1. Introduction & Scope
This Terms & Termination Policy ("Policy") outlines the legal framework governing all property management services provided by HomeNest ("Company," "we," or "us"), property owners ("Client" or "Owner"), and tenants under our managed portfolio. By engaging HomeNest's services, entering into a management agreement, or leasing a managed property, all parties acknowledge and agree to the terms herein.
2. Management Agreement Terms
All property management relationships are formalized through a written Property Management Agreement (PMA). The standard PMA includes the following baseline terms:
- Initial Term: Standard agreements commence with a 12-month term unless otherwise negotiated in writing.
- Renewal: Agreements automatically renew on a month-to-month basis unless terminated with proper notice.
- Authority: HomeNest is granted limited power of attorney to act on the Owner's behalf regarding lease execution, emergency repairs, and routine maintenance up to agreed financial thresholds.
- Exclusivity: During the active term, the Owner agrees not to engage other management entities for the listed properties without prior written consent.
3. Parties' Obligations
HomeNest Responsibilities
- Market properties professionally and comply with fair housing laws.
- Conduct thorough tenant screening (credit, background, rental history).
- Manage rent collection, issue receipts, and maintain financial records.
- Coordinate routine maintenance and respond to emergencies within 24 hours.
- Provide monthly/quarterly financial statements and property condition reports.
Property Owner Responsibilities
- Maintain adequate property insurance and provide proof of coverage.
- Ensure properties comply with local housing codes and safety regulations.
- Approve non-emergency repairs exceeding the PMA threshold.
- Pay management fees and administrative charges as outlined in the fee schedule.
4. Financial Terms & Fees
Management fees are calculated as a percentage of collected rental income, as specified in the signed PMA. Additional fees may apply for:
- Leasing/Placement Fee: Charged per tenant placed or renewed.
- Late Payment Fees: Applied per local regulations and lease terms.
- Administrative/Maintenance Fees: For vendor coordination, lockouts, or eviction proceedings.
All fees are itemized in monthly statements. Unpaid fees may result in service suspension or termination of the PMA per Section 5.
5. Termination Conditions
Termination may be initiated by either party under the following conditions:
Termination by Property Owner
- For any reason, provided proper written notice is given (see Section 6).
- Immediately if HomeNest breaches material terms, fails to maintain compliance, or acts outside agreed authority.
Termination by HomeNest
- If the Owner fails to remit property taxes, insurance, or mortgage payments, jeopardizing the asset.
- If the Owner refuses to approve necessary habitability repairs or legal compliance upgrades.
- If management fees remain unpaid for more than 30 days past the due date.
- If the property is condemned, foreclosed, or sold to a third party without assumption of the PMA.
Termination of Tenant Leases
Tenant terminations strictly follow the executed Lease Agreement and local jurisdictional laws. HomeNest manages lease enforcement, late notices, and eviction proceedings on behalf of the Owner, subject to legal guidelines and PMA authorization.
6. Notice Periods & Procedures
All termination requests must be submitted in writing via email to legal@homenest.com or through the secure Owner Portal. Standard notice periods are as follows:
- During Initial Term: 60 days written notice required from either party.
- After Initial Term (Month-to-Month): 30 days written notice required.
- For Cause (Breach/Non-Payment): 15 days written cure period before termination becomes effective.
7. Post-Termination Obligations
Following the effective termination date, both parties must fulfill the following:
- Financial Settlement: HomeNest will issue a final accounting statement within 15 business days, including outstanding rent, security deposits, and accrued fees. Owners must settle outstanding balances within 10 days of receipt.
- Document Transfer: HomeNest will provide digital and physical copies of lease agreements, maintenance logs, inspection reports, and vendor contacts. A reasonable documentation transfer fee may apply.
- Security Deposits: Deposit handling transitions to the Owner or new management entity per state law. HomeNest will not retain deposits beyond legal deadlines.
- Continuing Leases: Existing tenant leases remain in effect. Owners assume full management responsibilities effective the termination date.
8. Dispute Resolution & Governing Law
This Policy and all related agreements shall be governed by the laws of the jurisdiction where the managed property is located. Any disputes arising from or related to these terms shall first be addressed through good-faith negotiation. If unresolved within 30 days, parties agree to binding mediation before pursuing litigation.
HomeNest reserves the right to modify this Policy. Material changes will be communicated via email and Owner Portal notifications. Continued use of services after notice constitutes acceptance of revised terms.
9. Contact & Legal Support
For questions regarding this Terms & Termination Policy, PMA execution, or termination procedures, please contact our Legal & Compliance team:
- Email: legal@homenest.com
- Phone: (555) 123-4567 ext. 802
- Address: 123 Property Lane, Suite 100, Los Angeles, CA 90012
- Portal Support: Support available 24/7 at portal.homenest.com/help
This document is for informational purposes and does not constitute legal advice. HomeNest recommends consulting independent legal counsel regarding property management and lease agreements.