any dispute related to this agreement that may arise between the parties. If the dispute cannot be resolved by negotiation, the dispute must be submitted to mediation before resorting to arbitration or litigation. If the need for mediation arises, the parties to the dispute will choose a mutually acceptable mediator from JAMS and will share the cost of mediation equally. This paragraph shall not apply to disputes arising out of nonpayment of rent and/or and unlawful detainer actions.

28. COMPLETE AGREEMENT: Time is of the essence of this Agreement. The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by all parties. This Agreement and any modifications may be signed in one or more counterparts, each of which will be deemed an original and all of which taken together will constitute one and the same instrument.

29. SIGNATURES

Owner:

Signature:

Date:

Owner Phone:

Owner Email:

Owner Mailing Address:

Tenant:

Signature:

Date:

OTHER NOTICES

A. LEAD DISCLOSURE: Many homes and apartments built before 1978 have paint that contains lead (called lead-based paint). Lead from paint chips and dust can pose serious health hazards if not taken care of properly. The law requires that Tenant receive certain information before renting pre-1978 housing. By signing this Agreement, Tenant represents and agrees that Owner has provided Tenant with such information, including, but not limited to the EPA booklet entitled, "Protect Your Family From Lead In Your Home.”

B. ASBESTOS: The Premises may contain asbestos or have original construction materials that contain asbestos. Asbestos is known to exist in the following locations: N/A (Copies of available reports, if any, are attached hereto for your reference and information.) Damaging or disturbing the surface of asbestos-containing materials (ACMs) may increase the risk of exposure. Therefore, Tenant and Tenant’s guests, contractors, or invitees shall not allow any action which may, in any way, disturb ACMs or any part of the Premises that may contain asbestos or ACMs. Tenant shall notify Owner immediately if Tenant knows or suspects that an ACM has been disturbed or if Tenant becomes aware of any ACM that is showing signs of deterioration.

C. INFORMATION ABOUT BED BUGS: Bed Bug Appearance: Bed bugs have six legs. Adult bed bugs have flat bodies about 1/4 of an inch in length. Their color can vary from red and brown to copper colored. Young bed bugs are very small. Their bodies are about 1/16 of an inch in length. They have almost no color. When a bed bug feeds, its body swells, may lengthen, and becomes bright red, sometimes making it appear to be a different insect. Bed bugs do not fly. They can either crawl or be carried from place to place on objects, people, or animals. Bed bugs can be hard to find and identify because they are tiny and try to stay hidden. Life Cycle and Reproduction: An average bed bug lives for about 10 months. Female bed bugs lay one to five eggs per day. Bed bugs grow to full adulthood in about 21 days. Bed bugs can survive for months without feeding. Bed Bug Bites: Because bed bugs usually feed at night, most people are bitten in their sleep and do not realize they were bitten. A person’s reaction to insect bites is an immune response and so varies from person to person. Sometimes the red welts caused by the bites will not be noticed until many days after a person was bitten, if at all. Common signs and symptoms of a possible bed bug infestation include:

• Small red to reddish brown fecal spots on mattresses, box springs, bed frames, mattresses, linens, upholstery, or walls.

• Molted bed bug skins, white, sticky eggs, or empty eggshells.
• Very heavily infested areas may have a characteristically sweet odor.

• Red, itchy bite marks, especially on the legs, arms, and other body parts exposed while sleeping. However, some people do not show bed bug lesions on their bodies even though bed bugs may have fed on them.
For more information, see the Internet Web sites of the United States Environmental Protection Agency and the National Pest Management Association. Tenant shall report any potential bed bug infestation promptly to Owner at the contact information provided on the signature page of this Agreement

D. ABANDONED PERSONAL PROPERTY: State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without incurring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging

to you was left behind after you moved out.

Mold Notification Addendum

It is Owner's goal to maintain the highest quality living environment for Tenant. Therefore, know that the Owner/Owner’s agent (“Agent”) has inspected the Premises prior to lease and knows of no damp or wet building materials and knows of no mold or mildew contamination.

Tenant is hereby notified that mold, however, can grow if the Premises and furnishings are not properly maintained or ventilated. If moisture is allowed to accumulate in the Premises, it can cause mildew and mold to grow. It is important that Tenant regularly allow air to circulate in the Premises. It is also important that Tenant keep the interior of the Premises clean and that they promptly notify the Owner/Agent of any leaks, moisture problems, and/or mold growth.

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Tenant agrees to keep the Premises free of dirt and debris that can harbor mold.

2. Tenant agrees to immediately report to Owner/Agent any water intrusion, such as plumbing leaks, drips, or "sweating" pipes.

Tenant agrees to notify Owner of overflows from bathroom, kitchen, or laundry facilities of the Premises, especially in cases where the overflow may have permeated walls or cabinets.

Tenant agrees to report to Owner/Agent any significant mold growth on surfaces inside the Premises.

5. Tenant agrees to allow Owner/Agent to enter the Premises to inspect and make necessary repairs.

6. Tenant agrees to properly ventilate the bathroom while showering or bathing and to report to Owner/Agent any non-working fan or window.

Tenant agrees to use exhaust fans, if provided, whenever cooking, dishwashing or cleaning.

Tenant agrees to use all reasonable care to prevent outdoor water from penetrating into the interior of the Premises.

Tenant agrees to clean and dry any visible moisture on windows, walls, and other surfaces, including personal property, as soon as reasonably possible. (Note: Mold can grow on damp surfaces within 24 to 48 hours.)

Tenant agrees to maintain the Premises in a manner that prevents the occurrence of an infestation of mold or mildew in the Premises. Tenant agrees to uphold this responsibility in part by complying with the following list of responsibilities:

10. Tenant agrees to notify Owner/Agent of any problems with any air conditioning or heating systems that are discovered by the Tenant.

11. Tenant agrees to indemnify and hold harmless Owner/Agent from any actions, claims, losses, damages, and expenses, including, but not limited to, attorneys' fees that Owner/Agent may sustain or incur as a result of the negligence of the Tenant or any guest or other person living in, occupying, or using the Premises.

Maintenance Schedule and Expectations Addendum

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This Maintenance Schedule and Expectations Addendum (“Addendum”) to the Residential Tenancy Agreement With Subletting (“Agreement”) outlines the affirmative obligations of Owner with respect to move-in readiness, fixtures, cleanliness, cosmetic fixes, maintenance and allocation of costs. This Addendum also provides a rough guide of the services to be rendered by Tenant (“Prroperties”), along with allocation of costs. Nothing herein overrides, waives or removes Owner’s liability or warranty of habitability under applicable law. Modifications to this Addendum must be mutually agreed upon in writing. Capitalized terms in this Addendum not otherwise defined shall bear the same meanings ascribed to them in the Agreement. In addition, when in conflict, the provisions in Agreement will override anything stated in this Addendum.

OWNER ACKNOWLEDGES THAT THIS ADDENDUM IS NOT AN EXHAUSTIVE INSPECTION LIST AND THAT A FULL INSPECTION MUST STILL BE COMPLETED. THE AGREEMENT MAY BE CANCELLED WITHIN TWENTY-ONE (21) DAYS, PER THE AGREEMENT INSPECTION CONTINGENCY, IF THE FULL INSPECTION IS NOT PASSED.

During Premises Onboarding from Owner:

Owner is responsible for the following checklist at Key Handoff (“Pre-Inspection Checklist”):
Remove all furniture, personal belongings, and other items (together, “Items”) prior to Key Handoff date.

o If Prroperties gives notice of Items left on the Premises, Prroperties will wait twenty-four (24) hours for the Items to be removed. If Items are not removed after twenty-four (24) hours, Prroperties will consider the Items to be abandoned and Owner acknowledges that: a) Prroperties will discard the abandoned Items and b) the Agreement may be delayed to account for the waiting period and/or Item removal. Owner is responsible for any costs incurred by Prroperties in connection with the removal of abandoned Items; Prroperties will invoice Owner for said costs.

Supply two (2) keys or fobs per bedroom at Key Handoff of each of the following: o Main entry to Premises

o Building entry key or fob o Mailbox key

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o Garage remote (if any)
o Any other keys associated with the Premises
o A penalty of $50 per missing key will be charged and invoiced to owner if not provided

Ensure bedroom doors are delivered with keyless locks(Doors should be able to lock from the inside but not require a key to access from the outside)

· Provide Prroperties-approved window coverings (Prroperties can help install) per the Prroperties Owner Window Treatment Guide, which contains a look book with three (3) solid, neutral cover options. Agreement will be delayed until Prroperties-approved window coverings are fully in place.

Paint Premises with move-in ready, Prroperties-approved exterior and interior paint, per the Prroperties Owner Paint Guide. Agreement will be delayed until exterior and interior paint conditions are move-in ready.

o Exterior: Paint and/or stucco must be in marketable condition (i.e. no peeling paint or crumbling stucco)

o Interior: Paint throughout the interior of the Premises must be in marketable condition (i.e. no peeling or scratches present). Matching touch-up paint colors to be provided to Prroperties. Colors must be neutral and Prroperties-approved, per the Prroperties Owner Paint Guide.

o Doors and Cabinets: Paint must not obstruct any doors or cabinets.

Provide written approval from self (Owner) and any management company or HOA allowing Prroperties to install as many digital locks, one-way chain locks, secondary locks, lockboxes, and/or backup lockboxes in the Building that Premises is located in as required, in order to provide Prroperties’s subtenants ability to self check-in and lock doors from within for security while inside the Premises.

Provide a working water heater with hot water and working HVAC unit. Agreement will be delayed if either are not functional.

Provide adequate trash bins and receptacles.
Ensure all outlets are 3-prong, either through retrofitting or adapters provided. Deliver the Premises to Prroperties in clean, move-in ready condition.

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Ensure that the Premises is Internet and Cable TV ready at Key Handoff, with Prroperties-approved wiring and provider. Agreement will be delayed until this requirement is met. Acceptable providers by region are:

o DC: Comcast, Verizon, RCN, Cox o LA: Spectrum, AT&T, Frontier

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If carpeted, carpet must be in good condition and professionally cleaned and free of stains

and tears.
If hardwood or laminate, flooring must be clean and free of stains and damage.

Exterior windows should be washed and clean.

Owner acknowledges that Prroperties will charge and invoice Owner $200 per bedroom for a deep cleaning if Premises is not clean, along with any additional vendor charges for cleaning flooring, carpets, and external windows.

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o NY: Verizon Fios, RCN, Time Warner
o SF: Comcast
o Seattle: Comcast, Century Link, Wave
o Other: if region is not listed, provider must be explicitly approved by Prroperties.

Ensure that Premises has natural gas service connected and working, if Premises has access to natural gas. Agreement will be delayed until gas company can restart service if gas service has been stopped or suspended.

Ensure that all appliances are working, including garbage disposal, garage door opener, and washer/dryer. Cover costs to bring smoke alarms and CO detectors up to code.

Cover costs for any handyman work to repair fixtures and furnishings in the Premises. Cover costs for clearing/snaking all drains, if needed.
Cover costs for all electrical fixes, especially around any code violations or safety issues.

Ensure that, if present, pool, spa, and landscaping are in properly maintained shape and that pool, spa, and/or landscaping are properly safe and restricted as per local regulations and law (e.g. has fence if needed).

Prroperties will:
conduct a thorough inspection of the Premises and provide list of any required fixes to Owner.

add a one-way locking chain-lock or secondary lock on the Premises front door, if one is not present already. This is a requirement for resident safety.

install digital locks, lockboxes, and backup lockboxes as needed. set up intercom access.

During Premises Tenancy:

Owner is responsible for the costs for:

all appliance repair and maintenance, unless damage caused by Prroperties or subtenants
water heater, HVAC, garage door, licensed electrical and roofing issues resolved ASAP; rent may be withheld gardening, landscaping, pool and spa maintenance, rain gutters, roof maintenance
pest control for rodents, cockroaches, termites, neighbor-caused bed bugs, foundation issues
fix plumbing issues due to roots, grease, structural issues/blockages ASAP; rent may be withheld

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· mold and mildew remediation if caused by lack of ventilation or not caused by Prroperties or subtenants Prroperties will:

change water and HVAC filters as needed; maintain smoke alarm batteries; change lightbulbs change HVAC thermocouples as needed and install Nest thermostats (if Owner approves)

prevent lint build up in dryers and mold in washers (will replace gaskets if needed) deep clean the Premises between tenants; occasional routine cleans
shampoo carpets as needed; buff / touch up scratches in flooring where possible wash exterior windows and power wash exterior, at Prroperties’s discretion

“have eyes on the Premises” multiple times during the tenancy
handle pest control for ants, flies and bed bugs, if tenant caused and not structural/neighbor issues resolve tenant caused clogs and plumbing issues; snake drains occasionally
handle small paint touch-ups between tenants, provided correct paint is provided by Owner
handle small electrical issues: replace blown GFI outlets and circuit breakers, outlet faceplates, etc. if available, meet with vendors hired by Owner to resolve any of above (or appraisers, agents, etc.)

During Premises Return to Owner:

Owner and Prroperties share responsibility:

costs of repainting, if needed, depreciated at total useful life of 4 years. If Prroperties stays for 2 years and paint was brand new at start of tenancy, Prroperties will pay for at most 50% of the paint job; if 3 years, at most 25%

costs of re-carpeting or re-flooring, if needed, depreciated at total useful life of 5 years. If Prroperties stays for 2 years and flooring/carpeting was brand new at start of tenancy, Prroperties will pay for at most 60%; if 3 years, at most 40%

in general, repairing or replacing a large ticket item similar to above will be depreciated based on total useful life for wear and tear and will take into account how new/old it was at start of tenancy

Prroperties will:
do a thorough inspection of the Premises and provide list of any outstanding fixes to Owner

do handyman work to fix non wear-and-tear issues on fixtures/furnishings in the Premises do small paint touch-ups, as needed, if Owner can provide correct paint

  • ·  do a thorough, deep clean before returning the Premises to Owner

    Owner will:

  • ·  fill in nail holes or minor nicks in walls

  • ·  replace smoke alarm batteries and lightbulbs (minimal since Prroperties handles during tenancy)

  • ·  handle any repairs required to the exterior of the Premises

  • ·  broadly, handle all repairs to damages that were not caused by the intentional or negligent act of Prroperties or its subtenants, and/or were a cause of normal wear and tear

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