REMACC Properties Management Brochure 2015 by David Lunsford

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

OUR HISTORY REMACC began managing property

approximately 800 residential units,

the ability to provide the highest level

in 1996 as Acey Stinson Realty. By

more than 20 office buildings and retail

of professional property management

2010, this realty business had evolved

units throughout the southeast.

services to its clients.

into

Real

Consulting

Estate

Management

Company

and

(REMACC),

Our Experience

Fee Structure Management fees are based upon the

company dedicated to meeting the

REMACC has extensive experience in

needs of its clients in all aspects of

marketing, managing, and maintaining

consulting,

management,

apartment communities. Over the years,

portfolio management, and stabilization

the company has mastered the ability to

Rates range from 5%-10%, additionally

of underperforming assets. REMACCâ&#x20AC;&#x2122;s

balance the goals of the owners with the

lease up fees and renewal fees range

goal is to outperform all other properties

expectations of the residents. REMACC

from $200-$300 per unit.

in the area. Today, REMACC manages

has the experience, the expertise, and

property

number of units per owner that we manage.

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

ACEY STINSON Owner and Broker

Acey Stinson has more than 22 years of

Not only can we handle your

comprehensive commercial property

management we offer full scale

management experience with emphasis

development services from small strip

towards strategic planning, control,

centers to large full scale resorts.

and implementation with the overriding mission to preserve and enhance owner investment goals. Historically, this has been accomplished by serving in broad capacities within public and private real estate concerns. Expertise has been gained through in depth, hands-on management roles. Proficient in acquisitions, project feasibility analysis, development and all aspects of property management. Our goal since beginning our full service management business is to provide the highest level of customer service available.

His attention to detail is what makes

Mr. Stinson enjoys time with his family, his beautiful wife Wendy and four

REMACC SERVICES

childrenâ&#x20AC;&#x201D;a girl and three boys.

your project a success. Additionally,

Consulting

administratively Acey handles all aspects of the business to keep the streamline approach moving forward.

24 Hour Maintenance

Accounting Management

Our goal is to build the product and manage the project from there on.

Full Staff of Managers

Property Management

Portfolio Management

Additionally, early in his career Acey managed all of the state owned land Property Marketing

and submerged land leases. Comprised of thousands of leases his organizational skills kicked in again and streamlined the process. This unique experience has haloed tremendously on projects that require DEP approval.

Insurance Management Stabilization of Underperforming Assets

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

Real Estate Management and Consulting Company, LLC

LEASED PREMISES: Landlord leases to Resident and Resident leases from Landlord the leased premises described above. If “To Be Assigned” is designated, you understand and agree that we will assign and write in the specific rental unit number on or before the move-in date.

RELEASE: In consideration of our leasing to you under these terms, you, for yourself and your personal representatives, heirs, and assigns, do hereby release, waive, discharge, and agree to indemnify and hold harmless Landlord, its officers, directors, shareholders, agents, principals (the owners of the leased premises), and employees and their heirs, administrators, and assigns, all referred to as releases, for and from any and all liability to you, your personal representatives, heirs and assigns for any and all loss, injury or damage on account of injury to the person or property or resulting in death, whether caused by the negligence of releases or otherwise. Further, you for yourself, your heirs, executors, administrators, and assigns, do hereby release and forever discharge releases, their heirs, administrators, and executors from any and every claim, demand, action or right of action, of whatsoever kind or nature, either in law or in equity arising from or by reason of any bodily injury or personal injuries known or unknown, death and/or property damage resulting or to result from the acts or omissions of your co-residents, if any. You agree that this release, waiver, and indemnity agreement is intended to be as broad and inclusive as permitted by the laws of the State of Florida and that if any portion of the agreement is held invalid, it is agreed that the balance shall, notwithstanding, continue in full legal force and effect. From time to time we may take pictures of the property and our residents for marketing purposes; you agree in advance that we may use your picture in our marketing materials without need of obtaining a release or authorization from you.

APPLICATION: If any information given by you in your application is false or incorrect, we may, at our option, terminate this lease. You agree to notify us promptly in writing of any change in the information provided to us in your application.

GUARANTEE: If a Sponsor’s Guaranty, such as a Parental Guaranty, is required as provided for in your application, the guaranty constitutes an essential inducement for the granting of this lease by us and we reserve the right to cancel this lease in the event such guaranty is not fully executed, notarized, and returned to us within ten (10) days from the date of this lease. Execution of the continuing guaranty constitutes additional assurance to us of the performance of the covenants of this lease and shall not be construed as a release of your responsibilities and obligations hereunder.

POSSESSION: If we are unable to deliver possession of the leased premises at the commencement of the lease term, we will not be liable for any damage, injury or loss caused thereby nor will this agreement be void or voidable but, you will not be liable for any rent until possession is available to you. You may terminate this lease if possession is not available within thirty (30) days of commencement of the lease term. In such event your security deposit will be returned to you.

RENOVATION: If the Landlord commences major renovation within the building that this unit is located in, we may, at our option require you to move to a comparable unit within this apartment community or terminate your lease with a sixty day written notice.

SECURITY DEPOSIT:

REMACC SAMPLE RESIDENTIAL LEASE New Lease x

Renewal ¨Transfer o (if a transfer From:___________ To:______________)

Resident(s) Name:

Address: Email:

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Your Email address will be the primary means by which you receive important notices from the Landlord. It is your responsibility to provide an e-mail that you use and check frequently. Landlord:

REMACC, LLC Property Location: _______________________ Agent: REMACC, LLC 2477 Tim Gamble Pl. Ste 200 _______________________ 2477 Tim Gamble Pl. Ste. 200 Tallahassee, Florida 32308 Tallahassee, Florida ______ Tallahassee, Florida 32308 (850) 309-7368 (850) 309-7368

Apartment Type

# Bedrooms/ # Bathrooms

Unit Number

“TERM”: The period between ________________ (“Commencement Date”) and _______________ (“Expiration Date”). The term of this Lease automatically expires at the end of the Expiration Date, unless, prior to that time Landlord and Resident have entered into a written Lease renewal agreement. This Lease (“Lease”) is entered into effective as of __________ (“Date of Lease”) by REMACC Properties, LLC, having and address 2477 Tim Gamble Place Ste. 200 Tallahassee, FL 32308 (“Landlord”) and the Resident (identified above), each of which, intending to be legally bound, and to bind their respective heirs, administrators, personal representatives, successors and assigns, hereby agree upon the following terms and conditions,

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Before you may occupy the unit, you must pay us the required security deposit listed at the beginning of this lease. You may not apply your security deposit as rent. It is a good faith deposit for your faithful fulfillment of each condition in this lease and as a contingency against any physical damage to the premises caused by you or others, and to insure that you return the leased premises to us in the same clean and rentable condition as you received it, ordinary wear excepted.

In addition to your security deposit you may be required to pay the non-refundable deposit listed at the beginning of this lease to cover the costs of normal housekeeping, carpet cleaning and touch up painting when you vacate the premises. You understand that the nonrefundable deposit will only cover normal cleaning and touch up painting and that you will be charged additional sums for removal of personal belongings and rubbish or extra cleaning or painting required because of the condition of the premises. If you are not required to pay a non-refundable deposit and/or you do not pay the full amount, when you vacate the premises, you must clean the entire premises, remove all debris, rubbish, etc. from the premises, and have the carpet professionally steam cleaned (paid receipt within 5 days prior to move-out is required).

Upon the completion of this lease we will return the security deposit actually paid to the Resident first signed above (Unless written instructions to the contrary signed by all residents are delivered to us. You agree that we may rely on the validity of the signatures without need of inquiry.) after the leased premises has been vacated, provided you have: 1) Complied with the terms and conditions of this lease; 2) Surrendered the Premises and turned over the keys to us on the termination date; 3) Not damaged the premises or furnishings beyond ordinary wear; 4) Complied with ¶ 7.B above; and 5) Paid all rent and other charges due us, including amounts due for utility charges to us. You understand that your liability to us is not limited to the amount of your security deposit.

If the first rent payment due prior to the lease term beginning date is not received by us on or before the lease term beginning date, we may, at our option, cancel this lease and make the leased premises available for rental to other prospective residents. If you do not complete the original term or the term of any renewal of this lease or pay the first rent payment by the lease term beginning date, you agree that we may, at our sole and exclusive option, keep your security deposit as a liquidated damages for our re-rental expenses. Additionally, you agree to pay for any actual physical damage to the leased premises and furnishings on the premises and for rent until the leased premises is re-let or the term of the lease expires, whichever occurs first.

PLEASE READ THE ENTIRE LEASE BEFORE SIGNING.

Unless we notify you otherwise your security deposit will be deposited in a separate non-interest bearing account with the Superior Bank 1276 Metropolitan Boulevard, Suite 101, Tallahassee, Florida.

RESIDENT(S):

Florida Statute 83.49(3) provides: (a) Upon the vacating of the premises for termination of the lease, the Landlord shall have thirty (30) days to return said security deposit, together with interest, if otherwise required, or in which to give the Resident written notice by certified mail of his intention to impose a claim thereon, at the resident’s last known mailing address. The notice shall contain a statement in substantially the following form: “This is a notice of my intention to impose a claim for damages in the amount of upon your security deposit; due to . . . . . It is sent to you as required by s. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit. Your objection must be sent to: (landlord’s address). If the Landlord fails to give the required notice within the thirty (30) day period, he forfeits his right to impose a claim upon the security deposit. (b) Unless the tenant objects to the imposition of the landlord’s claim or the amount thereof within fifteen (15) days after receipt of the landlord’s notice of intention to impose a claim, the landlord may then deduct the amount of his claim and remit the balance

Lease Fees: Application Fee:

$35.00

Security Deposit

Pet Fee: Monthly Pet Rent: Move-in prorates: *Special agreements:

S $200.00 N/A $

Total Monthly Charges Monthly Base Rent

Monthly Pet Rent

N/A

Concession: Other:

Total Monthly Rent

We are pleased to rent the above-described Leased Premises to you. This lease is the entire agreement between you and us and may be modified only in writing. As used in this lease, “you” or “your” means the resident(s) (tenants) whose names appear above. If there is more than one resident, you are jointly and severally liable for any payments due to us. “We,” “our,” or “us,” means the Landlord. “Rental Unit” or “unit” means the apartment or home. “Premises” means the entire living area leased including the yard and associated common areas and facilities, if any. You acknowledge that this lease is for an essential necessity and that you will be fully bound by all of the terms and conditions hereof, irrespective of your age or legal status. BY EXECUTION OF THIS LEASE YOU ACKNOWLEDGE THAT YOU HAVE READ AND AGREE TO ALL PROVISIONS CONTAINED IN IT. This lease is executed by the Resident and the Landlord on the date set forth above as” Date of Lease”.

LANDLORD, AGENT FOR OWNER:

Signature:

Date:

Print Name:

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

of the deposit to the tenant within 30 days after the date of the notice of intention to impose a claim for damages. (c) If either party institutes an action in a court of competent jurisdiction to adjudicate his right to the security deposit, the prevailing party is entitled to receive his court costs, plus a reasonable fee for his attorney. The court shall advance the cause on the calendar. (d) Compliance with this subsection by an individual or business entity authorized to conduct business in this state, including Florida licensed real estate brokers and salespersons, shall constitute compliance with all other relevant Florida Statutes pertaining to security deposits held pursuant to a rental agreement or other landlord-tenant relationship. Enforcement personnel shall look solely to this subsection to determine compliance. This subsection prevails over any conflicting provisions in chapter 475 and in other sections of Florida Statutes, and shall operate to permit licensed real estate brokers to disburse security deposits and deposit money without having to comply with the notice and settlement procedures contained in s.475.25(1)(d). 8.

RENT: Your rent is based on the options you receive and the timing of when you signed your Lease. Your rent is due in equal installments with the first installment due on or before the fist day of the first month of your Lease Term and the final installment due on the first day of the last month of your Lease Term. The number equal installment is listed on the first page of the Lease. Resident understands that the rent is due, without proration, even though the lease Term does not include a full 365-da term. If this is a renewal lease for the exact same leased premises, the term will also include the days after the needing date of the prior lease shall apply during that period. Rent shall be non-apportion able. Rent must be paid via one check or money order per rental unit. Time is of the essence. If the rent is received after the 3rd day of the month, a late charge of $35 will be due, plus an additional charge of $5 per day for each day thereafter, all to be deemed additional rent. We reserve the right to refuse any payment offered more than three days after you have been served with demand for rent or possession as provided for in Florida Statutes. After the 10th day of the month only cashier’s checks or money orders will be accepted. If your check is dishonored by your bank, you must pay us a service charge of $30, or 5% of the face amount of the check whichever is greater, plus any accrued late charge, all of which will be deemed additional rent. If your rent checks are dishonored more than once, you must pay future rent by cashier’s check or money order. We are not required to redeposit a dishonored check. You must pay to us any sales or other taxes which are due or may become due on the rent. All payments will first be applied to the oldest outstanding balance. Any and all sums due us will accrue interest at the highest rate allowed by law until paid and the interest will be deemed and treated as additional rent. Any and all monies that you owe to us, except for the utility deposit, shall be deemed rent under this lease. Rent may not be offset by the non-availability of the swimming pool or other amenities, if any.

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I acknowledge that I have read the above rent section and that I understand and accept the provisions set forth therein. I also understand that my rent is due on the 1st day of each month and that a late charge as stated above will be charged to my account if my full balance is not paid by close of business on the 3rd day of the month. Resident Signature 9.

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UTILITIES & UTILITY DEPOSIT: Residents must agree how utilities and other costs will be shared and paid. Additionally, you will be responsible for obtaining all utilities and services, including, but not limited to, electricity, gas, trash removal and storm water service. You may not occupy the leased premises without providing for electric, water, sewer, and storm water service. Utilities must remain on in the residents name for the duration of the lease term.

10. CABLE TV, INTERNET & PHONE SERVICE: Internet, Cable or satellite services are not provided by the landlord. Telephone service is not included. If you obtain telephone service, you agree to pay for and receive inside telephone wiring maintenance from the local telephone service provider, if available. If you make or cause any telephone line configuration changes to be made, you agree to return the lines to the original condition at the expiration of this lease, at your expense. We are not liable for interruption or malfunction in service of any utility or service due to any cause. You understand that such services are subject to interruption from time to time and that no setoffs or reductions in rent may be taken for these events.

11. LAWN CARE: Lawn care service is NOT provided by the Landlord. Any damage to the lawn and landscaping caused by your improper or negligent acts will be corrected, repaired, or replaced at your expense. Resident will be responsible for the maintaining of the lawn. 12. PEST CONTROL: Pest control is provided by the Landlord. Any damage to the premises or special treatment required due to your improper or negligent pest control will be corrected, repaired, or replaced at your expense 13.

OCCUPANCY: Only those persons whose signatures appear on this lease and their dependents listed above, if any, may occupy the leased premises. Guests may not stay for more than three consecutive days without our prior written consent. The leased premises shall be used solely as a private residence. Landlord may, at its sole discretion, request any guest or invitee of the resident to leave the apartment community if the landlord believes, in its sole opinion, the guest or invitee is creating a nuisance. If you will be absent from the leased premises for more than fourteen (14) days, you must notify us in writing. The maximum occupancy is established at one person per bedroom. A person is defined as anyone over the age of 6 months.

14. SUBLETTING/EARLY TERMINATION: You may not assign this lease or sublet any portion of the leased premises without our written consent. We may allow you to terminate your lease prior to the expiration of the lease term if you secure a replacement Resident acceptable to us. The replacement Resident must submit a completed Application, Parental/Sponsors Guaranty (if required), and a signed Lease Agreement with a term from the date of your early termination through the end of the original lease term. The replacement Resident must be approved by us, using the same guidelines as used when you were approved. You or the replacement Resident must pay a new Application Fee, Non-Refundable Deposit, Utility Deposit (if any), and Required Security Deposit. If we do consent to subletting or early termination, you agree to pay us an administrative fee of $200 and to forfeit any interest that may have been due on your security deposit. 15. SOLDIERS’ AND SAILORS’ CIVIL RELIEF ACT: Residents that are inactive members of the military who are called to active duty or who enter the military service subsequent to signing this lease agreement may terminate this lease without penalty under the following conditions: A. Resident must provide written notice to landlord of termination date. Such date will be affected 30 days after the first date on which the next rental payment is due and payable subsequent to the date when such notice is delivered or mail. B. Resident shall pay rent through the determination date in a timely fashion. This clause does not apply to those residents that are active military service members or to those residents that have signed this lease after mobilization orders have been received.

16. TRANSFERS: We may, at our option, allow you to transfer to another unit; however, if the unit that you are transferring to is subject to a lease, you must get the permission of that resident and you will be responsible for the rent for both units until you find a replacement resident for the unit that you are vacating as described in ¶14 above. In addition, you must pay a Non-Refundable Deposit, Utility Deposit, and Required Security Deposit for the new unit. If we do consent to a transfer, you agree to pay us an administrative fee of $200; however, this fee will be waived if the transfer occurs within thirty (30) days of the Lease Term Beginning Date. 17. PETS: Except for animals assisting disabled or impaired persons, no pets may be kept in or on the premises without our written consent and payment of a $200 non-refundable pet fee. In the event you keep a pet on the premises without our permission then you agree to pay a pet fine of $200 plus $10 for each day the pet is in or about the premises. Further, you agree to pay for any and all damages or injury caused by the pet. All sums due shall be deemed additional rent. 18. RIGHT TO ENTER: You agree that we or our representatives may enter the leased premises at reasonable times upon reasonable notice in order to inspect the leased premises, conduct pest control procedures, deliver notices, change air filters, make necessary or agreed repairs, decorations, alterations or improvements or to supply agreed services. We may enter the leased premises at any time for the protection or preservation of the leased premises and surrounding property. A maintenance or management request by you or co-resident of the unit shall constitute permission for us to enter the unit. You also agree to permit us or our agents or employees, upon scheduled appointments, to enter the leased premises for the purpose of displaying the same to prospective or actual tenants, purchasers, mortgagees, workmen or contractors.

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19. INSPECTION; CONDITION OF PREMISES; REPAIR AND MAINTENANCE: You acknowledge receipt of a “Resident’s Certificate Of Inspection” which has been provided to you by us. Upon receipt of the keys to the leased premises and prior to moving any of your property into the leased premises, you agree to inspect the premises carefully; to note any damage or other problems on the “Resident’s Certificate Of Inspection”; and to return it to us. THE PREMISES WILL BE CONCLUSIVELY PRESUMED TO BE IN PERFECT CONDITION IF YOU FAIL TO RETURN THE “RESIDENT’S CERTIFICATE OF INSPECTION” TO US WITHIN 24 HOURS OF RECEIPT OF THE KEYS. NO CLAIM OF PRE-EXISTING DAMAGE WILL BE ACCEPTED IF IT IS NOT NOTED ON THE “RESIDENT’S CERTIFICATE OF INSPECTION” RETURNED TO US WITHIN THE TIME PROVIDED ABOVE AND ACCEPTED BY OUR AUTHORIZED REPRESENTATIVE BY SIGNATUREON THE SPACE PROVIDED ON THE “RESIDENT’S CERTIFICATE OF INSPECTION”. NO CLAIM OF PRE-EXISTING DAMAGE WILL BE ACCEPTED IF YOU HAVE MOVED YOUR PERSONAL PROPERTY INTO THE PREMISES PRIOR TO RETURNING THE “RESIDENT’S CERTIFICATE OF INSPECTION” TO US AND ALLOWING US TO INSPECT THE CLAIMED DAMAGE. .You are responsible for the removal of trash and garbage from your rental unit to the appropriate collection point and for maintaining the premises in a clean and sanitary condition. You are also responsible for the removal of any trash and/or debris that accumulates in front of or in back of your rental unit; failure to do so may result in a trash removal charge of $25. Damage to locks or keys lost or damaged by you will be repaired and/or replaced by us at your expense. If you are locked out of your rental unit during office hours, you may visit our office for a replacement key; if you are locked out of your rental unit after office hours you will need to contact a local locksmith for entry. When you move in, we will furnish light bulbs of prescribed wattage for the lighting fixtures; thereafter, light bulbs must be replaced at your expense. We have no responsibility to install or maintain smoke detection devices or alarm systems of any type. If such devices are present, it is your responsibility to test them and keep them in proper working condition. You must change the air conditioning and heating filter as often as needed, but no less than monthly. We will maintain the air conditioning and heating equipment; plumbing fixtures and facilities; electrical systems; and appliances provided by us. Normal maintenance requests should be submitted to our office during office hours. For emergency maintenance occurring after office hours, including no heat, no water, plumbing repairs involving running water of a flooding nature, commode stoppages (where there is only one commode in the rental unit), sewer backups, and electrical power outages caused by the electrical system of the rental unit (not interruption by the utility service provider) the directions for emergency maintenance obtained from our office telephone number should be followed; however, you understand that emergency service may not always be available and is not guaranteed. Requests including no air conditioning, refrigerator not cooling, and lockouts are not considered emergencies. Any damage to the rental unit or premises, except for normal wear, caused by you, your co-residents, your invitees, or the invitees of your co-residents will be corrected, repaired, or replaced at your expense. All Residents will be held liable jointly and severally for any damages to the premises and its furnishings, fixtures, walls, ceilings, floors, and doors. You are responsible for any damages to the interior or exterior (exterior is defined as all windows, screens, light fixtures, siding located on the rental unit, and the lawn and landscaping) of the premises whether caused by negligence on your part, of your co-resident(s), guests, or invitees, or as a result of vandalism, burglaries, or criminal mischief, by known or unknown persons. Since you are liable in these cases, we strongly recommend that you purchase renters insurance to protect yourself. You agree to notify us immediately and in writing of any needed maintenance or repair. You agree to keep and maintain the leased premises and common area in good, clean, and sanitary condition, excepting reasonable wear and tear, and to make no alterations or additions thereto without our prior written consent. You will keep the sinks, lavatories and commodes open and will immediately report any malfunctions to us. You agree to reimburse us (as additional rent) for the cost of all repairs to the sinks, lavatories and commodes made necessary by or resulting from, your or your co resident’s abuse or careless use. Service calls for clogged toilets will be charged to you as additional rent if the clog was caused by misuse including flushing tampons and other sanitary napkins. YOU AGREE TO BE JOINTLY AND SEVERALLY LIABLE FOR, AND TO PAY ALL COSTS AND EXPENSES FOR, DAMAGES INCLUDING, BUT NOT LIMITED TO, REPLACING OR REPAIRING ALL BROKEN OR DAMAGED FURNISHINGS OR FIXTURES, AND ANY DEFACEMENT OR DAMAGES TO THE WALLS, CEILINGS, FLOORS AND DOORS REGARDLESS OF WHETHER SUCH DAMAGE IS CAUSED BY YOU, CO-RESIDENTS, GUESTS, OR TRESPASSERS. ACCORDINGLY, YOU MUST EXERCISE RESPONSIBILITY TO SEE THAT THE ENTIRE RENTAL UNIT AND PREMISES ARE MAINTAINED IN GOOD ORDER AND REPAIR. YOU AGREE TO IMMEDIATELY REPORT TO US AND THE LOCAL LAW ENFORCEMENT AUTHORITY ANY ACTS OF VANDALISM TO THE PREMISES. YOU AGREE TO PROMPTLY REPORT TO US ANY REPAIRS WHICH NEED TO BE MADE TO THE PREMISES OR COMMON AREA.

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20. ALTERATIONS: You may not make alterations or additions or install or maintain in the leased premises, or any part of the premises, any fixtures, appliances, devices or signs without our written consent. Any alterations, additions, or fixtures which are made or installed after you have received our written consent will remain a part of the leased premises, unless we specifically agree otherwise. 21. FIRE AND CASUALTY: Nothing may be used or kept in or about the leased premises which would in any way affect the terms and conditions of our fire and extended coverage insurance policy or be a violation of the law. If the Premises are partially destroyed by fire or other casualty not attributable to your negligence or carelessness or that of your guests or invitees, the Premises shall be promptly restored and repaired by us and the rent for the period that the Premises is tenantable shall abate, unless we provide you with suitable alternate living space, in which event the rent shall not abate. If however, the Premises are substantially destroyed, then this Lease may be terminated by either you or us, in which event the rent due hereunder shall cease to accrue as of the date of such damage or destruction. Notwithstanding the foregoing, it is expressly understood and agreed that you shall not be excused from paying rent if the damage or destruction of the Premises is the result of or is attributable to your negligence or carelessness or that of your guests or invitees, and you shall be charged for the cost of any repair or clean-up attributable to such carelessness or negligence. In the event of fire or other casualty, you agree to notify us immediately.

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

22. Smoking: In the event that the resident or guest of the resident or occupants of the premises, which are the subject of the lease agreement smoke cigarettes, cigars, burn candles (which emit soot), or engage in any other activity which could result In particles which cause; staining of walls, carpets, or other portions of the premises; damage to the duct work which could require duct cleaning by professionals; or persistent odor in the unit that necessitates the removal of carpet and padding despite apparent cleanly appearance that could result in a substantial cost being incurred by the landlord to bring the premises back into the original condition then resident and landlord agree that such damaged occasioned by smoke are to be considered extraordinary damage beyond normal wear and tear and the responsibility if the resident to rectify prior to vacating the premises. Measures, which are necessitated by the landlord beyond normal steam cleaning of carpet and normal touch up painting of the premises, are to be considered extraordinary damages. Any duct cleaning necessitated because of smell and concentrated nicotine buildup are damages that are beyond normal wear and tear. Thus, any such cost incurred by the landlord in bring the premises back to the original condition shall be deducted from the security deposit and if it exceeds the amount of the security deposit, it shall become the responsibility of the resident. Damages beyond normal wear and tear due to smoke or nicotine damage are to be determined at the sole discretion of the landlord. Once again, the responsibility of bringing the apartment to a condition where the existence of nicotine and the smell of smoke are nonexistence is the responsibility of the resident. 23. INSURANCE: You are responsible for obtaining your own property, casualty, and liability insurance. WE STRONGLY RECOMMEND THAT YOU SECURE INSURANCE TO PROTECT YOURSELF AND YOUR PROPERTY. We will not be liable for any damage to your property or that of others on the Premises or for the loss of or damage to any of your property or of others by theft or otherwise. All property kept or stored on the leased premises shall be so kept or stored at your risk and you agree to hold us harmless from and indemnify us for any claims, demands, suits, or judgments arising out of damage to the same, including subrogation claims by your insurance carrier.

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24. SECURITY: You understand that no personnel or mechanical or electronic devices such as locks, fences, lighting, alarm systems or access gates can be relied upon to work at all times. There will invariably be breakdowns of anything mechanical or electronic in nature, and criminals can circumvent almost any system designed to deter crime. We are not aware of any need for additional security and have no obligation under this lease to provide further security. You agree to look solely to the public law enforcement for this service. You agree that we will not be liable for failure to provide security services to protect you, your family, your guests or others, or your property from the criminal or wrongful acts of others. WE DO NOT GUARANTEE YOUR SAFETY AND SECURITY, YOU MUST EXERCISE DUE CARE FOR YOUR SAFETY AND SECURITY AND THE SAFETY AND SECURITY OF OTHERS. None of our measure are an express or implied warranty of security or a guarantee against crime on of a reduced risk of crime. WE are not liable to you or not obligated to furnish security personnel, security lighting, security gates or fences, or the forms of security and we can discontinue any of such items provided at any time without notice. You are responsible for your own safety and security. If at any time during your tenancy you determine that eh premises have become unsafe, you agree to notify us in writing immediately. You agree that you have inspected the premises and believe them to be safe. If from time to time we provide any security services, those services are only for the protection of our property and shall not constitute a waiver of, or in any manner modify, the release included herein or this disclaimer.

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25. ALARM SYSTEMS: The rental unit may be equipped with non-monitored interior alarm systems and/or we may allow you to contract directly with a company licensed and in business to provide alarms and/or monitoring in your apartment; however, you must get our prior written consent and the alarm must be installed, if applicable, in such a way so that it can be removed at the expiration of your lease without causing permanent damage or expense to our property. Any alarms installed after you have received our written consent will remain a part of the leased premises, unless we specifically agree otherwise. You agree to reimburse us for any charges we incur in connection with false alarms at your rental unit. 26. NOTICES: Any notices from us to you shall be deemed delivered when mailed, addressed to the leased premises, first class postage prepaid; personally handed to you or anyone in the leased premises; or left at the leased premises in your absence. Any notice from you to us shall be deemed delivered when mailed, addressed to our office, certified mail, return receipt requested, or personally delivered to our office staff during normal business hours. You agree to conduct yourself in a courteous and professional manner while interacting with the management staff. In the event you do not conduct yourself in a courteous and professional manner, the management staff may notify you that all future interactions must be conducted in writing and you will be forbidden to visit the management office. Additionally, you agree to allow REMAC, to email you information related to leasing and property management. REMAC will hold your email address confidential and will not distribute it to any third party without your consent.

27. WAIVERS: Our acceptance of rent after knowledge of a breach of this lease by you shall not be a waiver of our rights or an election not to proceed under the provisions of this lease or the law. Our rights and remedies under this lease are cumulative; the use of one or more remedies shall not exclude or waive our right to other remedies. Your rights under this lease are subordinated to any present or future mortgages on the premises. We may assign our interest in this lease. You waive your right to demand a jury trial concerning the litigation of any matters arising between us. 28. DEFAULT AND REMEDIES: If you default in complying with this lease or the law, we have the right to retake possession as provided by Florida law. We have the right to accelerate all of the remaining rent upon default. Under no circumstances will our acceptance of your keys, or re-entry or any other action be considered a cancellation of the lease or a retaking for our own account. If you or an occupant of the leased premises engage in criminal activity on the premises, such action shall be a default for which your lease may be immediately terminated. In addition to any of the foregoing, we shall have any other rights and remedies provided by law. If we engage an attorney to act for us in any matter arising out of this lease, we shall be entitled to recover all of our reasonable attorney’s fees and costs from you. It is intended that Landlord’s rights and remedies for Resident’s breach of this Lease Agreement shall be as broad as permitted under Florida law and shall include, without limitation, (a) the right to terminate this Lease, reserving the right to collect any unpaid rents, charges, and assessments for damages to the Premises; or (b) the right to accelerate the then entire unpaid balance of the rent for the term then remaining or the right to standby and collect rental payments as they become due; or (c) the right to sublease and rent the Premises for your account, in which event the proceeds from sub-letting shall be applied first to the cost of sub-letting (including advertising and commissions), second, to the cost of repairing any damage to the Premises, and third, to your rental obligations hereunder, with you and your guarantor(s) remaining fully responsible for any deficiency in the rental payments for the remainder of the term. The exercise of any one remedy shall not be deemed exclusive of the right to collect the entire amount of unpaid rent or damages or of our right to avail ourselves of any remedy allowed by Florida law. Should your account become past due with our office and we need to send your account to a collection agency, you will be responsible for the collection agency fee. Should litigation become necessary, venue held will be in “Leon County, Florida.” I acknowledge that I have read the above Default and Remedies section and that I understand and accept the provisions set forth therein. Resident Signature

29. RENEWAL: You have no right to renew this lease. We may, at our option, offer you a window of opportunity to renew. 30. TERMINATION: Upon termination of this lease, you agree to vacate the premises. If any of your property is left in or about the leased premises after you vacate or abandon the leased premises, we may remove or dispose of that property and you waive any claims for damage or loss as a result of our disposal of the property. If you fail to deliver all keys and vacate on or before your lease termination, you will be obligated to pay double rent until you do so and you agree to indemnify us for and hold us harmless from any lost rent and damages caused to the next Resident as well as our attorney fees incurred in having to deal with the situation. 31. SALE OF LEASED PREMISES. Any sale of the leased premises shall not affect your obligations, but upon such sale we will be released from all of our obligations under this Lease and the new owner of the leased premises will be responsible for the performance of the duties of Landlord which arise from and after the date of such sale. Should the leased premises be sold, we have the right to terminate this lease by giving you a sixty (60) day notice. 32. RADON GAS: We are required by Florida Statute 404.056(8) to state: “Radon is a naturally occurring radio-active gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed Federal and State guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit.”

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33. LEAD PAINT: If the leased premises were built before 1978, you acknowledge receipt, before becoming obligated under this lease, of the Environmental Protection Agency (EPA) lead hazard information brochure entitled “Protect Your Family From Lead In Your Home.” We do not know of the presence of any lead-based paint or lead-based paint hazards in the premises and have no lead hazard evaluation report in our possession. 34. MOLD. Mold is found virtually everywhere in our environment—both indoors and outdoors and in both new and old structures. Molds are naturally occurring microscopic organisms which reproduce by spores and have existed practically from the beginning of time. All of us have lived with mold spores all our lives. Without molds we would all be struggling with large amounts of dead organic matter. Mold breaks down organic matter in the environment and uses the end product for its food. Mold spores (like plant pollen) spread through the air and are commonly transported by shoes, clothing and other materials. When excess moisture is present inside a dwelling, mold can grow. There is conflicting scientific evidence as to what constitutes a sufficient accumulation of mold which could lead to adverse health effects. Nonetheless, appropriate precautions need to be taken.

A. PREVENTING MOLD BEGINS WITH YOU. In order to minimize the potential for mold growth in your dwelling, you must do the following: I. Keep your dwelling clean—particularly the kitchen, the bathroom(s), carpets and floors. Regular vacuuming, mopping and using a household cleaner to clean hard surfaces is important to remove the household dirt and debris that harbor mold or food for mold. Immediately throw away moldy food. II. Remove visible moisture accumulation on windows, walls, ceilings, floors and other surfaces as soon as reasonably possible. Look for leaks in washing machine hoses and discharge lines—especially if the leak is large enough for water to infiltrate nearby walls. Turn on any exhaust fans in the bathroom and kitchen before you start showering or cooking with open pots. When showering, be sure to keep the shower curtain inside the tub or fully close the shower doors. Also, the experts recommend that after taking a shower or bath, you: (1) wipe moisture off of shower walls, shower doors, the bathtub and the bathroom floor; (2) leave the bathroom door open until all moisture on the mirrors and bathroom walls and tile surfaces has dissipated; and (3) hang up your towels and bath mats so they will completely dry out. III. Promptly notify us in writing about any air conditioning or heating system problems you discover. Follow our rules, if any, regarding replacement of air filters. Also, it is recommended that you periodically open windows and doors on days when the outdoor weather is dry (i.e., humidity is below 50 percent) to help humid areas of your dwelling dry out. IV. Promptly notify us in writing about any signs of water leaks, water infiltration or mold.

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B. IN ORDER TO AVOID MOLD GROWTH, it is important to prevent excessive moisture buildup in your dwelling. Failure to promptly pay attention to leaks and moisture that might accumulate on dwelling surfaces or that might get inside walls or ceilings can encourage mold growth. Prolonged moisture can result from a wide variety of sources, such as: · rainwater leaking from roofs, windows, doors and out-side walls, as well as flood waters rising above floor level; · overflows from showers, bathtubs, toilets, lavatories, sinks, washing machines, dehumidifiers, refrigerator or A/C drip pans or clogged up A/C condensation lines; · leaks from plumbing lines or fixtures, and leaks into walls from bad or missing grouting/caulking around showers, tubs or sinks; · washing machine hose leaks, plant watering overflows, pet urine, cooking or beverage spills and steam from excessive open-pot cooking; · leaks from clothes dryer discharge vents (which can put lots of moisture into the air); and · Insufficient drying of carpets, carpet pads, shower walls and bathroom floors. C. IF SMALL AREAS OF MOLD HAVE ALREADY OCCURRED ON NON-POROUS SURFACES (such as ceramic tile, Formica, vinyl flooring, metal, wood or plastic), the federal Environmental Protection Agency (EPA) recommends that you first clean the areas with soap (or detergent) and water, let the surface dry, and then within 24 hours apply a pre-mixed, spray-on-type household biocide, such as Lysol Disinfectant ®, Pine-Sol Disinfectant ® (original pine-scented), Tilex Mildew Remover ® or Clorox Cleanup ®. (Note: Only a few of the common household cleaners will actually kill mold.) Tilex ® and Clorox ® contain bleach which can discolor or stain. Be sure to follow the instructions on the container. Always clean and apply a biocide to an area 5 or 6 times larger than any visible mold because mold may be adjacent in quantities not yet visible to the naked eye. A vacuum cleaner with a high-efficiency particulate air (HEPA) filter can be used to help remove non-visible mold products from porous items, such as fibers in sofas, chairs, drapes and carpets—provided the fibers are completely dry. Machine washing or dry cleaning will remove mold from clothes. DO NOT CLEAN OR APPLY BIOCIDES TO: (1) visible mold on porous surfaces, such as sheetrock walls or ceilings, or (2) large areas of visible mold on non-porous surfaces. Instead, notify us in writing, and we will take appropriate action. Complying with this section of your lease will help prevent mold growth in your dwelling, and both you and we will be able to respond correctly if problems develop that could lead to mold growth. If you have questions regarding this section, please contact us at the management office. If you fail to comply with this section, you can be held responsible for property damage to the dwelling and any health problems that may result. We can’t fix problems in your dwelling unless we know about them. Please note: It is our goal to maintain a quality living environment for our residents. To help achieve this goal, it is important to work together to minimize any mold growth in your dwelling. That is why this section contains important information for you, and responsibilities for both you and us.

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

35. PERSONAL PROPERTY: BY SIGNING THIS RENTAL AGREEMENT THE TENANT AGREES THAT UPON SURRENDER OR ABANDONMENT, AS DEFINED BY THE FLORIDA STATUTES, THE LANDLORD SHALL NOT BE LIABLE OR RESPONSIBLE FOR STORAGE OR DISPOSITION OF THE TENANT’S PERSONAL PROPERTY. 36. RULES AND REGULATIONS: You agree to be bound by such reasonable rules and regulations, not contrary to this Lease, as shall be adopted from time to time by us. You acknowledge that it is your responsibility to advise your guests and invitees of these rules and regulations and that you are responsible for making sure that they comply with them. You agree to abide by the rules regulating the use of the swimming pool(s) and other amenities, if any, provided or to be provided. You agree to conduct yourself and require others to conduct themselves in a manner that does not unreasonably disturb neighbors or constitute a breach of the peace.

16.

RULES & REGULATIONS In addition to the policies below, you must observe any other reasonable policies which may be given to you now or are later implemented by us. 1.

Parking and Towing. · Only passenger cars may be parked on the premises. No other vehicles (including motorcycles, trucks, boats, and boat trailers, campers, travel trailers, and motor homes,) may be parked on the premises without our prior written consent. · All Resident’s vehicles may be required to have a parking sticker provided by us permanently affixed to the lower, front, driver’s side area of the windshield. Visitors may be required to park only in parking spaces marked for visitors. Vehicles without parking stickers are assumed to be visitors and may be required to park in parking spaces marked for visitors. You agree to remove and return your parking sticker to us at the expiration of your lease. · All vehicles must be currently registered; in street operating condition; and must be parked only in the spaces provided for parking. No major repairs may be made to a vehicle on the premises. · No vehicle may be parked in front of dumpsters, fire hydrants, so as to block other vehicles, on the grass, on curbs or outside the boundaries of a single designated parking space, or in entrances or exits. · No more than one vehicle is allowed for each adult resident without our written consent. Any violations of the foregoing rules will subject the vehicle to being towed without notice at the vehicle owner’s expense. We are not liable for any damages arising as a result of towing. You agree to indemnify and hold us harmless from any claims by your guests or invitees for the towing of their vehicles for violation of these rules; you agree to pay for said towing and other charges related thereto as additional rent to be paid immediately; and you acknowledge that it is your responsibility to advise your guests and invitees of the proper manner for the parking of their vehicles, and you further agree to determine in each case that they have complied with the rules. We may impose additional parking regulations including limiting the number of vehicles which you or your guests may park on the premises, requiring the use of parking decals on vehicles, and/or assigning parking spaces.

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Solicitation by you or others is not allowed on the premises.

No awnings, or other projections, including air conditioners, television, or radio antennas or wiring may be attached to or extend from the outside of any rental unit or building except by us. Locks may not be altered nor may new locks, knockers, other door or window attachments be installed without our prior written consent unless there is an emergency situation. If an emergency situation arises, reasonable measures should be taken by you to secure yourself and your rental unit. However, any alterations must be returned to original condition as soon as the emergency situation passes at your expense, unless we specifically agree otherwise. No noise, music or other sounds, or conduct, is permitted at any time in such manner as to disturb or annoy other persons. No spikes, adhesives, screws, hooks, or nails, or the like may be driven into or applied to the walls, ceilings, floors, doors, or other surfaces of the unit, without our prior written consent. No water filled furniture is permitted except waterbeds. Waterbeds are not permitted unless we are first protected as a loss payee on an insurance policy approved by us. Any draperies or other window covering must be white or lined in white so that only white may be seen from outside your rental unit. You cannot use foil or other unsightly materials to cover the windows. No signs or other objects which we deem to be unsightly may be displayed in your windows or elsewhere on the premises. Water may not be wasted. Water hoses may be used only with automatic shut-off nozzles. Washing of vehicles may be restricted to designated areas. Entrances, hallways, walks, lawns may not be used for storage or for any other purpose other than ingress or egress. Use of any recreation area or other facility, if any, including the pool, exercise room, and computer room is restricted to you and your guests. Only two guests are allowed at any one time and they must either be accompanied by you or you must get our prior written consent for their use of the facilities. All posted rules and regulations regarding any recreation area and other facility must be followed. Balcony, patio, or common areas must be kept neat and clean at all times in broom swept condition. No rugs, towels, laundry, clothing or other items should be stored, hung or draped on railings or other portions of the buildings. Barbecue grills and similar equipment shall not be used on balconies, terraces, roofs, porches, or catwalks of any building of more than one story. They shall be used only outside and at a safe distance which shall be no less than 10 feet, from the nearest building. Parties and Gatherings. All parties and/or gatherings must be contained within the host’s rental unit. Guests are limited to no more than 12 per rental unit (or the maximum number allowed by applicable laws, ordinances or codes) and no more than 3 vehicles. Flyers inviting the general public are not allowed. If you are caught distributing this type of invitation, you and your guarantor will be contacted and discussion of eviction proceeding will be initiated. Noise levels must be maintained at a level that does not interfere with the quiet enjoyment of a neighbor. All parties will be shut down at 12:00 A.M.

5. 6. 7. 8. 9. 10. 11. 12. 13.

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Resident Signature 15. Drug/Criminal Activity. · No Resident, guest or other person allowed on the premises by Resident shall engage in criminal activity, including drug-related criminal activity, on or near the premises. “Drug-related criminal activity” means, but is not limited to, the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use of a controlled substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)). · No Resident, guest or other person allowed on the premises by Resident shall engage in any act intended to facilitate criminal activity, including drug-related criminal activity, on or near the premises.

Resident will not permit the rental unit to be used for, or to facilitate criminal activity, including drug-related criminal activity, regardless of whether the individual engaging in such activity is another Resident or a guest. · No Resident, guest or other person allowed on the premises by Resident shall engage in acts of violence or threats of violence, including, but not limited to, the unlawful discharge of firearms, on or near the premises. · Resident understands and agrees that a single violation of this section shall be good cause for termination of the lease. Unless otherwise provided by law, proof of violation shall not require criminal conviction, but shall be by a preponderance of the evidence. Access Gate, if provided at this community. If an access gate is provided at this rental community, we are providing a controlled access gate in an attempt to control access to the premises. The gate is not a guarantee of your personal safety or security, nor is it a guarantee against criminal activity and we do not represent that the presence of the gate increases your personal safety. The hours of use of the gate may be changed by us without notice to you and we may remove the gate at any time. It is not provided for your security and any benefit you may receive from the gate is incidental to the existence of the gate. · We are not and will not become liable to you or your guests for any personal injury, damage to automobiles or any other damage or loss which is caused as a result of any problem, defect, malfunction, disruption or failure of the performance of the gate. · You agree that you understand how to use the gate and visitor entry system. · You agree that you will take no actions which will impair the use or function of the gate and you further agree to reimburse us for any damages or repairs required as a result of actions by you or your guests. · If applicable you have been issued a magnetically or electronically encoded access card which continues to belong to us. You agree to return the access card to us at the termination of your lease. If the access card is lost or destroyed, or not returned at lease termination, you agree to pay $10 to us for its replacement. If your Apartment contains an overhead sprinkler system, you must take care not to unintentionally trigger the overhead sprinkler system in your Apartment. DO NOT hang items from the overhead sprinklers. A simple depression of the sprinkler head will result in a total draining of water from the system. Neither the Owner nor we will be responsible for any damage incurred from such situations. Consumption of alcohol must be in compliance with all federal, state, and local laws. No alcohol containers are permitted on the Premises, which are larger than a single serve container. Keg cooling devices are also prohibited. Glass containers are not permitted in common areas of the Apartment Community. You may not store or repair any gasoline or gas-fueled vehicle, motorcycle, boat, moped, or other similar vehicle in the area of the Apartment Community. Storage of use of weapons, explosive devices or flammable items are strictly prohibited on or about the premises. The following fines shall apply concerning the violation of any rule or regulation: ·

17. 18. 19. 20. 21.

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FIRST:

A written warning will be issued to the tenant, specifying the complaint was filed.*

SECOND: Upon second complaint, a $50.00 charge will be assessed against tenant.*

THIRD:

FOURTH: A charge shall be imposed in the amount of $100.00 and Landlord may declare the Lease to be in default.

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Upon third complaint, a $75.00 charge will be assessed against tenant.*

*Landlord may, in its sole discretion, declare the Lease to be in default upon the second, third, or fourth notice of a violation. INTERNET AND NETWORK RULES AND REGULATIONS · When Resident and other users disseminate information through the Internet, they must keep in mind that neither Provider, Landlord nor Agent reviews, edits, censors or takes responsibility for any information Resident or such users may create. This places on Resident and such users what will be, for most, an unfamiliar responsibility. When Resident and other users place information on the Internet, they have the same liability as other authors for copyright infringement, defamation and other harmful speech. Also, because the information they create is carried over Provider’s System and may reach a large number of people, including both subscribers and nonsubscribers of Provider, Resident and other users’ postings to the Internet may affect other users and may harm Provider’s, Landlord’s and/or Agent’s goodwill, business reputation and operations. For these reasons, Resident and other users violate this Policy when they engage in any of the following activities. Spamming, Copyright Violation, Distribution and/or Transmission of Obscene or Indecent Speech or Materials ,Defamation , Illegal/Unauthorized Access to Other Computers or Networks Distribution of Internet Viruses, Worms, Trojan Horses and Other Destructive Activities Export Control Violations. Such violations by Resident constitute a default by Resident under this Lease. · Tenant acknowledges that the network provided through the System is a shared network. This means each user, including Tenant, has certain responsibilities to ensure performance of the network overall and their own security. To ensure adequate network facilities for all users of the System, Resident shall not: (i) attempt to degrade the performance of the System and shall not use the System in any way that precludes or significantly hampers the ability of others to use the System, including but not limited to, the operation of any servers, such as FTP, WWW, Peer to Peer file sharing and NNTP, or (ii) engage in any activity that requires or utilizes large portions of the bandwidth allocated to the facility, or would cause less than generally acceptable usage speeds for others. Because the System is shared by many other users, Landlord, Agent and Provider recommend Resident’s use of “Personal Firewall Software.” The Landlord also requires that you have a current antivirus software on any computer connected to the network failure to comply will result in termination of service. Violations of this Policy by Resident may result in remedial action varying from temporary reduction of the network resources, suspension of services, or termination of services.

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

SAMPLE MANAGEMENT AGREEMENT LONG FORM (OVER 10 UNITS)

year. A current list of prospective residents will be maintained. (d)

1. Appointment and Acceptance: The Owner appoints the Agent as exclusive Agent for the management of the property described below and the Managing Agent accepts the appointment, subject to the terms and conditions set forth in this Agreement.

The Agent will prepare all leases and will execute the same in its name, identified thereon as Agent for the Owner. Dwelling leases will be in a form approved by the Owner, Lender and Registered Agent and the term of each lease will not exceed one year without the consent of the Owner. Individual dwelling leases need not be submitted for the approval of the Owner.

(e)

2. Description of Property: The Property(s) (the “Project”) to be managed by the Agent under this agreement are scattered multi family and single family housing units consisting of land, building, and other improvements. The Project is further described as follows:

The Agent will prepare and verify eligibility certifications and recertifications in accordance with the Regulatory Agreement and any governing documents or applicable regulations.

(f)

The Owner will furnish the Managing Agent with rent schedules, showing rents for dwelling units.

(g)

The Managing Agent will use accounts already established at Premier Bank in the Owner’s Name with signatory authority provided to the Management Company’s designated Officers.

(h)

Agent will collect, deposit and disburse security deposits in a segregated non-interest bearing account in accordance with the terms of each tenant’s lease and applicable state law. The amount of each security deposit will be specified in the lease. Security deposits will be deposited in a separate account established by the Owner. The account shall be separate from all other Project and/or Agent funds and accounts. The account will be established in the name of the Owner as its Security Deposit Account, and representatives of the Agent and the Owner will be signatories to this account. To the extent possible, the Security Deposit Account shall be fully insured by the Federal Deposit Insurance Corporation (“FDIC”).

(i)

Agent shall lease and operate the Project in a manner which complies with and satisfies all of Owner’s duties under the Loan Agreement and all state and local laws.

This Management Agreement (this “Agreement”) is made as of the ____ day of _______________________ 2014 (the “Effective Date”) between _______________________ (the “Owner”) and Real Estate Management and Consulting Company, LLC (the “Agent”).

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___________________________________________________________________________ 3. Definitions. As used in this Agreement:

(a)

“Loan Documents” means the Loan Agreement, Partnership Agreement, and other pertinent loan related documents as provided by the Owner.

(b)

“Principal Parties” means the Owner and the Managing Agent.

(c)

Mortgagor, Means and the Owner creating a lien on the Project as security for the payment of debt.

(d)

“Mortgagee” means any holder of the Mortgage

(e)

“Consenting Party” means appointed representative of the Owner.

(f)

“Operating Account” means the primary bank account established to transact revenue & expenditures for the property specified in this agreement.

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4. Basic Information. The Agent has heretofore or will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project, and especially of the electrical, heating, plumbing, air-conditioning and ventilating systems, the elevators and all other mechanical equipment. 5. Marketing. The Agent will be responsible for the marketing activities of the Project. Subject to the Owner’s prior approval, advertising expenses will be paid out of the Operating Account as project expenses. 6. Liaison with The Owner: The Managing Agent will maintain liaison with the property Owner in order to coordinate management concerns. The Managing Agent will keep the Owner advised of any significant matters. 7. Rentals. The Agent will offer for rent and shall use best efforts according to industry standards to rent the dwelling units in the Project. Incident thereto, the following provisions will apply: (a) The Agent will follow a tenant selection policy.

(b)

The Managing Agent will show the premises to prospective tenants.

(c)

The Managing Agent will take and process applications for rentals. If an application is rejected, the Managing Agent will inform the applicant of the reason for rejection. The rejected application, with reason for rejection noted thereon, will be kept of file for (1)

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8. Collection of Rents and Other Receipts. The Agent will use its best efforts according to industry standards to collect, when due, all rents, charges and other amounts receivable in connection with the management and operation of the Project. Such receipts (except for tenants’ security deposits, which will be handled as specified in Section 8a above) will be deposited at a bank or banks and maintained separately from all other Project and/or Agent accounts and funds. The Owner will be responsible for establishing all such accounts and providing signature cards for designated managing agent representative’s execution. All bank accounts established and maintained on the managing agent’s general ledger must have the bank statement forwarded directly to the managing agent for reconciliation. This account will be established in the name of the Owner as its Rental Account, and representatives of the Agent will be signatories to this account. To the extent possible, the Rental Account shall be fully insured by the FDIC. 9. Enforcement of Leases. The Agent may lawfully terminate any tenancy when, in the Agent’s judgment, sufficient cause (including, but not limited to, nonpayment of rent) for such termination occurs under the terms of the tenant’s lease. For this purpose, the Agent is authorized to consult with legal counsel, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions. Unless Owner designates which counsel to use, Agent will use Barron and Redding. The Agent shall have the power to terminate and accept termination of tenancies, settle, compromise and release claims against tenants, and to reinstate leases and give consent when called for in the lease; provided that (i) the Agent shall keep the Owner reasonably informed of such actions and any legal action or settlement involving costs in excess of $1,000.00, and (ii) Agent will not settle rent claims for more than three (3) months or that exceed three thousand dollars ($3,000.00) without the consent of the Owner. Reasonable attorney’s fees and other costs incurred in connec-

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

tion with the enforcement of leases under this Section will be paid out of the Operating Account as Project expenses. 10. Maintenance and Repair. The Agent will use its best efforts according to industry standards to cause the Project to be maintained and repaired in as good a condition as exists on the day of this Agreement, and in a condition at all times reasonably acceptable to the Owner, including, but not limited to, cleaning, painting, decorating, plumbing, carpentry, grounds care and such other maintenance and repair work as may be reasonably necessary, a. Special attention will be given to preventative maintenance, and to the greatest extent feasible, the service of regular maintenance employees will be used. b. Subject to the Owner’s prior approval, the Managing Agent will contract with qualified independent contractors for extraordinary repairs beyond the capability of regular maintenance employees. c. The Managing Agent will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified, and will keep records of the same. Emergency requests will be reviewed and serviced on a twenty-four (24) hour basis. Serious complaints will be reported to the Owner after investigation. d. The Managing Agent is authorized to purchase all material, equipment, tools, appliances, supplies and services necessary for property maintenance and repair. All materials, equipment, tools, appliances, and supplies purchased become assets of the Owner. e. Notwithstanding any of the foregoing provisions, the prior approval of the Owner will be required for any expenditure which exceeds Fifteen Hundred Dollars ($1,500.00) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project. This limitation is not applicable for recurring expenses within the limits of the operating budget or emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project. In the latter event, the Managing Agent will inform the Owner of the facts as promptly as possible.

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Agent will not enter into contracts that exceed a term of one year without the prior consent of the Owner. 11. Utilities, Services and Non-Recurring Expenses. The Agent will make arrangements for applicable water, electricity, gas, sewage, trash disposal, vermin extermination, decorating, cable television, telephone services and laundry equipment and facilities. The Agent will enter into such contracts on behalf of Owner as may be reasonably necessary to secure such utilities and services. Agent will not enter into a contract for a period in excess of 12 months without prior written consent by the Owner.

12. Employees. The management plan and or the operating budget shall prescribe the number of personnel to be regularly employed in the day-to-day management of the Project. All site personnel will be employees of the Agent and not the Owner and will be hired, paid, supervised and discharged by the Agent. The Owner and Agent specifically acknowledge that all cost of compensation incurred by the Agent, including but not limited to, payroll tax, health, dental, and bonuses shall be operating costs of the property and shall be paid from the Operating Account. Agent will comply with all federal laws and all laws of the applicable state relating to income, social security, unemployment insurance and similar taxes. All site personnel will be hired and discharged by the Agent. All bonuses shall be approved by Owner. a. The Manager will have duties of the type usually associate with this position. The Manager will be directly responsible to the Managing Agent. The Managing Agent will coordinate all activities at the Project in the interest of good overall management. b. Compensation of all personnel will be at the Managing Agent’s discretion in conjunction with the owners’ approval, provided minimum wage standards are met. c. The Owner will reimburse the Managing Agent for compensation (including employee expenses) payable to the management and maintenance employees. Such reimbursements will be paid out of the Operating Account and will be treated as Project expenses. d. Compensation (including employee expenses) payable to the staff, plus all local, state, and federal

taxes and assessments incident to the employment of such personnel will be borne solely by the Owner and will not be paid out of the Managing Agent’s fee. 13.

Operating Account: Disbursements From the Operating Account. (a)

The Agent shall establish an Operating Account for the Project at Prime Meridian Bank. Disbursements shall be made from the Operating Account as provided herein.

(b)

From the funds deposited in the Operating Account, the Agent will make the following disbursements:

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All costs and expenses incurred by the Agent on behalf of the Owner in connection with the management and operation of the Project, including but not limited to all compensation payable to the employees and taxes, assessments and benefits payable in connection therewith, reasonable travel and expenses associated therewith, all marketing costs, all third parties professional fees, all collection and lease enforcement costs, all information technology cost, both hardware and software, all maintenance and repair costs, all emergency repairs, all utilities and related services, on site overhead costs and all other costs reasonably incurred by the Agent in the operation and management of the Project. There is excluded from the foregoing (i) all of the Agent’s general overhead costs and all costs of employees of Agent who do not generally perform their duties at the Project, and (ii) all ongoing off site nonproperty related expenses, including postage, stationary, copying, office supplies, administrative costs, telephone and transportation costs. (c)

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In the event that the balance of the Operating Account is at any time insufficient to pay disbursements due and payable under this Section, the Agent will inform the Owner of such deficiency. In no event will the Agent be required to use its own funds to pay such disbursements.

14. Budgets and Certification. Annual Operating Budgets and Capital Improvement Budgets for the Property will be prepared by the Agent. A recommended Operating Budget and Capital Improvement Budget for each fiscal year beginning during the term of this Agreement will be prepared by the Agent and submitted to the Owner. The Owner will within thirty (30) days inform the Agent of changes, if any, to be incorporated in the approved operating budget. If the Owner has not informed Agent of any changes in writing within the thirty (30) day review period, then the submitted budgets shall be deemed approved by the Owner. Agent’s obligation to provide the services described in this Agreement is subject to the availability of funds within the Annual Operating Budgets and Capital Improvement Budgets. If Agent cannot fulfill Agent’s obligations under this Agreement as a result of an inadequacy on either the Annual Operating Budgets or Capital Improvement Budgets, Agent will inform Owner of the revisions needed to allow Agent to fulfill those obligations, and the budgets will be promptly revised accordingly.

15. Records and Reports. The Agent will have the following responsibilities with respect to records and reports: (a)

The Agent will establish and maintain a comprehensive system of records, books and accounts consistent with the terms of the Loan Agreement, and Partnership Agreement. All records, books and accounts will be subject to examination at reasonable hours by any authorized representative of the Owner.

(b)

The Agent will prepare a monthly report (i) comparing actual and budgeted figures for receipts and disbursements, and (ii) with a schedule of accounts receivable and payable for the Project, and (iii) rent roll and will submit each such report to the Owner, within twenty (20) days after the end of the month. Reports will be provided to third parties as required by the Owner.

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Insurance and a Fidelity bond in the amount of five hundred thousand dollars ($500,000). (c)

(d)

The Agent will furnish such information (including occupancy reports and other reports) as may be reasonably requested by the Owner from time to time with respect to the financial, physical or operational condition of the Project. Agent shall cause to be maintained such books and records, file all reports and take such other actions as are required under the terms of the Loan Agreement.

(e) Except as otherwise provided in the Agreement, all off-site bookkeeping, clerical, and other management overhead expenses (including, but not limited to, costs of office supplies and equipment, postage, transportation for managerial personnel, and telephone services not directly associated with a project) will be borne by the Managing Agent out of its own funds and will not be treated as Project expenses.

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(f) The Managing Agent will not be responsible for the preparation or submission of federal, state or local tax returns of the entity. The Managing Agent, if directed by the Owner, will have these returns, prepared by a certified accountant or other person acceptable to the Owner. Compensation for the preparer’s services will be paid out of the Operating Account as an expense of the Project.

(g) In the event that this Agreement is terminated, Managing Agent will provide the original records and leases to the new managing agent as directed by the Owner. Certain records such as accounts payable invoices/check information and general journal entries, which are stored electronically, may be provided in a electronic format.

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(h) Owner represents there are no past due Accounts Payable for the Property. (i) Owner agrees to provide additional funds necessary to cover any operating shortfalls. The initial amount needed will be determined by the Managing Agent about 15 to 30 days after the management agreement becomes effective. The Owner agrees to send the full amount to the Managing Agent to deposit into the site account within 15 days of the initial request.

16. Bids and Purchase Discounts, Rebates or Commissions, etc. The Owner and Agent agree to use best efforts according to industry standards to obtain contract materials, supplies and services at competitive prices and on terms advantageous to the Project and to secure and credit to the Project all discounts, rebates or commissions obtainable with respect to purchases, service contracts and other transactions on behalf of the Project. The Owner and Agent agree that all goods and services purchased from individuals or companies having an identity-of-interest or affiliation with the Agent shall be purchased at costs not in excess of those that would be incurred in making arms-length purchases on the open market and shall have prior approval by the Owner. 17.

On-Site Management Facilities. The project will have no on site office.

18. Insurance. At Owner’s request, Agent shall assist Owner in obtaining insurance for the Project as required in the Loan Agreement and/or the Mortgage and/or the Partnership Agreement. Agent will be named as additional named insured. Owner shall cause Agent to provide evidence of such insurance to the Lender as provided in the Loan Documents. The Agent will pay insurance premiums from funds provided for such purpose. These costs will be treated as project expenses. All insurance will be placed with such companies, on such conditions, in such amounts and with such beneficial interest appearing thereon as directed by Owner and as required by the Loan Agreement and/or the Mortgage; provided that the same will include public liability coverage, with the Agent designated as one of the insureds; in an amount acceptable to the Agent as well as the Owner. Upon request, the Agent will promptly investigate and furnish the Owner with notice of all accidents, claims and potential claims for damage relating to the Project, and will cooperate with the Owner’s insurers in connection therewith. Agent will also obtain, at Agent’s expense, Employee Theft

19. Compliance with Government Orders. Subject to the approved budget, the Agent will take such action as may be reasonably necessary to comply with all federal, state, county or municipal laws, rules and regulations relating to the Project. Nevertheless, the Agent shall take no such action so long as the Owner is contesting, or has affirmed its intention to contest, any such order or requirement provided, however, that the Agent shall only be required to delay or refrain from its performance pursuant to the foregoing part of this sentence so long as and to the extent that such delay will not lead to the Agent’s civil or criminal liability. Owner will indemnify and defend Agent at Owner’s expense from all claims and related loss, damage and expense arising from compliance with Owner’s instructions as provided in this Section 20. 20. Non-Discrimination. In the performance of its obligations under this Agreement, the Agent will strictly comply with the provisions of all federal, state or local laws prohibiting discrimination in housing on the grounds of race, color, creed, sex or national origin.

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21. Agent’s Compensation. The Managing Agent will be compensated for its services under this Agreement by monthly fees to be paid out of the operating Account and treated as Project Expenses. Such fees will be payable on the first day of the month for the term of this Agreement.

a. Each such monthly fee will be $600 or in the amount equal to eight (8.00%) percent of gross collections received during the preceding month, whichever is greater, payable on the 10th of each month. Additionally, Agent will receive $300 for every new lease obtained, and $200 for every lease renewal. Gross collections include rental income and income from other sources such as coin operated laundry equipment and vending machines. Gross collections does not include cash received by Owner from any capital transaction involving the Project, including capital contributions to the Owner, the proceeds of and the debt of the Owner, and collections of insurance proceeds.

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b. The Managing Agent will provide finance and accounting materials and services for the Project, and the Managing Agent will be compensated for these services in an amount equal to __-0-__ per unit per month. The finance and accounting materials and services projected shall include all functions customarily attributable to bookkeeping services. These services shall include maintaining and reconciling Rent Accounts and Escrow Accounts, performing all required payroll recording procedures, posting all expenditures according to an approved chart of accounts compatible with the annual audit requirements, and providing accountability concerning resident rent payment receipts. It is specifically understood that in essence all finance and accounting that otherwise would be done at the Project by full or part-time bookkeeping personnel and paid for by the Project will be performed by the Managing Agent in accordance with this Agreement.

22. Term of Agreement. This Agreement shall be in effect for the period beginning on the date hereof, and ending on the one year anniversary of the date of execution. This agreement will automatically renew on an annual basis upon the first anniversary of the date hereof unless terminated consistent with Section 24, 25, or 26. 23. Termination by Owner. This Agreement may be terminated by the Owner at the end of the twelve (12) month period following the end of the then-current term upon written notice to the Agent given not less than ninety (60) days prior to the expiration of the then-current term. In the event of a default by Agent of its obligations hereunder, the Owner may give written notice to Agent of the occurrence of such default and this Agreement may be terminated by the Owner if such default is not cured by the Agent within thirty (30) days following receipt by Agent of such notice. Owner may terminate this Agreement upon a thirty (30) notice if the property is sold. 24.

Termination by Agent. This Agreement may be terminated by the Agent for non-

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY

payment of management fees, or with a thirty (30) days written notice. 25. Automatic Termination. This Agreement shall terminate automatically in the event that Owner transfers, sells or conveys all or a controlling interest in the Project or upon foreclosure of any mortgage. Owner shall notify Agent in writing of any such termination as soon as Owner becomes aware that such termination shall occur or thirty (30) days prior to the date of termination, whichever is later. 26. Indemnification. With respect to liabilities in connection with the property and arising out of the agency established by this Agreement, the Owner shall indemnify and save harmless the Agent from and against all claims, losses and liabilities resulting from damage to property or injury to, or death of, persons, defamation and false arrest (including, but not limited to, the property and persons of the parties hereto and their agents, contractors, subcontractors and employees); or occasioned by or in connection with or arising out of acts or omissions, other than criminal acts, of (i) the Agent (except in cases of willful misconduct or negligence), (ii) the employees, contractors or subcontractors of the Agent (except in cases of willful misconduct or negligence), or (iii) the Owner or the Owner’s agents, employees, contractors and subcontractors, and from and against all attorneys’ fees and expenses incurred in connection therewith. The obligation of Owner to provide indemnity is limited strictly to its interest in its Project and to the extent of its rights under any insurance policies obtained by or on behalf of Owner, and Agent shall not seek any judgment or adverse claim against assets of Owner (or a director), officer or employee of Owner apart from the Project and any insurance policies of Owner. Nor will Agent seek any judgment against any non-profit corporation affiliated with Owner.

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The Agent shall indemnify and save harmless the Owner and its officers, directors and employees, from and against all claims, losses and liabilities, including all attorneys’ fees and expenses incurred in connection therewith, arising out of any negligent act or omission or willful misconduct on the part of Agent or its employees, in connection with the management of the Property and the performance of any of Agent’s duties hereunder.

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27. Minimizing Costs: Fraud Prevention. (a)

In connection with the performance of its duties under this Agreement, any discounts, refunds, credits, concessions or other incentives received by Agent or its employees shall inure to and belong to Owner. Owner shall have the right, in its sole and absolute discretion, to terminate any service agreement with a third party vendor to provide services to the Project if, in Owner’s judgment, comparable service can be provided at lower cost or higher quality service. Such right of termination shall be subject to the terms of such service agreements concerning Owner’s right to terminate. Owner and Agent shall cooperate in good faith with one another in connection with the operation of the Project so as to minimize potential conflicts of interest between Agent and Owner and to minimize costs.

(b)

Agent shall ensure such control over accounting and financial transactions as is reasonably and prudently necessary to protect against loss of Owner’s assets from theft, error or fraudulent activity on the part of Agent’s employees and third persons.

(c)

Agent will not offer severance or separation agreements other than two weeks without prior written approval of the Owner.

property tax assessments and property taxes for the Project; provided that Agent will provide such information reasonably requested by the Owner that Agent collects in the course of the performance of Agent’s obligations under this Agreement. (c)

Any and all reporting required to comply with Federal, State, and local rental and income compliance by residents.

29. Grant of Authority. Owner hereby grants to Agent the authority to act on behalf of Owner, as Owner’s agent, in the performance of Agent’s obligations under this Agreement. Owner will execute such additional documents reasonably requested by Agent to establish or affirm that authority.

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30. Loan Agreement and Other Agreements. Agent’s obligations to fulfill any obligations provided in the Loan Agreement or other agreement between Owner and any third party is conditioned upon Owner providing a copy of those agreements within thirty (30) days after the effective date of this Agreement. 31. Miscellaneous (a)

Successors and Assigns. This Agreement shall be binding upon the parties hereto, their legal representatives, successors and permitted assigns. Any and all duties of the Agent hereunder may be assigned to a subagent at the discretion of the Agent with Owner’s written approval.

(b)

Authority. Each person signing on behalf of Owner or Agent hereby warrants and represents to the other that he has the lawful and proper responsibility and authority to execute this Agreement as provided herein.

(c)

Notices. All written notices of any kind which either party may desire or may be required to serve on the other party in connection with this Agreement shall be served (as an alternative to personal service) by registered or certified mail, postage prepaid. Any such notice or demand so to be served by registered or certified mail shall be deposited in the United States mail with postage thereon full prepaid, addressed as set forth below, and shall be deemed to have been received by the addressee at the time of such deposit.

(d)

(e)

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Rights of Third Party/Subordination. Except as otherwise expressly provided herein or as provided in the Loan Agreement, nothing herein is intended to give, nor shall it have the effect of giving, any enforceable rights to any third parties who are not parties hereto, whether such claims are asserted as third party beneficiary rights or otherwise. Partial Invalidity. If any provision of this Agreement or the application hereof to any person or circumstance shall, to any extent, be prohibited by law or invalidated by court decree in any locality or state having proper jurisdiction over the subject matter hereof, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those as to which it is prohibited or invalid, shall not be affected thereby, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

(f)

Governing Laws. The construction, interpretation and performance of this Agreement shall be governed by the laws of the state where the Project is located.

28. Excluded Duties. The duties of the Agent under this Agreement do not include: (a)

The analysis or supervision of non-recurring or extraordinary work for repair, rehabilitation or other construction in connection with the Project or the restoration of the Project after any casualty.

(g)

Headings or Titles. Headings or titles of sections are inserted solely for convenience of reference and shall not constitute a part of this Agreement or affect its meaning, construction or effect.

(b)

Consultations and/or negotiations with the Owner and other parties with respect to

(h)

Copies of Agreement. This Agreement may be executed in one or more counterparts,

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SAMPLE MANAGEMENT AGREEMENT SHORT FORM (1-10 UNITS)

each of which shall be deemed an original. (i)

Waiver. The failure of either party to insist upon strict performance of this Agreement or to exercise any of its rights or remedies herein, shall not be a waiver or relinquish of such partyâ&#x20AC;&#x2122;s rights or remedies, and no waiver shall be deemed to be made unless it is expressly made in writing and signed by the party against whom the waiver is asserted.

(j)

Entire Agreement. This Agreement, together with any exhibits attached hereto, embodies the entire agreement and understanding of the parties with respect to the subject matter hereof. This Agreement may not be modified except by an express writing signed by the parties hereto and subject to the approval requirements contained in the Loan Agreement.

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IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the Effective Date.

OWNER:

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___________________________________________ AGENT:

REAL ESTATE MANAGEMENT AND CONSULTING COMPANY, LLC

By: ________________________________ By: Acey Stinson Its: President

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NOTES