THIS AGREEMENT made between:
Bayside Enterprises Ltd. hereinafter referred to as the “Agent”, a company incorporated under the laws of the province of Alberta having its’ head office in the city of Cochrane, in the county of Rockyview.
And
The “Owner”,
Whereas the parties are desirous of entering into an arrangement whereby the Agent shall provide services to Owner. It is understood that the Agent will provide services with respect to arranging rental agreements for the property owned by the Owner and described as shown in Schedule “A” and attached hereto.
General Provisions
1.1 The Owner hereby appoints and employs the Agent exclusively to lease, rent, operate and manage the property upon terms and set out in this Agreement. The property includes furnishings listed on the inventory ‘Schedule A’ attached, and is subject to the Agent’s verification and acceptance thereof.
1.2 The Agent agrees to set up and maintain a webpage, which is currently at the following address www.baysidevacationshuatulco.com. This webpage will include, among other things, detailed property inventory (see ‘Schedule A’ of this agreement) and basic instructions related to the property, all of which is to be based on information supplied by the Owner, and a property visit made by the Agent.
1.3 The Agent agrees to obtain and update when required, digital photos of the property, for use in marketing the property.
1.4 The Agent agrees to handle all inquiries generated, confirm reservations, administer agreements pertaining to any and all bookings, to collect deposits and balance of all accommodation charges, remitting the appropriate and agreed upon amount to the Owner.
1.5 The term of this Agreement shall run for one year commencing the date of this submitted agreement and shall remain in effect from year to year thereafter unless and until either party provides a notice of termination. The contract will be set to automatically renew in proceeding years unless otherwise indicated, in writing, by the Owner.
1.6 In the event that the owner chooses to terminate this agreement with the Agent, the property listing will remain active on the Agent’s website until the last day of any previously contracted/outstanding rental reservations. Any outstanding rentals are to be respected by the Owner, as per any existing rental contracts between the Owner and the Agent. These contracts will be confirmed in writing by the Agent at the time of termination of this agreement. The terms of this agreement will apply to any of these outstanding rentals, despite the termination of the agreement.
Remuneration
In consideration of the Agent’s performance of the obligations contained in this Agreement, Owner will:
2.1 Fees payable by Owner to the Agent are as follows:
- Thirty percent (30%) of the accommodation rate on each booking (20% for rental management and 10% for property management)
- One month’s rent for long term rentals (6 months +)
- In the event that the Owner wants to lend their property to family and friends but still receive services from the Agent such as booking cleanings, meter readings, cleaning and inventory inspections, client walk through, insurance, area guide and concierge services, a fee of 10% of the advertised seasonal rate or a fee otherwise agreed to by the Agent and the Owner will be due to the Agent at the time of booking.
- A marketing and advertising contribution of $200.00 to be deducted from the Owner’s net proceeds on their first rental. If a rental does not occur, there will be no marketing and advertising fee due to the Agent.
Such charges are payable only on weeks booked by the Agent and are to be deducted from the accommodation rate agreed upon with the Owner. Agent booking fees are not charged on additional services provided to the renter by the owner such as providing linens, cleaning service, etc., which are “optional” services.
2.2 All of the fees are subject to change upon thirty (30) days’ notice. Such changes in Agent fees will only be applicable to future bookings, not bookings already confirmed with the owner.
2.3 All taxes associated with the rental income received by the Owner are to be handled by and are the sole responsibility of the Owner. Bayside Enterprises Ltd. is solely responsible for dispersing the gross rental income from Renter to Owner. Taxation and/or tax filings associated with rentals are to be handled directly by the Owner and or the Property Corporation.
2.4 Owner payments will be made via email transfer to the Owner’s account on the 15th of the month following the Renter’s departure (unless otherwise arranged under special circumstances). Owner payments will include a payment summary sent via email to outline funds being transferred.
2.5 All fees payable to the Agent will be subtracted from the deposit payment made by the Renter.
Property Availability
3.0 From the date of this agreement the Owner agrees to provide the Agent with written notice of the time periods during which the property is available for rental bookings. In the event that Owner does not provide any blocked dates, the Agent will assume control of the calendar for the full twelve-month period.
3.1 The Owner may block dates or do direct rental reservations but the reservation dates must be cleared with the Agent prior to finalizing any direct bookings to ensure that double bookings are avoided. Only after verifying with the Agent that the Agent is holding no pending or confirmed bookings, shall Owner be at liberty to use or remove time periods already identified.
3.2 The Owner understands that any bookings arranged by the Agent based on the availability given to the Agent constitute a binding agreement between the Renter and the Owner.
3.3 In the event that the Renter was introduced to the property or the owner during the currency of this agreement, by the Agent, then the Agent’s booking charges shall be paid by Owner to the Agent for any arrangement entered into by Owner with such Renter. For purposes of this Agreement, a “Renter” shall be any individual or corporation who agrees to lease or rent a unit on the Property through the Agent. This process will be considered “client registration” and will be tracked via email communication exchange between the Agent and the Renter.
3.4 In the event of repeat rentals for a Renter introduced by the Agent, the Agent will continue to handle the rebooking of these guests and is to be compensated accordingly as per the above.
3.5 Use of the property by the friends of the Owner, or for tenants booked directly by the Owner will be subject to prior reservations made by the Agent under the terms of this agreement. The Owner may exercise this right at any time for any length of time by prior arrangement with the Agent. The Owner is responsible for providing keys, emergency services and arranging for cleaning. The Owner is responsible for all cleaning fees incurred by the Agent in order to be cleaned to the standard expected for the next rental period.
Rental Rates
4.0 The Agent shall set the rental rates in accordance with the competition and market condition, with the objective to maximize the return to the Owner.
4.1 The Agent may change the rate as necessary due to seasonal changes and demand.
4.2 The Agent may give reasonable discounts for long term or repeat bookings.
4.3 The Owner may designate a discounted rate for selected tenants, friends or relatives.
Insurance
5.0 Owner verifies that adequate liability insurance coverage is in effect during any period of occupancy arranged by the Agent. In the case of no insurance being in effect, the Owner accepts responsibility for their decision to opt against the Agent’s recommendation of obtaining liability insurance.
5.1 The Agent will provide and charge mandatory damage insurance via Travel Guard when the reservation is made. Enrollment is submitted in real-time to Travel Guard and the guest is sent proof of coverage via email once the reservation has been confirmed. The Lodgix.com / Travel Guard fully integrated solution allows us to avoid collecting security deposits which require additional bookkeeping, separate escrow accounts and additional processes for deposit collection and refunds. Accidental damage coverage doesn’t require the renter to tie up additional capital in a hefty security deposit and can help relieve the guest of the apprehension associated with the questions of if, when, and how much of their security deposit will actually be returned after checkout.
Duties of Owner
6.0 Owner agrees to pay for all necessary cleaning, maintenance and repairs as required.
6.1 Owner agrees accept reasonable wear and tear of the property by Renters relating to condition of furniture, buildings, equipment etc.
6.2 Owner shall save and hold the Agent harmless of account of any damage to the property or from loss of or damage to any furniture, fixtures or other articles therein and from any and all injury to any person or persons whosoever, from any whatsoever in or about said property.
6.4 Owner shall furnish the Agent with three (3) complete sets of keys to the property, one complete set of any rules that apply to the property, the WIFI code, safe code and any other pertinent information on the property.
6.5 Owner agrees to have an active landline or cell phone on the property for emergency and contact purposes. The landline must be kept active and/or the cell phone must have a minimum $100 peso credit for each rental. The Agent will supply a list of emergency, property management, taxi and restaurant numbers for the phone.
6.6 Owner is responsible for providing the Agent with a complete inventory of household items. In the event the property is not fully furnished and equipped for a rental to the Agent’s standards, the Agent will supply all necessary items at the Owner’s expense. Any such expenditure above $300 will be only made with the consent of the Owner. The required items are listed in Schedule ‘A’ to this Agreement and may be updated by the Agent from time to time with 30 days notice to the Owner.
Duties of Agent
7.0 Agent will require that renters provide a deposit and an accidental damage insurance fee at the time of reservation.
7.1 Agent will charge a $250 electricity deposit short term rentals and $500 deposit for long term rentals of 30 days or more. This deposit has been put in place to ensure our guests remain mindful of their air conditioning usage during their stay. An initial/final meter reading will be taken to determine electricity use. All electricity usage will be provided to the Owner on their monthly proceeds as a separate line item.
7.2 Agent will ensure that the Condo is maintained in good overall repair after each rental.
7.3 Agent will inform tenants of rules, regulations and emergency contact information and provide an in-suite guide to the renter.
7.4 Agent will ensure a walk through and renter orientation is completed upon arrival to the property.
Sale of the Property
8.0 Owner will immediately notify the Agent that the property has been listed for sale and will arrange a closing date that will accommodate bookings already made by the Agent. In the event that a property is listed for sale, Owner will stipulate with realtors that the property is not to be shown during any bookings arranged by the Agent unless special permission has been granted or guest arrangements have been coordinated. Note: Outstanding rental contracts must be addressed as part of the sale process.
Cancellation of Agreement
9.0 This Agreement shall forthwith terminate upon the occurrence of any one of the following events:
- At the option of either party if the other party shall be adjudged bankrupt or make an assignment in bankruptcy or for the general benefit of the creditors;
- Upon the receivership, dissolution or winding up of Owner or the surrender of its Articles;
- By mutual agreement for termination by the parties confirmed in writing by the Owner and/or Agent with confirmation of receipt;
- At the option of either party on the anniversary of this Agreement, upon delivery by the party exercising this option of written notice of termination, no later than ninety (90) days preceding the said anniversary date.
Disputes
10.0 In the event of a dispute between the Renter and Owner regarding conditions of the property, the Agent will be the final arbiter. The Agent will have complete discretion to issue a refund, either full or partial, or compensation for conditions not acceptable to the Renter.
10.1 In the event that there is damage after a booking period, the Agent shall submit a list of discrepancies to the insurance company within 14 days of Renter departure along with photos of damages to initiate an insurance claim.
Contents and Description of Property
11.0 Owner agrees that the property inventory list provided to the Agent will accurately represent the inventory and description of the property contents at the time of any booking.
11.1 In the event that any item on the list of inventory change Owner is to notify the Agent immediately.
11.2 In the event that the Owner is unable to supply the accommodations as described, particularly in respect to fundamental elements such as power, water, refrigeration etc., the Owner understands the Renter will be refunded accordingly, and the and the Owner’s portion of the rental proceeds will be reduced accordingly. Rental commissions collected and or dispersed will be respected and per the originally contracted agreement value.
Exclusivity
12.0 The Owner agrees that Agent shall be the exclusive Agent for the Property, and that no other party shall offer the Property for rent during the time this Agreement is in effect. Blocked dates and direct reservations may be arranged as per the details outlined in 3.0, 3.1 and 3.2.
12.1 In the event that the Owner wants to lend their property to family and friends but still receive services from the Agent such as booking cleanings, meter readings, cleaning and inventory inspections, client walk through, insurance, Huatulco guide and concierge services, a fee of 10% of the advertised seasonal rate or a fee otherwise agreed to by the Agent and the Owner will be due to the Agent at the time of booking.
12.2 The Owner agrees that content and video material created by the Agent as a means to market the property will not be used on any other websites, marketing collateral or mediums outside of the Agent’s website.
Modifications
13.0 Any modification of this Agreement must be in writing and signed by both parties or it shall have no effect and shall be void.
Rental Category Options for Owners
Option 1 – Pricing Integrity
This option ensures that published property pricing is always firm. In this scenario, discounted rates will not be offered to prospective renters. By selecting this option, you will likely see fewer rentals over the course of the year. We recommend this for owners who are simply looking to see some bonus rental revenue out of their property and a limited number of rental guests. This is a good option for owners looking to rent their property for 4 weeks or less per year.
Option 2 – Flexible Rental Rates
This option is best suited for owners who want to make sure they remain competitive throughout the year for any and all rental deals. This is a good option for owners looking to rent their property from 4 to 10 weeks per year. In this option, owners need to outline the pricing flexibility available to Bayside Enterprises Ltd., as per the following:
- Discount Percentage _____%_ : a reservation of 2 weeks or more (min. 14 night booking)
- Discount Percentage _____%_ : booking 3‐4 weeks in advance of arrival date
- Discount Percentage _____%_ : booking 1‐2 weeks in advance of arrival date
- Discount Percentage _____%_ : requiring only a portion of the total bedrooms (1 of 3, 2 of 4)
- Discount Percentage _____%_ : advanced booking bonus (reservation 10+ months in advance)
- Monthly Rental Rate: _$____________CAD___ (electricity will be charged in addition to rate)
Option 3 – Maximized Rental Revenue
This option is only available to our exclusive clients and is geared towards owners looking to maximize their rental revenue. We will work with owners to create a revenue target for the year that meets the financial goals for the property. Most owners who select this option can expect a minimum of 15 weeks of reservations and a significant increase in rental revenue. A quarterly review may be done to ensure financial goals are in line with owner expectations. In selecting this option, owners provide Bayside Enterprises Ltd the right to scale pricing in order to remain competitive throughout the year for scenarios such as: extended stays, last minute and long term reservations.
Schedule ‘A’ – Unit Inventory
[otw_shortcode_button href=”https://baysidevacationshuatulco.com/wp-content/uploads/Appendix-A-Unit-Inventory.docx” size=”medium” icon_position=”left” shape=”square” color_class=”otw-green” target=”_blank”]Click for PDF of Schedule ‘A'[/otw_shortcode_button]
Upon acknowledgement that you have read and understood this agreement in its entirety and indicate acceptance of its terms and conditions, please submit confirmation below: