The House of Skrobeck, LLC Agreement
This Agreement is made effective today between **The House of Skrobeck, LLC** ("THOS") and the Owner(s) of the listing(s). "Owner" refers to any holder of legal or equitable title to the property, their heirs, successors, assigns, or agents. THOS is engaged in the business of co-hosting and design services, while the Owner owns real property suitable for rental purposes. Both parties agree that THOS will provide specific services to the Owner based on the terms outlined herein. While THOS strives to offer the best possible support, no guarantee can be made for booking certainty. THOS is not a brokerage and does not handle the direct flow of rental income. All rental income is processed through **third-party property management software** and the marketing platforms (e.g., Airbnb) on which the property is listed. THOS does not touch these funds directly but assists in managing and overseeing the transactions through these systems. As owner, and signing, you provide permission for THOS to handle funds when needed in case of IT error or any other reasons to better the operations of the home/owner/company.
### **1. Service Plan and Agreement**
The Owner chooses a service plan approved by both parties. Any changes to the plan after signing may incur additional fees or startup costs, depending on the nature of the changes. For services outside of hosting, such as design, a separate contract will be required. THOS reserves the right to approve changes for the benefit of both parties. Once the contract is signed, THOS services will begin, and any requested changes will result in new plan fees or startup costs as necessary.
*Example*: *If an owner selects the basic plan but later wants additional design services, they will sign a separate contract. Any changes to the plan after signing may incur new setup costs.*
### **2. Property Manager’s Responsibilities**
THOS will manage the property, including guest administration, marketing, payment collection (through third-party systems), and any price adjustments for the property. THOS retains discretion over pricing but will consider input from the Owner. All bookings, administration, and guest interactions will be handled by THOS, including phone services, software, and staffing to ensure seamless guest experiences from arrival to departure.
THOS is responsible for overseeing payments through third-party property management software, but it does not handle the funds directly. All income goes through platform marketing and management systems, such as Airbnb, with the Owner receiving payments via the platform. THOS is not liable for rental proceeds that cannot be collected due to bounced checks, credit card fraud, or chargebacks.
Accurate records of all bookings will be maintained, and monthly statements will be provided to the Owner by the 5th day of each month, showing bookings, receipts, and disbursements.
THOS may conduct inspections of the property, and the Owner will be notified of repairs or improvements through a monthly progress report. THOS will require guests to purchase accidental damage insurance for reservations up to 29 days. For stays exceeding 30 days, guests must provide additional accidental damage insurance and pay a security deposit for the remaining term.
*Example*: *THOS may adjust rates during peak tourist seasons to increase revenue, handle guest check-ins, and provide monthly booking statements to the Owner. All payments go through the third-party platform, not THOS.*
### **3. Owner’s Responsibilities**
The Owner is responsible for maintaining the property, including repairs, replacements, and insurance coverage. Any maintenance costs under $200 may be handled by THOS without prior approval, but anything over that amount will require the Owner’s consent, unless it’s an emergency repair. Owners must address any maintenance issues within 7 days, or they will be in breach of this Agreement.
The Owner is responsible for ensuring the property is appropriately furnished, including items such as furniture, kitchen utensils, linens, etc. THOS may recommend replacements for items worn by regular use. Furnishings like bedspreads, BBQ grills, or kitchen inventory must be replaced by the Owner when deemed necessary by THOS. The Owner must also maintain proper insurance, including liability and property coverage, listing THOS as "Additional Insured" where applicable.
*Example*: *If an air conditioning unit breaks during a guest’s stay, the Owner must approve repairs beyond $200. If a BBQ grill rusts over time, the Owner must replace it to ensure guest satisfaction.*
### **4. Indemnification**
The Owner agrees to indemnify and hold THOS and its affiliates harmless from any liability or claims arising from the property or guest behavior, including damages caused by guests, third parties, or any activity on the property. If legal action is initiated against THOS, the Owner agrees to cover all associated legal fees.
*Example*: *If a guest accidentally damages the property, the Owner is responsible for covering legal and repair costs, not THOS.*
### **5. Fees and Compensation**
The Owner will pay THOS monthly compensation based on the agreed-upon service plan. In addition, the Owner will provide a reserve fund to cover day-to-day operations and emergency expenses as deemed necessary by THOS. A monthly linen fee will also apply to ensure an adequate linen inventory for guests. Out-of-scope payments will be invoiced separately and are due by the end of the current month.
*Example*: *If THOS arranges an unscheduled deep cleaning, the cost will be added to the Owner’s invoice.*
### **6. Compliance with Laws**
THOS will comply with all local, state, and federal laws, including the Fair Housing Act. The Owner is responsible for ensuring the property adheres to all local short-term rental regulations. Any violations related to improper documentation or local rental laws will be the sole responsibility of the Owner.
*Example*: *THOS ensures compliance with anti-discrimination laws and local rental regulations, ensuring that no guests are discriminated against.*
### **7. Termination and Notice**
**Choice 1: Standard Termination**
- **Notice Period**: If you wish to terminate this contract, whether due to HOA-related reasons or not, a 120-day written notice is required. This notice period begins once THOS confirms receipt of your request in writing.
*Example*: *An HOA introduces new rules banning short-term rentals. The Owner provides THOS with 120 days’ notice to terminate the agreement.*
- **Termination Fees**: A termination fee equal to the original startup cost will be applied. Termination fees apply individually to each property, and for properties with multiple units, fees will be allocated per rental space.
*Example*: *If the startup cost was $1,500, the Owner will owe this amount for each property when terminating.*
- **Platform Cancellation Fees**: You will also be responsible for any platform cancellation fees related to bookings confirmed outside the 120-day notice period.
*Example*: *Airbnb charges a fee for cancellations made outside the notice period, and these fees must be paid before the bookings are fully canceled.*
- **Booking Commitments**: All bookings must be honored up to the end of the notice period. THOS will charge a 50% gross booking fee, plus applicable taxes, for each booking up to the service termination date.
*Example*: *If a booking falls within the last week of the notice period, the Owner is still responsible for the guest stay, and THOS will collect a management fee.*
- **Property Sale**: If the property is being sold, the Owner must inform THOS. Canceling bookings due to a sale may result in additional fees.
*Example*: *If a sale closes in the middle of a guest’s stay, the Owner must pay any additional fees for canceling those bookings.*
- **Administrative Fee**: A monthly administrative fee of $200 will apply during the 120-day notice period, payable within 5 days of giving notice. Late payments will incur a 20% daily penalty.
*Example*: *An Owner gives notice on July 1st and must pay $200 by July 6th. Late payments will increase by 20% each day.*
- **Privacy**: THOS is not required to share personal details of reservations due to privacy laws protecting renter information. Owners will only receive limited booking details and cancellation fees.
*Example*: *Owners will receive booking details such as dates, fees, and charges but will not access personal guest data due to privacy regulations.*
- **Applicability**: This choice applies to all service plans.
**Choice 2: Immediate Termination**
- **Termination Notice and Fees**: If you prefer to terminate the contract immediately and cancel all bookings, you must pay THOS the total amount required to cancel each booking, including platform and THOS fees, within 5 days of notice.
*Example*: *An Owner wants to cancel all future bookings immediately and must pay all fees and penalties within 5 days.*
- **Termination Fee**: The termination fee is equivalent to the startup fee initially paid.
*Example*: *If the startup fee was $2,000, the Owner must pay this fee to terminate immediately.*
- **Commission on Canceled Bookings**: THOS will also charge 50% of the gross reservation amount as a commission for each canceled booking, plus any platform cancellation fees.
*Example*: *If a booking was for $800, the Owner must pay THOS $400, plus any platform fees for cancellation.*
- **Payment Process**: THOS will invoice the Owner for the total amount, which must be paid within 5 days. THOS will handle all cancellations and ensure bookings are removed from platforms.
*Example*: *THOS invoices the Owner for canceled bookings totaling $2,500, and the Owner must pay this amount within 5 days.*
### **8. Work--Life Balance and Communication Guidelines**
At **The House of Skrobeck, LLC** (THOS), we value work-life balance, which is essential for providing high-quality service to all clients. To ensure a professional and respectful partnership, communication must be managed appropriately:
- **Regular Business Hours**: THOS is available for general communication from **Monday to Friday, 9 AM to 5 PM**. Please respect these hours for all non-emergency inquiries and administrative matters.
- **Emergency Communication**: Urgent situations such as safety concerns, power outages, or major property damage (e.g., leaks or security breaches) will be addressed immediately, regardless of time. In these cases, you can reach out to THOS 24/7.
- **Non-Emergency Matters**: Any non-urgent concerns such as minor property improvements or guest requests (e.g., extra pillows or adjusting booking details) should be discussed during regular business hours. Calls outside of business hours for non-emergency issues will be responded to during the next working day.
- **Respect for Time**: THOS manages multiple properties and projects. Owners are asked to refrain from excessive after-hours communication that is not critical. Please understand that while we prioritize every property, other projects and clients also require attention.
*Example*: *A guest locking themselves out is an emergency that warrants immediate communication, but non-essential items such as a request for extra towels should wait until the next business day.*
- **Costs Related to Property Operations**: Any purchases or services required to maintain or improve property operations (e.g., new linens or repair items) will be charged directly to the Owner and deducted from the monthly payment. THOS will notify Owners of these deductions in monthly statements.
- **Work-Life Balance**: As the business owner, I also need time to focus on my personal life and other commitments. While I am dedicated to ensuring the property’s success, repeated after-hours calls for non-urgent matters can wait until normal business hours to avoid unnecessary disruption.
