Breckenridge Summit County real estate blog, Colorado news

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Table of Contents

Letter from the owner…3

Fee structure comparison…4

Guest retention policies…5

Example 1…6

Example 2…7

Four things most property owners want from their management company…8

Efficient management equals steady revenue…9

Fee distribution- traditional management companies…10

Internet Marketing…11

Marketing…12

OneRes program details…13

Rental Policies…14-15

Management Agreement…16-23

Revenue Estimate…24

A Letter from the Owner-

I would personally like to thank you for allowing us the opportunity to present our services to you.  As a second homeowner looking for a rental management company, you have many to choose from.  Management companies are as different as the people who run them and each one will present their services in a different way.

Some companies entice owners with a minimal management fee, loaded with extra charges, and lacking the proper marketing and distribution for their properties.  Some companies will lure owners in with grandiose claims of how many units they manage and what their advertising budget is, only to end up providing you will a small portion of the guests all of that mismanaged advertising budget garners and treating owners and their properties like line items on a budget.

If a management company presents you with how much they spend, how much their units gross (what units net is the important number), how many units they have, how big their corporation is, and promise huge numbers; they are trying to buy your business.  If a management company presents you with an insanely low rate and has no effective marketing strategy to provide you; they are trying to buy your business.

You will not benefit from a company who buys your business instead of earning it.  Look for the company who has a reasonable fee structure with no hidden fees, a detailed and realistic marketing plan, a comprehensive guest service and retention plan, and a common sense approach to owner relations.

Enclosed is all of the information you will need to make an informed decision on the Resort Managers brand of management.  If you have any questions or need any clarification on the information herein please contact me.  Thank you again for your consideration.

Traditional Management VS. Resort Managers

Fee Structures

The first question typically asked of any management company is, “what management fee do you charge,” and “what additional fees are charged?”  At Resort Managers than answer is simple, OneFee.  To most second homeowners the gross revenue their unit produces is a very important number.  However, a much more important number you should be focused on as a second homeowner is the net revenue.  IF your one bedroom does 20k gross you may think that is great, but how much of that are you actually getting?

Traditional Company        Resort Managers    Savings to you
*1 br unit gross of 20k
Management fee 45%        Management fee 40%    $1,000
Credit Card fees – 2.5% of gross revenue        cc fee-none    $500
Cleaning fees – $50 per bedroom        Cleaning fee- None    $1,750
Guest Reservation fee 6-7% of gross        Reservation fee – None    $1,200
Maintenance fees – $75- $100 hr + $35/mo        Maintenance fees – $50 hr
Linen fee – $100 per bed        Linen fee – $50 per bed
Yearly savings    $4,450

The next question that may have entered your mind after this example is how can Resort Managers offer higher net revenue to our owners and still be a profitable company.  Simple, we are able to offer this to our owners due to our low overhead, intelligent advertising avenues, responsible spending policies, and a corporate structure that does not require us to be top heavy with high salaried management.  We are able to be profitable in much the same way you are, responsible budgeting and allocation of our revenue.

Although we can operate on a smaller budget than many larger management companies, our ability to market, manage, and book your unit is first class.  We have developed a management and distribution system that will rival anything else on the vacation rental market.  We use a real time, online booking engine that is incorporated into our site, a targeted pay per click advertising campaign, constant website development and Search Engine Optimization, local, regional, and national print ads, and a myriad of other web marketing avenues.

We aren’t the cheapest, or the largest management company you will find, and we do not want to be.  Resort Managers is a no nonsense management company that under promises, over delivers, and focuses on owner and guest satisfaction.

Is lackluster guest service hurting your net revenue?
Resort Managers Guide to effective guest retention

Today’s vacation rental traveler expects more for less.  In today’s world of bankrupt airlines charging $25 for each checked bag, over $4.00 a gallon for gas, and automobiles that average 15-20 mpg, vacation travel has become a financial impossibility for many.

When travelers are able to fund a family vacation they expect more than a key to a room and a bill; they want a full vacation experience.  More and more travelers are demanding the full compliment of guest services during their vacation due to the rising costs associated with travel.  If your management company does not supply them with five star services during their vacation, you can bet next year they will find someone else who will.

Many management companies associate guest services with spending.  However, there are many more cost effective ways to provide guests with services that will turn a one time guest into a loyal client. Here are a few examples of cost effective guest services-

•    Accurate and detailed unit description- Nothing will upset a guest more than a unit that is not what they expected.  In order to prevent dissatisfaction with accommodations, detailed and honest descriptions, slide shows, virtual tours, and floor plans need to be made available to guests prior to their booking of the unit.

•    A friendly and helpful greeting- Positive first impressions are essential to guest retention.  A greeting that consists of a person handing them a key and telling them to go up and to the left without any eye contact is a sure way to alienate a guest.  When a guest checks in they should be greeted with a smile, provided with information on their accommodation and the area, and queried as to what the management can do the enhance their experience.

•    Post check in follow-up- In order to ensure the guest is satisfied with their accommodations and have the necessary information to enhance their vacation experience a post check in call is placed to the guest.  The guest is asked about the overall satisfaction with the accommodation and if they require anything from the management company.

•    Post check out satisfaction survey with rebooking incentives- Each guest needs to be presented, at checkout, a satisfaction survey and a financial incentive to rebook their next vacation.  Guests also need to be followed up with on a routine basis to ensure repeat business.

The bottom line is that these simple, yet effective types of guest services are the most important marketing procedures that a management company can employ to increase booking and net revenue for its owners.  Increased guest retention and direct bookings are huge priorities and receive our full attention via our automated guest retention campaign.  At Resort Managers, generating guest bookings are important, but cultivating repeat bookings is our priority.   Below are a couple of examples of actual guest material we use.

Welcome To Breckenridge Colorado!!

Hoping you enjoy your stay is not enough; we want to ensure it.

We are here to provide you with any service you need to ensure that you have the best vacation experience possible.   To that end we have included in this packet information on activity booking, directions to your accommodation, and Resort Managers contact information if you need any additional information.  Also, you will find in your property a dining guide that lists local dining options for you during your stay.

We would urge you to get in touch with us if you need advice on where to go for lunch, what the weather is going to be tomorrow, what mountain is best for your level of skiing, what river is the best to raft, where live music is playing tonight, where to buy groceries, how to get to the rec center, or any other detail that will enhance your vacation experience here in Breckenridge.

Resort Managers offers our guests lodging in Breckenridge, but more importantly, our mission is to offer a unforgettable vacation experience for our guests.  Please let us know if there is anything we can do for you to ensure full enjoyment during your Breckenridge vacation, which is what we are here for.

www.BreckenridgeResortManagers.com

Thank you for choosing Resort Managers for your Breckenridge Vacation rental.  We hope you had a comfortable and relaxing stay and hope to see you again soon.  Please don’t hesitate to contact us if we can do anything to make your experience more fulfilling next time.

We also would like to encourage you to choose Resort Managers for you next Breckenridge Vacation rental by offering you 5% off of your next booking made within 180 days of your checkout.

Also, if you go online and leave a positive review of our service and your accommodations on Trip Advisor we will give you 5% off of your next Breckenridge Vacation rental.  That makes up to 10% off of your next rental with Resort Managers!

Please take a moment and visit http://www.tripadvisor.com/UserReview  and post a positive review of your experience with Resort Managers.  Send us the link to it and we will send you a coupon for 5% off of your next vacation rental!!

What do you want out of a property management company?
Four things most owners want

The lack of personal service is an issue that many owners have with their management company.  Larger corporate management companies simply cannot offer personal service due to the large number of owners, the large amount of staff, and high employee turnover.

Resort managers commitment to personalized owner service
•    Owner to owner contact
•    Rapid response to owner issues
•    Buck stops here accountability
•    our property owners always come first

Most second homeowners expect their properties to produce revenue for them.  However, this can become an issue if a management company takes a big piece of the gross revenue.

Resort Managers commitment to increasing owner revenue
•    A simplified, 40% OneFee program- no additional credit card, cleaning, or amenity fees
•    Partial management program designed to work with owners who occasionally rent their unit directly, but don’t want to be burdened with full time rental responsibility.
•    Limited management program for owners who prefer to handle all of their own rentals

Many owners desire a general idea of how and to whom a company is marketing their homes, as it is tied directly to revenue production.  Some companies don’t do enough, resulting in low occupancy. Some do too much, resulting in higher and additional management fees.  Both lower your revenue.

Resort Managers commitment to efficient and effective marketing
•    Direct internet marketing- constant optimization of website, which increases direct traffic and bookings, online booking and payment option for guests, geographically driven pay per click campaign, banner ads on popular travel sites, direct online booking discount programs.
•    Wholesale marketing (Travelocity, expedia, etc.)- professional wholesale coordinator, real time updating of rates and availability, exposure to millions of travelers worldwide
•    Return guest marketing- our guests are provided with a vacation experience, not just a room. Early rebooking incentives for guests, referral booking incentives for guests.

Almost every second homeowner shares one common concern, whether or not to rent their home. They all need someone to take care of their second home as if it were their own.

Resort Managers commitment to exceptional home care
•    Pre and post guest stay inspections cross referencing property configuration and inventory lists to eliminate damage, loss, and any owner responsibility for it.
•    Weekly inspections of homes during slow seasons
•    To protect your property we enforce age, deposit, and max guest requirements

Contact Resort Managers today to find out how we can improve your property management experience.
The key to steady rental revenue
Efficient and Effective Property Management

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As a Breckenridge rental property owner you may be feeling the effects of the current state of the vacation rental market, lower occupancy, lower rates, and possibly lower revenue.  As we approach the off season and move into the holidays it may be a good time to take a look at your rental figures.  If you notice lower nightly rates and lower occupancy you are not alone.  However, there is one thing a management company has direct control over that can affect your net revenue, extra fees.

These additional fees, when coupled with a high management fee can reduce your net revenue by thousands of dollars a year.  Is that really the kind of management you want?    Shouldn’t you be using a company that can insulate against low rental revenue by efficiently managing your unit and effectively marketing it?  If efficient and effective management is what you are looking for, there are some things you should know-

•    If your revenue is dropping and your fees are increasing, your current management contract may be preventing you from hiring a more efficient company, look for the automatic renewal clause in your contract.
•    Your management company should focus on your income first and theirs second
•    The management fee may not be the only fee you are paying to your management company
•    If you are being charged unnecessary fees for normal services, your guests might be experiencing the same treatment.
•    Larger management companies typically have the highest management fees and the most additional fees, rendering the high gross revenue they produce into low net revenue to you.
•    Management companies usually provide gross rental revenue figures, but you should figure out how much of that you are actually getting, net revenue is the important figure.
•    Vacation Rental management does not have to be expensive or overcomplicated to be effective.

At Resort Managers we have developed an efficient and effective property management system that will increase your net revenue while exceeding your expectations of owner and guest services.  If you are looking for an honest, upfront company that charges just onefee for management services, contact Resort Managers today.

Where does all that money go!?
Are additional fees eating into your net revenue

The long and short of this question comes down to this, do these fees go to pay an actual management company expense or are they becoming additional profit for the management company?   Some management companies use these fees as additional revenue streams, effectively increasing the management fee charged to the owner under the guise of what they may call “standard fees”.   Let’s examine these fees individually and what an honest, efficient company would charge.

The Management fee- For most management companies this fee should includes the following services: Advertising, marketing, accounting, tax payments, property management systems, booking engines, coordinating housekeeping and maintenance, owner services, guest services, and unit salaries/wages    These are the necessary basics a property management company must offer to realize any success and they can cost as much as the company is willing to spend.  For these services a typical management company should be able to realize a decent profit while charging 35%-40%.

Cleaning fees- These fees can be used as an additional revenue stream by larger management companies and can be charged to the owner, guest, or Management Company.  Most companies will charge it to the guest or pay it out of the management fee.  If you are actually being billed for guest cleans it should not exceed $25-$30 per hour.

Credit card fees- These fees are generally between 2%-4% depending on the card and the processor. These fees are typically charged to the owner prior to any revenue split with the management company.

Maintenance fees- Minor routine maintenance is sometimes included in the management fee, but a monthly fee may be charged for it.  The hourly rate for skilled labor should range from $40-$100 per hour depending on the type of repair, and is always billed to the owner.

Reservation fees- These fees are usually not charged as the management fee covers should cover the reservation process.  When they are charged the guest will pay the fee on top of the nightly rate, and it is not generally shared with the owner as part of the net revenue.  These fees are meant to generate revenue for the Management Company only and range from 6% of the gross rental amount to a fixed dollar amount.

Linen fees- This fee is normally the owner’s responsibility.  However, they can be used as a revenue stream by larger companies who can charge in excess of $200 per sleeping surface/bathroom.  You should not be paying more than $75-$100 per sleeping area/bathroom.

If you are currently being charged any or all of these fees and your net revenue is suffering as a result; our OneFee program is designed for you.  You pay for your linens and repairs, we pay for the rest.

My property is on websites.
That is enough marketing, right?
Resort managers guide to vacation rental marketing

Not really, in 2007 online bookings surpassed all other traditional methods of booking rentals combined.  If your property is being marketed on one website, even two or three, you are missing the lion’s share of potential bookings.  You can not realize the full potential of your rental home without comprehensive internet marketing, which includes-

•    Global distribution through wholesalers and travel agents
•    Travel industry website advertising
•    Fully optimized website
•    Online booking capability
•    Search Engine Optimization (SEO)
•    Social Media Optimization
•    Pay per click advertising campaign
•    Professional site graphics, photos,  and virtual tours
•    Online payment processing

If this is beginning to sound complicated and costly, it is.  It requires considerable time and a large advertising budget to ensure rental properties are fully distributed across the internet.    Without this kind of marketing and attention to details, your property may not get the positive results you have been hoping for.

However, Resort Managers is ready take care of all of this for you with the most competitive, customer service oriented, and technologically advanced property management in Breckenridge.  We handle the details, logistics and issues for you with professional business practices and a smile.

To boost your properties occupancy as well as your net revenue we provide you with extensive internet marketing as well as a superior guest retention program that encourages repeat and referral bookings.  This begins with good old fashioned over the phone customer service, emphasizing the unique amenities of your rental home to a guest looking for a fun vacation.  During their stay your guests will continue to receive the Resort Managers brand of first class services, amenities, and experiences that create a memorable vacation.  Our commitment to guest satisfaction and retention does not end upon checkout.  We stay in contact with all of our guests after checkout and offer return and early booking incentives.

Resort Managers marketing plan and management services are ready to boost the net revenue of your vacation rental.  Contact us for additional info on how Resort Managers can be a benefit to your property.

How should my property be marketed?
Resort Managers guide to intelligent, effective vacation rental marketing

In today’s vacation rental market the internet has become the prodigal son of any management companies marketing bundle.  However, there are additional methods, which are still an integral part of a comprehensive marketing strategy.  Let’s examine some important segments of a comprehensive marketing plan.

Third party GDS advertising – This segment includes discount/wholesale bookings (Travelocity), as well as travel agents.  While this type of marketing can be expensive due to 10%-20% reduction in gross revenue, it does make up the largest portion of internet bookings.  This type of marketing is absolutely essential for a management company to meet and exceed booking and revenue expectations as an extremely large portion of vacationers choose to book their accommodations on travel sites rather than directly with the company.  These companies have an established presence in the market due to the fact that their advertising budget easily eclipses the total budget of any management company.

Return Guest advertising – This segment of marketing can be wildly successful at a very low cost.  Return guest booking are achieved by a combination of marketing tactics.  First is providing first class accommodations and services to each guest before, during, and after their stay.  Second, the guest needs to be provided with return, early and referral booking incentives upon checkout as well as following their stay.  These incentives encourage repeat bookings and also allow the management company to stay in contact with each guest following their stay.

Travel site referral advertising – This market segment requires minor or no out of pocket expense and usually produces a positive return.  Individually marketing with these types of partners can be very cost effective and can be done with little effort.  However, marketing with comprehensive and large group of these sites and becomes very costly and labor intensive and to manage all of them.

Website Direct advertising- This is potentially the most expensive and least productive type of marketing.  Between search engine optimization (SEO), professional web design, hosting, a robust pay per click campaign, and professional pictures a high ranked site could cost 5-10k upfront and 1k monthly to maintain.  However, an attractive, content rich, easily navigable site is absolutely necessary for a management company to be viable.  Also, an aggressive, targeted, and robust pay per click campaign is a necessary adjunct no matter the level of the website.

At Resort Managers we have developed a technologically advanced, efficient, and effective internet marketing strategy that will increase your bookings and net revenue.  We are ready to take your property to a higher level in marketing, contact us today.

Introducing Resort Manager’s OneRes

Do you market your unit or do you use a management company?
With OneRes you can have the advantages of both with the disadvantages of neither

•    OneRes will double the exposure of your unit on the internet through a more comprehensive marketing approach, reducing your likelihood of missing a booking due to one dimensional advertising of your unit.

•    You choose your level of involvement with our OneRes program.
o    You handle your property rentals exclusively- limited management
o    You handle your property rentals partially- partial management
o    Resort Managers will manage your property rentals- full service management

Limited Management-

•    You continue to manage all of your own rentals, collect all of your own revenue, and conduct all of your own advertising without any interference from Resort Managers.
•    Resort Managers can provide you with, at your discretion, the following services- pre and post guest stay property inspections, maintenance calls, housekeeping, concierge services, and guest check in/out at our Main Street location.

Partial Management-

•    You can continue to conduct your own rentals through Resort Managers.  You can do as much or as little rental management as you like; we will take care of the rest.
•    Resort Managers will market your unit in conjunction with you and fill in where you need additional bookings.  We will coordinate inspections, repairs, housekeeping, check in/out, and general unit maintenance for your unit.   We will also take care of all accounting, reporting, and lodging tax payments for your unit.  You will have access to a real time, online unit tracking portal where you can reserve your unit for personal use and track occupancy and production figures.
•    Any rentals you book directly will incur only a 15% fee for all the above services.  Any Resort Managers bookings will incur only a 40% fee.  Yearly linen fees and as needed maintenance fees apply.

Full Service Management-

•    When Resort Managers has proven itself to be a valued ally in the rental of your property and you have complete faith in our services, you can step up to the full service management plan.  We offer a very owner-friendly, full-service management program called OneRate.

Resort Managers Rental policies

Deposit

A deposit in the amount of 50% of the total reservation cost is due at the time of booking if reservation is made 45 days, or more, before arrival.  The balance will be due 45 days before arrival.  Full payment is due at the time of booking for all reservations made within 45 days of arrival.
Cancellation

A refund less a $100 administration fee will be given to guest if reservation is cancelled at least 45 days prior to arrival.  No refunds will be given for the following- cancellations within 45 days from guest arrival, no show, early departure, or late arrival.

Security Deposit

A Signed credit card impression will be taken and a deposit charged at the time of booking, which will remain open and will constitute an authorization to charge guest for any damage to the unit, or any other miscellaneous charges guest accrues during their stay.  Card authorization and deposit will be held  by manager until such time as unit can be properly inspected by an authorized agent of manager and any damages or missing items can be calculated and charged to the guest card.  Guest is responsible for any damage, missing inventory, and any additional charges in connection with the unit during their occupancy.  Deposit is subject to deductions from unit damages and missing inventory.  A unit inspection is done following each departure and inventories are reconciled.  Any missing inventory will be charged to the security deposit prior to release.  Security deposit release will occur 15 calendar days following a guest checkout.  This is done to allow ample time to inventory items, assess damages, price, and replace items and repair unit.  Damage waiver programs, through AIG travel guard, are available to all guests prior to booking online or by phone.  Please inquire, if interested, prior to booking your unit.

Minimum Nights

All bookings have minimum night requirement; 3 night minimum on all stays except holidays which require a 5 night stay.  Any stay for less than the minimum nights must be approved by a reservationist and will be assessed a cleaning fee in addition to the nightly rate.

Housekeeping

Rooms are thoroughly cleaned and supplied with linens, towels, soap, and paper products prior to each guest stay.  Additional housekeeping services are available by request, prior to arrival, and will be charged to the guest in the applicable amount.  By requesting additional housekeeping services guest agrees to pay the applicable amount on demand for said services.  Additional housekeeping charges will be included on the guest’s final bill.

Smoking/Pets

Smoking and pet are forbidden in rooms unless prior arrangements have been made between Resort Managers and guest, in writing, subject to owner approval.

Parking

Guaranteed parking will be available for only one car per room.  Overflow parking should be available at town lots for a fee.

Unit access

During regular business hours and after hours in the case of emergency, an authorized Resort Managers employee or agent mat enter the premises to conduct duties associated with management of the unit.  In the case that the owner has the unit for sale showings may occur during daylight hours.  In either case, manager will do everything possible to keep intrusions as imperceptible as possible.

Re-assignment of unit

Should the need arise Resort Managers reserves the right to assign guest to a similar accommodation, through the day of arrival.  Any increase in rate will not be charged to the guest if re-assignment occurs.

Travel loss

Resort Managers will not be held liable for loss or damage due to flight delay or cancellation, poor weather conditions, family illness, road closure, automobile issues, or any other travel related issue.  Travel insurance is affordable and available through AIG travel Guard.  Travel insurance protection from AIG is available online at BreckenridgeResortManagers.com or by phone through Resort managers.  Please inquire prior to booking about your AIG travel insurance.

Check in/ Check Out

Check in is between 2:30 p.m and 5:30 p.m. MST at our office, which is locate at 100 S. Main St in the Lincoln West mall.  Before and after hours check in will also be made available to our guests, please call us during office hours and we will make arrangements.

Check out is at 11 a.m. MST.

Resort Managers LLC
RENTAL MANAGEMENT AGREEMENT

Identification of parties and property

This Agreement is entered into on the ______ day of ____________________, 20____, by and between Resort Brokers, LLC (”Manager”) and________________________________ (”Owner”), who is the owner of Unit No. _____________________________________located in the_______________________________________________ building in Breckenridge, Colorado (“Unit”).

Agreement terms

a) This contract will have a term of one year from the Owner’s execution of this Agreement, specifically, from______________ to_____________. This contract will renew each year on ____________________ for an additional one year term unless either party provides the other with written notice of termination of this Agreement by certified mail.

b) In the event that this Agreement is terminated in accordance with the above paragraph, Manager will stop accepting reservations for the Unit.  Owner agrees to honor any and all reservations entered into by Manager prior to the notice of termination.  Regardless of the above provision, however, Manager reserves the right to transfer any reservations entered into for the Unit during the Extension Period to other comparable units.  In such event, Owner will be solely responsible for any additional charges, fees, or lost revenue incurred during the transfer of reservations to another unit.  This will include charges for cancellations, deposit returns, charge backs, lost revenue, or rental payment returns.

c) If a breach of this agreement occurs by either party and remains unresolved for a period of more than ten (10) calendar days following written notice, then this contract can be terminated at the discretion of the non-breaching party.  Termination of this agreement will be conveyed in writing.

Covenants of appointment of Manager.

a) Owner warrants they are the lawful owner of record of the Unit and they have full authority to enter into this Agreement.  If multiple owners of the unit exist and only one owner undersigns this agreement, it is to be understood that all owners have agreed to and executed this agreement and each owner shall be bound to the terms set forth herein.

b) Owner hereby grants to Manager exclusive right to lease, rent and manage the Unit under the terms described herein.  Owner and managers agree that owner has the right to rent the unit directly to guests according to the terms of Addendum A, “Rental Programs”.  Manager and Owner bookings will be on a first made first honored basis.  In the case of a conflict between Manager and Owner bookings it is agreed that the management booking will be honored.

c) Owner has been informed that Manager also manages other units and is aware that other units will be presented along with the Unit in marketing materials and web reservations platforms.  Manager does not guarantee any specific income or occupancy level in regards to Unit under this Agreement, and Owner is aware that that the rental of the unit is based on factors such as size, bed count, location, amenities, furnishings, appearance, and personal preferences.  Owner agrees that these factors are beyond the control of Manager and Owner agrees to not hold Manager responsible for any cancellation or rebooking of Unit.

Insurance

a)  Owner shall maintain, at its sole expense, the following insurance policies during the term of this Agreement, and during any Extension Period: (1) a comprehensive liability insurance policy insuring against bodily injury and property damage in the amount of no less than one million ($1,000,000) dollars per occurrence; and (2) a hazard insurance policy that insuring the Unit in an amount no less the market value of the unit.  Each of the above policies shall include Manager as an additional insured on the policy, and Owner agrees to provide a current copy of each policy to Manager.  Notice of the termination of any of the above policies shall be reported to the Manager, in writing, no later than seven (7) days prior to the termination of such policy.

Duties of Manager

a) Manager will diligently market the Unit for rent, using those methods and means that Manager chooses, in its sole discretion.  Such marketing methods may include, but are not limited to, web reservations, setting and discounting rates, employing third parties to book rentals, giving to or accepting from other management companies any referrals, and advertising in various forms of marketing materials.  Owner grants Manager the right to use the Unit’s images and description in any marketing material that will advertise the unit, complex, or Manager’s management company.

b) In the course of renting the Unit, Manager will collect the security deposit, any and all rental revenues, payments for damages, and any other monies coming into Manager’s possession in the course of renting the Unit.

c) Manager will deposit the aforementioned funds in an interest bearing escrow account.  Manager will retain any interest generated by the funds in the escrow account.

d) Manager will account for all monies coming into Manager’s possession.  Statements of all monies received and all monies disbursed stemming from the rental of the Unit will be supplied to Owner on a monthly basis.  The format of the statement and date it will be supplied will be determined by Manager and is subject to change at anytime Manager deems necessary.  Owner will be notified of such a change within 10 calendar days.

e)  Monthly rental statements will be furnished by the 15th of each month for the prior months rental transactions.  Owner’s net rental revenue payment will coincide with Owner’s monthly rental transaction statement and can be paid to the Owner in the form of a check or automatic deposit in an account specified by Owner.

f)  Manager will maintain the normal and typical condition of the Unit during the term of this Agreement and any Extension Period, including any repairs to the Unit.  In the event that any repairs are deemed to be necessary by the Manager, Manager shall inform Owner of such necessity as soon as practical.  If the estimated cost of such repairs is less than $300.00, Manager is authorized under this Agreement to make such repairs immediately and without any further consent of Owner.  However, in the event the estimated cost of such repairs is more than $300.00, Manager will contact Owner and obtain Owner’s verbal consent before undertaking such repairs.  Regardless of the foregoing, Manager is authorized under this Agreement to make any repairs that Manager deems to be an emergency, any situation that presents itself as a hazard to the Unit, surrounding units, or the safety of other guests.

g)  Manager will arrange for cleaning of unit after every guest stay.  Cost for this cleaning will be paid for by the manager out of the management fee collected for renting unit.  Owner agrees to pay a cleaning fee after each owner stay and owner guest stay.  This fee will be billed to the owners account after checkout. However, manager will not charge owner a cleaning fee for manager verified owner stays twice per calendar year beginning with the execution of this agreement.

h)  Owner shall reimburse Manager for the cost of any repair undertaken by Manager for the Unit.  Manager shall initially be reimbursed for such expenses from Owner’s rental revenues in Manager’s possession.  Manager shall provide Owner with written notice of such reimbursement along with any invoices and/or statements for the cost of such repairs incurred by Manager.  In the event that Owner’s rental revenues will not fully reimburse Manager for the cost of such repairs, Owner agrees to reimburse Manager any unpaid amounts within 30 days of notice of such expense.

i) Manager shall be permitted to book rentals of said Unit for up to seven (7) nights per contract year for promotional use at no cost to the manager.  Owner will not receive monetary compensation for promotional management bookings.

j) Manager reserves the right to terminate this Agreement at any time if Manager determines, in its sole discretion, that the Unit is inappropriate for rental.

k)  Owner agrees to hold manager harmless in the case of default or non-payment by any tenant, short or long term, for any reason.  Additionally, Owner shall not hold Manager liable for any error of judgment, or for any mistake of fact or law, or for anything that Agent may do or refrain from doing hereinafter, except in cases of willful misconduct or gross negligence.

Duties of Owner

a) Upon the execution of this Agreement, Owner shall provide management with a working balance of three hundred ($300) dollars.  This amount will be held in escrow and will be used to cover expenses associated with the Unit.

b) In the event that Manager’s expenses under this Agreement exceed the rental revenues generated by the Unit, Owner agrees that Manager may apply any additional revenue and any working balance to cover such expenses.  If such revenue and working balance are insufficient to cover such expenses, Owner agrees to reimburse Manager any unpaid amounts within 30 days of notice of such unpaid balance.  On the 31st day owner will be charged twenty five (25) dollars and 1% interest per month of any outstanding balance.

c) Owner agrees to provide any and all private usage dates to Manager at least 2 days prior to such usage.  Owner’s use of the Unit shall not cause a suspension or revocation of any rental agreements or bookings which have been confirmed and communicated to Owner prior to Owner providing notice of its private use.

d) Owner agrees that following any personal use period, including use by family, friends, acquaintances, Manager will have the Unit cleaned by staff and billed to the Owner according to unit size. However, management will give each unit owner two free cleans annually, at managements expense after owner use.

e)  Owner will supply a copy of all keys to the Unit, both interior and exterior.

f) Owner agrees to provide, at its sole expense, all utilities during the term of this Agreement and any Extension Period.  Utilities (and other expenses) to be provided by the Owner under this paragraph are: telephone, electric, HOA dues, pest control, cable, water, gas, insurance, and internet.   In the event that any of the above utilities goes unpaid and is turned off, Owner agrees hereby grants limited power of attorney to Manager for restoration of the service, and Owner shall reimburse the expense of such reinstatement to Manager upon notice.

g) Owner shall indemnify and hold Manager, its officers, employees, affiliates, subsidiaries, and agents harmless for any costs, suits, actions, judgments, damages, expenses, liabilities or claims of liability that: (1) arise from any  injury or death to persons; (2) arise from any loss or damage to any  property; (3) stem from or are connected with the management of the Unit by Manager; and (4) stem from the performance or exercise of any of the duties, obligations, powers or authorities herein or hereafter granted to Agent.  Such indemnification shall include all costs, counsel fees, expense and liabilities incurred in defending any such claims, the investigation thereof, or the defense of any action or proceeding brought thereon.

h) Should any proceeding or action be initiated by any party due to any issue described in section g, Owner hereby agrees to supply an acceptable counselor, attorney, investigator, or enforcement officer to defend Manager against any and all charges, accusations, or claims that may be brought.  In the event Owner does not adequately or promptly supply a defense as described above Manager will have the right to supply a defense at Owner’s expense.

i) Owner agrees to adhere to all rules, orders, determinations, ordinances, and statutes of any federal, state, or municipal authority.  Owner further agrees to keep unit in compliance with all fire, health, safety, and building codes.  Owner agrees to remedy any unsafe or adverse conditions that are considered violations of these codes upon notification by Manager.

j) Owner understands that this Agreement is an exclusive contract between Owner and Manager for the rental of the Unit.  Owner agrees to not employ, authorize, or allow any other entity, corporation, person, or firm to rent or offer for rent the Unit during the term of this Agreement with the exception of rental by owner directly.

k) Owner hereby grants manager the ability to enter into any contract deemed necessary for manager to be able to perform management duties on the owner’s behalf.

Sale of the owners unit

a) Upon entering into an agreement to sell the Unit, Owner agrees to notify Manager within two (2) days of the agreement and the terms therein as relates to duration of the contract, unit showing instructions, and broker information.  Owner agrees to require any real estate broker to communicate with Manager prior to showing the property to limit interruption of a guest’s occupancy of the Unit.  Owner understands Manager’s need to ensure the privacy of the tenants of the unit.  Owner agrees that any transfer in ownership of the unit will include a provision that the new owner shall be bound to the terms of this contract in regards to any confirmed reservations made by manager prior to the transfer of ownership.

Additional Provisions

a) If any provision set forth herein is held invalid or unenforceable by agreement or judgment the remainder of this agreement and individual provisions herein will remain valid.

b)  This contract and all of the terms and provisions herein shall be binding upon owner’s appointees, assignees, legatees, heirs, or transferees.

c)  If manager brings an action to enforce this contract and the terms herein, owner agrees to pay managers legal fees.

d)  This agreement will be governed by the laws of the State of Colorado.  Any issues, disputes, actions, pleadings, or filings are to be brought in the appropriate Colorado state court and county in which the unit is located.  In matters regarding the aforementioned the owner agrees to submit, wholly to the jurisdiction of the State of Colorado and the appropriate courts.

e)  Any changes, amendments, or additional provisions to this agreement must be submitted in writing and must clearly show the date and time they are to take effect.  Changes to this agreement may be mailed standard post, e-mailed, shipped by private carrier, or sent certified mail.  Changes will be considered received three (3) days after notice is sent.

Manager and Owner hereby agree to the terms and provisions of the contract and addendum A by signing below:

OWNER:                        MANAGER:

_________________________________                     _________________________________
Owner or Assignee                           Date                     Manager or Authorized Agent          Date

_________________________________                     _________________________________
Owner or Assignee                           Date                     Witness                                            Date

Resort Managers LLC
Schedule of Fees

Management fees for full service management
*for partial and limited service fees see “Addendum A”

a)  The management fee will amount to 40% of the gross revenue generated as a result of either the manager booking and renting the unit during the term of this agreement.  Management fee will be calculated on the gross rental revenue.

b)  The management fee will amount to 30% of the gross in the event the owner refers a confirmed, completed rental to the manager.

c)  The management fee will amount to 15% of the gross if the owner directly rents the unit Owner will provide management with the names and contact information of the guest and the booking will be processed through the management company.   Resort Managers will provide inspections, repairs, housekeeping, check in/out, and general unit maintenance for your unit.   We will also take care of all accounting, reporting, and lodging tax payments for your unit.  You will have access to a real time, online unit tracking portal where you can reserve your unit for personal use and track occupancy and production figures.

d)    The management fee will amount to 15% on all long term rental agreements which last thirty (30) days or longer.

Other Fees

a) The initial setup fee, in the amount of $0, will include photographing and writing a description used for marketing the unit, administrative duties, input into the system and on the website, initial accounting, and other duties necessary to prepare the unit for rental.  This fee can be taken out of the owner’s revenue.

b) An annual linen fee, in the amount of $______ will be charged to supply new sheets, bath towels and kitchen towels for the unit.

c) The accounting fee, in the amount or $15.00 a month, will be charged if the owner elects to have manager pay the utility bills and HOA dues for the unit.

d)  Manager reserves the right to schedule major annual cleaning in the spring.  This cleanings will be billed to the owners account at a rate set by manager based on the size of the unit. For a  unit, the fee will be $______.

e)  A Hot Tub Maintenance fee for owners with private hot tubs of $90.00 a month will be billed to the owners account for routine maintenance of the private hot tubs only.

f)  Maintenance fees will not be charged for any repair that takes less than ½ hour and has a material cost of less than $5.  Any repair that takes over ½ hour will be charged at $35 per hour plus materials.

Any of the above fees are subject to change due to increase in rates, taxes, inflation, or the like upon sixty (60) day written notice.
Addendum A
Rental Programs

Limited management

You continue to conduct all of your own VRBO rentals, collect all of our own revenue, and do all of your own advertising without any interference from Resort Managers.  Resort Managers will provide you, on a per fee basis, the following services-

•    Pre and post guest stay property inspections- $25, w/ digital pics $35
•    Monthly/emergency inspections- $25, w/ digital pics $35
•    Guest service calls- $25/mo, does not include any associated maintenance or trip fees
•    Trip fee for guest emergency- $20
•    Maintenance calls- $75 per hour for non specialized
•    Housekeeping- $30 for each sleeping surface up to 3 br, 4+ br will be charged hourly
•    Concierge services- cost + 20%
•    Guest check in/out – $25 without key making, $30 with key making

Owner signature(s) and date-____________________________________________________

Partial Management

Owner agrees to conduct all RBO rentals through Resort Managers.  Owner may directly rent the unit, provided that all rentals are conducted through the Resort Managers rental program and software.  Owner will refer the booking information to Resort Managers for processing through our system.  Resort Managers will coordinate inspections, repairs, housekeeping, check in/out, general unit maintenance, accounting, reporting, and lodging tax payments for your unit.
Management fees for partial management

•    Owner initiated bookings will incur a fee of 15% of the gross revenue.
•    Resort Managers bookings will incur a management fee of 40% of the gross revenue.  Maintenance and linen fees are not included in the management fee.
•    Linen fees will be calculated based on sleeping surfaces.
•    Maintenance fees will be calculated as in “Other Fees” section “f”.

Owner signature(s) and date-____________________________________________________

Full service management

Owner agrees that Resort Managers will carry out any and all rental management functions as described in the management agreement.  Schedule of fees will apply to full service management.

Owner signature(s) and date-____________________________________________________

Owner Information

Local address________________________________________________________________

Local Number________________________________________________________________

Primary Address______________________________________________________________

Primary Phone Number________________________________________________________

E-Mail addresses_____________________________________________________________

Alternate information__________________________________________________________

Direct Deposit Information

Bank Name__________________________________________________________________

Branch name and address_______________________________________________________

Name on Account______________________ Routing Number_________________________

Account Number_______________________ Checking or savings______________________

Owner checklist

___ Keys given to Manager

___ Direct Deposit Information

___ Check for $300 working balance

___ I agree to have Manager Setup the condo for a fee of $175

___ Appliance/amenity/electronics instructions

___ Inventory of personal items in property provided to Manager

___ I have put all items in my property listed in the General standards list provided

___ Copy of Insurance policy on file

Revenue estimate

Below is a revenue estimate for your property.  These rates and income figures are merely estimates based on the rack rates of other comparable rental properties and do not represent any guarantee of revenue.  Your individual revenue will vary depending on several market factors, such as property condition, amenities, location, availability, travel expenses, gas prices, snow conditions, seasonal desirability, and other economic factors.

Seasonal dates

Value 09- Jan 3-Feb 13
Peak 09- Feb 14-Mar 30
Autumn 09- Mar 31-Apr 19
Summer 09- Apr 20-June 12, June 13-Sept 8
Spring 09- Sept 9-Nov 8
Value 09- Nov 9-Dec 13
Pre 09- Dec 14-Dec 20
Holiday 09-10- Dec 21-Jan 2