OneApp Guarantee Rental Support Agreement
This OneApp Guarantee Rental Support Agreement (this "Agreement") describes how a landlord or property manager (the "Property Manager") may be eligible to receive offset payments to cover lost rent including repair costs up for property damages and legal fees associated with an eviction up to a maximum of 3 times the rent, from a reserve account held by OneApp Guarantee (the "Company") if a renter defaults under their lease, skips, or is evicted (the "Program"). There is no charge to the Property Manager for participating in the Program, and there is no obligation for the Property Manager to include any renter in the Program. For good and valuable consideration, the parties set forth below hereby agree to the following:
- Conditions to Participation. Landlord's participation in the Program with respect to any particular renter is subject to the following conditions with respect to that renter ("Renter"):
- The Renter shall have been screened by the Property Manager for eligibility for credit support under their rental criteria.
- The Property Manager shall have entered into a valid lease agreement (the "Lease") with Renter for the subject residential property (the "Property") for not more than a sixteen (16) month term.
- The Property Manager shall have received a certificate (a "Certificate") issued by the Company evidencing the Renter's participation in the program with respect to the property in question.
- The Renter has paid to the Company a fee equal to one (1) month's rent under the Lease, or such other amount as may be specified by Company (the "Fee").
- Upon satisfaction of these conditions, participation in the Program shall commence effective as of the start date of the Lease.
- Reimbursement Pool. A portion of each Fee paid to the Company shall be deposited in a special account to fund reimbursements paid to Property Managers who participate in the Program (the "Reimbursement Pool"). The initial amount to be deposited from each Fee shall be a percentage of such Fee, and the Reimbursement Pool shall be established in an initial aggregate amount of $500,000 for every 2,000 active OneApp Guarantees, to be initially comprised of actual deposits or third-party support. The Company will monitor the amount on deposit in the Reimbursement Pool (not including any third-party support), and shall periodically withdraw funds from the Reimbursement Pool if the aggregate amount on deposit exceeds $500,000 for a 2,000 tranche of active OneApp Guarantees. Any amounts withdrawn by the Company from the Reimbursement Pool shall be treated as additional Fee payments to the Company and shall be fully earned upon withdrawal. The Company shall process reimbursements and disburse funds from the Reimbursement Pool to Property Managers on a monthly basis. If the amount of reimbursements processed in any month exceeds the amount available in the Reimbursement Pool, the Company will reimburse Property Managers on a pro rata basis, as determined by the individual claim amount versus the aggregate amount of claims against the Reimbursement Pool. Notwithstanding anything to the contrary herein, the Company shall have no obligation to fund reimbursements under the Program if there are no funds remaining on deposit in the Reimbursement Pool. The Company may, in its sole discretion, modify the amount of the Fee or the terms of this Section 2 at any time.
- Reimbursement Process. Upon satisfaction of the following conditions, the Property Manager may seek reimbursement of up to the equivalent of three (3) months' rent including damages under the Lease:
- The Renter and the Property Manager shall each have satisfied the conditions to participate in the Program as set forth in Section 1 above.
- The Renter shall have defaulted under the Lease for failure to pay rent, and at least one of the following events shall have occurred:
The Property Manager shall notify the Company via e-mail (email@example.com) of the date of occurrence of any item set forth in Section 3.b. above (the "Abandonment Date") within twenty (20) business days after such Abandonment Date, and simultaneously provide copies of the following documentation to the Company:
- (i) the Renter has vacated the property subject to the Lease;
- (ii) the Renter has taken action(s) which evidence their intent to surrender the property, including, but not limited to, delivery of the keys to the Property Manager, removal of all items of personal property, or has provided written notice to the Property Manager of their intent to vacate the property; or the Renter has been evicted from the property pursuant to applicable landlord-tenant law. If Renter has failed to vacate the Property, Property Manager must begin eviction proceedings within forty-five (45) days after the date that the last unpaid rent payment became due.
Property Manager shall make commercially reasonable efforts to complete preparation of the property for lease by a new renter and provide Company with notice via e-mail (firstname.lastname@example.org) of the availability of the property for lease (the "Lease Ready Notice"). Upon re-lease of the property, the Property Manager will provide the Company with confirmation of the new guarantee start date, as well as any additional documentation requested by the Company to consider the reimbursement request. Reimbursement Payments. Upon satisfaction of the conditions set forth in Sections 1 and 3 above, the Company shall determine the eligible reimbursement amount in its sole discretion. The eligible reimbursement amount shall be based on the following:
- (i) copies of the original rental application and the executed Lease;
- (ii) an accounting statement of applicable past due rent;
- (iii) documentation of efforts to collect past due rent, including notices issued by the Property Manager;
- (iv) documentation of any eviction action; and
- (v) receipts for any amounts to be deducted from potential reimbursement of rent, including deposits, prepaid rent, and fees.
Force Majeure. Should events beyond the reasonable control of the Company and Property Manager, including but not limited to (1) acts of God, (2) war, including armed conflict, (3) epidemic or pandemic disease (4) government regulation or (5) terrorism or threats of terrorism in the United States as substantiated by governmental warnings or advisory notices, (6) disaster, fire, earthquakes, or (6) any other cause reasonably beyond the parties' control (collectively referred to as "occurrences"), making it impracticable to perform, illegal, or impossible to fully perform under this Agreement as the Parties originally committed to; In such case the Company may alter the payout amount and schedule to best help customers and renters. Notice under this provision may be given at any time during the duration of the Program provided that the notifying party has met the requirements of this provision. General. This Agreement shall be governed by Oregon law. The parties agree that any action brought hereunder shall be brought in the courts located in Multnomah County, Oregon. This Agreement represents the entire agreement between the parties regarding the subject(s) hereof, and supersedes any prior oral or written communications. These terms may change from time to time without notice. Please check back to see the most current version of the agreement.
- The unpaid rent due under the Lease through the end of the lease term or until the first day of the term of a new Lease (if the Property is re-leased), not to exceed the equivalent of three (3) months' rent, costs to repair property damage, eviction fees and expenses less any deposits, prepaid rents or fees paid to the Property Manager that may offset such unpaid rent.
- Reimbursement of repair cost for property damage to the unit is subject to the following conditions: (i) Property Manager must notify the Company of damage at the time the unit is vacated; (ii) Company may inspect the damage before repair; (iii) Property Manager must supply Company with final accounting, inspection report(s), and itemized receipt for all repair costs.
- Payment shall be made to the Property Manager during the first calendar month following the earlier of the re-lease of the property to a new renter.
- The Company may elect not to fund the requested reimbursement if any of the conditions above are not satisfied within the applicable timeframe(s) set forth above.