The Short Term Rental Management Agreement is designed for use in the Philippine market where property owners seek to delegate the management of their properties for short-term rental purposes to professional management companies. This document has become increasingly important with the growth of the short-term rental market and digital booking platforms in the Philippines. It establishes a clear framework for the management relationship, covering crucial aspects such as property marketing, guest services, maintenance, financial management, and regulatory compliance. The agreement ensures alignment with Philippine property laws, tourism regulations, and local government requirements while protecting both parties' interests. It is particularly relevant in tourist areas and urban centers where short-term rentals have become a significant part of the accommodation sector.
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1. Parties: Identifies and provides full details of the Property Owner and the Management Company, including registration details and addresses
2. Background: Establishes the context of the agreement, confirming the owner's right to rent the property and the management company's expertise in short-term rental management
3. Definitions: Defines key terms used throughout the agreement including Property, Services, Booking Platforms, Rental Income, etc.
4. Appointment and Term: Specifies the appointment of the management company, exclusivity (if any), and duration of the agreement including renewal terms
5. Property Details: Describes the property being managed, including its address, features, and included furnishings/equipment
6. Management Services: Details the specific services to be provided by the management company, including marketing, booking management, guest communications, etc.
7. Financial Terms: Outlines management fees, commission structure, handling of rental income, payment terms, and expense management
8. Maintenance and Repairs: Specifies responsibilities and procedures for property maintenance, including spending limits and emergency repairs
9. Booking and Pricing: Details the booking process, pricing strategy, minimum stays, and cancellation policies
10. Reporting and Accounting: Describes financial reporting requirements, frequency of reports, and accounting procedures
11. Insurance and Liability: Outlines insurance requirements and allocation of liability between parties
12. Termination: Specifies conditions for termination, notice periods, and post-termination obligations
13. General Provisions: Includes standard legal provisions such as governing law, dispute resolution, and force majeure
1. Multiple Property Management: Additional terms for managing multiple properties, used when the owner has multiple units under management
2. Staff and Contractors: Detailed provisions about on-site staff or regular contractors, needed for larger properties requiring dedicated personnel
3. Property Improvement: Terms regarding property upgrades and improvements, included when significant renovations or improvements are planned
4. Marketing Budget: Specific provisions about marketing expenditure and strategy, used when substantial marketing efforts are required
5. Revenue Guarantees: Minimum revenue guarantees from the management company, included when such guarantees are part of the business arrangement
6. Special Use Provisions: Additional terms for properties with special features (pool, gym, etc.) or located in special zones
1. Schedule A - Property Inventory: Detailed inventory of furniture, appliances, and equipment included in the rental
2. Schedule B - Service Level Agreement: Specific performance metrics and service standards for the management company
3. Schedule C - Fee Structure: Detailed breakdown of all fees, commissions, and charges
4. Schedule D - Maintenance Schedule: Regular maintenance tasks and their frequency
5. Schedule E - House Rules: Rules and regulations for guests staying at the property
6. Appendix 1 - Property Photos: Current photographs documenting the property's condition
7. Appendix 2 - Required Permits: Copies of all relevant permits and licenses
8. Appendix 3 - Emergency Procedures: Emergency contact information and procedures
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