← 27 Pillar Ln, Palm Coast, FL 32164 · All properties

Property Management Agreement - 27 Pillar Lane, Palm Coast, FL 32164.docx

This page is a searchable text preview. Use the Dropbox link for the full original file.

Open full file in Dropbox

What This File Appears To Be

 PROPERTY MANAGEMENT AGREEMENT Background The subject property of this agreement is located at 27 Pillar Lane, Palm Coast, FL 32164 referred to hereunder as the ‘The Premises’. The Premises is currently held in a Wyoming Decentralized Organization Limited Liability Company known as Kiwi LFTY400 DAO LLC, referred to hereunder as ‘The DAO’. The DAO’s nominee is Lofty AI Inc. as Authorized Officer of Kiwi LFTY400 DAO LLC, referred to hereunder as ‘The DAO Officer’. The appointed member of The DAO

Text Preview

 PROPERTY MANAGEMENT AGREEMENT Background The subject property of this agreement is located at 27 Pillar Lane, Palm Coast, FL 32164 referred to hereunder as the ‘The Premises’. The Premises is currently held in a Wyoming Decentralized Organization Limited Liability Company known as Kiwi LFTY400 DAO LLC, referred to hereunder as ‘The DAO’. The DAO’s nominee is Lofty AI Inc. as Authorized Officer of Kiwi LFTY400 DAO LLC, referred to hereunder as ‘The DAO Officer’. The appointed member of The DAO to serve as managing member according to the terms set out below is ECO Systems LLC and/or its vendors and assignees , referred to as ‘The Manager’. Collectively, the DAO Officer and the Manager will be referred to as ‘Th e Parties’. The Manager shall establish or have established trust account s for the purpose of holding, collecting and disbursement of the DAO’s funds and Operating Reserves, hereinafter referred to as ‘The Account’. This is an agreement (‘The Agreement’) to agree to terms with The Manager to manage The Premise s as agreed herein. The Date of the Agreement is established upon its execution date. IN CONSIDERATION OF the DAO Officer appointing the Manager to manage the Premises, both parties agree to keep, perform and fulfil l the following promises, conditions and agreements: Appointment of Agent The DAO Officer hereby appoints and grants the Manager the exclusive right to rent, lease, operate and manage the Premises. Term This Agreement shall be effective January 1, 2026 and run for a period of 5 years , through December 31, 2030. After the initial term, this Agreement shall automatically renew for successive periods of 5 years until such time as this agreement has been revoked by either party with 60 days’ written notice or such time as t he Premise s is no longer held in t he DAO . Right to Terminate During the Term, the DAO Officer may terminate this Agreement at any time with 60 days’ written notice in accordance with its obligation as the Nominee DAO Officer . The Manager must satisfy all terms and conditions of this Agreement and the related DAO Operating Agreement. Any default of such terms and conditions may result in the termination of this Agreement by the DAO Officer . The Landlord, through its DAO Officer or a supermajority vote of DAO members, may terminate the Agreements with thirty (30) days' written notice for cause, defined as: (a) Manager's failure to meet any performance metrics outlined in Section 19 of the Property Management Agreement or the 4.7-star average rating target in the Short-Term Rental Co-Host Addendum for two consecutive quarters; (b) gross negligence or willful misconduct by the Manager; or (c) material breach of any provision of the Agreements, uncured within fourteen (14) days of written notice. Termination for cause shall not require supermajority DAO approval beyond the initial notice, provided the cause is documented and shared with all DAO members. Fees In consideration for the services provided, the DAO agrees to pay the Manager the following fees: Management Fee: 15% of monthly gross revenue net of any booking platform fees Leasing Fee for New Tenancies – None Lease Renewal Fee – None Maintenance and Repairs Margin – None Leasing The DAO Officer hereby grants the Manager power to create rental agreements related to the Premises. Security Deposits All security deposits collected must be deposited and held in accordance with the laws of the state in which the property is located. Returning said security deposit shall be the responsibility of the Manager upon vacating tenants and guests. Monthly Lease Payments The Parties agree that the Manager shall manage all lease payments. Any amount owed to the DAO shall be deposited monthly in the Account. Any default in monies owed by Manager in the related DAO Operating Agreement shall be considered a default in this Agreement. Repairs/ Maintenance The DAO Officer hereby gives power to the Manager to supervise repairs, improvements, alterations, and decorations to the Property as well as purchase and pay bills for services and supplies. The Manager may hire contractors to repair, maintain, or alter the Premise. Any funds expensed greater than $1000 for any single repair, improvement, or alteration which shall require reimbursement from the DAO must be approved by members of the DAO prior to such expenditures , unless the repair is deemed immediate and necessary by the Manager. The Manager shall notify the Landlord in writing of all repairs or maintenance expenses exceeding $500, even if below the $1,000 approval threshold, within twenty-four (24) hours of identifying the need. Total unapproved repair and maintenance expenses shall not exceed $2,000 per calendar quarter. If the Operating Reserve is insufficient to cover repair costs, the Manager shall propose a replenishment plan, subject to DAO approval, with contributions proportional to ownership. The Manager shall provide monthly reports on the Operating Reserve balance and usage, accessible to all DAO members via a secure online platform . Accordance with Federal and State Law All services provided by t he Manager shall comply with federal, State, or local law. To include but not limited to Fair Housing obligation, signage, financial reporting, zoning, and all enacted laws governing its role as t he Manager. Evictions The DAO Officer hereby gives power to the Manager to sign and serve notices on the DAO Officer ’s behalf and prosecute actions to evict tenants and guests ; recover possession of the Premises; recover rents and other sums due; and, when expedient, settle, compromise and release claims, actions, and suits and/or reinstate tenancies. Lease Alterations The DAO Officer hereby gives power to the Manager to initiate, sign, renew, modify, or cancel rental agreements and leases for the Premises, or any part thereof and collect and give receipts for rents, other fees, charges, and security deposits. Permitted rental agreements could include: Short-Term R entals fewer than 30 days, Fixed-Term arrangements not exceeding 2 years and 11 months, month to month rental arrangements in accordance with the Governing Law, or other rental periods so long as they do not exceed the herein established limit. Due Diligence The Manager accepts the appointment of the DAO Officer and agrees to use due diligence in the performance of this Agreement while furnishing their services to properly lease, maintain, and continue the operation and management of the Premises. Funds All funds shall be held in the Account and be the responsibility of the Manager. All funds managed under this section must be done so in accordance with applicable law. The Manager shall be obligated to provide full reports of all funds being managed and access to the Account on a monthly basis and upon request . Advertising The DAO Officer grants the Manager the right to display "For Rent / Lease" and similar signage on the Premises and advertise the availability of space through publications and online marketing methods. Hiring Contractors The DAO Officer hereby gives power to the Manager to contract, hire, supervise and/or discharge firms and persons, including utilities, required for the operation and maintenance of the Premises. The Manager may perform any of the Manager’s duties through attorneys, agents, employees, independent contractors , and outside vendors. Expense Payments Any reimbursement to be paid by DAO Officer , in its role as Nominee, to Manager beyond the combined balance of the DAO’s Account and Operating Reserve must be approved by the members of t he DAO . Such expenses and costs may include, but are not limited to, property management compensation, fees and charges, expenses for goods and services, utilities, property taxes and other taxes, association or condominium dues, assessments, loan payments, and insurance premiums. Manager may contract for all utilities and maintenance to the Property and other regularly recurring expenses that Manager determines are reasonable to maintain and care for the Property in the name of the DAO and at the expense of the DAO. Performance Metrics The Manager agrees to use commercially reasonable efforts to meet the following performance standards: Occupancy Rate : Maintain an average occupancy rate of not less than 60 % per calendar year; Turnover Time : Complete tenant or guest turnover, including cleaning and listing for new occupancy, within 1 4 calendar days of unit vacancy or before the next guest arrives , provided sufficient funds are made available by the DAO ; Repair Response : Emergency repairs (e.g., HVAC outage, water intrusion) responded to within 24 hours and completed as promptly as commercially reasonable ; Non-emergency repairs responded to within 3 business days. Failure to meet these KPIs for two consecutive quarters shall constitute a performance deficiency and may subject the Manager to corrective action as determined by the DAO, which may include written warnings, suspension of fees, renegotiation of terms, or termination in accordance with this Agreement. Non-Interference with Tenants and Guests All members in the DAO signing herein shall not directly contact, visit, communicate with, or interfere with any tenant(s), guest(s), occupant(s), or applicant(s) residing at or applying to lease the Premises, without the prior written consent of the Manager. DAO members, including the seller or primary owner, may contact tenants or guests or visit the Premises for quality control purposes, provided they notify the Manager in writing at least twenty-four (24) hours in advance. Such actions shall not constitute a violation of the non-interference clause. All communications regarding tenancy, lease terms, maintenance, payment, notices, or legal processes shall be conducted exclusively through the Manager, who serves as the sole authorized liaison for the Premises. A first violation of this provision shall result in a written warning to the responsible DAO member(s) . Subsequent violations may result in the assessment of liquidated damages to the responsible DAO member(s) in the amount of $ 1 ,000.00 per occurrence, with a maximum aggregate cap of $5,000.00 per calendar year. These damages are intended to reflect the difficulty of quantifying disruptions to occupant relationships and are in addition to any injunctive or equitable relief to which the Manager may be entitled. In parallel, the Manager agrees not to directly contact, visit, or interfere with any personal tenants, guests, clients, or managed properties of DAO members outside the scope of this Agreement, nor shall the Manager act in a way that exceeds its authority or materially breaches fiduciary obligations. In the event of such misconduct, the affected DAO member (s) shall be entitled to pursue injunctive relief and, if the Manager fails to cure the breach after written notice and 14 days’ opportunity to cure, may seek liquidated damages in an amount equal to $5,000.00 per material violation, subject to the same $15,000.00 aggregate annual cap. These remedies are not exclusive and are intended to supplement the right of either party to seek actual damages, attorneys’ fees, or other legal or equitable relief. Insurance The Manager shall maintain the following minimum insurance coverage throughout the term of this Agreement: Commercial General Liability Insurance : Not less than $1,000,000 per occurrence and $2,000,000 aggregate; Professional Liability (E&O) Insurance : Not less than $1,000,000 per claim; Fidelity Bond / Crime Insurance : Minimum coverage of $100,000 against employee dishonesty , if the Manager has any employees. The Manager shall name the DAO and the Premises as additional insured or interested party on all required insurance policies . Certificates of insurance shall be provided to the DAO annually and upon policy renewal . Amendments This Agreement may only be amended, modified, or terminated by the written consent of a supe