Otter Property Management Agency Agreement COPYRIGHT
This document is a comprehensive property management agency agreement between Otter Properties LLC d/b/a Otter Property Management (the Agent) and a property Owner, as identified on an attached Onboarding Form. The agreement defines the Portfolio of properties covered, the term of the relationship, and grants the Agent exclusive authority to perform a wide range of management activities—including rent collection, lease administration, tenant screening, maintenance coordination, utility management, and legal actions such as evictions. It outlines the Owner’s obligations to provide keys, access, reserve funds, documentation, and compliance with laws and tax responsibilities. The Agent’s duties include timely communication, investment protection, bi‑monthly disbursement of net proceeds, escrow handling of security deposits, and provision of detailed financial reports via an Owner Portal. A detailed compensation schedule is provided: a tiered management fee (5‑9% of gross rent based on market rent), leasing and renewal fees, contractor coordination fees (10% of contractor invoices), maintenance service fees, extraordinary coordination fees, and late‑fee sharing. Maintenance limits are set at $500 per non‑emergency request, with emergency work allowed without prior approval. Liability is limited to gross negligence, while the Owner indemnifies the Agent against a broad range of claims, and must maintain at least $500,000 general liability insurance naming the Agent as an additional insured. Termination can occur by either party with 30‑day notice; early termination incurs a $495 fee and final account settlement provisions. The agreement also covers notice methods, amendment rights, assignment possibilities, and specifies Pennsylvania law and Philadelphia County jurisdiction. The signature block identifies Kevin Moyer as Operations Manager for the Agent.
Topics
Exclusive Authority and Scope of Otter Property Management
Grants the Agent sole, exclusive authority to manage all aspects of the Portfolio, including rent collection, lease execution, tenant relations, maintenance contracting, utility control, and legal actions.
Owner Obligations and Documentation Requirements
Details the Owner’s responsibilities to provide keys, 24/7 access, reserve funds, accurate onboarding information, tax documentation, and compliance with all applicable laws and regulations.
Agent Responsibilities: Communication, Financial Disbursement, and Reporting
Outlines the Agent’s duties to maintain professional communication, protect the investment, disburse net rent proceeds bi‑monthly via ACH, hold security deposits in escrow, and deliver detailed financial statements through an Owner Portal.
Fee Structure and Compensation Model
Specifies the tiered management fee (5‑9% of gross rent based on market rent), leasing service fee (one month’s rent), lease renewal fee (10% of one month’s rent), contractor coordination fee (10% of contractor invoices), maintenance service fees, extraordinary coordination fees, and late‑fee sharing arrangements.
Maintenance Limits and Emergency Procedures
Sets a $500 limit for non‑emergency maintenance without Owner approval, defines emergency maintenance authority, and describes the process for contractor engagement and cost approvals.
Liability, Indemnification, and Insurance Requirements
Limits the Agent’s liability to gross negligence, requires the Owner to indemnify the Agent against a wide range of claims, and mandates $500,000 minimum general liability insurance with the Agent named as an additional insured.
Termination, Early Termination Fee, and Final Account Settlement
Allows either party to terminate with 30‑day notice, imposes a $495 early termination fee for premature termination, and outlines the withholding of funds to cover outstanding expenses and chargebacks.
Notice, Amendments, and Assignment Provisions
Establishes electronic mail as the method for notice, gives the Agent the right to amend the agreement with 60‑day notice, and permits assignment of the agreement to affiliates or successor entities under specified conditions.