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yhome property management agreement (archived) - 7542 & 7656 s colfax ave, chicago, il 60649.pdf

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Property Management Agreement This Property Management Agreement ("Agreement") is entered into on October 16th, 2024, between: Landlord: DAO LLCs in Exhibit A below. Property Management Company: Yhome Nursing LLC 1. Engagement of Services: The Landlord hereby engages the Property Management Company to perform leasing and management services (including maintenance and supervising renovation) in accordance with the terms and conditions of this Agreement for the Property. “Property” shall mean each real property that Landlord identifies to Manager that Landlord intended for Manager to manage. These properties shall from time to time also be noted and acknowledged by Landlord and Manager, pursuant to the execution of an addendum in the form of Exhibit “A” attached hereto and made a part hereof, that Manager shall manage. The original governance proposal, approved by the owners to appoint Yhome Nursing LLC as the property manager, can be viewed in Exhibit “B” below. 2. Services Provided: The Property Management Company agrees to provide the following services: ● ● ● ● ● ● ● ● ● ● Marketing the Property for Rent Tenant Screening and Selection Lease Preparation and Execution Rent Collection Property Maintenance and Repairs Inspections Handling Tenant Issues and Disputes Accounting and Financial Reporting Eviction Proceedings (if necessary) Utility Management Doc ID: 9c181241b60f04ec2d4855d5dd0bb4ebf0c1254d 3. Term: The initial term of this Agreement shall commence on October 16th, 2024 and shall continue for a period of 5 years. After the initial term, this Agreement shall automatically renew for successive periods of 5 years unless terminated by either party with 60 days' written notice. 4. Fees: In consideration for the services provided, the Landlord agrees to pay the Property Management Company the following fees: Management Fee: 15% of gross revenue This fee will be utilized to employ local property managers, handymen, and procure a global home warranty package to enhance the overall property management experience. The local property management company being used for this property is Aligned Properties Group. 5. Rent Distribution: When a property is onboarded to Yhome Nursing LLC, owners start receiving 1/12 of the monthly cash flow as daily rent. After 90 days of management, during which an inspection is conducted and tenant payment reliability is assessed, owners can vote on the cash flow distribution for the next quarter, also paid as daily rent. Yhome will suggest an amount to set aside for routine maintenance and repairs to ensure property stability. This voting process occurs quarterly. 6. Repairs: Repair costs will be deducted from rent, or paid for by the Operating Reserve, which is contributed towards by investors via an additional 2.5% charge on top of the transaction fee. Yhome Nursing LLC has secured financing at a 6% interest rate which will be used for repairs exceeding the rent and Operating Reserve. This property will no longer have the traditional Operating Reserve replenishment structure. Instead, investors will always receive daily rent once the property is cash flowing based on a profit-first system, and if a repair is required, that repair will be funded via the lending secured at a 6% interest rate. Each property will have its own separate loan agreement which will be publicly available in the property’s Dropbox folder. 7. Proactive Maintenance Program Doc ID: 9c181241b60f04ec2d4855d5dd0bb4ebf0c1254d A proactive maintenance program will include bi-annual inspections and repairs to address issues before they escalate. By conducting necessary repairs before a tenant's departure, Yhome aims to minimize turnover time and maintain high tenant satisfaction. 8. Owner's Responsibilities: The Landlord agrees to: Provide the Property Management Company with all necessary documents and information related to the property. Maintain the property in compliance with all applicable laws and regulations. 9. Termination: The Property Manager may terminate this Agreement by providing written notice to the Landlord. Upon termination, the Property Management Company shall provide an account of all funds and property of the Landlord in its possession. The Landlord may terminate this agreement via a governance vote calculated based on membership interests held by each Member at the time of the vote subject to a governance vote. 10. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of Ohio. 11. Entire Agreement: This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. Landlord: ––––––––––––––––––––––––––––––––––––– Property Management Company: ––––––––––––––––––––––––––––––––––––– Doc ID: 9c181241b60f04ec2d4855d5dd0bb4ebf0c1254d EXHIBIT “A” FORM OF CHANGE IN MANAGED QUALIFYING HOMES (ADDITION) CHANGE IN MANAGED QUALIFYING HOMES (ADDITION) ADDENDUM THIS CHANGE IN MANAGED QUALIFYING HOMES (ADDITION) ADDENDUM (this “Addendum”), dated as of October 16th, 2024 (the “Addendum Effective Date”), references and is attached to and made part of that certain Property Management and Leasing Agreement by and between Landlord and Property Management Company (and together with its subsidiaries and subcontractors). Each of the following Property and Qualifying Home is hereby added to the Agreement that Property Management Company shall manage pursuant to the Agreement: Asset ID Landlord LFTY0132 Lofty Holding 12507 Astor Avenue DAO LLC LFTY0123 Lofty Holding 1518 Dille Road DAO LLC LFTY0123 Lofty Holding 1518 Dille Road DAO LLC LFTY0130 Lofty Holding 1432 Sara Avenue DAO LLC LFTY0072 Lofty Holding 1456 W 85th St DAO LLC LFTY0123 Lofty Holding 1518 Dille Road DAO LLC LFTY0109 Lofty Holding 1845 W 48th Street DAO LLC LFTY0082 Lofty Holding 2094 W 34th Place DAO LLC LFTY0005 Lofty Holding 2337 Greenvale Road DAO LLC LFTY0073 Lofty Holding 3024 W 103rd Street DAO LLC LFTY0100 Lofty Holding 3139 West Boulevard DAO LLC LFTY0106 Lofty Holding 3493 W 119th Street DAO LLC LFTY0111 Lofty Holding 3850 W 17th Street DAO LLC Address 12507 Astor Avenue Cleveland, OH 44135 1258 Lily Street Akron, OH 44301 1321 Allendale Avenue Akron, OH 44306 1432 Sara Avenue Akron, OH 44305 1456 W 85th Street Cleveland, OH 44102 1518 Dille Road Euclid, OH 44117 1845 W 48th Street Cleveland, OH 44102 2094 W 34th Place Cleveland, OH 44113 2337 Greenvale Road Cleveland, OH 44121 3024 W 103rd Street Cleveland, OH 44111 3139 West Boulevard Cleveland, OH 44111 3493 W 119th Street Cleveland, OH 44111 3850 W 17th Street Cleveland, OH 44109 County Cuyahoga Summit Summit Summit Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Doc ID: 9c181241b60f04ec2d4855d5dd0bb4ebf0c1254d Asset ID LFTY0019 LFTY0095 LFTY0007 LFTY0120 LFTY0024 LFTY0115 LFTY0128 LFTY0089 LFTY0114 LFTY0137 LFTY0160 LFTY0148 LFTY0202 LFTY0108 LFTY0139 LFTY0134 LFTY0156 DAO Entity Address 3905 E 189th Street Lofty Holding 3905 E 189th Street DAO LLC Cleveland, OH 44122 428 Cross Street Lofty Holding 428 Cross Street DAO LLC Akron, OH 44311 4318 Clybourne Avenue Lofty Holding 4318 Clybourne Avenue DAO LLC Cleveland, OH 44109 656 East 126th Street Lofty Holding 656 East 126th Street DAO LLC Cleveland, OH 44108 6914 Polonia Avenue Lofty Holding 6914 Polonia Avenue DAO LLC Cleveland, OH 44105 7411 Elton Avenue Lofty Holding 7411 Elton Avenue DAO LLC Cleveland, OH 44102 9902 Garfield Avenue Lofty Holding 9902 Garfield Avenue DAO LLC Cleveland, OH 44108 8708 Willard Avenue Lofty Holding 8708 Willard Avenue DAO LLC Cleveland, OH 44102 1090 Diagonal Road Lofty Holding 1090 Diagonal Road DAO LLC Akron, OH 44320 918 Frederick Boulevard Lofty Holding 918 Frederick Boulevard DAO LLC Akron, OH 44320 13806 Coit Road Lofty Holding 13806 Coit Rd DAO LLC Cleveland, OH 44110 4183 E 146th St Cleveland, Lofty Holding 4183 E 146th Street DAO LLC OH 44128 783 Leonard St Akron, OH Lofty Holding 783 Leonard Street DAO LLC 44307 3178 W 41st St Cleveland, Lofty Holding 3178 W 41st Street DAO LLC Ohio 44109 614 E 97th St Cleveland, Lofty Holding 614 E 97th Street DAO LLC Ohio 44108 254 Bowmanville St Akron, Lofty Holding 254 Bowmanville Street DAO LLC Ohio 44305 26931 Shoreview Ave Lofty Holding 26931 Shoreview Avenue DAO LLC Euclid, OH 44132 County Cuyahoga Summit Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Summit Summit Cuyahoga Cuyahoga Summit Cuyahoga Cuyahoga Summit Cuyahoga Doc ID: 9c181241b60f04ec2d4855d5dd0bb4ebf0c1254d The following additional properties were voted on by owners to be transferred to Yhome Nursing LLC Management. Properties based in Chicago shall be governed by and construed in accordance with the laws of Illinois. Asset ID LFTY0040 LFTY0013 LFTY0049 LFTY0006 LFTY0084 LFTY0094 LFTY0062 LFTY0096 LFTY0096 LFTY0011 LFTY0300 LFTY0136 LFTY0131 LFTY0065 LFTY0054 DAO Entity Governance Vote Address Lofty Holding 11400 Linnet Avenue https://allo.info/applic 11400 Linnet Ave DAO LLC ation/2608653222 Cleveland, OH 44111 Lofty Holding 16713 Lotus Drive https://allo.info/applic 16713 Lotus Dr DAO LLC ation/2608619992 Cleveland, OH 44128 Lofty Holding 10917 Fidelity https://allo.info/applic 10917 Fidelity Ave Avenue DAO LLC ation/2608661571 Cleveland, OH 44111 Lofty Holding 4920 E 110th Street https://allo.info/applic 4920 E 110th St Garfield DAO LLC ation/2608681083 Heights, OH 44125 Lofty Holding 12028 Wade Park https://allo.info/applic 12028 Wade Park Ave Avenue DAO LLC ation/2608671604 Cleveland, OH 44106 Lofty Holding 1278 E 187th Street https://allo.info/applic 1278 E 187th St DAO LLC ation/2686137013 Cleveland, OH 44110 Lofty Holding 5541 S Peoria Street https://allo.info/applic 5541 S Peoria St DAO LLC ation/2686148355 Chicago, IL 60621 Lofty Holding 7542 & 7656 S https://allo.info/applic 7542 S Colfax Ave, Colfax Avenue DAO LLC ation/2707324313 Chicago, IL 60649 Lofty Holding 7542 & 7656 S https://allo.info/applic 7656 S Colfax Ave, Colfax Avenue DAO LLC ation/2707324313 Chicago, IL 60649 Lofty Holding 9634 S Green Street https://allo.info/applic 9634 S Green St DAO LLC ation/2707304925 Chicago, IL 60643 Lofty Holding 1315 E 114th Street https://allo.info/applic 1315 E 114th St DAO LLC ation/2709572636 Cleveland, OH 44106 Lofty Holding 799 Stadelman https://allo.info/applic 799 Stadelman Ave Avenue DAO LLC ation/2623078878 Akron, Ohio 44320 Lofty Holding 10724 Gooding https://allo.info/applic 10724 Gooding Ave Avenue DAO LLC ation/2788352785 Cleveland, OH 44108 Lofty Holding 25 Circle Drive DAO https://allo.info/applic 25 Circle Dr Dixmoor, IL LLC ation/2853460274 60426 Lofty Holding 9919 S Oglesby Ave https://allo.info/applic 9919 S Oglesby Ave DAO LLC ation/2788367819 Chicago, IL 60617 County Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cuyahoga Cook Cook Cook Cook Cuyahoga Summit Cuyahoga Cook Cook EXHIBIT “B” ORIGINAL GOVERNANCE PROPOSAL I am excited to present a comprehensive governing proposal for our shared properties under my company, YHOME. As the designated property manager, YHOME will oversee these properties for a management fee of 15%. This fee will be utilized to employ local property managers, handymen, and procure a global home warranty package to enhance the overall property management experience. The local property management company being used for this property is Aligned Properties Group. Under this management system, I am committed to guaranteeing cash flow for all properties over the next two years. Additionally, I have secured financing at a favorable 6% interest rate, providing financial stability, liquidity and predictability for our investments. The financing will be used to pay for any unpaid bills owed to the property managers, as well as any future repairs. All investors will receive daily