Platinum Management (Full Service) Terms

Overview:

The vast majority of our Clients choose our Platinum program. It is designed to offer a complete suite of services for Clients who prefer turnkey management services with the specific intention of maximizing profits. Once a property is integrated into our system, all management, marketing and maintenance is handled by our staff. Some flexibility is built into this system that allows Clients to adjust the level of marketing and the amount of maintenance to best meet the unique needs of their property.

Our Platinum Program Management fee ranges from 12.95% to 19.95%. Clients who choose this program can expect all the services they would get from our competitors who charge more and provide less services. Our business was designed from the ground up with the benefit of technologies that enable us to be innovative and efficient. 

Comprehensive Program Features:

• Complete turnkey management, marketing & maintenance services
• All logistics with guests are managed from first contact through post-stay follow-up
• Complete access control of your property
• Access to Clients’ portal for rental revenue tracking, occupancy, and accounting
• Marketing that meets your needs (details)
• Superior property maintenance (details)
• Up to 20 minutes of minor touch-ups during the cleaning & inspection process
• Most door lock systems supported (e.g., metal key, keycard systems, cloud systems)
• Rental Agreement procured from guests, with indemnity and other owner protections
• Monthly accounting & payout for rental revenue
• Property recommendations based on guest feedback
• Credit card processing service
• Colorado sales tax accounted for and paid on your behalf
• IRS 1099 provided annually for easy tax filing
• Summit County Short-Term Rental license compliance assistance
• Summit County Short-Term Local Agent of Record
• Social Media property reputation management
• Complimentary Classic Linen Program
• Employee-based housekeeping and inspections
• SCMR local discount program for guests and owners
• SCMR Guest Information Portal that streamlines the guest experience
• Private Hot Tub Service Program: $139 monthly (if applicable)

* Base Management Fee 19.95% *

Build Your Own Discounts:

All applicable discounts to the Management Fee base rate will be added together and include the following:

• 3% fee reduction in exchange for 6 comp nights per year
• Up to a 3% fee reduction for properties that meet SCMR 5-Star Quality Standards
• 1% fee reduction for Ski-in/Ski-out Properties, Penthouse Properties, Ultra-Luxury Properties, or 4 bedroom+ properties
• 1% fee reduction for Clients with more than 1 property – for the second property onwards (discount applied to smaller property)
• 2% new construction discount (applicable for first year of service)

Example of Costs:

Typical Management Fee after discounts: 14.95% per reservation

+Marketing Fee between 1.5% and 3.75% per reservation

+Maintenance Fee between 1.5% and 3.75% per reservation

+ Optional Upgrades

+$39 monthly Administrative and Accounting fee (includes basic accounting, admin & software use fee)

How to calculate the total fee for a 3 bedroom property: Start with the Management Fee Base Rate of 19.95%. Subtract 3% for comp night option. Subtract 3% for 5-Star Quality Standards. Subtract 1% for Ski-in/Ski-out. This equals a 12.95% Management Fee. Next select the Marketing and Maintenance options you prefer. For example, add 2.75% for “Better” marketing and add 1.75% for “Basic” maintenance. The combined fees equal 17.45%. If you prefer to add the Optional Upgrade “Ivory White Bedding,” this will add 2.25%. Total cost of this hypothetical customized program is 19.70% + $39 monthly.

Optional Upgrades:

• Upgrade to Ultra-Premium Linen Program (estimated 4% increase in revenue):
• 2% increase applied to management fee
• Upgrade to Ivory White Bedding Program (estimated 6% increase in revenue):
• 2.25% increase applied to management fee
• New electronic door lock: $350 to $700 depending on model (standard installation included)
• SCMR Damage Protection Program
• Optional professional photography services (see Marketing Packages)
• SCMR Hot Tub/Pool Towel Program (see Maintenance Packages)

Marketing Packages

All marketing packages include the following services: on-staff professional photos, property write-ups, dynamic rental rate management (i.e. regularly adjusted rental rates to address constantly changing market conditions), website updates, targeted email blasts, real-time calendar, property reputation management, and when selected videos and interior interactive maps.

Good

A listing on our direct website, www.scmountainretreats.com, and a professionally managed Airbnb listing. In addition, your property will be included within our digital marketing funnel which features general SEO, SEM and PPC strategy, Google Ad campaigns, monthly email campaigns and cart abandonment follow up.

Better

Everything included in the Good package, Google Travel + a professionally managed VRBO listing on our Premiere Partner account which means priority search result placement and increased traffic. (estimated 30% increase in revenue as compared to Good package)

Best

Everything included in the Good and Better Packages + access to the Rentals United Partner Network. Providing additional listings on Expedia, Hotels.com, Orbitz, Priceline, Trip.com and many other feeder sites. New for this year, listings on Homes and Villas by Marriott International, Rentalz LLC, Google Travel, Home2Go and Booking.com are also included. (Estimated 40% increase in revenue as compared to Good package).

Please use the selection matrix to determine your marketing package cost.

Marketing Package Selection Matrix

The marketing fee is charged per reservation and is in addition to the management fee and maintenance fees

Minimum Age Requirement for Renters

SCMR standard minimum age of primary guests is 24 years of age.
Optional minimum age of primary guest may be selected by client of 26, 28, or 30 years of age.

Photo & Video Options

• SCMR professional image-enhanced photos included at no additional cost (note: updating photos within 6 months of previous set without major renovations may incur additional cost)
• Virtual Tour $199

Maintenance Packages

Please read through the features of each package to determine the package that best fits your needs.

Basic

This option includes more maintenance services than MOST competitors. Ideal for owners who prefer to perform some maintenance themselves.

• 45 minutes of included maintenance labor per month
• Key and lock control for all exterior doors
• Unlimited no-charge phone support for guests and Clients
• $10 trip charge for all on-site property services
• $89 per hour for maintenance labor on all non-included maintenance
• 24/7 After-hours emergency services
• Qualifies as local agent support for county permitting requirements

Good

This option includes more maintenance services than ALL competitors. Ideal for properties less than 5 years old.

Everything in the Basic package PLUS…

• 1.25 hours of maintenance labor included per month
• No trip charges for on-site property services
• $69 per hour for all non-included/in-house maintenance
• Resolve guest satisfaction issues on-site without additional cost
• Provide access to repair/delivery personnel
• Minor day to day maintenance included (e.g., light bulbs, batteries, tighten cabinets)

Better

Ideal for properties with appliances and fixtures 6 to 15 years old.

Everything in the Good package PLUS…

• 2.5 hours of labor included per month
• $59 per hour for all non-included/in-house maintenance
• No-charge replacement of maintenance items $8 or less (excludes kitchen stock)

Best

This package is far SUPERIOR to any included maintenance offering of any competitor. Ideal for owners who want highly inclusive services or 15+ year old properties with older appliances, furniture & fixtures.

Everything in the Better package PLUS…

• 3.5 hours of labor included per month
• $49 per hour for all non-included/in-house maintenance
• Major door lock maintenance (battery replacement included and all labor for repairs)
• Unlimited no-charge minor carpet stain removal
• No-charge bedspread & blanket cleaning during Client visits
• No-charge logistical management cost for major repairs

Maintenance Selection Matrix

The maintenance fee is charged per reservation and is added to the management fees. *Most Popular Package

SCMR Hot Tub Service Program

The SCMR Hot Tub Service Program is optional and for homes with a private hot tub. It is an additional $139 fee per month.

SCMR Hot Tub / Pool Towel Program

If the property has access to a private or public hot tub or pool, SCMR can provide pool towels for guests and clients. The cost is a monthly fee of $19 per bedroom ($19/month for studios), which includes the stocking and laundering of pool towels. Pool towels purchased by SCMR remain the property of SCMR at all times. CLICK HERE to learn more.

Recommended Kitchen Inventory and Bedding

Full list of recommended kitchen inventory and bedding: https://www.scmountainretreats.com/recommended-kitchen-inventory/

TERMS AND CONDITIONS OF MANAGEMENT

1. GENERAL SERVICES:

Summit County Mountain Retreats (SCMR) accepts the duty of property manager and agrees to handle all communications with potential rental guests, collect rental payments, distribute revenue to Client monthly, keep accurate accounting records, update and manage website listings, provide cleaning services, provide interior maintenance services, pay state and local sales tax, submit for short-term rental permits in required jurisdictions, and provide short-term rental compliance management services. SCMR will promote the property in a professional manner that encourages short-term rentals of the property. Client agrees that SCMR will be the sole manager and rental entity for the property.

2. ADMINISTRATIVE & ACCOUNTING

The Administrative and Accounting fee is collected as a monthly fee for all properties, serving all Clients. This fee partially offsets the costs of standard accounting, office administration and software use and licensing for managed properties.

3. SETTING RENTAL RATES & MINIMUM REQUIREMENTS:

SCMR will set all rental rates and terms for the property. The nature of this program requires that the Client trust the expertise and accepts the judgment of SCMR regarding rental rate strategy, minimum night stay and minimum age requirements. Due to competitive market conditions, tourist fluctuations and demand, SCMR will adjust prices frequently and at its sole discretion. Client is encouraged to communicate with SCMR management if there are any concerns about rental rates. Management will carefully consider all comments and suggestions from Client. Please note: for all stand-alone homes, townhomes and 4+ bedroom properties, a minimum age of 28 is required for guests.

4. PAYMENT PROCEDURES:

SCMR shall render to the Client within 25 days after the end of each calendar month during which this agreement is in effect, a statement of all rents collected less all expenses incurred. This monthly statement will provide an explanation of any expenses incurred and maintenance performed. An ACH transfer (direct deposit) will be made into the Client’s designated account for all revenues received, minus any management fees, maintenance fees, or other costs the property incurred in the past. In the event that expenses exceed revenues for a particular month, the amount owed to SCMR may be carried forward to the next month or the Client may be asked to provide payment via credit card. Credit card transactions will incur a processing fee. All disputes concerning any item of income or expense must be raised in writing to SCMR within 90 days of the statement reflecting the item of income or expense or it is forever waived.

5. RENTAL PROCEDURES & ADVANCED PAYMENT:

SCMR shall make reservations and collect rental payments on behalf of Client. Payments of rents will be made by credit card. Final payments are due from rental guests 30 days prior to arrival. An electronic rental agreement will be obtained from all guests. At Client’s discretion the Client may waive the requirement for a rental agreement from a Client’s guest. SCMR requires advanced payment from rental guests and deposit payments in interest bearing accounts. Client agrees that all sums collected for rent, less expenses to be paid to SCMR, belong to Client and are not SCMR’s income or revenue. However, all interest earned in these amounts shall accrue to SCMR as an additional fee and shall become the sole property of SCMR. Client agrees that SCMR is not a trustee of the amounts received from rental guests and SCMR will not have obligations of a trustee with respect to such funds. SCMR may commingle money from rental of owner’s property with money from rentals of other property and with SCMR’s money.

6. RESERVATION CANCELLATIONS:

SCMR maintains a strict cancellation policy for all guests. This enables SCMR to protect the expected rental revenue of owners. To the extent that SCMR can reasonably collect fees from guests who cancel their reservation with less notice than is allowed in their rental agreement, SCMR will credit the Client’s account for the agreed upon rental fees. In the event that the Client requires SCMR to cancel or move a guest reservation, SCMR may collect from the Client the value of the lost commission or any costs that SCMR incurs as a result of having to move the guest to a different property. At SCMR’s discretion, a guest may be allowed to cancel without penalty and receive a full refund of any money paid if there are severe or extenuating circumstances such as death or major illness of the primary guest and/or an immediate family member or other circumstances that, in SCMR’s sole discretion, merit waiving any applicable fee or penalty. Client acknowledges that the ability to refund a guest’s deposits and waive fees or penalties is a critical customer service tool.

7. TEMPORARY HOLDS:

From time to time SCMR may place a hold on the property for various reasons. These reasons include, but are not limited to, noise from nearby construction projects which create excessive disturbances, maintenance for repairs inside the property, housekeeping when labor constraints don’t allow a property to be cleaned on the same day, outages of essential services such as water, heat or electricity, and when guests have requested a hold in order to finalize a reservation. Placing a hold on a property is at the discretion of SCMR. Temporary holds are rare and are only put in place when absolutely necessary.

8. INSURANCE AND INDEMNITY:

A. Indemnity: Client will DEFEND and INDEMNIFY SCMR and its agents, representatives, owners and employees, against any and all liability, loss, damages (including punitive damages), claim (including third-party and first-party claims), cost and expense, (including attorney’s fees and expenses) (“Loss”) arising out of or relating to (i) SCMR’s management of the property (including negligent acts or omissions); (ii) actual or alleged defects in design or construction of the improvements on the property; (iii) Client’s breach of this agreement; (iv) any act or neglect of Client, or any officer, agent, employee, contractor, servant, invitee or guest of Client; or (v) Client’s failure to carry any insurance recommended in this agreement. Client’s duty to defend and indemnify extends to Loss caused or alleged to be caused by SCMR’s SOLE, PARTIAL, OR CONCURRENT NEGLIGENCE. Client’s obligation does not extend to Loss caused by SCMR’s (i) gross negligence; (ii) intentional torts or wrongful willful acts; (iii) misapplication of funds; or (iv) fraud. If any action or proceeding is brought against SCMR with respect to a Loss, Client will defend the action or proceeding with counsel acceptable to SCMR. This section survives the expiration or earlier termination of this agreement.

B. Insurance Recommendations: SCMR recommends consulting a licensed insurance specialist to determine the additional appropriate insurance coverages for your needs. The High Alpine conditions pose unique risks. Common types of damage that occur in these conditions include water damage from broken plumbing pipes and lost rental revenue as a result of the property being unusable. Additionally, the Client of any rental property is subject to claims by renters, guests and others on the property. Accordingly, SCMR recommends that at a minimum Client’s insurance include: (i) general liability insurance with a per occurrence limit of $1,000,000 and a general aggregate of $2,000,000 for bodily injury and property damage on an occurrence basis; (ii) special form property insurance covering Client’s furniture, fixtures, and equipment at their full replacement value; and (iii) business income and extra expense coverage for no less than 6 months of income and continuing expenses. Since Client agrees to indemnify SCMR, SCMR also recommends that Client’s insurance name SCMR as additional insured, contain a waiver of subrogation in favor of SCMR, delete any contractual liabilities exclusion, contain no modification that would make Client’s policy excess or contributing with SCMR’s liability insurance, and not have a deductible in excess of $1,000. In deciding whether to accept SCMR’s recommendations concerning insurance, Client should consider that it is often not whether an incident occurs that gives rise to a claim, but whether someone claims an incident has occurred. Insurance often pays the legal fees and expenses incurred to defend against even frivolous claims. Legal fees and expenses to defend even frivolous claims can be expensive.

C. SCMR’s Insurance: SCMR maintains all required insurance and complies with all workers’ compensation requirements.

9. WARRANTIES AND LIMITATION OF LIABILITY:

A. Limited Warranties; Disclaimer of Warranties. Except as otherwise specifically set forth in this agreement SCMR EXPRESSLY DISCLAIMS AND EXCLUDES ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, ARISING BY CONTRACT, AT LAW, IN EQUITY, BY STRICT LIABILITY OR OTHERWISE, WITH RESPECT TO GOODS OR SERVICES PROVIDED UNDER THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY, ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTY AGAINST INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY, INCLUDING, WITHOUT LIMITATION, ANY VALID PATENTS, TRADEMARKS, OR COPYRIGHTS.

B. Limitation of Liability. IN NO EVENT WILL SCMR BE LIABLE TO OWNER FOR ANY CONSEQUENTIAL, EXEMPLARY, INCIDENTAL, INDIRECT, LIQUIDATED, PUNITIVE, OR SPECIAL DAMAGES, LOST PROFITS, LOST SALES, RENTALS OR REVENUES, COST OF REPLACEMENT GOODS OR SERVICES PURCHASED FROM THIRD PARTIES OR ANY OTHER PECUNIARY LOSS ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT, OR GOODS SOLD TO OWNER BY SCMR, REGARDLESS OF WHETHER SUCH DAMAGES ARE BASED ON CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF SCMR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SCMR’S TOTAL LIABILITY ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT, OR GOODS SOLD TO OWNER BY SCMR, WILL BE LIMITED TO THE FEES PAID BY OWNER TO SCMR FOR THE SERVICES GIVING RISE TO THE LIABILITY IN THE 12 MONTHS IMMEDIATELY PRECEDING THE LOSS, EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT. THIS LIMITATION OF LIABILITY APPLIES TO ALL CAUSES OF ACTION AND OBLIGATIONS AND ALL LIABILITIES ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SERVICES TO BE PROVIDED UNDER THIS AGREEMENT, OR GOODS SOLD TO OWNER BY SCMR, INCLUDING, BUT NOT LIMITED TO, BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, AND OTHER TORTS.

10. INCOME EXPECTATIONS AND COLLECTIONS:

A. Income Expectations. SCMR makes no guarantee regarding amounts of rental income or expenses and no inducements or representation of annual income or tax benefits have been made.

B. Collections. In the event of a dishonored or uncollectible check, bank failure, credit card reversal, or any other financial events outside the control of SCMR, SCMR may, in its sole discretion, make reasonable efforts to collect balances owed. However, SCMR will not be held liable for any of the above mentioned actions or events. SCMR shall not be required to initiate legal actions or retain an attorney for the purpose of collecting rents, collecting damages, eviction of rental guests or other persons. Should the Client and SCMR agree to collect rent and or damages through legal action, collection fees and legal fees will be the Client’s responsibility and must be paid in advance. Notwithstanding anything above, the Client may take action against any renter who has violated the rental agreement. SCMR will provide as much support to the Client as is reasonably possible to further the Client’s interests. SCMR is not a collection agency or authorized to practice law. Therefore, there are legal restrictions as to what SCMR can and cannot do.

11. Client USE:

Client, family and friends may use the property as often and as much as wished, without any penalty, as long as usage does not conflict with an existing reservation and does not exceed the maximum allowed usage, as stated in this section. If the property has a reservation scheduled and the Client would like the reservation moved or canceled, then on written request from the Client the following procedures will be followed: a) if the reservation can be moved to another property, the Client will be responsible for all differences in the cost of moving the reservation, including extra rental charges as a result of upgrading the reservation to a higher cost property; b) if the reservation cannot be moved to another property, then Client agrees that the reservation will not be canceled, if the reservations is scheduled to begin less than 45 days from Client’s request that the reservation be moved or canceled; and c) any reservation that is canceled at Client’s request, all normal commissions for the value of the canceled reservation will be charged to Client’s account. Client is encouraged to allow the property to be rented at least 75% of weekends from November 15th through April 15th and 50% of weekends from Memorial day weekend through Labor Day weekend. If client is unable to generally meet these recommendations, SCMR may offer different program options. Client may request one towel refresh after the fourth day of any stay at no additional cost. Mid-stay cleanings may be requested at least 24 hours in advance for an additional fee. Client receives a discount on all cleanings related to their stays.

12. Client GUEST USE:

Client may make reservations for non-paying guests at any time. All normal SCMR services will be provided including check-in, housekeeping and maintenance services. Cleaning fees will be incurred and charged to the Client’s account unless other arrangements are made. In the event the Client makes a reservation for a paying guest, the Client will notify SCMR of such and the amount to be charged. The Client’s account will be billed the standard management fee for all paying guests. If Client neglects to inform SCMR of a paid reservation that the Client makes, SCMR will be entitled to the full commission of the value of the highest rate nights of the year. SCMR will deduct this fee from the Client’s income and account for the fee via the Client’s monthly statement.

13. Client CLEANING:

Client may choose to clean the property personally in lieu of paying the cleaning fee, and the Client shall notify SCMR via the Client’s portal or via email if a cleaning is not required at least one day prior to departure. Client agrees to leave the property in “rent-ready” condition. Client and Client’s guests agree to observe the standard check-in and check-out times unless arrangements are made with SCMR prior to arrival. SCMR may inspect the property after a Client cleaning. Should the property need additional cleaning, the Client will be charged based on the cleaning time and supplies needed. Client understands that failing to leave the property in “rent-ready” condition may result in serious guest service issues that may require significant time and effort to manage and satisfy rental guests. Client agrees to accept all financial responsibility for issues of this nature. This includes management and housekeeping staff labor and possible guest satisfaction refunds.

14. PROPERTY DAMAGE/EXTRA SERVICES:

Client shall supply and maintain the furnishings and keep the property in good order and repair. Client understands and accepts all risks associated with renting the property including, but not limited to loss and damage to any and all interior items in the property. Client should consider all items and furniture that are used by rental guests as expendable. SCMR will advise Client of special cleaning, repair or replacement required to keep the property in good order and repair. SCMR shall notify the Client in writing in the event the property is not kept up to acceptable standards, which are deemed to be the typical standards of comparable properties in the area. It is understood that in order to keep the property in acceptable condition, several services must be performed at different times of the year, typically during the Spring and Fall. Examples of these services include kitchen restocks, fan and humidifier replacement, blanket and pillow replacement, carpet cleaning and deep cleanings. SCMR performs these services for an additional fee. SCMR will inform Client via email or newsletter prior to performing scheduled services. Clients will have the ability to “opt-out” of these services. If the Client chooses to “opt-out”, it is the Client’s responsibility to maintain all SCMR standards. If the Client does not “opt-out”, then the Client agrees to the services and the charges for the services.

15. HANDLING GUEST REQUESTS:

It is common for guests to reach out to SCMR and request various items. Some guest needs are handled within the context of the maintenance services that are included with the program option you selected. For example, clearing a clogged drain or troubleshooting a malfunctioning television is typically an included part of our services. However, if a guest requests an item like a humidifier, fan, pillow, hair dryer, blanket, coffee maker or kitchen item, then SCMR will deliver a new or replacement item to the guest. This item will become a part of the property and will be charged to your account. SCMR keeps a supply of these commonly requested items in stock. It is our goal to fulfill guest requests as quickly as possible. These requests come in at all hours of the day and night 365 days per year. It would be impractical and disturbing to our Clients if we were to contact them each time a minor request is made by a guest. As your representative you authorize SCMR to make its best efforts to satisfy guest requests and deliver items on your behalf. You agree this process is in the best interest of both you and the guest because guest satisfaction is a key element to future rentals in your property.

16. REAL ESTATE SHOWINGS:

Client agrees to notify SCMR in writing when the property is placed upon the open market for sale. Client agrees that the property will only be shown when vacant or as coordinated through SCMR. SCMR will make every reasonable effort to accommodate real estate professionals. In the event that showings of the property conflict with the quiet enjoyment of rental guests, SCMR at its discretion may refund part or the entire rental payment or transfer rental guests to a comparable property or terminate this agreement immediately.

17. MARKETING FEE:

Each rental will incur a marketing fee charged as a percentage of rent, based on the marketing plan that is selected by the Client. This fee will be deducted from each rental and accounted for via the monthly Client’s statement provided to the Client by SCMR. All marketing fees are earned at the time a reservation is taken and are payable to SCMR, at its discretion. In the event that the Client sells the property or chooses to discontinue the relationship with SCMR, the marketing fee is due to SCMR for any reservations in place at the time written notice is given to SCMR. Some marketing channels may not be available to all properties at all times due to various issues, which include technical constraints, property features and platform requirements. Only properties that meet the specific requirements of each advertising platform may be advertised. SCMR will work to advertise your property on as many platforms as possible, within the given level of marketing that was selected.

18. OWNERSHIP OF MARKETING:

Client shall own all rights to marketing created by SCMR, so long as said marketing is not proprietary to a third party and does not require SCMR to maintain the marketing. Marketing which requires a change in account status, username or passwords and requires SCMR to expend resources to enact changes will be charged to the Client at the standard SCMR hourly labor rate. Third party transfer fees are the Client’s responsibility to arrange and pay.

19. MANAGEMENT FEE:

Client shall pay to SCMR as a rental commission a percentage of all gross monies collected. This fee will be deducted from each rental and accounted for via the monthly Client’s statement provided to the Client by SCMR. All management fees are earned at the time a reservation is taken and are payable to SCMR, at its discretion. Other fees may apply, including but not limited to, startup fees and administrative and accounting fees, and resort fees. In the event that the Client sells the property or chooses to discontinue the relationship with SCMR, the fees are due to SCMR for any reservations, up to 90 days after written notice is given.

Comp Night Discount: In exchange for six (6) complimentary nights of usage by SCMR, participating properties will receive a 3% discount off the base management fee. Complimentary nights are defined as any rental night during the year that at SCMR’s sole discretion, SCMR chooses to receive the full rental fee in order to offset various costs. No value will be paid to the owner for these nights and the nights may be used for all normal business purposes. Comp nights will not be used on any of the following nights: the fourth week of November, the last two weeks of December, MLK and Presidents Day weekends, and March 10th through March 25th of each year.

A property must meet the SCMR 5-star Quality Standards in order to qualify for a 1% or 3% base management fee discount. Quality standards evolve over time. If a property no longer meets these standards, the property will not qualify for the discount until the standards are met again. Clients may be notified if their property no longer qualifies and may be given up to 60 days to make improvements, prior to being removed from this status. SCMR is not obligated to notify Clients of these deficiencies or that the property no longer meets standards. It is the duty of the owner to ensure that standards are maintained over time. SCMR’s 5-star Quality Standards can be found (here).

20. GOVERNMENT REQUIRED SHORT-TERM RENTAL FEES:

When necessary and allowed, SCMR will obtain a short-term rental permit/license on behalf of the Client. All permitting/licensing costs will be automatically charged to the owner via the normal owners billing process. An additional processing fee will apply. Clients who wish to avoid the processing fee may opt to obtain permits/licenses through their own efforts. In some jurisdictions, the local government requires Clients to obtain permits themselves. In these cases, SCMR will provide support and guidance to the Client at no additional cost.

21. MAINTENANCE FEE:

Client shall pay to SCMR a maintenance fee as specified in the Maintenance Addendum, which is a part of this agreement. The maintenance fee is deducted from the rental rate based on the percentages stated in the maintenance addendum. The maintenance fee is accounted for via the monthly statement provided to the Client by SCMR. SCMR maintains a full-service, in-house maintenance staff year round in order to provide generous amounts of included maintenance services at no additional charge and optional services at significantly lower costs than similar services from 3rd party contractors.

In the event that client places a hold, block or uses the property for 30 days or more at a time, any maintenance services required or requested for the property during that time will incur the normal hourly maintenance labor rate.

SCMR reserves the right, in its sole discretion from time to time, to change the hourly rates and/or trip charges specified in any Maintenance fee service level. SCMR will endeavor to provide Client 30 days’ written notice of such change via email, newsletter, owners statement or website. Any appliances, fixtures, furniture, electronics, grills, fireplaces, window coverings or other items that malfunction more than once in a month will incur the hourly labor charge for the repair, as specified in the selected maintenance program. Any item that is determined by SCMR to be beyond its useful life will incur the hourly labor charge for the repair, as specified in the selected maintenance program.

22. SALES TAX, CLEANING FEE & RESORT RECOVERY FEE:

SCMR collects all sales tax from each rental guest, on behalf of the Client and remits this tax to the proper governmental entities. This tax is collected separately and in addition to the rental fees. A cleaning fee is collected from each rental guest and from Clients who use the SCMR cleaning service. This fee is collected separately and is in addition to the rental fees. The cleaning fee is set by SCMR based on many factors and may change from time to time. SCMR believes in the dignity of all work and pays cleaning staff a living wage. A resort recovery fee is collected from each rental guest separately and in addition to the rental fees. This fee has evolved over time to include multiple small fees, including credit card processing fees, internal labor for short-term rental government compliance costs, resort fees, political advocacy for the vacation rental industry and to cover the cost of guest convenience items inside each property. SCMR strives to keep this fee low.

23. REPAIR & MAINTENANCE SERVICES:

SCMR is authorized to make repairs or replacements up to Three Hundred ($300.00) without prior approval from the Client. SCMR shall contact the Client for approval prior to contracting for any and all major non-emergency repairs exceeding $300.00. However, SCMR is authorized to make, at the Client’s expense and without prior approval any emergency repair involving danger to life or property or for the preservation of the safety of persons occupying the property. SCMR will not replace any items in the property other than to mitigate an immediate emergency. SCMR will make reasonable efforts to notify the Client by email or phone of emergency repairs to the property. SCMR is authorized to make rental rebates as SCMR deems appropriate as a result of any maintenance or repair issues that are emergent and unexpected. SCMR is authorized and shall use its best efforts to correct any maintenance problems as quickly as possible in order to maximize rental income and ensure guest satisfaction. SCMR shall inspect the interior of the property from time to time in order to determine the condition of the property. Client authorizes SCMR, its agents and employees, to enter the property to perform any maintenance and repair work as may be necessary. Maintenance services which are not specifically stated as included services will be billed to the Client at the labor rate for SCMR maintenance personnel and/or the amount charged by outside professionals.

SCMR is not a general contractor and does not provide remodeling services or major repairs to managed properties. SCMR may oversee large projects, if requested by Client and agreed to by SCMR. SCMR will only agree to arrangements of this nature if internal labor resources and skills resources are available. In any case, SCMR does not accept responsibility or liability for any work performed by a third party, under any circumstances. All work performed by third parties is between the Client and the third party, even if SCMR recommends, oversees, arranges, or pays invoices for work performed by third parties. SCMR may pay third parties out of collected rents that have yet to be dispersed to Client. SCMR will use its best efforts to pay valid invoices, whether the invoice is made in the name of SCMR or the Client, so long as the invoice pertains to the Client’s property and SCMR has reason to believe the invoice is valid.

24. QUALITY CONTROL / HOUSEKEEPING:

SCMR provides housekeeping services seven days per week and random inspections are performed for quality control by SCMR staff. It is understood that inspections are not performed after all guest stays. Inspections are primarily used to maintain quality control and are not intended to identify all damage caused by rental guests, particularly minor damage. You should expect normal wear and tear on your property. While our maintenance program is designed to mitigate much of the wear and tear caused by rental guests, SCMR is not responsible for the actions of rental guests. Client accepts the inherent risk of renting the property, which includes all damage caused by rental guests and any other issues caused by rental guests, including fines and fees levied by your HOA or any valid authorities.

We recommend the following kitchen inventory to ensure the highest standards for your guests: https://www.scmountainretreats.com/recommended-kitchen-inventory/For your convenience SCMR will restock your property from time to time with these items and assess reasonable fees for those items. Additionally, a complimentary starter supply of selected consumables for your property are provided.

25. COMMUNICATION EXPECTATIONS:

It is the goal of SCMR to communicate with Clients in a timely manner. Generally, we will respond to communications on the same day we are contacted. However, there are instances in which responses may be delayed. These delays may happen on weekends, during peak winter and summer seasons, and when researching issues requires the involvement of third parties. If you are unsure whom you need to communicate with please call our main phone number at 970-368-4800 or email us at coloradorentals@scmountainretreats.com.

26. TERMINATION:

This agreement may be terminated by SCMR or Client with or without cause upon written notice. Termination notification shall be by email notification that is acknowledged by SCMR and Client or by certified mail, return receipt requested. Termination will not affect rental reservation obligations or other obligations entered into under the terms of this agreement. Client agrees to honor at least 90 days of advanced reservations. SCMR will, at Client’s request, make a good faith effort to transfer pending future reservations to another comparably priced property. In the event that such transfer is not possible and the rental guest must be moved to a higher priced property, the Client agrees to be responsible to SCMR for the difference in rental rate or honor the original reservation. Reservations and the value thereof that are moved from the property are the sole property of SCMR. Client releases all claims of value or ownership upon this event. If for any reason Client does not honor a reservation, then Client agrees to indemnify SCMR for all damages, loss and expenses resulting from Client’s action.

Client agrees to pay all outstanding balances owed to SCMR prior to release of the property. If the Client terminates less than 10 months after the date of the first rental or downgrades to another management option, then the Client will reimburse SCMR $975 for all marketing services performed. Reimbursement will be prorated by $100 per month after the first 6 months. Holds placed on the property for reasons other than owner occupancy will not be credited towards the 10 month requirement.

Termination or expiration of this agreement will not impair rights or obligations (i) that accrued prior to the expiration or termination; (ii) that specifically provide they survive or by their nature are intended to survive; (iii) that survive termination at common law; or (iv) set forth in following sections of these terms and conditions: 8 (Indemnity and Insurance) and 9 (Warranties and Limitation of Liability).

27. SALE OF PROPERTY:

In the event of a bona fide sales contract for the property, the Client may exercise the following options: (a) cancel any reservations more than 30 days after the date of written notice given to SCMR; Client will be responsible for commissions to SCMR for the value of the cancellations, (b) Client may instruct SCMR, in writing, to move any reservations more than 30 days out to another suitable property that is acceptable to the guest; if there is an increase in cost for the suitable property, Client will reimburse SCMR for this increase, (c) Client may procure from the new property owner written permission for SCMR to continue to manage the property through the completion of some or all of the reservations after the sale, (d) If the new property owner enters into a new property management agreement with SCMR, then the existing Client will release all claims of right to compensation for reservations after the date of the sale of the property. No other fees or costs will be incurred by the selling Client after the date of sale.

28. FINAL PAYMENT:

If Client owes SCMR any monies after termination, sale or foreclosure, Client shall pay SCMR all monies owed within ten (10) days after a written request is made from SCMR. SCMR may, in its sole discretion, apply Client’s entire portion of the rental income to decrease any delinquent account or monies owed to SCMR. If Client remains delinquent for more than 30 days after termination, Client will be subject to a 1.5% monthly fee, plus a $99 monthly admin fee for all outstanding monies owed. Client expressly agrees to pay all costs, including legal fees, incurred as a result of collection attempts.

29. DISPUTE RESOLUTION:

SCMR believes that all disputes can and should be resolved by considerate, charitable and thoughtful discussion. If there is an impasse, both parties agree to non-binding mediation by a mediator who is acceptable to both parties. The cost of mediation will be shared equally by both parties. If mediation fails to resolve a dispute and legal action is taken, it is agreed that said legal action will be adjudicated by a proper court located in Summit County, Colorado.

30. HOT TUB MAINTENANCE:

If the property has a private hot tub SCMR provides a Hot Tub Service Program. The cost is $139 per month for Clients and includes: service after every check-out, water and chemical checks during guest stays, balancing and maintaining chemical levels (chemicals included), adding water as needed, draining and filling the tub as needed, removing snow from cover and walkways as needed, cleaning tub and cover as needed, removing debris from water, rinsing filters as needed and troubleshooting user errors. This program does not include equipment repair/replacement, but it does include the management of outside vendors to perform repairs/replacements of parts. Guests share in the cost of hot tub maintenance by paying an increased cleaning fee which enables the Client fee to stay low and consisten

31. CLASSIC LINENS:

All Platinum Program Properties include mid-grade hotel quality linens and towels. Linens and towels which are purchased by SCMR, remain the property of SCMR at all times

32. ULTRA-PREMIUM LINENS:

This optional upgrade sets a property apart from others. The quality of materials used for this program is on par with luxury hotels like The Ritz Carlton. It features extra large, extra fluffy, extra soft, high thread count sheets, towels and robes that Clients and guests appreciate every day. All items are owned and maintained by SCMR. The base cost for ultra-premium linens is 2% added to the management fee.

33. IVORY WHITE BEDDING:

This optional premium upgrade features soft, white-striped duvet covers with a medium thick, high quality down alternative duvet that Clients and guests will appreciate every night. The duvet cover is removed after each guest or Client stay and is replaced with a freshly laundered duvet cover. Bed pillows are maintained and replaced by SCMR. All bedding materials are white which provides a bright fresh appearance and provides the added benefit of higher sanitation due to higher wash temperatures and the ability to use bleach during the cleaning process. Any linen that may touch a person is washed between each and every stay. This program provides the highest standard in hygiene and cleanliness. All items are owned and maintained by SCMR. The cost is additional to the base management fee, and each bedding system beyond the included quantity will incur an additional .5% increase. Base cost of the Ivory White Bedding Program is 2.25% added to the management fee.

34. SCMR DAMAGE PROTECTION PROGRAM:

This optional program is designed to give our Clients an extra layer of protection for their property. Those Clients who participate in this program will be insulated from moderate unintentional damage caused by rental guests. SCMR will repair, replace or reimburse the Client for damage to their property according to the terms and conditions of the program.

35. SERVICE & EMOTIONAL SUPPORT ANIMALS:

SCMR does not permit emotional support animals of any type. However, if a guest can provide sufficient evidence that a service animal meets the definition of the Americans with Disabilities Act, then a service animal will be permitted. If needed, SCMR will perform extra cleaning of the property at no additional cost to the guest or Client. This section does not apply to any property which is specifically advertised as “pet friendly.

36. PRE-EXISTING CONDITIONS:

Damage and other conditions in need of repair that existed prior to management of the property by SCMR will incur additional charges. The SCMR maintenance program is intended to mitigate the cost of repairs and maintenance that occur during the time that SCMR manages the property.

37. TRANSFERRING FROM ANOTHER MANAGEMENT COMPANY:

SCMR will facilitate all things necessary to transfer the property from a previous management company’s control. Client agrees to assist if necessary to facilitate this process. SCMR will work with the previous management company to transfer future rentals to SCMR. SCMR will discount the management fee for any transferred rentals to 12%. In addition to the discounted management, SCMR will also apply the appropriate cleaning fee for each reservation and any other fees that would typically be applied and reimburse or charge the Client the difference. Client and/or previous management company will provide all guest information, including the rental amounts to SCMR. SCMR will calculate the commission owed to SCMR and apply it to the Client’s account in the month in which the reservation takes place. Client will dispose of all financial arrangements with the previous management company as Client wishes. SCMR will not accept any monies directly from the previous management company.

38. NON-INDUCEMENT:

Client has not been induced in any way by SCMR to violate any legally binding agreement with another entity. It is the Client’s sole discretion as to how and when the Client will dispose of any previous agreements. At the Client’s request, SCMR may work within the framework of a previous property management agreement for up to 90 days.

39. ENTIRE AGREEMENT & MODIFICATIONS:

This agreement shall constitute a binding obligation upon the parties hereto, their successors, agents, heirs, personal representatives and assigns. This agreement constitutes the entire agreement between the parties. SCMR may, in its sole discretion, change the terms of this agreement by providing notice of the change via the SCMR newsletter or SCMR website and the change will become effective 60 days following the notice. Client may protest, in writing, any changes within 60 days of the change. If no protest is made, then it is agreed by Client and SCMR that the changes are mutually agreed. If a protest is made and SCMR is unable to reach a written agreement with the Client concerning Client’s protest, Client’s sole remedy is accept the change as proposed by SCMR or terminate this agreement.

40. SEVERABILITY:

If, for any reason, any provision of this agreement is held invalid, all other provisions of this agreement shall remain in effect. If this agreement is held invalid or cannot be enforced, then to the full extent permitted by law any prior agreement between Summit County Mountain Retreats and Client shall be deemed reinstated as if this agreement had not been executed.

41. PACKAGE RECEPTION, HOLDING AND DELIVERY

SCMR will receive hold and deliver packages that are sent to SCMR by Client either personally or through a third-party. Client agrees to inform SCMR in advance of any packages that will be delivered. Client will provide tracking information from the shipper, contents of the items shipped and clear instructions regarding how the packages should be handled by SCMR. All communication must be sent via email to SCMR. SCMR does not accept responsibility for any packages that are lost, stolen or damaged while in transit or in possession of SCMR. For packages larger than two feet in any dimension or greater than thirty pounds, extra fees may apply. Any packages that require more than one person to safely and easily move may incur additional fees. Any packages that Client requests SCMR staff to open, assemble or install will incur additional fees, based on the normal hourly rate for maintenance staff.

42. DEFINITIONS:

Client: Any individual, person, corporation, company, partnership, firm, organization, or other entity applying for or receiving services under these Terms and Conditions and the owners of property SCMR manages under these Terms and Conditions.

Ultra Luxury Properties: Properties approved by SCMR to have the highest desirability in both location and interior features and amenities. Current approved properties include Lone Eagle, Timbers, Kindred, Alcove, Crystal and select single family homes.