Terms and Conditions –
Property Management Agreement
These Terms and Conditions (“Terms”) govern all Property Management Agreements between the property owner(s) (“Owner”) and Smoky Mountain Holdings LLC d/b/a Triad Vacation Rentals (“Manager”).
Last Updated: March 25, 2025
1. Scope of Services
1.1 Exclusive Management Rights
Manager shall serve as Owner’s exclusive agent for all short-term rental marketing, pricing, and booking services for the property described in the Property Management Agreement (“Property”). Owner may not engage alternative marketing management companies or self-market the Property during the Agreement term.
1.2 Services
Creation and management of professional listings for the Property across [all major platforms/Airbnb/VRBO]Dynamic pricing optimization and revenue managementGuest communication and booking coordination[Guest check-in/check-out coordination]Guest review management and satisfaction oversightMonthly financial reporting and proceeds disbursement2. Financial Terms
2.1 Commission Structure
Manager shall receive [10%] of gross rental revenue, calculated before taxes and deducted prior to Owner disbursement. “Gross rental revenue” includes all payments received from guests including base rental rates, cleaning fees, pet fees, security deposits retained, damage fees, early check-in/late check-out fees, and any other guest-paid charges. Gross rental revenue excludes:
- Taxes collected and remitted by booking platforms
- Refunds actually paid to guests
- Chargebacks successfully disputed by Owner
In the event of promotional discounts authorized by Manager, commission shall be calculated on the full undiscounted rate. Owner-initiated discounts require Manager’s written consent and commission applies to discounted amount.
2.2 Payment Terms
Owner’s proceeds shall be disbursed on a monthly basis within 15 days from the end of the applicable month.
3. Owner Obligations
3.1 Property Standards
Owner must maintain the Property in “Guest-Ready Standard,” defined as:
- Safe, clean, and fully functional
- All systems (HVAC, plumbing, electrical, etc.) and advertised amenities fully operational
- Professional cleaning completed within 4 hours of guest departure
- Adequate supplies for maximum advertised occupancy
- Compliance with all local regulations
If the Property fails to meet the Guest-Ready Standard, the Manager may, in its reasonable discretion:
- Issue a 48-hour cure notice for non-emergency issues
- Immediately suspend new bookings for health/safety issues
Any costs plus a 5% administrative fee may be deducted from Owner’s proceeds. Two Guest-Ready Standard violations in any 6-month period constitute a material breach of these Terms permitting Manager’s immediate termination of the agreement.
3.2 Insurance Requirements
Owner must maintain general liability insurance with a minimum $1,000,000 coverage limit and property insurance covering short-term rental use. Proof of coverage must be provided annually.
3.3 Regulatory Compliance
Owner is responsible for obtaining and maintaining all required permits and licenses, paying applicable taxes not collected by platforms, and complying with zoning and rental regulations.
4. Property Operations and Booking Management
4.1 Booking Honor Requirement
4.1.1 Reservation Commitment
Owner must honor all confirmed reservations for the Property made through Manager’s booking systems. Owner-initiated cancellations will result in:
- Platform penalties and listing restrictions charged to Owner
- Payment of Manager’s full commission for the affected booking as liquidated damages
- Potential termination of this Agreement for repeated violations
4.1.2 Property Readiness Standards
Owner guarantees the Property will be guest-ready for all confirmed reservations. Failure to provide a guest-ready Property gives Manager the right to:
- Collect full commission for the affected booking as liquidated damages
- Suspend future bookings until standards are restored
4.2 Marketing Rights
4.2.1 Exclusive Marketing Rights
Owner grants Manager exclusive rights to market the Property on the platforms listed in Section 1.2. Owner may accept private bookings for friends and family provided such bookings do not conflict with Section 4.1 and are not made in bad faith to circumvent these Terms.
4.2.2 Audit Rights
Within ten (10) days of Manager’s request, Owner shall provide booking records, guest communications, financial statements, and/or other documentation to verify compliance with the Agreement.
4.2.3 Enforcement
Any circumvented bookings shall result in payment of Manager’s full commission plus a $500 administrative fee per incident. Repeated violations allow Manager to immediately terminate this Agreement, with liquidated damages calculated as Manager’s average monthly commission since the start date multiplied by the remaining months in the Term.
4.2 Marketing Rights
4.3.1 Platform Policy Compliance
All guest cancellations are subject to the cancellation policies established by booking platforms. Owner may not override these policies to provide additional refunds without Manager’s consent.
4.3.2 Emergency Cancellations
For cancellations due to severe weather, natural disasters, or other force majeure events, Manager will coordinate with platforms for appropriate refunds. Owner and Manager shall share revenue loss proportionally, and commissions will be calculated on amounts actually received after adjustments.
4.4 Property Availability and Owner Use Restrictions
4.4.1 Maximum Availability Commitment
Owner agrees to make the Property available for rental to the fullest extent possible, with a suggested minimum of 300 days per calendar year (excluding guest-booked days).
4.4.2 Cancellation of Existing Reservations
If Owner requests to make the Property unavailable after reservations are confirmed (“Owner-Initiated Cancellation”), Owner must pay Manager liquidated damages equal to Manager’s commission on the cancelled reservations. Owner is also responsible for guest reimbursements, platform penalties, rebooking costs, and reputation management efforts.
5. Term and Termination
5.1 Initial Term and Renewal
The Agreement commences on the effective date for a 6-month initial term. It automatically renews for additional 6-month terms unless either party provides 60 days written notice of nonrenewal.
5.2 Termination for Cause
Manager may terminate the Agreement immediately if Owner breaches these Terms.
5.3 Termination for Convenience
Either Party may terminate the Agreement by providing 90 days written notice.
5.4 Post-Termination Commissions
Manager is entitled to commissions on all reservations made during the Agreement term, even if check-in occurs after termination.
6. Liability and Indemnification
6.1 Limitation of Liability
Manager’s total liability is capped at the total commissions received by Manager in the preceding 6 months. Manager is not liable for guest injuries, property damage, revenue losses, platform policy changes, or force majeure events.
6.2 Owner Indemnification
Owner agrees to indemnify and hold Manager harmless against all claims arising from:
- Owner’s negligence or misconduct
- Property condition and safety issues
- Breach of regulatory requirements
- Guest disputes related to Property representations
- Third-party claims related to Property use
7. Dispute Resolution
7.1 Governing Law
The Agreement shall be governed by the laws of North Carolina.
7.2 Dispute Resolution
Disputes must first be negotiated in good faith. If unresolved, disputes exceeding $5,000 are subject to binding arbitration, with the prevailing party entitled to reasonable attorney fees.
8. General Provisions
8.1 Force Majeure
Disputes must first be negotiated in good faith. If unresolved, disputes exceeding $5,000 are subject to binding arbitration, with the prevailing party entitled to reasonable attorney fees.
8.2 Assignment
Manager may assign its rights and obligations under the Agreement to affiliates or successors. Owner assignment requires written consent.
8.3 Modification
These Terms may be modified by Manager with 30 days email notice. Continued use of Manager’s services constitutes acceptance of modifications.
8.4 Severability
If any provision is held invalid, the remaining provisions remain in effect. The invalid provision shall be modified to the minimum extent necessary to make it enforceable.
8.5 Entire Agreement
These Terms, together with the signed Agreement form, constitute the complete agreement between parties.
By signing the Property Management Agreement, Owner acknowledges reading and agreeing to these Terms and Conditions.
