Last Updated: June 22, 2022
1. Appointment of Manager. Owner hereby appoints Portsmouth to be its exclusive property manager of the Property and to operate the Property pursuant to the terms of this Agreement, the Ontario Residential Tenancies Act and all its regulations. Portsmouth accepts this appointment in accordance with the terms of this Agreement.
2. Term. The initial term of this Agreement shall be for one (1) year, beginning the first day of the calendar month immediately following its execution by all parties (herein after the “Commencement Date”). This Agreement will renew annually on the anniversary of the Commencement Date for an additional term of one (1) year, save and except for Basic Membership agreements which shall renew on the first day of each calendar month for a period of one (1) month. All properties subject to this agreement shall be on the same membership plan. This agreement may be terminated in accordance with the provisions of sections 7, 8, and 9 herein.
3. Management Services. Portsmouth shall use commercially reasonable efforts to provide the following membership services:
a) market the property and seek to secure paying tenants in the Property;
b) terminate tenancies, serve tenant notices, file applications to evict tenants, and seek to recover rents and other sums due, and to settle, compromise and release such actions or suits or reinstate such tenancies in its sole and absolute discretion;
c) immediately email Owner about any incidents or circumstances resulting in the involvement of the fire department, police department, ambulance dispatch or any emergency vehicle or personnel of any kind, if Portsmouth has been informed;
d) set a market renewal or new lease rental rate for the Property, unless otherwise directed by Owner;
e) cause to may make or supervise repairs, improvements, or alterations to the Property provided that approval from Owner has been obtained for all expenses greater than Five Hundred ($500.00) Dollars (prior approval will not be required for monthly or recurring operating charges or, if in Portsmouth’s opinion, emergency expenditures over the maximum are needed to protect the Property or other properties from damage, prevent injury to persons, avoid suspension of necessary services, avoid penalties or fines, or suspension of services to tenants required by a lease agreement or by applicable law);
f) publish monthly financial reports to the Owner’s online portal no later than the last business day of each calendar month;
g) facilitate the turnover of the Property to new tenants, by coordinating garbage removal, repairs, cleaning, move-in, and quality check follow up, when required, and at Owner’s cost;
h) arrange for the provision to the Property all services necessary for the proper operations, repair, and maintenance of the Property, at the Owner’s cost;
i) conduct an annual interior and exterior visual inspection of the Property area that Portsmouth has access to, and upload the report to the owner portal, at Owner’s cost;
4. Additional Services. Portsmouth reserves the right to charge an Administration Service for additional tasks outside of what is covered in this agreement up to One Hundred Fifteen ($115.00) Dollars per service or per hour, depending on the scope of work required and is subject to change on Sixty (60) days’ notice to Owner.
5. Owner’s Rights, Responsibilities and Authorizations. The Owner shall:
a) authorize Portsmouth to negotiate, execute, and modify all leases as required to effectively manage the Owner’s Property;
b) fund a minimum bank balance of Five Hundred ($500.00) dollars (herein after the “Minimum Bank Balance”) into the segregated property management bank account that is managed by Portsmouth on behalf of the owner;
c) provide a top up payment into the property management bank account within three (3) days’ notice if the deposit balance falls below Minimum Bank Balance such that Portsmouth shall never be required to advance its own funds to operate the Owner’s Property;
d) to appoint a one (1) designated spokesperson to represent Owner in respect to this Agreement;
e) make all requests and communication to Portsmouth in writing by email or letter;
f) hereby authorize Portsmouth to communicate with respective utility companies and service providers and make changes to services as Portsmouth deems necessary during the term of this Agreement;
g) pay all costs and expenses related to the Property including, but not limited to, any loan or other obligation secured by the Property, utilities, property repairs and maintenance, and vendor expenses;
h) maintain, pay, and keep the Property in good standing in accordance with Municipal By-Laws, taxes, licenses, leans, etc.
i) promptly notify the Portsmouth of Owner’s intent to sell the Property and, if applicable, disclose to Portsmouth the name of the listing firm, and promptly notify Portsmouth if the Property goes under contract and provide the agreed-upon closing date;
j) allow Portsmouth to communicate with the tenant on their behalf in all respects, however should Owner request direct contact, Owner shall deliver this communication via email to the tenant and carbon copy Portsmouth; and,
k) maintain applicable Property insurance for the duration of this contract.
6. Compensation. Owner’s Membership fee, as outlined above in this agreement, shall be due and payable on the first day of each calendar month. In addition, a one-time bank account and payment processing setup fee setup of one hundred eighty ($180.00) dollars shall be payable by Owner upon execution of this agreement.
7. Termination for Cause. This Agreement may be terminated by:
a) either party, upon fifteen (15) days’ written notice to the other if, in the event of a default by either party, in the observance and performance of any of the obligations herein contained, a written notice of default (giving reasonable details) is given to the other party, and if such default or non-observance is not cured within thirty (30) days following the receipt of such notice by the other party;
b) either party, immediately by written notice to the other party if in the event of bankruptcy or insolvency of either party or the termination of the corporate existence of either party; or
c) Portsmouth, immediately by written notice to Owner if Owner, in Portsmouth’s sole and absolute discretion, the owner has violated the rules and regulations set out in the Ontario Residential Tenancy Act, the Ontario Condominium Act, the Ontario Employment Standards Act, the Ontario Human Rights Code, or any orders of the Ontario Landlord and Tenant Board or the Human Rights Tribunal of Ontario;
8. Owner Termination for Convenience. Owner may terminate this Agreement before the expiry date upon delivery of written notice and a fee (hereinafter the “Early Termination Fee”) which shall be an amount equal to the membership fees due to be paid during the upcoming two (2) months, plus any outstanding expense recoveries due and payable to Portsmouth. An Early Termination Fee shall not be required to end a Basic Membership at the end of calendar month. Owner acknowledges and agrees that such Early Termination Fee is fair and reasonable. However, if the Owners is enrolled into a Premium Content Package and Owner chooses to terminate this agreement for convenience, the total outstanding fee due to Portsmouth for the remainder of the agreement term shall be due and payable as a condition of termination.
9.Portsmouth Termination for Convenience. Portsmouth may terminate the Agreement before it’s expiry upon delivery of thirty (30) days written notice by registered mail to Owner.
10. Transition. The parties agree to the following actions and commitments to ensure a smooth transition of the management and operation of the property upon termination of this agreement.
a) Portsmouth shall:
i) within sixty (60) days after the termination date render a final accounting to Owner and pay over any balance in owner’s Portsmouth bank account remaining to the credit of Owner (less any amounts necessary to satisfy commitments made by Portsmouth on behalf of Owner prior to the date of termination); and
ii) immediately surrender to Owner all property of Owner and all documentation pertinent to the continuing operation of the Property, subject to the provision that Owner shall reimburse Portsmouth for any costs in connection with reproduction of documents and information which Portsmouth, acting reasonably, is of the opinion that it should retain to support or verify its actions during the currency of this Agreement.
b) Owner shall:
i) assume all Landlord obligations of all tenancy agreements in accordance with the rules and regulations Residential Tenancy Act and orders of the Landlord and Tenant Board which Portsmouth has bona fide made for the purpose of fulfilling its obligations under this Agreement or as otherwise requested by Owner; and
ii) assume all contracts which Portsmouth has bona fide made for the purpose of fulfilling its obligations under this Agreement or as otherwise requested by Owner; and
11. Indemnity and Liability. Portsmouth assumes no liability whatsoever for any acts or omissions of Owner, or any previous or subsequent owners or managers of the Property, or any agents or any previous or subsequent agents of either. Portsmouth assumes no liability for any failure of, or default by, any tenant in the payment of any rent or other charges due to Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise, unless such failure or default by the tenant arises from or relates to the gross negligence, willful misconduct, malfeasance or fraud of Portsmouth, its principals, or employees. Portsmouth assumes no liability for violations of environmental or other building regulations other than (i) to exercise commercially reasonable efforts to comply with such regulations, and (ii) to promptly notify Owner of violations or hazards discovered. Portsmouth agrees to protect, indemnify, and save harmless Owner from and against:
a) all liability, claims, damages, losses, costs and expenses, including legal fees, of any kind or nature, arising out of or in any way connected with the management and operation of the Property or the use of the Property if caused by (i) the negligence or willful misconduct of Portsmouth, its agents, servants or employees and those for whom Portsmouth is in law responsible or (ii) any actions taken by Portsmouth outside the scope of its authority under this Agreement; and
b) any accident on or about the Property or activities originating from it, any loss of or damage to any property brought on it caused by the negligence or willful misconduct of Portsmouth or those for whom Portsmouth is in law responsible, unless caused by (i) the negligence or willful misconduct of Portsmouth, its agents, servants, employees or those for whom Portsmouth is responsible at law, or (ii) any actions taken by Portsmouth outside the scope of its authority under this Agreement, Owner agrees to protect, indemnify and save harmless Portsmouth from and against all liability, claims, damages, losses, costs and expenses, including legal fees, of any kind or nature, arising out of or in any way connected with the Property.
12. Rental Revenue and Tenant Eviction Protection. Portsmouth agrees to provide Owner with rental revenue protection for any unpaid rent, filing fees, court costs, or legal fees arising from a residential tenancy of a unit that is subject to this Agreement, up to a maximum of $5,000.00 per rental unit. This rental income protection is only available and applicable to those units which Portsmouth was solely responsible for securing the tenancy and is only available to Owner during the term of the Agreement and when an order for payment against the tenant is secured by the relevant court or tribunal of jurisdiction for such matters. Portsmouth shall not be called upon to provide rental revenue protection on tenancies which were not originated by Portsmouth, such as a tenancy that exists on the Commencement Date of this Agreement or a tenancy which Owner independently secures for the unit. Portsmouth shall pay to Owner the rent due under a valid tenancy agreement up to the herein stated maximum within seven (7) days following the later of: (i) a final order and/or decision of the Landlord and Tenant Board and/or Small Claims Court of a monetary judgement against the tenant or (ii) eviction of tenant from the unit. The rental revenue protection is limited to one (1) claim per unit, meaning if the protection has been claimed by Owner in the past, there are no further rental revenue protection claims that may be made for that unit in the future, even if the herein maximum amount of the rental revenue protection has not been reached. Should this rental revenue protection be claimed by Owner, in addition to any other matter provided for in this Agreement, Owner agrees to subrogate to Portsmouth all its rights and privileges as Owner in relation to the tenancy and to permit Portsmouth the right to enforce, collect upon and retain for itself all court or tribunal judgements against the tenant of the subject unit. *Applicable only for Premium Plus Members.