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OneRate Addendum

Updated: December 12, 2023 Download PDF

THIS ONERATE ADDENDUM (“ADDENDUM”) TO THE PROPERTY MANAGEMENT AND BROKERAGE AGREEMENT (“AGREEMENT”) IS ENTERED INTO AS OF THE EFFECTIVE DATE (“EFFECTIVE DATE”) SET FORTH ON THE SIGNATURE PAGE (AS DEFINED IN THE AGREEMENT) PURSUANT TO WHICH OWNER HAS APPLIED TO INCLUDE PROPERTIES TO THE ONERATE PROGRAM. OWNER IS REQUIRED TO PAY THE ONERATE FEES REGARDLESS OF NO CLAIM PERIODS, OTHER EXCLUSIONS OR RECEIPT OF RENT. NON-PAYMENT OF ONERATE FEES MAY LEAD TO DENIAL OF COVERAGE OR TERMINATION OF MANAGEMENT AND/OR COVERAGE.

THIS ADDENDUM IS PART OF, AND ITS TERMS ARE IN ADDITION AND SUBJECT TO THE TERMS OF, THE AGREEMENT, AS UPDATED FROM TIME TO TIME. IN THE EVENT OF ANY CONTRADICTION BETWEEN THE TERMS OF THIS ADDENDUM AND THE TERMS OF THE AGREEMENT, THE EXPRESS TERMS OF THIS ADDENDUM SHALL PREVAIL. 

ALL CAPITALIZED TERMS NOT DEFINED HEREIN SHALL HAVE THE MEANINGS SET FORTH IN THE SIGNATURE PAGE, AGREEMENT, OR FEE SCHEDULE. REFERENCES TO “PROPERTY” OR “PROPERTIES” IN THIS ADDENDUM ARE TO THOSE PROPERTIES LISTED IN THE SIGNATURE PAGE, AND UNLESS OTHERWISE INDICATED, THOSE ACCEPTED INTO THE ONERATE PROGRAM IN ACCORDANCE WITH THIS ADDENDUM.

THIS ADDENDUM MAY BE MODIFIED BY PROPERTY MANAGER IN ACCORDANCE WITH THE TERMS OF THE AGREEMENT. 

1. ONERATE COVERAGE. 

1.1 Description of Covered Services. Subject to the terms of this Addendum and the Agreement and Owner’s compliance therewith, commencing on the Repair Start Date or Rent Guarantee Start Date, as applicable (both defined below), Property Manager shall, using commercially reasonable efforts, perform the following services (such services, “OneRate Covered Services”) for each Property accepted into the OneRate Program (“OneRate Program”), in addition to the Services described in the Agreement:

  • (a) Repairs and Maintenance: Routine repair or maintenance services to address ordinary wear and tear within the four (4) walls of the residence on the Property, including the labor and materials needed to perform such maintenance, by itself or through Property Manager’s authorized Service Providers;

  • (b) Tenant Turnover Service: Routine repair of ordinary wear and tear that has occurred within the four (4) walls of the residence of the Property during a tenancy, which will be undertaken following expiration of a Lease that renders a Property unsuitable for rent, as determined at the sole discretion of Property Manager;

  • (c) Maintenance of Major Appliances: Routine repair or maintenance services to address ordinary wear and tear of the Major Appliances inside the four (4) walls of the residence of the Property. “Major Appliance” means a washer, dryer, dishwasher, fridge, stove, range, HVAC or water heater, garage door. Property Manager shall have the right to: (i) utilize refurbished parts and/or refurbished materials; or (ii) replace a defective appliance with a comparable, functional appliance where the cost of the maintenance or repair exceeds the replacement cost;

  • (d) Rent Guarantee: Provide protection against loss of rental income (excluding any income which is not rent, such as utility payments);

  • (e) Eviction Filing: Initial Eviction pleading for eviction of a Tenant(s) for failure to pay rent or other breach of the Lease, excluding involvement of licensed attorney or any appeals as per Section 7 of the PMA;

  • (f) Leasing: Advertising the Property to prospective tenants and processing Tenant applications; executing lease agreement(s) and lease renewals (where applicable), in accordance with Section 7 of the PMA; and

  • (g) Preventative Maintenance: Regular and routine maintenance of covered items inside the four (4) walls of the residence of the Property prior to any failure or expected failure, as determined to be necessary by the Property Manager.

1.2 Rental Rate. Property Manager shall have the exclusive right to set the listing rental rate and minimum lease terms for each Property (in accordance with real-time market conditions) in the OneRate Program that has been vacated. If a Property is eligible for Rent Guarantee, and the determined rental rate upon vacancy is less than the rental rate as set forth in the most recent Lease Agreement, then the Rent Guarantee shall be automatically adjusted to the lower rental rate. Property Manager shall not be obligated to pay the difference between the previous rental rate and the current rental rate to Owner.  See also Section 7 of the PMA.  

1.3 Rent in lieu of Security Deposit. In the event that Property Manager waives the requirement of a Security Deposit and instead requires Tenant to pay an additional amount in Rent or other fees (payable to Property Manager), such additional amount shall not affect or be deemed to be Rent for the purposes of calculation of the Rent Guarantee.

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2. ONERATE PROGRAM LIMITATIONS AND EXCLUSIONS.

2.1 General Limitation of Coverage. Property Manager shall not incur expenses in excess of:

  • (a) For each OneRate Coverage Service event, an amount equal to the monthly Rent multiplied by the number of years elapsed from the Effective Date to the date of the event rounded up to the nearest integer, to a maximum of three (3) (“Event Expense Limit”). For avoidance of doubt, there is one (1) Rent Guarantee event per calendar month, subject to Section 4; or

  • (b) During each year of the Term, the lower of: (i) $15,000.00; and (ii) the sum of twelve (12) times monthly Rent, as per the current or most recent Lease, as applicable  (“Annual Expense Limit”);

 

in connection with each Property. 

2.2 General Exclusions from Coverage. The Property Manager is not required to perform or pay OneRate Covered Services:

  • (a) No Claim Period. If the event occurs prior to two (2) months following the Effective Date (“Repair Start Date”), excluding Leasing (if applicable), or in the case of any Tenant Turnover Service, Rent Guarantee or Maintenance of Major Appliances, prior to three (3) months following  the Effective Date (“Rent Guarantee Start Date”);

  • (b) Insurance Coverage. For any item or service covered by the Owner’s homeowner insurance or any other coverage, bond, or home, product, property or contractor or material supplier warranty service, and/or a Tenant’s renters insurance. Owner hereby authorizes Property Manager, who is required to be identified as a third-party beneficiary on any and all policies, to contact Owner’s insurance carrier, surety, warranty service, contractor, subcontractor or material supplier for coverage, warranty work and/or compensation or reimbursement of any kind, although Property Manager shall not be obligated to do so;

  • (c) Non-Residential. When services are in connection with a property which is a commercial unit, a storage unit, garage, other non-residential unit.

  • (d) Identified Items. For any items specified in the Adjustment Notice (defined below) or Signature Page;

  • (e) Ineffective Authority. In the event that the authorizations, powers and rights granted to Property Manager in connection with the Property pursuant to this Agreement are rescinded, rendered null and void, deemed unenforceable or not respected by any authority (i.e. legal, regulatory, etc.);

  • (f) Non-Current Payment. If any OneRate Service Fee or other fee owed by the Owner to the Property Manager is unpaid at the time of the OneRate Covered Service;

  • (g) Abuse of Program. Any time that Property Manager, in its sole discretion, believes the Owner is, or is attempting to, abuse the OneRate Program;

  • (h) Owner Management. When Owner chooses to manage an event that renders the Property unrentable and/or fails to inform Property Manager in writing that the Property is available for rent; or 

  • (i) As Agreed. For any items agreed between the Parties.

 

2.3 Non OneRate Covered Services. The following are not covered under the OneRate Program:

  • (a) Pest Control. Any pest control services or expenses; 

  • (b) Personal Property. Any furnishings or personal property of Owner or Tenant.  Property Manager strongly recommends that Owner procure insurance coverage for such items and/or a rider to Owner’s existing insurance coverage for the Property; or

  • (c) Trash Removal. Any service that involves the removal of the Tenant’s belongings or other items, such as in the event of an eviction or lease turnover. 

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3. REPAIRS, MAINTENANCE AND TURNOVER LIMITATIONS AND EXCLUSIONS. 

3.1 Limitation of Coverage. In addition to Section 2.1, Property Manager shall not be obligated to perform services beyond those that result from ordinary wear and tear, being the deterioration of the Property’s fixtures and fittings which occurs without negligence, carelessness or abuse (including force, regardless of the source). Owner shall be solely liable for all other repairs that are required in cases other than ordinary wear and tear, including those repairs that may be necessary to maintain eligibility in the OneRate Program.

3.2 Exclusions from Coverage. In addition to Section 2.2, the following are excluded from the Repairs and Maintenance, Maintenance of Major Appliances and Tenant Turnover Services:

  • (a) Exterior Repairs and Maintenance. Any exterior (outside the four (4) walls of the residence on the Property) repairs or maintenance of the building, including, but not limited to, the Property’s foundation and infrastructure, the roof, the garden, lawn, landscaping,  pool, spa or water feature or any equipment related thereto, siding, or common areas in a multi-unit dwelling. 

  • (b) Secondary Defects. Any repairs, replacement or maintenance cost resulting from an underlying condition or defect outside the four (4) walls of the residence of the Property (e.g., damages to the walls due to a water leak from the roof) or that has been caused by repeat exposure, such as mold, fungus, water damage, or asbestos.

  • (c) Owner’s Request. Any service requested by Owner or by a Tenant as a result of the Owner’s involvement or communication with Tenant or Service Provider.

  • (d) Prior to Authorization. Any repairs or maintenance needed due to repairs or maintenance attempted before contacting Property Manager, or performed by anyone not expressly authorized or dispatched by Property Manager, including but not limited to Owner or Tenant.

  • (e) Regulatory Compliance. Any repairs or maintenance related to legal, regulatory, CIC or CC&RS non-compliance (for example, repairs or maintenance to any structure built on the Property in contravention of, or without the approval required by, CIC or CC&RS rules, or otherwise to bring the Property into conformity). 

  • (f) End of Life. Any appliance was present and in good working order in the Property at the Effective Date and is not reasonably considered end-of-life at the date of service. End-of-life is defined by generally accepted industry standards and/or the fact that the manufacturer / supplier no longer provides support or parts for such appliance.

  • (g) Damage by Force. Any repairs or maintenance needed because of an application of force to a surface, regardless of the source of the force, including, without limitation, in cases of burglaries, forced entry, trespassing, vandalism, force exerted by animals, insects or other beings, such as rodents or termites, and natural forces, such as wind, storms, roots, water, or drainage.  The foregoing applies regardless of whether such forces or causes constitute a Force Majeure Event.

  • (h) Upgrades or Cosmetic. Any improvement or upgrade projects, including to a new standard or design.

  • (i) Force Majeure. Any repairs or maintenance for damages caused by Force Majeure.

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4. RENT GUARANTEE LIMITATIONS AND EXCLUSIONS.

4.1 Limitation of Coverage. In addition to Section 2.1:

  • (a) Vacancy. Property Manager’s Rent Guarantee obligation will commence following one half of the first month’s vacancy; and

     

  • (b) Eviction. Property Manager’s Rent Guarantee obligation shall be limited to one (1) month’s rent from the date that it files for eviction with the court until the Property is vacated.

4.2 Exclusion from Coverage. In addition to Section 2.2, the Rent Guarantee shall not apply:

  • (a) Onboarding Phase. Where the Property: (i) is or becomes vacant (even if a Lease is in effect) or a Lease is terminated or expires prior to the Rent Guarantee Start Date until after a new Lease brokered by Property Manager comes into effect and tenancy commences; (ii) had an existing Tenant with overdue charges at any time prior to the Rent Guarantee Start Date, until such delinquent tenant is current on all charges for at least three (3) consecutive months under Home365 management; (iii) is unrentable due to noncompliance with local, state, or federal regulations and laws, abatement, habitation by squatters, etc.; or (iv) where Owner conducts a rehabilitation project or turnover on its own.

     

  • (b) Owner Responsible. When the determination of the Rent Guarantee amount was arrived at as a result of, or where failure or delay of Tenant to pay amounts due, or vacancy of a Property results, directly or indirectly, from: (i) the Owner’s breach of this Agreement or the Lease; or (ii) from Owner’s refusal to approve, or delay or conditioning of approval, of: (A) any new Tenant; or (B) modifications to a Lease, including monthly rent; or (C) termination of a Lease; or (iii) from any communication between the Owner and current, prospective, or new Tenant; or (iv) any act or omission of the Owner in bad faith or intended to abuse the OneRate Program or defraud Property Manager.

     

  • (c) Death or Illegality. In the event of a Tenant’s death, crimes or illegal activities perpetrated on the Property, or in the event that any statutory or administrative right, applicable license, Law or order applies which permits Tenant to cancel, extend, abate, or continue to occupy the Property for any reason.

     

  • (d) Force Majeure. When a Force Majeure Event, or governmental or other decree reasonably prevents Property Manager from evicting a current Tenant or finding a new Tenant for the Property, or from collecting rents on time or perform its duties as a Property Manager at all, then and until the latest of: (i) ninety (90) days after the Force Majeure Event is declared ended; or (ii) ninety (90) days after the governmental order, decree, or Law is removed or lifted; or (iii) ninety (90) days from when the legal process and eviction processes return to the pre-Force Majeure timing or requirements.

     

  • (e) Adverse Changes in Economic Conditions: Any time: (i) when major stock market indexes (e.g., Dow Jones Industrial Average, S&P 500 or NASDAQ 100) decrease by twenty percent (20%) or more, within any ninety (90) consecutive day period during the Term; (ii) when the rate of unemployed persons as measured by the Bureau of Labor Statistics, exceeds 10% in the municipality or state where the Property is located; or (iii) when the annual increase in the consumer price index for all urban consumers (seasonally adjusted), as measured by the Bureau of Labor Statistics, exceeds 10%, until such time as the Property Manager considers conditions are normalized in all cases.

     

  • (f) Property Sale. When: (i) the Property Manager is made aware of Owner’s intention to sell the Property; or (ii) the Property is first advertised for sale; or (iii) the Property is sold; from the earliest applicable date.

     

  • (g) Legal Restriction. When applicable Law, rental agency, Court or regulatory body either: (i) prevents or delays the eviction or removal of a Tenant or termination of a Lease; or (ii) limits Property Manager’s ability to reclaim the Property following the Tenants’ delinquency under the applicable Lease; or (iii) abates Rent.

4.3 Payment of Rent Guarantee. Property Manager will pay Rent Guarantee to Owner within fifteen (15) days after the end of the calendar month in which the rental income was due from the Tenant.

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5. ACCEPTANCE AND CONTINUED ELIGIBILITY FOR COVERAGE UNDER THE ONERATE PROGRAM.

5.1 Acceptance Into OneRate Program. A Property will be accepted into the OneRate Program upon the occurrence of the following events:

  • (a) Receipt of all Onboarding Documents by Property Manager. Failure by Owner to provide accurate information regarding the Property and its Tenants shall be a material breach of this Addendum and the Agreement, in which case Property Manager reserves the right to issue an Adjustment Notice (defined below), terminate this Addendum, and/or terminate the Agreement; and

  • (b) Execution of the OneRate Addendum by both Property Manager and Owner. 

 

5.2 Continued Eligibility Requirements. For continued OneRate Program eligibility, Owner acknowledges and agrees to the following:

  • (a) Property Inspection. Owner shall permit, and provide reasonable assistance to enable, Property Manager or its designee to perform an onsite inspection of a Property as it may reasonably request from time to time. If any such Properties are vacant at the time of the inspection, then Owner shall provide Property Manager full access to such Properties, with all power and utilities turned on and operative and access to all areas.  Owner acknowledges and agrees that failure by it or a Tenant to permit and enable Property Manager to perform inspections will result in a delay in the completion of the Inspection, and Property Manager reserves the right to issue an Adjustment Notice (defined below), terminate this Addendum, and/or terminate the Agreement;

  • (b) Necessary Repairs. Based upon onsite inspections, Property Manager or its designee may determine that repair(s) are reasonably necessary to preserve the Property in a habitable condition, bring the Property to rentable condition, for the operating efficiency of the Property, and for all alterations necessary to comply with Lease requirements, governmental regulations or insurance requirements. Any expenses incurred under this Section are the sole responsibility of Owner.  

  • (c) Potential Adjustment. Based on the results of the inspection, Property Manager may confirm or adjust the OneRate Services Fees listed on the Signature Page or require the payment of Deductibles (defined below), providing written notice of the same to Owner (the “Adjustment Notice”). Such Adjustment Notice serves as a modification and supersedes the Signature Page, and may include, without limitation additional exclusions, or limitations to the OneRate Covered Services, and/or higher or additional Deductibles or co-pays for specific items.

  • (d) Updated Documentation. Owner shall provide updated documents (i.e. rental licenses, permits, etc.) upon request by Property Manager. Failure to provide updated documents shall constitute a material breach of this Addendum and the Agreement, in which case Property Manager reserves the right to issue an Adjustment Notice, terminate this Addendum, and/or terminate the Agreement.

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6. FEES FOR ONERATE COVERED SERVICES.

6.1 Fees. Fees in connection with the OneRate Covered Services (“OneRate Services Fee”) are contained in the Signature Page and described in the Fee Schedule.

6.2 Fees Non-Refundable.  OneRate Services Fees are annual fees covering a Term and expressed in equal monthly amounts as designated on the Signature Page.  OneRate Service Fees are payable and non refundable at all times including prior to the Repair Start Date.

6.3 Effect of Increased Rent. If the Rent is increased on any Property at any time (excluding increased rent due to a Security Deposit waiver), the OneRate Services Fee shall increase in the same proportion and Owner agrees written notice is not required for such increase from Property Manager. 

6.4 Deductibles. Property Manager shall have the right to charge Owner a deductible as specified in the Signature Page or Adjustment Notice, and as may be amended from time to time (the “Deductible”), for each instance of a service performed by Property Manager, including, without limitation, fulfilling a OneRate Covered Service and as otherwise provided by in this Addendum. Where a Deductible applies to a Service Request, Owner, Tenant or other applicable recipient cannot refuse or decline to receive the applicable services for any reason, including in the event the estimated cost of the services to be performed is less than the applicable Deductible amount.

 

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7. TERMINATION OR NON-RENEWAL.

7.1 General. In the event of termination of the Agreement by either Party with respect to any Property, this Addendum shall terminate in respect of such Property.

7.2 Adjustment Notice. Either Party may terminate this Addendum (and Agreement) within five (5) days of the date of the Adjustment Notice, which termination shall be effective upon payment of the fees listed in Section 7.5.

7.3 Cooling Off. Owner may terminate the Agreement or this Addendum prior to sixty (60) days following the date of signature (as per the Signature Page) without penalty or incurrence of a OneRate Termination Fee.

7.4 Effects of Termination.

  • (a) Effect of Notice of Non-Renewal or Termination. If the event Owner notifies Property Manager of its intention to not renew or terminate the Agreement or this Addendum with respect to a Property, Property Manager shall immediately cease to perform Tenant Turnover Service,  Maintenance of Major Appliances and Rent Guarantee services, effective as of the earlier of the date of such notice or Property Manager’s receipt thereof. For avoidance of doubt, Property Manager will only provide services necessary to address emergencies.

  • (b) Assignment of Tenant Debt. Upon any termination or expiration of this Addendum with respect to any Property, or removal of a Property from the OneRate Program, Owner hereby assigns and transfers to Property Manager, pursuant to the applicable Lease or any other rights Owner has at law or equity: (i) an amount equal to the value of any Rent Guarantees paid by Property Manager to Owner that has not been paid or repaid by Tenant to Property Manager (excluding Deductibles or other amounts offset); and (ii) all other amounts due from Tenant pursuant to the Lease, which would, if not for termination or expiration of this Addendum or the Agreement, have been paid for by or due from Tenant, including, without limitation, damage to the Property, damage or fees owed pursuant to the Lease or as a result of violation of the Lease, eviction, the costs and expenses of repairs and maintenance either due under the Lease or arising from Tenant’s acts or omissions. 

7.5 Termination Fees.

  • (a) Adjustment Notice. In the event of termination by Owner pursuant to Section 5, Owner shall pay the Inspection Fee with respect to each Property for which this Addendum was terminated. 

  • (b) Without Cause. In the event of termination of this Addendum by Owner pursuant to Section 16.1(c) of the Agreement, Owner shall pay the OneRate Termination Fee with respect to each Property for which this Addendum was terminated.

  • (c) Termination for Cause or in the event of Abuse. Notwithstanding anything in this Addendum or the Agreement to the contrary, if Property Manager concludes, in good faith, that the OneRate Program has been abused (whether by Owner, Tenant or otherwise), its operation interfered or that Owner has breached the Addendum or the Agreement, Owner shall immediately reimburse all sums spent by Property Manager on each Property as a result of such abuse or breach, as determined by Property Manager, in addition to the OneRate Termination Fees as set forth in the Fee Schedule. Owner hereby authorizes Property Manager to deduct such amounts from any Rent or other payments received associated with the Properties or to pay such amount through monies available in the Trust Account.

  • (d) Amounts Cumulative. Amounts due hereunder are not exclusive but cumulative. Owner shall pay the amounts set forth in this Section 7 and Fee Schedule in addition to all amounts due, including, without limitation, pursuant to the Agreement, and with respect to each Property to which the Addendum or Agreement was terminated. 

7.6 Survival. Section ‎6 and any outstanding obligation and rights accrued, shall survive any termination or expiration of this Addendum and the Agreement. All provisions of the Agreement shall remain in effect in accordance with the terms of the Agreement. 

 

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