Terms listed below will apply to all investor clients who own a rental property managed by 1836 Property Management and have Property Management Agreements on rolling monthly terms.
In the table below you will find the effective date of the change, the section and location inside of your PMA of the change, the original policy text, and the updated policy text.
| Section of Change | Original Policy Text | Updated Policy Text | Effective Date of Change |
|---|---|---|---|
| 8. C. 7. | Inserted text | Provide Broker with necessary passwords and controls for the electronic devices on Property; | 1/1/25 |
| 8. C. 6. | Request that any applicable homeowner’s association copy Broker on all notices, including violations and delinquencies. 1836 requires all communication from HOA to owner to be received within 3 business day to be able to enforce notices and process any applicable fines. Should Broker not receive notices in 3 business days, Broker will be unable to enforce penalties. | 6. Provide Broker with Owners’ Association documentation, bylaws, requirement for occupants and contact information. Owner shall request that any applicable homeowner’s association copy Broker on all notices, including violations and delinquencies. 1836 requires all communication from HOA to owner to be received by Broker within 3 business day to be able to enforce notices and process any applicable fines. Should Broker not receive notices in 3 business days, Broker will be unable to enforce penalties. | 1/1/25 |
| 8. C. 4. | Notify Broker, in writing, at least 90 days prior to the end of any lease term should the Owner not want to renew the lease or release the property; | 4. Notify Broker, in writing, at least 90 days prior to the end of any lease term should the Owner not want to renew the lease, re-lease the property or sell the Property; | 1/1/25 |
| 7. B. | Owner agrees to receive email and text messages from Broker to keep the Owners informed about essential information and educational material. Should Owner opt out of email or text messaging Broker will not be responsible for any information not received. Should concerns arise, please schedule a meeting with your property manager. | Owner agrees to receive email and text messages from Broker to keep the Owners informed about essential information. Should Owner opt out of email or text messaging Broker will not be responsible for any information not received. | 1/1/25 |
| 5. K. | Broker typically withholds five hundred dollars (500) from the Owner’s disbursement the month prior to a Tenant’s departure to ensure working capital for any make ready work is readily available, to reduce time on market. If the security deposit charges to the Tenant plus the greater of five hundred dollars (500) or the applicable reserve for property, are estimated to meet or exceed the turnover cost, Owner grants Broker authority to perform turnover within the limits set forth in 5. I. to return the property to a cash producing condition in as little time as possible. | Broker may withhold additional funds, limited to one thousand dollars, from the Owner's disbursement the month prior to a Tenant's departure to ensure working capital for make ready work. Broker may, at Broker's discretion, temporarily increase reserves in a reasonable amount to ensure make-ready costs are covered. | 1/1/25 |
| 5. I. | sentence inserted | Broker is not obligated to perform repairs unless related to the health and safety of tenant and/or the securing of Property. | 1/1/25 |
| 4. A. 16. | n/a | Fund-Sharing within portfolio of properties: Should Broker manage multiple properties of Owner, Owner grants Broker the authority to share funds from one property to another within the portfolio as Broker deems reasonably necessary to maintain all of the Owner’s properties. | 1/1/25 |
| 4. A. | Home Leasing Activities: | Home Leasing and Management Activities: | 1/1/25 |
| 3. Off-Boarding Services | n/a | Off-Boarding Services: The authority granted to the Broker under this Agreement is extended for 45 days after termination of this agreement to the extent necessary for Broker to complete off-boarding services. The performance of specific off-boarding services under this paragraph is at Broker’s discretion. Off-boarding services may include but are not limited to the following: processing vendor invoices, utility bills, disbursing funds and documents to appropriate parties but will not include security deposit itemization. Owner will pay Broker a one-time fee of $75.00 for this service. | 1/1/25 |
| 3. 30 Day Notice Required | n/a | Should notice of termination not be received by Broker the new terms shall be deemed accepted and become binding upon the Parties for the subsequent term. | 1/1/25 |
| Section 10 | The annual technology fee is one hundred forty-nine dollars (149) per year, per unit for US Citizens and one hundred ninety-nine dollars (199) for Nonresident Aliens or any Non US Citizens. This is applied annually on March 1st. The technology fee includes: Monthly and on demand use of ACH deposits or e-payments for Owner’s disbursements; Scanning all invoices and uploading to the Owner portal; Software to e-sign lease Agreements and lease renewals; Storage of all documents in Owner portal (management Agreements, HOA, field reports, etc.); Pictures and video for turnover bids sorted, uploaded and stored; 24/7 After hours maintenance call center; Call center, agents and technology for. Live Answering of lease calls; Showing service to increase showings and have A.I. and staff interact with inquiries; Monthly, quarterly and year end reports available through the Owner portal; and Electronic submission and/or delivery of 1099/1042S compliance documents to all vendors & Owners as required by IRS regulations. | The annual technology fee is one hundred forty-nine dollars (149) per year, per unit for US Citizens and one hundred ninety-nine dollars (199) for Nonresident Aliens or any Non-US Citizens. This fee is applied annually on March 1st and covers the development, implementation, and maintenance of technology solutions aimed at improving the efficiency and convenience of property management services. Technologies and services provided may evolve over time to incorporate advancements and respond to changing industry standards. Services supported by this fee may include, but are not limited to: ● Payment processing systems (e.g., ACH deposits, e-payments); ● Digital documentation storage & management of the Owner portal; ● Electronic leasing and document signing tools; ● Property advertising, listing and inquiry handling technologies, including AI-enhanced solutions; ● Call center and communication technologies for leasing inquiries and 24/7 maintenance call center; ● Tools for tracking and delivering financial and compliance reports (e.g., 1099/1042S documents); ● Automation tools for scheduling, reporting, and communication. | 1/1/25 |
| Section 10 | Renewals or Extensions: Unless otherwise stated, all Management Plans have a lease renewal fee which is due anytime a Tenant renews or extends their Lease Agreement. Broker will charge a renewal fee equal to the greater of 20% of one full month’s rent to be paid under the renewal or extension or $325. This fee does not apply to new leases, automatic month- to-month renewals or month-to-month extensions. Lease Renewal Process Includes: ● Detailed market analysis to determine most appropriate rental rate; ● Review to determine Tenant eligibility; ● Negotiation and coordination with Tenant to maximize occupancy; ● Getting lease signed and performing paperwork with timed parameters of lease terms; and ● Market leading service to maintain tenants. | Renewals or Extensions: Unless otherwise stated, all Management Plans have a lease renewal fee which is due anytime a Tenant renews or extends their Lease Agreement. Broker will charge a renewal fee equal to the greater of 20% of one full month’s rent to be paid under the renewal or extension or $325. This fee does not apply to new leases, automatic month-to-month renewals or month-to-month extensions. | 1/1/25 |
| Section 10 | N/A | Back billing of utilities due to Owners desire to keep utilities in another name than Tenants and/or back billing utilities to multiple Tenants due to an inability to properly separate utilities with independent meters. $25/month per bill. | 1/1/25 |
| Section 5 | Should Owner request back billing of utilities the cost is $10/unit per month. Ex. UT tuition requirements, singular meters for multiple units not sub metered, etc.. | N/A - Removed from PMA. | 1/1/25 |
| Section 11 | Excluding any Service Animal & normal wear & tear, 1836 will reimburse owner for pet damage resulting from 1836 Approved Pets beyond security deposit amounts, up to $5,000 per tenancy. | Excluding any Assistance Animal(s) & normal wear & tear, 1836 will reimburse owner for pet damage resulting from 1836 Approved Pets beyond security deposit amounts, up to $5,000 per tenancy. | 10/1/24 |
| Section 10 | Means may vary per listing. Broker may offer MLS participating licensed realtors a fee to show and/or assist in bringing a qualified Tenant to lease the Property. Type and amount is fee is determined by Broker. | Broker may offer licensed real estate agents compensation who represent or assist a qualified Tenant that leases the Property. Compensation determined by Broker. | 10/1/24 |
| Section 10 | Sale Coordination: If at any time during this Agreement Owner agrees to sell the Property and Broker is not paid a fee as the listing broker, Owner will pay Broker three hundred ninety-five dollars (395) for Broker’s time and services to coordinate showings, inspections, appraisals, repairs, and other related matters while this Agreement is in effect. This fee will be earned at time of such services. | Sale Coordination: If at any time during this Agreement, Owner decides to sell the Property and 1836 is not the listing Broker, your Property Manager will not directly communicate and/or coordinate with your selling agent via email, text and/or call related to the sale. Should Owner choose to continue active management, Owner should speak to your Property Manager for further information. | 7/1/24 |
| Section 5 | Should Owner request back billing of utilities the cost is $5/unit per month. Ex. UT tuition requirements, singular meters for multiple units not sub metered, etc.. | Should Owner request back billing of utilities the cost is $10/unit per month. Ex. UT tuition requirements, singular meters for multiple units not sub metered, etc.. | 4/1/2024 |
| Section 7 | Should questions arise, reach out to your designated property manager. Expect a reply within one business day. | N/A - Removed from PMA. Internal policy still in effect. | 4/1/24 |
| Section 7 | N/A - Added language | Owner agrees to receive email and text messages from Broker to keep the Owners informed about essential information and educational material. Should Owner opt out of email or text messaging Broker will not be responsible for any information not received. Should concerns arise, please schedule a meeting with your property manager. | 4/1/2024 |
| Section 8 | Request that any applicable homeowners association copy Broker on all notices, including violations and delinquencies; | Request that any applicable homeowner’s association copy Broker on all notices, including violations and delinquencies. 1836 requires all communication from HOA to owner to be received within 3 business day to be able to enforce notices and process any applicable fines. Should Broker not receive notices in 3 business days, Broker will be unable to enforce penalties. | 4/1/2024 |
| Addition to Addenda. Section 17. | N/A | Lease, applicable Addenda and all other documents or reports related to any active Lease. | 1/1/2024 |
| Section 10 | N/A | Surcharge for Increased Complexity _____ Pre-1978 Construction Additional ten-dollars (10) monthly for each unit due to EPA required compliance, oversight and maintenance regulations. | 1/1/2024 |
