FASS Property Management Kit

GET STARTED

RESIDENTIAL PROPERTY MANAGEMENT

PART 1

Presented by:

THE PROCESS Checklist PART 1 is completed with the following information: Property Management Services Proposal Thank you! Why FASS?................................... 1.1 Education & Experience................................... 1.2 Legal & Compliance/Responsibilities................ 1.3 Services......................................................... 1.4 Fees............................................................... 1.5 Rent & Payments........................................... 1.6 Cancellation.................................................... 1.6 FAQ............................................................... 1.7 References..................................................... 1.7 Contact.......................................................... 1.7

Checklist Instructions: This checklist should be used as a guide to completing the Property Management contracting process with FASS Real Estate Services. For the process to be complete, all documentation and related fees should be submitted to our office. ubmit signed Property Management Contract, Agency Disclosure, S Consumer Guide, Property Inventory Addendum omplete and return Property Management Addendums C (including Property Details, Security Deposit Acknowledgment, Lead Warning Statement, Eviction Addendum, Payment Authorization Form, and Limited Power of Attorney) Submit copy of property insurance ubmit copy of lease agreement S (For all current Tenants, if applicable) Send copies of property keys

PART 2 is completed with the following information:

Remit Maintenance Deposit

Agency Disclosure.................................................. 2.1 Consumer Guide to Agency Relationships................. 2.3 Residential Property Management Contract............. 2.5 Property Inventory Addendum................................ 2.11

Remit processing & Classification Fee(s), per property

PART 3 is completed with the following information: Property Details (per unit)...................................... 3.1 Security Deposit Acknowledgment (per unit)............ 3.2 Lead Warning Statement........................................ 3.3 Eviction Addendum................................................. 3.4 Payment Authorization Form................................... 3.5 Limited Power of Attorney..................................... 3.6

Please forward all information to: FASS Real Estate Services c/o Management Unit 3705 Lee Road, Suite 100 Shaker Heights, OH 44120 management@FASS-RES.com

PART 4 is completed with the following process: STEP 1: Internal File Audit.................................... 24 hours STEP 2: Setting Up Records.................................. 24-72 hours STEP 3: Setting Up Banking.................................. 24 hours STEP 4: Establish Working Capital Fund................. 24 hours STEP 5: Transferring Security Deposits.................. 24 hours STEP 6: Notifying Tenants and other parties.......... 24 hours STEP 7: Property Assessment............................... 24-48 hours STEP 8: Property Assessment Report.................... 24-48 hours Note: Part 4 of the process will take longer for multiple properties.

INITIAL CHECK BY:

AUDITED BY:

Initials: _____________________ Date: ___________________________

Initials: _____________________ Date: ___________________________

Complete

Incomplete: _____________________________________

Complete

Notes: ________________________________________

Property Management Services Proposal Thank you for your consideration and the opportunity to manage your property(ies)!

Here’s a brief overview of our proven capacity to meet your ongoing - and growing - property management needs.

FASS Real Estate Services (FASS) is a licensed, Greater Cleveland-based, boutique Real Estate Brokerage firm, specializing in Property Management, Real Estate Sales and Leasing, Real Estate Consulting, and Commercial Real Estate and Development.

At FASS, it’s our mission to provide quality, safe and affordable housing to tenants, and to collect rent on time each month on behalf of our owners.

We make it our business to maintain cost-cutting and effective savings measures for our owner clients.

As the owner of a property managed by the FASS Management team, the following is a list of just a few of the benefits and services available to you and your residents: • Licensed Real Estate Brokerage in accordance with Ohio law • State Compliant Management Company for lawful and professional services • Errors and Omissions Insurance to help protect you and your assets • Web-based Owner Portal for hassle-free, on-demand access to owner statements, work orders and reports • Monthly, Quarterly and Annual Electronic Owner Statements for simple and fast delivery • 24-hour Maintenance Program • Preventative Maintenance Program to monitor small issues before they become huge problems • Comprehensive Vacancy Marketing including everything from traditional advertising to social media • Property Leasing System and Team complete with fast-results nationwide credit, criminal and eviction screening • Recommended Tenant Liability Insurance to protect your investment from damage due to resident negligence • Monthly Resident Invoicing System sends print and electronic notifications for a smoother payment process • Multiple Resident Rent Payment Options for convenient access and to simplify on-time payments • Electronic Payment Options so you get your money faster and easier • Resident Retention Programs like our FASSperks™ Resident Rewards Program • Local Business Office with full administrative team and maintenance staff For more information, visit our website at www.FASS-RES.com.

Education & Experience We’re young, but mature.

Founded in 2006, FASS began as a simple concept: to help accidental landlords, investors and renters seamlessly connect to quality housing for investment purposes, or a great place to live - and within a short period of time. As a company, we provide a variety of real estate services across 4 primary service units: Residential, Commercial, Management and Consulting.

Today, FASS manages everything from single family homes to apartments and multi-family housing units and represents property owners from over 20 states, and four countries including China, Japan, Australia, Singapore, Malaysia, Canada, and the UK. •P rofessional Member of NARPM®: National Association of Professional Property Managers

• Licensed Real Estate Brokerage by the Ohio Division of Real Estate

1.1

Legal & Compliance Ohio law requires a real estate license to engage in property management activities (Ohio Revised Code Section 4735.01(A); it also requires that the property management services be conducted through the real estate brokerage.

We understand and comply with all city, state and federal laws for property management and dealing with tenants including licensing, maintaining property records, fair housing laws, Landlord-Tenant laws, safety codes and eviction laws.

We’re a licensed real estate brokerage by the Ohio Division of Real Estate.

We keep all relative property management documents for three years.

We carry Errors & Omissions (E&O) Insurance to help us protect your asset(s).

Fair Housing Law It is illegal, pursuant to the Ohio Fair Housing Law, Division (H) of Section 4112.02 of the Revised Code and the Federal Fair Housing law, 42 U.S.C.A. 3601, as amended, to refuse to sell, transfer, assign, rent, lease, sublease or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in Section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services.

It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes.

RESPONSIBILITIES

Property Manager

Property Owner

• Provide timely communications with property owner • Work with, or on behalf of property owner to select quality tenants.

• Exercise good judgment as acting representative for the property owner.

• Comply and obey with all process, orders and applicable laws related to the management of property on behalf of the property owner.

• Provide monthly accounting for funds to the property owner.

• Provide timely communications with property manager.

• Work with, or invest trust in property manager to select quality tenants.

• Exercise respect, patience and understanding with property manager as your acting representative.

• Comply and obey with all process, orders and applicable laws related to the management of your property.

• Complete an annual 1099 for listing FASS Real Estate Services as hired employee.

• Keep an up-to-date address on file with property manager.

1.2

Management Fee Options The following management fee options are available to you based on the type of services you would like us to provide for you. There are 3 (three) management fee levels to choose from - Gold, Silver, and Bronze - with fees ranging from 8%-12% of the gross monthly collected rent per unit.

BRONZE LEVEL

8% • Detailed Property Assessment and Classification • Complete Rent Ready Inspection • Professional Tenant Placement (applicable fees) • general property marketing • schedule and set-up showings • screening (background & credit check) • move-in coordination (lease signing and deposit/rent collection)

SILVER LEVEL

10%

GOLD LEVEL

12%

• All the features of Bronze Level Services, plus: • Maintenance/Repair Coordination

• T imely & Professional Tenant Correspondence • Easy-to-use Tenant Portal • Proprietary Tenant Retention Program • Attentive Rent Collection • Accurate Rent Payment • Detailed Monthly Statement • Comprehensive Annual Statement • Timely & Professional Owner Correspondence • Secure, Self-service Owner Portal

• All the features of Silver Level Services, plus: • City Rental Registration • Utility Coordination • Bill Pay • County Property Tax Payment Coordination • Landscaping Coordination (cost passed on to Owner

Additional Services (a’la carte) From the list below, please select any additional services you would like to add to your management contract.

3 Day Notice Delivery $50.00

Annual Inspection $75.00 per

viction Coordination $450.00 (Incls. City filing fees and E first court appearance)

Section 8/HCVP Inspection $75.00 per

Section 8/HCVP Coordination $250.00 per placement

Advanced Property Marketing (Based on property)

Quarterly Inspection $35.00 per Bi-annual Inspection $50.00 per

1.3

FEES

Management Fee

Processing Fee one-time set-up fee Maintenance Deposit emergency funds Subsidy Program Oversight Fee (HCVP/CMHA/Eden) Classification Fee Leasing Bonus Lease Renewal

Residential 8-12% gross monthly rent collected, per unit, or a flat-fee of $60 per unit ($150 max) or $20 per vacant unit, per month (whichever is greater). $150, per property up to 2 units (Non-refundable) $350 minimum up to 4 units $250, per unit (If applicable) $150, per property (If applicable) One (1) month’s rent for acquisition of new tenant 25% of one (1) month’s rent

Additional Fees • “Above and beyond” general marketing and advertising of vacancies at the request of owner will be at cost to owner (see Part II, Section E of the Residential Property Management Contract)

• Discretionary Funds for Eviction Fees: $200 (see Part IV, Section B, Paragraph 1) • Excess maintenance, repair, construction oversight fee: $50 – $500 (anything over $500 TBD) (see Part IV, Section C, Paragraph 4 of the Residential Property Management Contract)

• Utility Deposit: $250 if the owner requests that we carry utilities in our name a setup/carry fee will be charged as an escrow and applied for future usage • Expedited Cancellation Charge: $200 (see Part IV, Section K of the Residential Property Management Contract) • Early Termination Marketing Reimbursement Fee: $500 (see Part IV, Section K of the Residential Property Management Contract) *Rates and charges are listed in USD ($).

Maintenance Rates & Charges The following is a basic list of our standard rates and charges for typical maintenance requests. These charges will be billed to your account and deducted from the maintenance deposit for the provision of any of these services. These are average costs and are subject to change based on the actual scope of work.

Description

*Rates/Charges

SERVICE CALL, Regular Hours (Mon. – Fri. 9am-5pm EST). Trip Charge.

$35.00, plus $20-$25/hr. ($55.00 min.)

SERVICE CALL, Emergency (After 5pm EST, and weekends). Trip Charge.

$45.00, plus $30-$40/hr. ($75.00 min.)

LEAKY TOILET, with parts replacement

$55.00

SNAKE DRAIN or TOILET

$40.00 $125.00 if professional needed

KITCHEN FAUCET, replace single handle parts and labor

$90.00 $125.00 with sprayer

GARBAGE DISPOSAL, replacement including labor and materials

$150.00 and up

ENTRANCE LOCKSET, replace knob and deadbolt; keyed the same

$70.00/door

HVAC CLEAN AND CHECK BY CERTIFIED HVAC TECHNICIAN

$60.00 single family / $110.00 two-family

HVAC CERTIFIED HVAC TECHNICIAN Trip Charge.

$60.00 / $70.00 after hours

FURNACE, New (80K BTU 80%), simple r/r, i.e. no duct replacement.

$1,500.00

1.4

Maintenance Rates and charges continued.

HOT WATER TANK, New (40gal, gas) simple r/r.

$550.00

INSTALL NEW 220v DRYER OUTLET

$175.00

(assumes available space in breaker panel and no more than 50ft. new 30 amp service cable) INTERIOR PAINTING, includes paint and materials, but no repairs. (1 coat semi-gloss, 10x12 room).

$125.00

LAWN MOWING, standard city lot, no shrub trimming or yard clean-up.

$25.00

CLEANING SERVICES, tenant-ready cleaning - $60.00 (1BR); $75.00 (2BR); $125.00 (3BR); $150.00 (4BR).

< rates by bedroom

SCREEN DOOR, install new closer.

$55.00

SCREEN DOOR, install new door

$175.00 and up, plus materials

SECURITY DOOR, install new door, complete with double lockset, includes labor and materials.

$225.00 and up

ENTRY DOOR, replace door only, with new deadbolt and lockset, includes labor and materials.

$225.00 and up

ENTRY DOOR, replace, complete with jamb, deadbolt and lockset, includes labor and materials.

$325.00 and up

*Rates and charges are listed in USD ($).

Rent & Payments When is rent due?

Rents are due on the first day of each month.

How is rent collected?

We accept cash, cashier’s checks, money orders (no personal checks), or on-line at www.FASS-RES.com or payments can be mailed to or made in person at: FASS Real Estate Services, 3705 Lee Road, Shaker Heights, Ohio 44120. Our general office hours are Monday- Friday from 9am-5pm. EST.

Is there a grace period?

If rent is not paid by 5:00 pm EST. on the 5th, a late fee of $25 will be added on the 6th. Additional fees of $5 per day will be added for a maximum of $50 if rent is not paid by the 10th. The Late fee is retained by the management company for additional administrative costs.

When and how will I receive my money?

Owner accounts are reconciled on the15th of each month (unless it falls on a weekend or holiday; then the next business day). Most property owners opt to receive their payments via direct deposit and can expect to receive payment during this time. However, if a tenant pays late or does not pay rent, this will affect the timeline on receipt of your payment. If payments are sent by check, when you receive your money is directly subject to the postal service.

Cancellation Once we win your business, we want to keep it. However, if for any reason you decide to cancel your contract...

Our cancellation process simple: 1) We require a 60-day written notice to terminate.

2) There is a 60-day transition period. a) Within 30 days, residents are notified; and b) Within next 30 days, documents are keys are released to designee.

3) Termination becomes effective on day 60.

4) Within 30 days, funds are returned.

See (Part IV, Section K of the Residential Property Management Contract)

1.5

FAQ Do you perform preventative maintenance/property inspections? How often?

We do! We access and inspect each asset on an annual basis and where needed, present you with preventative plans to keep your property in functional condition. As a partner, we can also offer you suggestions and feedback on upgrades and modifications that will affect both the rent you charge and the value of your property. Additionally, every 6 months we’ll meet with you either in-person, by phone, or virtually for semi-annual review.

What is your standard practice for dealing with maintenance issues? Is there a certain amount of money I must provide up front to put into a maintenance/repair fund?

Will you call me for all maintenance requests? Will you only call for maintenance requests over a certain amount, say $500? A minimum maintenance deposit is required from property owners and all the legitimate expenses will be paid from this account. In the event maintenance, repairs, or construction are required to be performed to the property in excess of that amount, we will notify you for approval.

Unless otherwise noted, all work orders under $500 will be approved by management unless the owners notify management of denial of work order. Upon receipt of Denial, a plan of action must be determined by

What type or resources do you have in terms of contractors or other repairmen?-Are they on call to handle emergencies?-Do you rely solely on this group or do you get other estimates as well?

When maintenance or repair service is required, we will contact the appropriate professional for the job by accessing either our in-house maintenance staff or our extensive network of licensed, bonded and insured contractors who have already been evaluated for good pricing and quality work.

What doesn’t the property management fee cover?

Homeowner’s and Property Insurance/ Home Owner Association Fees.

Insurance and HOA fees are not included in the management fee but upon homeowner’s request and authorization, we can include it in the monthly rental expenses and issue a payment on the owner’s behalf.

Cost of Maintenance and Repair. Although FASS coordinates all the repair and maintenance services, we are not responsible for the respective payments. All maintenance fees are covered by the property owner.

A start-up deposit is required from homeowners and all the legitimate expenses will be paid from this account. A quarterly revenue and expense statement will be issued. At the end of the year we will facilitate the preparation of your income taxes by issuing a special year-end account analysis report.

the owner and the management team and information provided to the

Mortgage Payment/Property Taxes/Legal Fees/Delinquent Rent

resident within 48 hours.

Collection Service. In situations where the rent collection is overdue and the resident doesn’t show signs of cooperation, a credit collection

Do you provide an itemized list of all expenses?

Of course! Your monthly owner statement will itemize and verify repair costs.

company will be hired to continue the process and to report, delinquency and eventually eviction to the main Credit Bureaus. Cost and fees are not included in management fee.

Do you have free range to make repairs in the event of an emergency?

When will I get my first check?

What constitutes an emergency The contract authorizes us free range

If the property is vacant, the Owner will receive the first check 45-60 days

to respond to emergencies up to $500 without prior authorization. The

after tenancy begins. For Tenant-occupied properties, the first check will

average cost of a real heating, electrical or plumbing emergency will

be 30 days after account handover process is completed.

range from $300 – $500 and waiting for response would effect the tenant in an emergency situation. Emergencies are determined at our discretion.

How long does it take you to respond to resident complaints/repair requests?

Residents have 24/7 access and multiple ways to contact us with their maintenance request. Unless it’s an emergency, we can generally acknowledge the request within 24 hours and dispatch a response within 72 hours.

References References are available upon request

Contact 3705 Lee Road, Suite 100 Shaker Heights, OH 44120 T: 877/861-4761 • L: 330/405-0545 F: 216/342-4409 management@FASS-RES.com

1.6

GET STARTED

RESIDENTIAL PROPERTY MANAGEMENT

PART 2

Presented by:

THE PROCESS Checklist PART 1 is completed with the following information: Property Management Services Proposal Thank you! Why FASS?................................... 1.1 Education & Experience................................... 1.2 Legal & Compliance/Responsibilities................ 1.3 Services......................................................... 1.4 Fees............................................................... 1.5 Rent & Payments........................................... 1.6 Cancellation.................................................... 1.6 FAQ............................................................... 1.7 References..................................................... 1.7 Contact.......................................................... 1.7

Checklist Instructions: This checklist should be used as a guide to completing the Property Management contracting process with FASS Real Estate Services. For the process to be complete, all documentation and related fees should be submitted to our office. ubmit signed Property Management Contract, Agency Disclosure, S Consumer Guide, Property Inventory Addendum omplete and return Property Management Addendums C (including Property Details, Security Deposit Acknowledgment, Lead Warning Statement, Eviction Addendum, Payment Authorization Form, and Limited Power of Attorney) Submit copy of property insurance ubmit copy of lease agreement S (For all current Tenants, if applicable) Send copies of property keys

PART 2 is completed with the following information:

Remit Maintenance Deposit

Agency Disclosure.................................................. 2.1 Consumer Guide to Agency Relationships................. 2.3 Residential Property Management Contract............. 2.5 Property Inventory Addendum................................ 2.11

Remit processing & Classification Fee(s), per property

PART 3 is completed with the following information: Property Details (per unit)...................................... 3.1 Security Deposit Acknowledgment (per unit)............ 3.2 Lead Warning Statement........................................ 3.3 Eviction Addendum................................................. 3.4 Payment Authorization Form................................... 3.5 Limited Power of Attorney..................................... 3.6

Please forward all information to: FASS Real Estate Services c/o Management Unit 3705 Lee Road, Suite 100 Shaker Heights, OH 44120 management@FASS-RES.com

PART 4 is completed with the following process: STEP 1: Internal File Audit.................................... 24 hours STEP 2: Setting Up Records.................................. 24-72 hours STEP 3: Setting Up Banking.................................. 24 hours STEP 4: Establish Working Capital Fund................. 24 hours STEP 5: Transferring Security Deposits.................. 24 hours STEP 6: Notifying Tenants and other parties.......... 24 hours STEP 7: Property Assessment............................... 24-48 hours STEP 8: Property Assessment Report.................... 24-48 hours Note: Part 4 of the process will take longer for multiple properties.

INITIAL CHECK BY:

AUDITED BY:

Initials: _____________________ Date: ___________________________

Initials: _____________________ Date: ___________________________

Complete

Incomplete: _____________________________________

Complete

Notes: ________________________________________

AGENCY DISCLOSURE STATEMENT The real estate agent who is providing you with this form is required to do so by Ohio law. You will not be bound to pay the agent or the agent’s brokerage by merely signing this form. Instead, the purpose of this form is to confirm that you have been advised of the role of the agent(s) in the transaction proposed below. (For purposes of this form, the term “seller” includes a landlord and the term “buyer” includes a tenant.)

Property Address: ____________________________________________________________________________________________ Buyer(s): __________________________________________________________________________________________________ Seller(s): __________________________________________________________________________________________________ I. TRANSACTION INVOLVING TWO AGENTS IN TWO DIFFERENT BROKERAGES The buyer will be represented by ______________________________________________, and ______________________________.

AGENT(S)

BROKERAGE

The seller will be represented by ______________________________________________, and ______________________________.

AGENT(S)

BROKERAGE

II. TRANSACTION INVOLVING TWO AGENTS IN THE SAME BROKERAGE If two agents in the real estate brokerage ___________________________________________________________________________ represent both the buyer and the seller, check the following relationship that will apply: Agent(s)_____________________________________________________________ work(s) for the buyer and Agent(s)_____________________________________________________________ work(s) for the seller. Unless personally involved in the transaction, the broker and managers will be “dual agents”, which is further explained on the back of this form.

As dual agents they will maintain a neutral position in the transaction and they will protect all parties’ confidential information.

Every agent in the brokerage represents every “client” of the brokerage. Therefore, agents ______________________________ and _____________________________ will be working for both the buyer and seller as “dual agents”. Dual agency is explained on the back of this form. As dual agents they will maintain a neutral position in the transaction and they will protect all parties’ confidential information. Unless indicated below, neither the agent(s) nor the brokerage acting as a dual agent in this transaction has a personal, family or business relationship with either the buyer or seller. If such a relationship does exist, explain: _______________________________________________________________________________________________________.

III. TRANSACTION INVOLVING ONLY ONE REAL ESTATE AGENT Agent(s) ______________________________________ and real estate brokerage _____________________________________ will be “dual agents” representing both parties in this transaction in a neutral capacity. Dual agency is further explained on the back of this form. As dual agents they will maintain a neutral position in the transaction and they will protect all parties’ confidential information. Unless indicated below, neither the agent(s) nor the brokerage acting as a dual agent in this transaction has a personal, family or business relationship with either the buyer or seller. If such a relationship does exist, explain: ____________ _______________________________________________________________________________________________________. represent only the (check one) seller or buyer in this transaction as a client. The other party is not represented and agrees to represent his/her own best interest. Any information provided the agent may be disclosed to the agent’s client.

CONSENT I (we) consent to the above relationships as we enter into this real estate transaction. If there is a dual agency in this transaction, I (we) acknowledge reading the information regarding dual agency explained on the back of this form. _____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

BUYER/TENANT

BUYER/TENANT

DATE

DATE

SELLER/LANDLORD

SELLER/LANDLORD

Page 1 of 2

DATE

DATE

Effective 01/01/05 2.1

DUAL AGENCY Ohio law permits a real estate agent and brokerage to represent both the seller and buyer in a real estate transaction as long as this is disclosed to both parties and they both agree. This is known as dual agency. As a dual agent, a real estate agent and brokerage represent two clients whose interests are, or at times could be, different or adverse. For this reason, the dual agent(s) may not be able to advocate on behalf of the client to the same extent the agent may have if the agent represented only one client.

As a dual agent, the agent(s) and brokerage shall: • Treat both clients honestly; • Disclose latent (not readily observable) material defects to the purchaser, if known by the agent(s) or brokerage; • Provide information regarding lenders, inspectors and other professionals, if requested; • Provide market information available from a property listing service or public records, if requested; • Prepare and present all offers and counteroffers at the direction of the parties; • Assist both parties in completing the steps necessary to fulfill the terms of any contract, if requested.

As a dual agent, the agent(s) and brokerage shall not: • Disclose information that is confidential, or that would have an adverse effect on one party’s position in the transaction, unless such disclosure is authorized by the client or required by law; • Advocate or negotiate on behalf of either the buyer or seller; • Suggest or recommend specific terms, including price, or disclose the terms or price a buyer is willing to offer or that a seller is willing to accept; • Engage in conduct that is contrary to the instructions of either party and may not act in a biased manner on behalf of one party.

Compensation: Unless agreed otherwise, the brokerage will be compensated per the agency agreement.

Management Level Licensees: Generally the broker and managers in a brokerage also represent the interests of any buyer or seller represented by an agent affiliated with that brokerage. Therefore, if both buyer and seller are represented by agents in the same brokerage, the broker and manager are dual agents. There are two exceptions to this. The first is where the broker or manager is personally representing one of the parties. The second is where the broker or manager is selling or buying his own real estate. These exceptions only apply if there is another broker or manager to supervise the other agent involved in the transaction.

Responsibilities of the Parties: The duties of the agent and brokerage in a real estate transaction do not relieve the buyer and seller from the responsibility to protect their own interests. The buyer and seller are advised to carefully read all agreements to assure that they adequately express their understanding of the transaction. The agent and brokerage are qualified to advise on real estate matters.

IF LEGAL OR TAX ADVICE IS DESIRED, YOU SHOULD CONSULT THE APPROPRIATE PROFESSIONAL. Consent: By signing on the reverse side, you acknowledge that you have read and understand this form and are giving your voluntary, informed consent to the agency relationship disclosed. If you do not agree to the agent(s) and/or brokerage acting as a dual agent, you are not required to consent to this agreement and you may either request a separate agent in the brokerage to be appointed to represent your interests or you may terminate your agency relationship and obtain representation from another brokerage.

Any questions regarding the role or responsibilities of the brokerage or its agents should be directed to an attorney or to: Ohio Department of Commerce Division of Real Estate & Professional Licensing 77 S. High Street, 20th Floor Columbus, OH 43215-6133 (614) 466-4100

Page 2 of 2

Effective 01/01/05 2.2

CONSUMER GUIDE TO AGENCY RELATIONSHIPS (Split Agency & Dual Agency – Model Policy) FASS Management Real Estate Services, LLC

We are pleased you have selected FASS Management Real Estate Services, LLC to help you with your real estate needs. Whether you are selling, buying or leasing real estate, FASS Management Real Estate Services, LLC can provide you with expertise and assistance. Because this may be the largest financial transaction you will enter into, it is important to understand the role of the agents and brokers with whom you are working. Below is some information that explains the various services that agents can offer and their options for working with you:

Representing the Sellers Most sellers of real estate choose to list their home for sale with a real estate brokerage. When they do so, they sign a listing agreement that authorizes the brokerage and the listing agent to represent their interests. As the seller’s agent, the brokerage and listing agent must: follow the seller’s lawful instructions, be loyal to the seller, promote the seller’s best interests, disclose material facts to the seller, maintain confidential information, act with reasonable skill and care, and account for any money they handle in the transaction. In rare circumstances, a listing broker may offer “subagency” to other brokerages, which would also represent the seller’s interests and owe the seller these same duties.

Representing Buyers When purchasing real estate, buyers usually choose to work with a real estate agent as well. Often the buyers want to be represented in the transaction. This is referred to as buyer’s agency. A brokerage and agent that agree to represent a buyer’s interest in a transaction must: follow the buyer’s lawful instructions, be loyal to the buyer, promote the buyer’s best interests, disclose material facts to the buyer, maintain confidential information, and account for any money they handle in the transaction.

Dual Agency Occasionally, the same agent and brokerage that represent the seller also represent the buyer. This is referred to as dual agency. When a brokerage and its agents become “dual agents,” they must maintain a neutral position between the buyer and the seller. They may not advocate the position of one client over the best interests of the other client, or disclose any personal or confidential information to the other party without written consent.

Representing Both the Buyer & Seller On occasion, the buyer and seller will each be represented by two different agents from the same brokerage. In this case, the agents may each represent the best interest of their respective clients. Or, depending on company policy, the agents may both act as dual agents and remain neutral in the transaction. When either of the above occurs, the brokerage will be considered a dual agent. As a dual agent, the brokerage and its managers will maintain a neutral position and cannot advocate for the position of one client over another. The brokerage will also protect the confidentiality of all parties.

For more information on agency law in Ohio, contact the Ohio Division of Real Estate & Professional Licensing at (614) 466-4100, or online at www.com.ohio.gov/real.

2.3

Working With FASS Management Real Estate Services, LLC FASS Management Real Estate Services, LLC does offer representation to both buyers and sellers. Therefore, the potential exists for one agent to represent a buyer who wishes to purchase property listed with another agent in our company. If this occurs, each agent will represent their own client, but FASS Real Estate Services LLC and its managers will act as a dual agent. This means the brokerage and its managers will maintain a neutral position and not take any actions that will favor one side over the other. FASS Management Real Estate Services, LLC will still supervise both agents to assure that their respective clients are being fully represented and will protect the parties’ confidential information.

In the event that both the buyer and seller are represented by the same agent, the agent and FASS Management Real Estate Services, LLC will act as a dual agent but only if both parties agree. As a dual agent, they will treat both parties honestly, prepare and present offers at the direction of the parties, and help the parties fulfill the terms of any contract. They will not, however, disclose any confidential information that would place one party at an advantage over the other or advocate or negotiate to the detriment of either party.

If dual agency occurs, you will be asked to consent to that in writing. If you do not agree to your agent acting as a dual agent, you can ask that another agent in our company be assigned to represent you or you can seek representation from another brokerage.

As a buyer, you may also choose to represent yourself on properties FASS Management Real Estate Services, LLC has listed. In that instance, FASS Management Real Estate Services, LLC will represent the seller and you would represent your own best interests. Because the listing agent has a duty of full disclosure to the seller, you should not share any information with the listing agent that you would not want the seller to know.

Working With Other Brokerages When FASS Management Real Estate Services, LLC lists property for sale, it also cooperates with, and offers compensation to, other brokerages that represent buyers. FASS Management Real Estate Services, LLC does reserve the right, in some instances, to vary the compensation it offers to other brokerages. As a seller, you should understand that just because (brokerage) shares a fee with a brokerage representing the buyer, it does not mean that you will be represented by that brokerage. Instead, that company will be looking out for the buyer and FASS Management Real Estate Services, LLC will be representing your interests. When acting as a buyer’s agent, FASS Management Real Estate Services, LLC) also accepts compensation offered by the listing broker. If the property is not listed with any broker, or the listing broker does not offer compensation, we will attempt to negotiate for a seller-paid fee.

Fair Housing Statement It is illegal, pursuant to the Ohio Fair Housing Law, division (H) of Section 4112.02 of the Revised Code and the Federal Fair Housing Law, 42 U.S.C.A. 3601, to refuse to sell, transfer, assign, rent, lease, sublease or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in Section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes. (Effective: 3/25/08)

We hope you find this information to be helpful to you as you begin your real estate transaction. When you are ready to enter into a transaction, you will be given an Agency Disclosure Statement that specifically identifies the role of the agents and brokerages. Please ask questions if there is anything you do not understand.

Because it is important that you have this information, Ohio law requires that we ask you to sign below to acknowledge receipt of this pamphlet.

Your signature will not obligate you to work with our company if you do not choose to do so. _______________________________________ ________________________________________ Name

(Please Print)

Name

(Please Print)

_______________________________________ ________________________________________ Signature

Date

Signature

Date 2.4

Residential Property Management Contract Instructions: All fields in the Residential Property Management Contract are required. Be sure to complete all information requested in the “Property Inventory” section. You may list up to 4 properties on this contract. If you are signing more than 4 properties for Management services, please include an Addendum. Our setup fee structure is based on the number of units per property.

This Contract is entered by and between FASS Management Real Estate Services, LLC. d/b/a FASS Real Estate Services hereinafter called “AgentEmployee,” and ____________________________________________________, hereinafter called “Owner- Employer.”

Owner-Employer Company Name ______________________________________

Contact Name __________________________________________

Address ______________________________________________________________________________________________________________________ Phone (____) _______________

Alternate Phone (____) _______________

Email _____________________________________________________

WITNESSETH that, in order to induce the Agent to enter into this Agreement, Owner-Employer hereby represents to Agent-Employee that he/she/they is/are the owner(s) of the following described property (or “premises”), and any additional property that may later be added to this Agreement upon the terms below, beginning on ______________, 20____ to ______________, 20____ unless the termination clause of Section IV-J is exercised. This contract will automatically renew or continue if the owner does not specify cancellation by the cancellation date.

Property Inventory

Instructions: Check the number of units for each property to determine the setup fee per property. Any amount for 8 units, please call for pricing. Setup fees TBD.

Property #1 Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

Property #2 Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #3 Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #4 Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

*For more than 4 properties, please include an Addendum.

Unit: _____________

Zip:__________

Other: ___________________________ Total processing fee:________________

2.5

Owner Name:___________________________________________________________________________________

Date: _____________

In consideration of this representation and the fees to be paid, Agent-Employee agrees to act as management agent with respect to this property, subject to and in accordance with the terms and provisions set forth below.

I. AGENT’S COMPENSATION: A. A leasing bonus of (1) one month’s rent shall be charged on the acquisition of each new tenant, not to exceed a charge for two new tenants per calendar year. 25% of the (1) one month fee shall be charged to release premises to an existing tenant who is extending occupancy for a new lease period after completing an initial lease period of at least 12 months.

B. A monthly management fee shall be charged for each individual property/unit, ________________percent (___%) of the agreed collected monthly rent and payable on the first day of each month by Owner-Employer, or a FLAT fee of $60.00 monthly whichever is greater to be agreed upon by all parties. A minimum of $20.00 will be charged per unit, per month for basic management and oversight of property until unit is fully occupied.

C. Owner-Employer shall deposit with Agent-Employee a funding deposit of $________________, which shall be deposited to Agent-Employee’s account to pay bills incurred on the property for minor fix-up and repairs/maintenance. A $________________ non-refundable Processing fee will also be charged for all new accounts.

D. If Owner-Employer desires to rent property under the Housing Choice Voucher Program (Section 8), EDEN, or other subsidized housing program, there will be a flat fee of $250, per unit, charged to the account for management oversight of the process.

II. LEASING A. O wner-Employer hereby authorizes Agent-Employee to rent the premises, at a monthly rent of: Please provide your current rent roll and requested rent amount. You may also complete a Property Details Sheet.

B. A ll utility charges, as appropriate, shall be paid by the tenant during tenant’s occupancy.

C. Agent-Employee shall collect a minimum amount equal to one (1) month’s rent as a security deposit from all tenants and will be held in the AgentEmployee non-interest bearing escrow account. All security deposits will be returned to the tenant according to the Ohio Landlord-Tenant Laws.

If Owner-Employer has current tenants in the property(ies) and has previously collected a security deposit from the tenant either themselves, or through the previous Property Manager, a Security Deposit Acknowledgment, must be completed and returned to the Agent-Employee.

D. Owner-Employer shall supply FASS Real Estate Services with their own lease agreement, or utilize the template from FASS Real Estate Services.

E. FASS Real Estate Services will offer general marketing and advertising measures to secure tenants. Any specific advertisement (local papers, ads, etc) will be the costs of the owners.

III. DISBURSEMENTS: Owner-Employer shall pay the following as they shall accrue and in the order here set out: Select which items will be paid out of funds collected: A. Agent-Employee’s compensation (10% on Gross Rents, $150.00 max.) or a FLAT fee of a minimum of $60.00 per unit or $20.00 per vacant unit, on the first (1st) of the month. All payments are withheld from the monthly tenants rent payable to: “FASS Real Estate Services” or “FASS Management & Consulting” B. Necessary repairs and/or charges to maintain the property, and cleaning charges as shall accrue or be necessary to preserve the property during periods of vacancy or occupancy, or to put the property in a rentable condition after vacated; or expenses to regain possession and/or to attempt to collect delinquent rent subject to the provisions set forth below; or necessary professional fees; or governmental assessments.

C. All bills and additional expenses will be paid on behalf of the owner. If owners account is in negative status over $300 or more, the account must be brought current within 30 days of occurrence.

IT IS EXPRESSLY AGREED THAT NOTHING HEREIN CONTAINED SHALL BE CONSTRUED AS REQUIRING AGENT-EMPLOYEE TO ADVANCE ANY OF ITS OWN MONIES FOR ANY PURPOSE WHATSOEVER.

– The bottom of this page was intentionally left blank. –

Please Initial ___________

2.6

Owner Name:___________________________________________________________________________________

Date: _____________

IV. GENERAL PROVISIONS: A. GRANT OF POWER: Subject to the limitations set herein, Owner-Employer grants Agent-Employee full power and authority to lease, let, rent the real property described, or any part thereof, in its own name as Agent-Employee for Owner-Employer. In order to effectuate same, AgentEmployee may enter into such written contracts and/or leases as Agent-Employee deems necessary, in its own name as Agent-Employee for OwnerEmployer. Agent-Employee may collect and receive all rents arising as a result of Agent-Employee’s management of the premises. Agent-Employee may use such means as are ordinary and customary in collecting or attempting to collect any delinquent accounts. Agent-Employee may, at Owner-Employer’s discretion evict any tenant who violates any term of the lease.

B. COLLECTION OF RENT 1. Agent-Employee shall use such means as are ordinary and customary to collect or attempt to collect any rent from any tenant of the premises. In the event that legal action is necessary to obtain judgment for possession of the premises, delinquent rent, or damages upon other causes of action, Agent-Employee is authorized to employ attorneys, to sue in its own name as Agent-Employee for Owner-Employer, and to expend the sum of two hundred dollars ($200.00) from Owner-Employer’s account for such purposes with the owner-employer’s prior permission. Additionally, AgentEmployee will, when requested by Owner-Employer, instigate action, legal or otherwise, for the collection of rents which is beyond the discretion heretofore allowed to Agent-Employee, provided such action is considered reasonable by the Agent-Employee. Owners must pay an eviction deposit prior to us initiating the eviction. See Eviction Addendum.

2. AGENT-EMPLOYEE SHALL NOT BE HELD MONETARILY RESPONSIBLE FOR ITS INABILITY TO COLLECT RENTS. AGENT-EMPLOYEE SHALL NOT BE HELD RESPONSIBLE FOR ANY EXPENSES INCURRED FOR LEGAL ACTION INVOLVED IN THE COLLECTION OF RENTS AND/OR THE EVICTION OF ANY TENANT AND/OR DAMAGES INCURRED TO THE PROPERTY. All such expenses shall be paid by Owner-Employer, Reimbursable in the event Agent-Employee is able to collect the rents, legal fees, or damages from the tenant.

3. In the event of late rent payment by tenants, Agent-Employee will charge a late fee in accordance with the late payment policy for a charge not to exceed $50. The collected late fee will be remitted to and kept by the Agent-Employee for additional administrative fees for services related to the collection of late payments.

C. MAINTENANCE 1. Agent-Employee shall have full authority to perform or to cause to be performed such maintenance of the property as is reasonable and necessary for the safety of the tenants and the preservation of the property.

2. Agent-Employee may, at his sole discretion, install fire/smoke detectors, carbon monoxide detectors, and/or fire extinguishers on the property at Owner-Employer’s expense.

3. Agent-Employee may, at his sole discretion, inspect the property to determine what maintenance needs to be performed to the property.

4. In the event maintenance, repairs, or construction are required to be performed to the property in excess of five hundred dollars ($500.00), Agent-Employee must notify the owner for approval and the Agent-Employee shall be entitled to a fee of $50 – $500 (anything over $500 TBD) of said expenditures for the supervision of same, per incident.

5. When maintenance or repair service is required, we will contact the appropriate professional for the job. We offer flexibility in using your choice of professionals, or to use our licensed and bonded team or handyman. All maintenance fees are covered by the property owner. See Maintenance Rates and Charges rate card.

D. DISCRETIONARY AUTHORITY: 1. Owner-Employer expressly grants Agent-Employee full power and authority to contract and pay for all repairs and cleaning costs, not exceeding the amount of three hundred dollars ($300.00), which in its discretion it deems necessary or advisable to maintain; or put the premises in a rentable condition; or to repair the same in the event of damage or destruction to the premises due to fire, windstorm, hall, flood, riot, civil commotion, tenant abuse, or other causes resulting in damage to the premises, all out of the Owner-Employer’s funds on hand. Should the estimate or contemplated cost exceed funds on hand, Owner-Employer shall promptly remit, upon Agent-Employee’s request, the necessary balance.

2. In an emergency, as determined in Agent-Employee’s discretion, Owner-Employer authorizes Agent-Employee’s expenditure in excess of funds on hand (above the $300.00 limit in #1 above) without prior authorization, not to exceed five hundred dollars ($500.00). Owner-Employer shall thereafter promptly remit, upon Agent-Employee’s request, the necessary balance.

Please Initial ___________

2.7

Owner Name:___________________________________________________________________________________

Date: _____________

3. Failure of Owner-Employer to remit balances described in this subparagraph shall result in Agent-Employee’s reimbursement there for from subsequent revenues ordinarily accruing and payable to Owner-Employer.

E. INSURANCE COVERAGE: Owner-Employer is recommended, at Owner-Employer’s expense, to keep the necessary Fire and Extended Coverage and Liability Insurance current and renewed. A Current copy of the Insurance Coverage is requested to be presented to the Agent-Employee at the time of the Property Management contract being signed. FASS Real Estate Services recommends that every Owner-Employer recommend each tenant to carry renters insurance.

F. LIABILITY OF AGENT-EMPLOYEE: It is agreed that Agent-Employee shall use reasonable and ordinary care in the selection of tenants based on Owner-Employer’s stipulations and all other acts assigned for performance by this Agreement. When any act is required of the Agent-Employee, it shall be done in the ordinary course of Agent-Employee’s business.

It is illegal, pursuant to the Ohio Fair Housing Law, Division (H) of Section 4112.02 of the Revised Code and the Federal Fair Housing law, 42 U.S.C.A. 3601, to refuse to sell, transfer, assign, rent, lease, sublease or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in Section 4112.01 of the Revised Code, ancestry, disability as defined in that section, or national origin or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerage services.

It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding the entry into the neighborhood of a person or persons belonging to one of the protected classes.

1. Owner-Employer shall save Agent-Employee harmless from all personal injury suits which may arise in connection with the management of the premises, and from any liability from injuries suffered by any person entering the premises, including any resident manager or other employee.

2. Agent-Employee shall not be personally liable for any act it may do or omit to do hereunder as Agent-Employee while acting in good faith, exercising its best judgment.

3. Agent-Employee is hereby expressly authorized to comply with and obey any and all process, orders, judgment or decree, it decrees of any court; where Agent-Employee obeys or complies with any such process, order, judgment or decree, it shall not be liable to Owner-Employer or any person, firm, or corporation by reason of such compliance, notwithstanding subsequent reversal or modification.

4. Agent-Employee is hereby expressly authorized to comply with any laws, whether now in existence or hereinafter enacted, and whether federal, state, or local, relating to fair housing, rent control, discrimination, and health and welfare. Agent-Employee is expressly authorized to comply with the rule or order of any governmental agency, insofar as such order in any manner affects the management of the premises or any duties of the Agent-Employee hereunder.

G. ACCOUNTING FOR FUNDS: 1. Agent-Employee shall furnish Owner-Employer a monthly (or at minimum quarterly) accounting statement showing the receipts and expenditures with respect to the premises. Owner is required to notify the Agent each month of the rents received and directly paid to owner.

2. Owner-Employer is responsible for completing a 1099 form; listing FASS Real Estate Services as a hired employee during each tax season. Tax ID# 03061052-6 3. Agent-Employee shall furnish a final accounting upon the termination of this agreement within thirty (30) days from the date of a written request of management termination.

H. SECURITY AND DAMAGE DEPOSITS 1. All security and damage deposits shall be returned to the tenant by Owner-Employer when the tenant vacates the premises, subject to OwnerEmployer/Agent-Employee’s determination, consistent with Ohio Landlord-Tenant Law, whether the tenant has damaged the property in excess of ordinary wear and tear. Owners should return tenant deposits within 15 days after the tenant has vacated the property so that the Company have sufficient time (30 days) to return to the tenant less and charges reflected on the statement of deposit.

2. Agent-Employee shall properly account for sums retained for the purpose of off-setting Owner-Employer’s expenses for unpaid rent, utilities, cleaning charges, or repairs.

3. In the event litigation shall occur concerning security deposits, Agent-Employee shall defend same in its own name as Agent-Employee for Owner-Employer, at Owner-Employer’s expense.

Please Initial ___________

2.8

Owner Name:___________________________________________________________________________________

Date: _____________

I. ADDRESS OF OWNER-EMPLOYER: Owner-Employer expressly agrees, within twenty (20) days of change, to advise Agent-Employee, in writing, of any change of address. Any notice or accounting statement or other document required or desired to be given by Agent-Employee to Owner-Employer may be given by mailing to the address noted hereon, or the most recent address of Owner-Employer shown in the records of the Agent-Employee; and notice so mailed shall be as effectual as if served upon such party in person at the time of depositing such notice in the mail.

J. REPORTING: Every six (6) months, Owner-Employer and Agent-Employee, including the leasing representative will meet either in-person, by phone, or virtually to discuss a Semi-Annual Portfolio Review of the property(ies) under management. The initial review will be scheduled 6-months from the date of this contract: _______________, 20____ at _____________ (Eastern Standard Time – EST), the proceeding review will be six (6) months from the date of the last semi-annual review: _______________, 20____ at _____________ (Eastern Standard Time – EST), and every six (6) months thereafter at dates/times to be agreed upon by the Owner-Employer and Agent-Employee.

K. TERMINATION: This agreement may be terminated by either party only upon a sixty (60) day’s written notice to terminate. If so terminated, a clear date of termination must be outlined within the 60 days. The cancellation charge is $200.00 per property if the owner wishes to cancel immediately, or a term less than the 60 days required. There is no cancellation fee for a 60-day written notice. Owner shall retake possession of the premises, subject to the rights of any tenant rightfully in possession. Owner’s proceeds shall be distributed by Agent thirty (30) days after effective termination date, less any cancellation fees or outstanding Agent or third-party obligations remain, in which case distribution shall be accomplished immediately after the last such obligation is satisfied. If Agent-FASS Real Estate Services finds a tenant, promotes the property for a period longer than three consecutive weeks, or works the management contract for a reasonable period; 10 days and the Owner decides to cancel the contract for no specific reason the Agent will be due the sum amount of $500 for basic advertising, mileage, phone calls, etc., in marketing the property. These funds will be withheld from the Owners funds on hand, which includes the maintenance deposit. This penalty overrides the $200.00 per property cancellation fee.

L. DEFICIT ACCOUNT: In the event of Agent-Employee’s termination, should there be any outstanding and unpaid obligations, debts, or charges due Agent-Employee, any amounts on account or received by Agent-Employee on account or otherwise due Owner-Employer shall be applied first to satisfy those obligations and then disbursed to Owner-Employer. Owner-Employer waives all protest and defenses against AgentEmployee for such lawful disbursements. Agent-Employee’s lien rights against the subject property shall not be waived by this provision.

M. PARTIAL WAIVE OR ACQUIESCENCE NO BAR: Agent-Employee’s waiver, forbearance, or acquiescence of any of its rights or remedies, in whole or in part, shall not serve to waive, bar, or compromise any contemporaneous or subsequent right or remedy.

N. ATTORNEY FEES AND COSTS: The unsuccessful party in litigation to enforce the terms and conditions of this Agreement shall pay the reasonable attorney fees and costs of the successful party.

O. W HOLE AGREEMENT: This writing embodies the entire agreement between the parties and is not based upon any other representation whatsoever, expressed or implied, except as herein contained. The Agreement cannot be modified except in writing by the parties.

BOTH PARTIES AGREE THAT THIS AGREEMENT IS MADE UNDER THE RELEVANT OHIO LAW AND IN CASE OF LITIGATION BOTH PARTIES SUBMIT TO THE AUTHORITY OF THE RELEVANT OHIO COURT OF LAW.

P. EFFECTIVE DATE: Management by Agent-Employee shall be effective on __________.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands this _____day of ___________________, 20_____.

Please Initial ___________

2.9

Owner-Employer All Fees, Rates and Charges have been outlined in the Property Management Services Proposal and Residential Property Management Contract. Please initial to acknowledge that you have read, understand and agree to these terms and conditions.

The Cancellation/Termination Policy has been outlined in the Property Management Services Proposal and Residential Property Management Contract. Please initial to acknowledge that you have read, understand and agree to these terms and conditions. _______

Owner signatory warrants that he/she is the Owner of the property or has the authority to execute this Agreement. Owner acknowledges he/ she has read, understands, accepts and has received a copy of the Agreement.

Agent-Employee: FASS Real Estate Services (REPRESENTED) Authorized Signature _______________________________________________________ Date ______________

Owner-Employer: (Print) ________________________________(REPRESENTED)

SSN/Tax ID# (for tax reporting purposes) ______________ Authorized Signature _______________________________________________________ Date ______________ Referred by ______________________________________________________________

2.10

Property Inventory Addendum Instructions: You may sign up to 4 properties directly on the Residential Property Management Contract. Use this form if you are signing additional properties for Management services. Be sure to complete all information requested.

Instructions: Check the number of units for each property to determine the setup fee per property. Any amount for 8 units, please call for pricing. Setup fees TBD.

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

1–2 3–4 $150 $175

5–8 $300

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

Property #__ Property Address:______________________________________________________________________ City: ________________________________________

State: _________

Are you interested in a Leasing with an Option?

Yes

Unit: _____________

Zip:__________ No

Do you accept Government Assistance?

Yes

No

If Yes, What assistance will you accept

Section 8

Shelter Care

Other: ___________________________

2.11

GET STARTED

RESIDENTIAL PROPERTY MANAGEMENT

PART 3

Presented by:

THE PROCESS Checklist PART 1 is completed with the following information: Property Management Services Proposal Thank you! Why FASS?................................... 1.1 Education & Experience................................... 1.2 Legal & Compliance/Responsibilities................ 1.3 Services......................................................... 1.4 Fees............................................................... 1.5 Rent & Payments........................................... 1.6 Cancellation.................................................... 1.6 FAQ............................................................... 1.7 References..................................................... 1.7 Contact.......................................................... 1.7

Checklist Instructions: This checklist should be used as a guide to completing the Property Management contracting process with FASS Real Estate Services. For the process to be complete, all documentation and related fees should be submitted to our office. ubmit signed Property Management Contract, Agency Disclosure, S Consumer Guide, Property Inventory Addendum omplete and return Property Management Addendums C (including Property Details, Security Deposit Acknowledgment, Lead Warning Statement, Eviction Addendum, Payment Authorization Form, and Limited Power of Attorney) Submit copy of property insurance ubmit copy of lease agreement S (For all current Tenants, if applicable) Send copies of property keys

PART 2 is completed with the following information:

Remit Maintenance Deposit

Agency Disclosure.................................................. 2.1 Consumer Guide to Agency Relationships................. 2.3 Residential Property Management Contract............. 2.5 Property Inventory Addendum................................ 2.11

Remit processing & Classification Fee(s), per property

PART 3 is completed with the following information: Property Details (per unit)...................................... 3.1 Security Deposit Acknowledgment (per unit)............ 3.2 Lead Warning Statement........................................ 3.3 Eviction Addendum................................................. 3.4 Payment Authorization Form................................... 3.5 Limited Power of Attorney..................................... 3.6

Please forward all information to: FASS Real Estate Services c/o Management Unit 3705 Lee Road, Suite 100 Shaker Heights, OH 44120 management@FASS-RES.com

PART 4 is completed with the following process: STEP 1: Internal File Audit.................................... 24 hours STEP 2: Setting Up Records.................................. 24-72 hours STEP 3: Setting Up Banking.................................. 24 hours STEP 4: Establish Working Capital Fund................. 24 hours STEP 5: Transferring Security Deposits.................. 24 hours STEP 6: Notifying Tenants and other parties.......... 24 hours STEP 7: Property Assessment............................... 24-48 hours STEP 8: Property Assessment Report.................... 24-48 hours Note: Part 4 of the process will take longer for multiple properties.

INITIAL CHECK BY:

AUDITED BY:

Initials: _____________________ Date: ___________________________

Initials: _____________________ Date: ___________________________

Complete

Incomplete: _____________________________________

Complete

Notes: ________________________________________

Property Details Instructions: To assist us in the full-service provision of our management services, we need details from you regarding each property and its tenants (if applicable). Please complete the questions below forward a copy of relevant information to our office. If applicable, you should be prepared to contact the utility services provider(s) to have a copy of the bills forwarded to our office.

Property Address: __________________________________________________________________________ City:________________________________________________________________________ Number of available Units _________

Total Square footage __________

Number of Bedrooms ___________

Number of Bathrooms ___________

Do you accept pets?

Would you like for us to provide landscaping?

Yes

No

State: _____

Yes

Unit: ____________ Zip: ______________

No

*What Utilities are paid by the landlord/owner?

Water: Is this bill current?

Yes

No

Unknown

Sewer: Is this bill current?

Yes

No

Unknown

Electric: Is this bill current?

Gas: Is this bill current?

Yes Yes

No

Unknown

No

Unknown

*Please contact utility services to have a copy of the bills forwarded to our office. You should also forward a copy of the most recent bill to our office

*What Utilities are paid by the tenant?

Water: Is this bill current?

Yes

No

Unknown

Refrigerator Included?

Sewer: Is this bill current?

Yes

No

Unknown

Stove Included?

Electric: Is this bill current?

Gas: Is this bill current?

Yes Yes

No

Yes

Yes

No

No

Unknown

No

Unknown

*Please contact utility services to have a copy of the water bills forwarded to our office.

How much is the rent? $________________

How much is the security deposit? $ ________

Does this unit allow for washer & dryer/hookups?

Yes

Does this property have tenant parking?

No

Handicap Accessible?

Yes

Yes

No

No Pets?

Yes

No

Other Amenities: _______________________________________________________________________________________

Tenant Details Do you currently have tenants in the unit?

Yes

No

Current lease?

Annual

Current Tenant(s) Name: _______________________________________________

Month-to-month

Written

Verbal

Phone: (____) _________________

Email: ________________________________________________________ Property Address: ______________________________________________________

Unit: _____________

City: ________________________________________________________________________ Do the tenants pay on time?

Yes

No

Is the tenant current?

Yes

State: _____

Zip: _____

No (If not, how much do they owe? _________)

Special notes about the tenant ___________________________________________________________________________ I acknowledge that this information is true and accurate to the best of my ability. I understand that by signing below, this is the information that FASS Real Estate Services will use to find viable tenants for my property.

Signature ________________________________________________________

Date ________________ 3.1

Security Deposit Acknowledgement If Owner-Employer has current tenants in the property(ies) and has previously collected a security deposit from the tenant either themselves, or through the previous Property Manager, this Security Deposit Acknowledgment, must be completed and returned to the Agent-Employee, FASS Real Estate Services.

This receipt shall acknowledge the receipt of a security deposit from _____________________________________ in the amount of $_______________ on ________________ 20____, for the following premises:

_____________________________________________________________________________________________________________________________

The Landlord’s name and address is: ______________________________________________________________________________________________ The security deposit is held in an account at __________________________________________________ located at ____________________________________________________________________________________________________________________.

The amount of the deposit is $_______________.

Printed Name: _________________________________________________________________

Date: _________________ , 20____

Signature: _____________________________________________________________________

The Ohio Landlord Tenant Law permits a landlord to collect a security deposit to cover the costs of any unpaid rents or damages to the property beyond normal wear and tear. The landlord is required to return the security deposit to the tenant within 30 days after the tenant gives up occupancy and terminates the tenancy. The landlord must provide a written itemization of any costs for repairs or unpaid rent deducted from the security deposit.

If, after 30 days, the landlord does not return the deposit, or if the tenant feels that some portion of the deposit has been wrongfully withheld, the tenant may sue for the amount wrongfully withheld and reasonable attorney’s fees. If the tenant has given a written forwarding address, the tenant may sue for double the amount that he/she believes was wrongfully withheld.

If the security deposit is more than one month’s rent and the tenant stays more than six (6) months, the landlord must pay interest on the amount that is greater than one month’s rent.

Deposit Roll Please attach a separate sheet if more room is needed.

Address

Tenant

Deposit

Received on

Location

3.2

Lead Warning Statement Every tenant of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory.

Lead poisoning also poses a particular risk to pregnant women. The owner of any interest in residential real property is required to pro-

vide the tenant with any information on lead-based paint hazards from risk assessments or inspections in the owner’s possession and notify the tenant of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Owner’s Disclosure (initial below): (a) Presence of lead-based paint and/or lead-based paint hazards (initial (i) or (ii) below): (i) __________ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). (ii) __________ Owner has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the owner (initial (i) or (ii) below): (i) __________ Owner has provided the Tenant with all available records and reports pertaining to lead-based paint

and/or lead-based

paint hazards in the housing (list documents below). (ii) __________ Owner has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Tenant’s Acknowledgment (initial below): (c) __________ Tenant has received copies of all information listed above. (d) __________ Tenant has received the pamphlet Protect Your Family from Lead in Your Home. (e) Tenant has (initial (i) or (ii) below): (i) __________ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) __________ waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.

Associate’s Acknowledgment (initial below): (f) __________ Associate has informed the owner of the owner’s obligations under 42 U.S.C. 4852(d) and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

Owner Date Co-Owner Date Tenant Date Co-Tenant Date Associate Date Co-Associate Date

3.3

Eviction Addendum FASS Management Real Estate Services (FASS), from time to time, has to serve statutory notices in order to commence an eviction for the current tenant living within your property. FASS is only serving as your local agent to carry out your wishes in removing the undesireable or non-paying tenant from the property.

FASS must obtain your approval giving us authorization to move forward with the eviction process, which will result in you ,as the owner, being responsible for all associated eviction costs. Below are the approximate fees associated with the eviction process. (These amounts are only approximate as each court has the right to set its own filing fees and cost schedules.).

NOTICE DELIVERY FEE....................................................................................................................................................$50.00 COURT REQUIRED FILING FEE.........................................................................................................................................$100.00 - $150.00 ATTORNEY FEES (1ST CAUSE ONLY)................................................................................................................................$350.00 (If tenant fully moves out before court date, $150.00 will be refunded.). Second cause for rent and damages is to be handled at the hourly rate of $175.00.

WRIT OF RESTITUTION...................................................................................................................................................$25.00 On the sixth day after a Judgment has been rendered by the Court, the landlord may apply for a Writ of Restitution if the tenants have not removed from the property. A writ of restitution directs the sheriff to physically remove the tenant(s) and their belongings from the property.

MOVERS (only if tenant does not move out).......................................................................................................................$250.00 (based on 2 hours. Additional storages charges may apply)

FASS Management Real Estate Services has chosen to utilize in-house counsel to prosecute our evictions; however, as the property owner, you are responsible to pay the necessary fees to initiate the eviction process. If you are in agreement with the above referenced Eviction Fees, and the arranged for Attorney relationship with FASS, by signing this document, you are responsible for any eviction fees that may be advanced and assessed pursuant to your management contract. FASS is not directly responsible to pay the eviction fees and is only advancing funds for you. Any monies on deposit with FASS, including security deposits, will be used to cover eviction costs. If owner chooses not to pay as billed, our attorney shall pursue legal actions against the owner directly for any outstanding legal fees and costs owed, including placement of lein on your property. If you choose to decline our eviction services and fee structure, FASS shall require you to provide your own attorney information prior to entering into a property management contract with our company.

Property Address: _____________________________________________________

Unit: ____________

City: ____________________________________________

State: ______

Zip: __________________

Owner Name: ___________________________________

Signature: _______________________________

Accept Eviction Process ___________ (Please initial) Decline Eviction Process ___________ (Please initial)

3.4

Payment Authorization Form Company Name: FASS Management Real Estate Services d/b/a FASS Real Estate Services

Company ID Number: 301935

Hello FASS Management Property Owners: For your convenience we have three (3) options available for you to receive your monthly rental payments: (1) Direct Deposit; (2) International Wire Transfer (*only if you DO NOT have a United States Bank account); and by

(3)

Mail. Please Opt In to one of the options and complete the

information indicated below.

1 DIRECT DEPOSIT: Please acknowledge either:

Opt In (Only United States Bank Accounts)

If you are interested in utilizing this option, direct deposit will be processed on the 15th of the month (or the following business day if the 15th is on a weekend or national holiday). Deposit typically takes 24 hours to receive. We will email you a monthly statement and direct deposit the monies into your account. The transaction fee to set-up your payment electronically is a one-time fee of $10.00, which will be withheld from the monies deposited. If you OPT IN, please complete the information below: I/We ______________________________________________________ hereby authorize FASS Real Estate Services, hereinafter referred to as “Management Company”, to initiate credit entries to my/our: (select one)

Checking Account

Savings Account indicated below at the depository

financial institution named below, hereinafter called “Depository”, and to credit the same to such account. I/We acknowledge that the origination of ACH transactions to my/our account must comply with the provisions of U.S. Law. Name on Acct _______________________________

Bank Name

____________________

Branch ____________________

Account Number _______________________________

Bank Routing # _______________________________

Bank City/State _______________________________

2 INTERNATIONAL WIRE TRANSFER: Please acknowledge either:

Opt In

By opting In to this option, you are agreeing to pay an additional $40 per wire fee.

Checking

Savings

Name on Acct ____________________________________

Bank Name

Account Number _______ _____________________________

Bank Routing # ______________________________________

Swift Code or IBAN#________________________________

ABA # ______________________________________________

How often would you like deposits sent?*

Monthly

______________________________________

Bi-Monthly

Quarterly

Bi-Annual

*Remember, there is a $40 per wire fee with each transfer.

3 MAIL: Please acknowledge either:

Opt In

There is a $5 processing fee for printed checks. Please provide the full mailing address with all international codes as it should be written on envelope:

This authorization is to remain in full force and effect until FASS Real Estate Services has received written notification from me (or either of us) of its termination in such time and in such manner as to afford FASS Real Estate Services and Depository a reasonable opportunity to act on it.

Name: ____________________________________

Signature: ___________________________

Date: ______________________ 3.5

Limited Power of Attorney I, the undersigned, ____________________________________________________________________________, hereby appoint FASS Management & Consulting (d/b/a FASS Real Estate Services); Akil Hameed, CEO/Broker, as my Attorney-In-Fact (Agent) with the power of delegation and substitution. My Agent shall have full power to be my lawful Attorney and Agent in my name, place and stead to: 1)

Act in my capacity to lease or contract to lease at the price and terms specified in the Residential Property Management Employment Contact dated _________day of ___________________, 20_____ (the “Contract”), the real property and personal property owned by me at:

(the “Property”).

2)

Demand, sue for, and collect all monies which may be due and owing to me on a lease or contract to lease, or on account of any damage that may occur to the Property;

3)

Apply for removal of a tenant and recover possession of the Property to the extent permitted by law, and to retain an attorney on my behalf, as the property owner, as necessary for such action;

4)

Perform all acts necessary to be done in and about the Property, as amply and fully set forth in the Contract;

5)

Exercise the rights and powers granted herein until the termination/expiration of the Contract as set forth in the terms and conditions of the Contract; and

6)

Represent me, as the property owner, before any local, city, municipal, board, counsel, department, utility company, entity, business, or person.

Signature: ___________________________________________

Printed Name: ______________________________

Date: ________________

Acknowledgment STATE OF _________________________________, COUNTY OF _____________________________, COUNTRY OF ____________________________ The foregoing instrument was acknowledged before me this ____________________ (date) by _____________________________________ (name of person acknowledged.) _______________________________ Notary Public Printed Name: _______________________________________ My Commission Expires: _________________

3.6