1. Introduction and Purpose of the Agreement

This agreement formalizes our partnership and ensures that all responsibilities, expectations, and legalities are clearly outlined. It helps protect both you as the property owner and us as your management team, ensuring smooth and efficient property management.

2. IRS Requirements, Entities, Direct Deposit and 1099 Reporting

To comply with IRS requirements, we need your Social Security Number or Corporate Tax ID to issue a 1099 tax form at the end of the year. If the property is owned in your name, provide your SSN. If it’s owned by an LLC or corporation, provide the Corporate Tax ID. To make tax season easier, we also provide an Annual Income Statement summarizing your rental income and expenses. You can receive your rental funds either by U.S. Mail or via direct deposit through Electronic Funds Transfer (EFT). Direct deposit is fast and secure, and you’ll authorize us to initiate credit entries to your account. Alternatively, we can mail a paper check to the address you provide. Let us know which option works best for you.

3. Select Your Management Plan

We offer three tiers of full-service property management plans to fit your needs and budget. Whether you want to be hands-off or involved, we’ve got you covered.

All Packages Include Full-Service Property Managment:

• Property Marketing: Maximum exposure on major rental platforms.
• Tenant Screening: Placing reliable, high-quality tenants.
• Lease Management: Legal compliance and protection.
• Maintenance Coordination: Handling all maintenance requests.
• Move-In/Move-Out Management: Detailed inspections and deposit reconciliation.
• Rent Collection & Financial Management: Timely rent collection and transparent financial statements.
• Tenant Communication: Managing all inquiries and conflicts.
• Eviction Coordination: Legal compliance and efficient handling.
• Vendor Management: Sourcing trusted vendors and contractors.
• Property Inspections: Regular checks to maintain property condition.
• Accounting & Tax Reporting: Annual income statements and 1099 forms.
• 24/7 Emergency Response: Prompt response to emergencies.

Our Plans Provide Above and Beyond Peace of Mind:

• Silver Package: Essential services with Tenant Liability Insurance, a 180-day lease guarantee, and a mid-year inspection.
• Gold Package: Adds a 29-day rental guarantee, 365-day lease guarantee, eviction protection, quarterly inspections, HVAC filter replacement, and increased pet damage protection.
• Platinum Package: Includes everything in Gold plus SureVestor Ultimate Landlord Protection for rental income loss, property damage, and eviction costs.

Each plan includes pet damage protection: $500 for Silver, $1,000 for Gold, and $1,500 for Platinum.

For detailed information, visit our package page.

4. Evaluation

We evaluate your property to set the right rental rate and recommend enhancements that attract high-quality tenants. This helps maximize rental income and reduce vacancy time. We also provide recommendations for any maintenance needed to make the property rent-ready, ensuring it meets tenant expectations and local requirements.

5. Advertising and Leasing

At Real Property Management, we guarantee a qualified tenant within 30 days with our Gold and Platinum Packages. Our goal is to maximize your property’s visibility and secure high-quality tenants quickly.

Comprehensive Marketing Strategy

We list your property on all major rental websites, including Zillow, HotPads, Trulia, Realtor.com, Homes.com and Bright MLS, to ensure maximum exposure. Additionally, a licensed real estate agent will list your property to further boost visibility, with the cost covered as part of the tenant placement fee.

Professional Presentation and Lead Management

• Professional Photography: We hire a professional photographer to showcase your property’s best features.
• Clear Rental Requirements: We post clear rental requirements to attract the right tenants.
• 24/7 Lead Response: Our leasing team is available 24/7 to respond to inquiries and schedule showings in real-time.
• Weekly Property Checks: We visit the property once a week to ensure it is secure and provide you with weekly activity reports, including feedback and recommendations.

Thorough Tenant Screening

We prioritize reliable tenants through a comprehensive screening process, including:

• Credit Checks
• Rental History Verification
• Criminal Background Checks
• Plaid ID and Bank Account Verification
• AI Document Verification
• Employment Verification

After reviewing an application, you receive a summary of the applicant’s qualifications along with our recommendation. You have the final say on whether to approve or deny the application.

6. Rents & Security Deposits

At Real Property Management, we handle all aspects of rent collection and security deposits, ensuring compliance with Maryland Property Code and providing a secure rental experience for both you and your tenants.

As a licensed collection agency in Maryland (NMLS Collection Agency ID: 2539834), we are authorized to collect rent and pursue delinquencies in full compliance with state regulations. In Maryland, tenants have a 5-day grace period for rent payments. If rent is not received by the 6th day, we immediately begin the filing process in court and keep you informed of the situation, including court dates and next steps. Under the Gold and Platinum packages, we cover the cost of filing for Failure to Pay Rent.

At the end of the lease, we conduct a move-out walkthrough and create a list of tenant damages to be deducted from the security deposit. This list is presented to you for approval. If there is a disagreement about the reconciled charges, we will attempt to mediate the situation. If you prefer to handle the security deposit reconciliation yourself, we will disburse the security deposit to you (minus any fees owed to us by the tenant) and inform the tenant that you are responsible for the security deposit accounting and return.

Security deposits are held in a separate security deposit bank account and interest is credited to the tenant as required by Maryland Property Code. We handle this automatically at the market rate at the time of occupancy.

7. Maintenance and Repairs

At Real Property Management, we aim to provide cost-effective maintenance while keeping you fully informed and in control of decisions.

Proactive Maintenance Approach

Our trained maintenance staff troubleshoots issues first to minimize expenses and resolve problems quickly. If a vendor is needed, we contact you for approval before dispatching. Once approved, we coordinate with the vendor and keep you updated in real-time through our software system via text or email.

Vendor Options

We work with trusted vendors known for reliability and cost-effectiveness. However, you can choose your own vendors. If you prefer using someone you trust, we will coordinate with them to ensure the work meets your satisfaction.

Home Warranties

We can work directly with your home warranty company to schedule repairs. However, we generally don’t recommend home warranties due to possible delays and out-of-pocket costs. In most cases, we manage payments and scheduling, but some companies require you to initiate work orders or pay deductibles. We’ll guide you through the process to ensure a smooth experience.

Approval Process for Repairs

• Non-Emergency Repairs Over $500:
  We send you a detailed quote for approval before any work is done. If we don’t receive your approval within 48 hours, we make a final attempt to contact you. If no response is received within 24 hours, we proceed with the repair to protect your property and maintain tenant satisfaction.

• Emergency Repairs (e.g., Water Leaks, Electrical Hazards):
  Our priority is to stabilize the situation and prevent further damage and may have to dispatch immediately to prevent further damage to the property or harm to the tenant. However, we notify you immediately and keep you informed as the situation progresses. If an insurance claim is needed, we will guide you through the process.

Payment and Cost Deductions

• If the repair cost is less than the monthly rent, we deduct it from the next month’s rent.
• If the cost is higher than the rent, you can make a deposit through our online portal.

8. Utilities

In Maryland, it’s standard for tenants to pay for all utilities. We recommend selecting ‘None’ to maximize rental income and avoid complications. If any utilities are covered by the HOA, we can specify that in the agreement. If you want to cover a utility for a tenant you are free to do so. Please Note HOA FEEs are not considered a utility and are paid by the homeowner. HOA fees should be factored into the rental rate.

9. Disbursements

We handle all financial aspects related to your property, including disbursing funds for maintenance, repairs, leasing fees, and management fees. After all expenses are covered, we send the remaining funds directly to you or to your designated account. Funds are dispersed on the 10th, 20th, and 30th (or last day if less than 30 days).  If rent is paid on time, then you will receive your rent disbursement on the 10th. This allows time for the payments to fully process and clear.

10. Periodic Statements

We provide detailed financial statements showing all income and expenses related to your property. This includes rent receipts, maintenance costs, management fees, and any other disbursements. We don’t charge extra for these statements—they’re part of our commitment to transparency. They are available through your online portal 24/7 and you will receive an email whenever an update is made.

11. Management Compensation

Our pricing is transparent and straightforward, with no hidden fees. NO FUNDS FOR FEES ARE DUE UPRONT, THEY WITHDRAW WHEN A TENANT MOVES IN FROM THE RENT.

Here’s how it works:

• 1. Ongoing Monthly Fee

  • Management Fee:
    This is charged every month as a percentage of the rent collected, based on the package you select:
    • 8.99% for Silver
    • 10.99% for Gold
    • 12.99% for Platinum

  This fee covers all aspects of ongoing property management, including communication with tenants, maintenance coordination, rent collection, and financial reporting.

  ---

  2. Initial Leasing and Setup Fees

  These fees are charged one time per tenant either/or the first month of occupied management:

  • Tenant Placement Fee (6.9% of Annual Rent):
    This is charged only if we find the tenant. If your property is already occupied or if you find your own tenant, this fee does not apply.

  • Setup Fee ($199 One-Time):
    This fee only applies if the property is already occupied when you sign up or if you place your own tenant instead of using our tenant placement service. It also applies if you activate SureVestor coverage to cover the initial premium payment.

  ---

  3. Optional Add-Ons (Already Included in Most Packages)

  These fees are optional and are typically bundled into our Gold and Platinum packages. Most owners find the included protections sufficient, but you have the option to add more if needed:

  • Eviction Protection Fee ($50/Month):
    This fee only applies if you choose the Silver plan and want to add eviction protection. It covers court, attorney, and filing fees related to tenant eviction due to non-payment of rent.

    • Gold and Platinum Plans: This is already included at no additional cost.

  • Property Review Fee ($199 per Review):
    This is optional and is only charged if you request additional property reviews beyond what is included in your package. This allows you to customize how often you want inspections or check-ins on the property’s condition.

  ---

  4. Lease Renewal Fee

  • Lease Renewal Fee ($199):
    This is charged only when a tenant renews a lease at the end of the term. It covers the administrative work involved in negotiating, preparing, and executing a new lease with the existing tenant.

Our goal is to be transparent and clear about our pricing, so you always know what to expect. Let’s go over each fee in detail to ensure you understand all costs involved and how they relate to your property and management needs.

12. Insurance

To protect your investment and reduce liability risks, we require you to maintain a landlord homeowners insurance policy with casualty and liability coverage. This safeguards you against property damage and injury claims. We recommend you contact your insurance company and notify them that a tenant will be moving into the home and add RPM GOLD as additionally insured. This is to protect against any confusion in case of a claim. This does not usually translate into a major increase in premium, but we recommend you consult with your carrier.

13. Data and Records

To effectively manage your property, we need access to relevant documents and information, such as ownership records, insurance policies, and past lease agreements. This helps us ensure legal compliance and provide accurate financial reporting.  Our team will evaluate and reach out if we need anything from you.

14. Liability and Indemnification

We prioritize the safety and compliance of your property, but we are not liable for injuries, property damage, or losses caused by third parties, tenant actions, or environmental conditions.

15. Assignability

In the event of organizational changes, we reserve the right to assign your management agreement to another qualified property manager. This ensures uninterrupted service and continuity in managing your property. The terms and conditions of your agreement remain the same.

16. Term

This Agreement replaces any previous verbal or written agreements and goes into effect when Real Property Management (RPM) begins rent-ready repairs or starts marketing the property for lease. It remains active for the entire duration of the tenant’s occupancy.

What Happens When the Property Becomes Vacant?

• If the property becomes vacant, the Agreement automatically renews if the Owner wants RPM to place a new tenant. This ensures uninterrupted management services while securing a new renter.
• If the Owner does not wish to re-rent the property, the Agreement automatically terminates.

17. Termination

At Real Property Management (RPM), we strive to provide a seamless leasing and management experience. However, we understand that circumstances may arise where an Owner needs to cancel their management agreement. Below are the guidelines for penalty-free cancellation and other termination conditions.

Penalty-Free Cancellation Conditions

An Owner may cancel the Agreement without penalty if any of the following conditions apply:
✔ No qualified tenant has been approved within 60 days of the property being listed on the market.
✔ A tenant is more than 60 days delinquent on rent.
✔ The property becomes uninhabitable due to a structural defect, natural disaster, or other major incident.
✔ A tenant initiates legal action involving the property or the Owner.
✔ The property becomes vacant at any time after the initial tenant placement.

Cancellation Within the First 60 Days of Listing

If an Owner decides to cancel within the first 60 days of listing the property and no tenant has been placed, the following terms apply:
✔ 30 days’ written notice is required.
✔ A cancellation fee equal to three months’ management fees or $300 (whichever is greater) must be paid.

After 60 days, if no tenant has been placed, the Owner may cancel without penalty by providing written notice.

Cancellation When a Tenant is Already in Place

If a tenant is living in the property and none of the penalty-free conditions apply, the 30-day notice and cancellation fee of three months’ management fees (or $300, whichever is greater) still apply.

This ensures a smooth transition and allows RPM to properly manage tenant obligations before transferring responsibilities back to the Owner.

RPM’s Right to Cancel the Agreement

RPM reserves the right to cancel this Agreement at any time at its discretion. This may occur if an Owner fails to comply with management policies, violates terms of the Agreement, or engages in actions that create operational or legal challenges for RPM.

🚀 This cancellation policy protects both RPM and property owners by ensuring fair terms while maintaining a structured management process. If you have any questions, feel free to contact us for further clarification.

18. Foreclosure

It’s crucial to keep all mortgage payments, property taxes, and HOA fees current. If a foreclosure action is initiated, we can terminate the contract or freeze your funds. You’ll have 30 days to make payments current. If unresolved, we may refund the tenant’s security deposit and deduct all amounts due from your account.

19. Independent Contractor

We operate as an independent contractor, not as your employee. This means we handle our own taxes and are not entitled to any employee benefits like health insurance or vacation days. Our role is to manage your property professionally while maintaining a clear business-to-business relationship.

20. Compliance with Maryland Property Code

Maryland law requires specific safety standards for rental properties, including secure locks, working smoke detectors, and rekeyed locks between tenants. If your property doesn’t meet these standards, we are required by law to bring it up to code. We’re authorized to manage your property in full compliance with all federal, state, and local laws, protecting you from legal risks and ensuring tenant safety. If a compliance issue does come up, we will contact you prior to taking any action but if no response received within 24 hours we will move forward with updating the property to code at your expense.

21. Property Information

21.1 Listing Utilities

In Maryland, it’s standard for tenants to pay for all utilities. We recommend selecting ‘None’ to maximize rental income and avoid complications. If any utilities are covered by the HOA, we can specify that in the agreement. Owner is responsible for utilities while home is vacant.

21.2 Pets and Service Animals

If you allow pets, we screen them through petscreening.com to ensure safety and compliance. Pet damage coverage is included in your management plan, above the security deposit amount, providing peace of mind against potential damages. However, Emotional Support Animals and Service Animals are not considered pets and are protected under federal and Maryland law. This means they are exempt from pet fees and must be accommodated even if you have a ‘no pets’ policy

21.3 HVAC Filters

To maintain your HVAC system and ensure air quality, we send filters directly to the tenant every 3 to 4 months under our Gold and Platinum plans. We’ll need the filter sizes and locations to ensure the right fit and timely delivery

21.4 Lawn and Snow Maintenance

While tenants are responsible for lawn care once they move in, you’re responsible for maintaining the exterior while the property is vacant. We can take care of mowing and snow removal on a bi-weekly basis to keep the property attractive for showings. The average cost is $65 per mowing, and we’ll manage everything seamlessly

22. Insurance Authorization Form

This form allows us to act on your behalf during emergency repairs that require an insurance claim. While no action will be taken without your approval, insurance companies require your authorization before any work begins. By adding us as an ‘additionally insured,’ we can streamline communication and expedite the claims process, protecting your property and minimizing potential damage. You can request an OPT out form of this requirement however you will be responsible for liability if an incident occurs requiring a claim and any delays that arise due to the form not being completed.

23. Mold Disclosure

We’re committed to ensuring the safety of your tenants and compliance with Maryland’s disclosure laws. If you’re aware of any water damage, leaks, or mold in the property, we’ll help you accurately disclose this information. If remediation is needed, we coordinate with certified professionals to resolve the issue safely and efficiently.

24. Lead-Based Paint Disclosure and Compliance

For properties built before 1978, Maryland law requires lead paint safety compliance, including registration with the MD DME and obtaining a Full Risk Reduction or Lead-Free Certificate. We’ll guide and facilitate this process in full on your behalf if you wish, from providing the necessary forms/registrations links to hiring a certified inspector to making necessary repairs. This ensures compliance with state laws, protecting both you and your tenants.

25. Purpose of SureVestor Landlord Insurance

SureVestor provides protection specifically for tenant-related risks, such as loss of rental income or damage caused by tenants. This is part of our platinum plan only and required a $199 upfront setup fee. It’s not a substitute for homeowner’s insurance, which covers structural damage or general liability. We recommend maintaining your existing homeowner’s insurance policy and using SureVestor as additional protection for tenant-related risks.

26. Rental License Requirements

In certain areas like the Town of Indian Head, Prince George’s County, and the Town of La Plata, a rental license is required before renting out a property. We will guide you through the entire licensing process, ensuring compliance with local regulations and minimizing any delays. This includes explaining the necessary paperwork and coordinating any required inspections. If you prefer, we can provide you with detailed instructions on how to apply for the license yourself.