Otter Property Management Agency Agreement
The Otter Property Management Agency Agreement is a comprehensive contract between Otter Properties LLC d/b/a Otter Property Management (the Agent) and the Owner (as identified in the Onboarding Form) governing the management of the Owner’s real‑estate Portfolio. The agreement defines the term, establishes the Agent’s exclusive authority to collect rents, handle security deposits, execute leases, conduct tenant communications, and perform inspections, repairs, and evictions. It outlines the Agent’s responsibilities—including timely communication, investment protection, bi‑monthly disbursement of net proceeds, escrow handling of deposits, and provision of detailed financial statements via an Owner Portal—and the Owner’s obligations such as providing accurate documentation, keys, 24/7 property access, maintaining a $300 per unit reserve fund, using the Owner Portal, and reimbursing chargebacks. Maintenance provisions set a $500 non‑emergency limit and allow emergency work without prior approval. Compensation is detailed through a tiered management‑fee schedule (5‑9% of gross rent based on market rent), leasing and renewal fees, a 10% contractor‑coordination fee, extraordinary‑service hourly rates, and other fees, all of which may be deducted before disbursement to the Owner. Liability clauses limit the Agent’s liability to gross negligence, while the Owner indemnifies the Agent against a broad range of claims. The Owner must maintain at least $500,000 general‑liability insurance naming the Agent as an additional insured. The agreement also covers signage rights, watermark usage, termination (30‑day notice, $495 per unit early‑termination fee), final account settlement, notice procedures (email to legal@ottermanagement.com), amendment rights (60‑day notice), assignment provisions, and governing law (Commonwealth of Pennsylvania). The document concludes with signature lines for the Agent’s Operations Manager, Kevin Moyer, and the Owner.
Topics
Exclusive Management Authority and Scope of Agent Activities
Defines the Agent’s exclusive right to perform all property‑management functions for the Portfolio, including rent collection, lease execution, tenant communications, inspections, repairs, evictions, and lock‑box/key management.
Agent Responsibilities: Communication, Investment Protection, Disbursement, and Reporting
Outlines the Agent’s duties to communicate professionally, treat the Portfolio as its own, disburse net proceeds twice monthly via ACH, hold tenant deposits in escrow, return security deposits per law, and provide detailed financial statements through an Owner Portal.
Owner Obligations: Documentation, Access, Reserve Funds, Portal Use, and Legal Compliance
Specifies the Owner’s duties to supply accurate onboarding information, provide keys and 24/7 property access, maintain a $300 per unit reserve balance, use the Owner Portal for data and payments, reimburse chargebacks, and comply with all applicable laws and tax obligations.
Maintenance Limits and Emergency Procedures
Sets a $500 non‑emergency maintenance limit requiring Owner approval, while allowing the Agent to perform emergency work without prior consent to prevent service interruption or safety hazards.
Compensation Structure: Tiered Management Fees, Leasing, Renewal, and Coordination Charges
Details a sliding‑scale management fee (5‑9% of gross rent based on market rent), one‑month‑rent leasing fee, 10% lease‑renewal fee, 10% contractor‑coordination fee, extraordinary‑service hourly rates, and minimum rent calculations, all deducted before Owner disbursement.
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 the Owner maintain $500,000 general‑liability insurance naming the Agent as an additional insured and primary non‑contributory.
Termination Terms and Early Termination Fee
Allows either party to terminate with 30‑day notice, imposes a $495 per unit early‑termination fee if the Owner ends the agreement before notice, and outlines final account settlement procedures.
Governance, Amendments, Assignment, and Notice Procedures
Specifies that amendments require 60‑day notice, assignments are permitted under defined conditions, the agreement is governed by Pennsylvania law, and all notices are to be sent via designated email addresses.