THE LANDING AT NEWPORT CONDOMINIUMS
RENTAL POOL AGREEMENT
Parties: Landing Rental Pool, LLC, an
Oregon Limited Liability Company, (“RENTAL POOL)” was formed for the purpose of
and agrees to manage the rental of condominium units belonging to certain members
of The Landing at Newport Condominiums Unit Owners Association (“Unit Owners”)
choosing to place their units in service as a Hotel Unit. Landing Rental Pool,
LLC Committee has selected Deanne Shannon (“Agent”) to manage and oversee the
daily operations of the hotel units in the rental pool and all restricted units
of The Landing at Newport.
Agency: The RENTAL POOL and participating Unit Owners hereby appoint
and designate Deanne Shannon or any other management agency appointed by RENTAL
POOL as Agent to maintain, manage and rent Unit Owner’s unit when Unit Owner is
not occupying it, from time to time, for terms and at such rentals as Agent, in
its sole discretion, may determine to be in Unit Owner’s best interest, with a
view toward obtaining the greatest total rents from said unit and all other
units of Hotel managed by the Agent commensurate with the nature, class and
atmosphere of Hotel and said unit(s).
Receipt of Rent: For purposes of renting said unit, Unit
Owner hereby authorizes and appoints Agent, as Unit Owner’s attorney in fact
and agent, to execute and deliver on Unit Owner’s behalf rental agreements
covering said unit upon such terms and to such tenants as Agent, in its
discretion, may select subject however, to all the terms and conditions herein
set forth and as set forth in this Agreement.
On behalf of and as Agent for Unit Owner, Agent is further authorized to
demand, receive and receipt for, the rent payments for such unit.
Rental of Unit: In renting units, the RENTAL POOL will
request that Agent shall give equal consideration to all units, attempting to
spread the occupancy among the units of each room type as much as
possible. Each room shall be rented as
a complete unit. Unit Owner shall not
rent Unit Owner’s unit to anyone without the prior approval of Agent, and,
whether or not such approval is obtained, Unit Owner will remit immediately all
rents including local and state lodging taxes, which may be received by Unit
Owner to Agent, to be held and disbursed in the same manner as rents received
directly by Agent. Unit Owner agrees to
cooperate with Agent and other Unit Owners of units in RENTAL POOL in promoting
the rental of units owned by Unit Owners in RENTAL POOL.
Sale of Unit: Should members
of the rental pool sell their respective unit during an operational month, the
profit for that month will be pro-rated to the seller and buyer based on the
closing date of the sale. The seller of a unit, as party of this agreement,
agrees to address any cash reserves held by agent at the closing of sale to
buyer. The amount of cash reserves due to seller is determined to be the
appropriate share or fraction, the numerator of which is 1.0 for a One Bedroom
and 1.3 for a Two Bedroom and the denominator of which is the total of all points
for all of the units in the pool multiplied by the cash reserves at the time of
the previous month’s close. No funds will be dispersed to either seller or
buyer without an agreement signed by both seller and buyer.
Should
buyer elect to remain in the rental pool, the buyer shall sign a rental pool
agreement with the agent and immediately place an identical amount of cash
reserves as determined above with the Agent. Should the cash reserves become
the property of the buyer at the time of closing, a copy of the signed
agreement signed by both seller an buyer shall be presented to the Agent.
In lieu of
any properly signed agreement, the Agent shall treat any cash reserves as
property of the new owner until instructed otherwise by both parties.
Removal of Unit From Rental Pool:
Any Rental Pool member removing their unit(s) from the
Rental Pool for a period of 30 days or more may not return to the Rental Pool
until one of the following two conditions have been met:
Segregation of Rent: Income from
both 1-bedroom units and 2-bedroom units operated as hotel units by the Agent
shall not be segregated into separate pools. All income and expenses related to
two bedroom units shall be increased by a factor of 1.3 above those associated
with one-bedroom units. This factor is subject to review at any time as
warranted by changing conditions or experience.
Owner Occupancy: Unit Owner shall have the right to occupy
Unit Owner’s unit upon giving notice to Agent with the intended dates of
occupancy at least thirty (30) days in advance of the date of intended
occupancy, and Unit Owner may occupy Unit Owner’s unit at any time upon notice
to Agent within said 30 days if Agent has not rented the unit at the time of
said notice for the period Unit Owner desires occupancy. Such period of occupancy by Unit Owner shall
for purposes of this agreement be done on a daily basis. When Unit Owner shall
have notified Agent of intent to occupy Unit Owner’s unit, Unit Owner shall be
deemed to have occupied Unit Owner’s unit for the day(s) specified, whether or
not Unit Owner actually occupies it.
This agreement is in no way intended to be used in limiting, accruing,
accounting for or otherwise affecting any relationship with the Unit Owner and
the IRS and determining the number of days used for personal use. Agent may rent the unit for a period more
than 30 days in advance only with Unit Owner’s prior written approval. Agent may assess Unit Owner a reasonable
cleaning charge of $50.00 for a one-bedroom unit, $65.00 for a two-bedroom
unit, after Unit Owner’s occupancy to render Unit Owner’s unit fit for rental
occupancy. This fee is subject to
change at any time at the discretion of The Landing at Newport Management
RENTAL POOL and “Agent”. Unit Owner shall abide by Agent’s rules for check out
procedures.
Pets: All Unit Owners must abide by the Pet Policy set by the Unit
Owners Board of Directors. Agent will
assess Unit Owner, a reasonable pet fee of $25.00 per stay for additional
cleaning and pet friendly items provided by the Rental Pool.
Expenses: As Agent for all the owners of units managed by Agent, Agent
shall pay the costs of operating the Hotel which are of a type which the Unit
Owner would not have to pay if they did not rent their units as hotel
accommodations, including the cost of replacing broken or stolen dishes,
silverware or linen which occurs when the unit is in the pool and which are
subject to the list of minimum required equipment and amenities mentioned
herein, all taxes paid mentioned herein, the costs of advertising, the cost of
all linen service, laundry, hotel soap, stationery, and similar supplies and
all wages of maids, and other hotel employees.
Agent shall not pay, as hotel expenses, and Unit Owner shall pay
promptly when due, all expenses of Unit Owner’s unit of the type which Unit
Owner would incur even though Unit Owner did not rent Unit Owner’s unit as a
hotel accommodation, including, without limitation, all charges payable for, or
with respect to, said unit under the terms of the Declaration establishing the
Hotel as a condominium, ad-valorem real property taxes, unit repair and remodeling,
the shares applicable to such unit of the common expenses of the Association of
Unit Owners, as that term is used in ORS 01.505 to 91.675, and by the By-laws
of the Association of Unit Owners, and utility charges, or any costs and
expenses of maintaining and operation the common elements of the Association,
including, without limiting the generality of the foregoing, the costs of
painting, repairs to improvements, any costs of repairs and maintenance of the
unit, and any separate utility and service charges.
Taxes: The expenses
payable by Agent for the Unit Owner shall also include all general excise taxes
and all license taxes and any other taxes levied, assessed against, or payable
by, Agent with respect to the hotel operation.
Agent shall not be liable for any federal or state income taxes or
corporate excise taxes attributable to income earned by, or paid to, Unit
Owner.
Division of Income: Each Unit Owner shall receive a portion of
the net income for the previous month by multiplying the fraction, the
numerator of which is the total points accumulated for that unit for the entire
month and the denominator of which is the total of all points accumulated for
all of the units for the entire month, by the net income distributed to the unit
owners for that month. Points shall be
accumulated for each unit as follows:
New
Year’s Day Labor Day
Memorial
Day Thanksgiving
Day
Independence
Day Christmas
Day
Each day
stands on its own. For example, should any holiday in the above mentioned
schedule fall on a Friday or Saturday the total points for that day would be
3.0 points for a One Bedroom unit and 3.9 points for a Two Bedroom unit. Should
any holiday in the above mentioned schedule fall on a Sunday through Thursday,
the total points for that day would be 2.0 points for a One Bedroom Unit and
2.6 points for a Two Bedroom unit.
Agent shall report to the Unit Owner
the Unit Owner’s share of the rental income or loss for the preceding quarter,
as soon after the end of such quarter as Agent shall reasonably be able to
compute the same. Agent will determine
the amount of cash to be distributed to Unit Owner after providing for a
reasonable cash reserve. Distributions
shall be made directly to Unit Owners at the end of every quarter for the
previous quarter. In the case of a
negative revenue quarter, that quarter will be carried over to the next
positive quarter. Annually, following
each calendar year of the term hereof, the Agent shall promptly prepare and
forward to the Unit Owner a statement showing all receipts and disbursements of
the RENTAL POOL in reasonable detail, such statement to be forwarded to each
Unit Owner as soon as the same can reasonably to prepared. Unit Owner shall have the right at any time
during ordinary business hours to examine the books of the RENTAL POOL with
respect to Agent, personally or by Unit Owner’s duly authorized representative,
such authorization to be in writing direct to Agent.
Furniture and Furnishings:
In order to operate the rental unit effectively as a hotel
accommodation, Unit Owner shall provide and maintain in the unit, furniture and
furnishings sufficient in number type, and quality to furnish the unit
adequately and as to adhere to minimum AAA 3 Diamond rating standard. Agent shall provide Unit Owner with a list
of the minimum necessary furniture and furnishings for Unit Owner’s unit, to
which Unit Owner shall make such additions as Unit Owner desires. By Unit Owner’s execution of this Operating Agreement,
Unit Owner agrees to meet and maintain the minimum standard of the number,
type, and quality of furniture and furnishings reasonably established by
Agent. Such furniture and furnishings
shall be purchased or leased by Unit Owner and shall remain Unit Owner’s
separate property of Unit Owner or that of Unit Owner’s Lessor. Non-compliance may result in the temporary
removal of Unit from active status and a loss of revenue.
Past Due Obligations of Unit
Owner: Any moneys due a Unit Owner
under this agreement may be used, in the RENTAL POOL’S discretion, to satisfy
any obligation of the Unit Owner, provided that such obligation of said Unit
Owner is at least thirty (30) days in default. In the case of the sale of a
Unit, the obligation of the Unit Owner may be paid immediately, unless the
obligations are paid through the final closing of the Sale of the unit.
Term of Agreement: Except as is specifically provided to
the contrary herein, this agreement shall remain in full force and effect from
January 1 to January 1 of the following fiscal year, and for a period of no
longer than one year or December 31 and must be renewed annually, on or before
January 1 of the following fiscal year.
Unit
Number(s) ________________________________________________________
Unit
Owner: ___________________________________________________________
(Print Name)
By: ____________________________________
Date: _________________
(Signature)
Landing
Rental Pool, LLC
By: ____________________________________ Date: _________________
(Signature)