Thank you for your interest in our property management services. We have been selling and managing real estate in this area since 1988. You will find this is experience that will pay off for you. We operate our business aggressively and detailed oriented; yet we are easy to work with.  We have purposely limited our management services to the Metro and Coastal San Diego area so we can give each property the attention it needs.   We work with the best maintenance people in the business and at the best prices. You´ll benefit from volume discounting and our close supervision of the workers. Following is a copy of our property management proposal. It should answer most your questions regarding what we do and what we charge. If you have further questions please do not hesitate to call us.   We appreciate your interest and we look forward to working with you.     Sincerely,   Mike Brunnhoelzl Owner PROPERTY MANAGEMENT PROPOSAL   SERVICES PROVIDED:   1. PROPERTY PREPARATION AND MAINTENANCE. We are experienced in knowing how to make a property  presentable.We work with a large staff of reputable vendors that we have used for many years.In today´s rental market, we feel this is necessary in order to obtain quality tenants for quality rents. Keeping your investment maintained is keeping your investment´s value up.We do not add a "surcharge" or "handling fees" to invoices. You pay only the invoice amount. 2. MARKETING FOR TENANTS:   * For rent sign up within 24 hrs. * Property immediately registered with U.S. Navy housing department    giving access to all in-bound officers and enlisted men and women. * Property to be advertised in San Diego Union on Sundays. * Property to be advertised on our website, Craig´s list website. * Business and after hours phone number in all advertising and prompt    attention to prospective tenant calls. * Owner pays for cost of San Diego Union.   Our Contract rate for an ad in the Union is approximately $45. A savings of approximately 40 percent.   3. TENANT SCREENING: We have each interested prospective tenant complete a credit application. We order a credit and criminal report our tenant screening bureau. If the report shows the prospective tenant meets our qualifications, then we proceed to call and verify employment as well as current and past landlords. Once an applicant has passed our screening, we give you (the homeowner) all information so that you can make your final decision to accept or decline the applicant.   4. WALK THROUGH AND DOCUMENTATION: A walk through with each new tenant prior to move in will conducted. The tenant is given a detailed walk through form to complete and return to us within 3 days. This document along with the signed rental agreement becomes part of the permanent file for future reference.   5. RENTAND DEPOSIT COLLECTION: At the time of lease signing the security deposits required to be paid in certified funds for owner's protection. At the time of move in the rent is also due in certified funds.  All rents are due on the 1st day of the month.  There is a 5 day grace period.  After the 5th day the tenant will be charged a 6% late fee.  3 day notices to pay or quit will be sent after the 5th.    6. MONTHLY REPORTING: Our accounting system relies on sophisticated property management software that provides easy to understand monthly statements. All statements include monthly and year to date information. All monies received from the homeowner or the tenant is placed in a Trust account and all disbursements are paid from that account. We can pay bills on your behalf, taxes homeowner´s dues, mortgage, insurance, etc .There is no extra charge for this service. You will receive a check for your rent minus whatever deductions you have on your monthly statement.   7. REPAIRS: We respond to tenants repair problems using experienced, reasonably priced trades people. Per the management agreement we are pre authorized to make repairs up to $300. You will see work orders with your monthly statement. In an emergency, we must act quickly. If you cannot be reached, we have all right to take care of it immediately. A 24 hr emergency phone number is given to each tenant so that repairs and problems can be handled quickly and efficiently. (As stated in the lease, tenants are required to get renters insurance.)   8. DELINQUENCIES: Aggressive rent collection procedures will be used at all times. Three day notices to pay or quit will be served to tenants at no charge to owner. Should an Unlawful Detainer action be required, we will represent owner in court at no additional charge. Total costs will be those billed by local legal office specializing in tenant evictions.   9. LEASING AND OCCUPANCY: Our lease is undergoing continuous review to insure that it provides the most effective and comprehensive protection to the homeowner. In addition to the lease, tenants sign a document containing our rules and regulations. These rules and regulations have been developed over the past years in management to insure that tenants are fully aware of their responsibilities.   10. MANAGEMENT FEE: Our management fee for full service property management is 8% of the rental income. There are no hidden fees. We collect no fee until the rent is received.Unlike many other management firms we charge no account establishment fees, no leasing fees, and no over-ride on maintenance work. 11. MARKET CONDITIONS: You can call anytime and get up to date market conditions on your property, including what's for sale, what's in escrow, what's recently sold, and my opinion of what you could sell it for.   12. EXPERIENCE: We have been a providing superior service in real estate since 1988. We currently manage over 400 properties. References will gladly be provided upon request.      _______________________________________________                PROPERTY MANAGEMENT AGREEMENT     _________________________________ (Hereinafter "Owner") and Michael Anthony Properties, Inc.(Hereinafter "Agent") agree as follows: 1. The Owner hereby employs and grants Agent the exclusive right to rent, lease, operate and manage the property known as: ______________________________________________________________ upon the terms hereinafter set forth, for the period of one year commencing ______________ and terminating ________________.After ________________ this Agreement shall be on a month-to-month basis and may be terminated by either party upon thirty (30) days written notice.   2. Agent shall:   (a) Use diligence in the performance of this contract.   (b) Render monthly statements of receipts, expenses and charges and to remit to Owner receipts less disbursements.Owner shall pay all expenses and costs incurred by Agent immediately upon demand.Should Agent elect to advance monies, Owner shall be charged a service fee of $100 per month until all advances are paid in full.Owner agrees Agent´s mailing of monthly statement to the last known address of Owner is sufficient notice that Agent has funds to Owner and the amount of balance due Agent as of the reporting period in the statement.   (c) Deposit all receipts collected for Owner in a Trust account separate from Agent´s personal account, however, Agent will not be held liable in event of bankruptcy or failure of bank.   3. The owner grants Agent the following authority and powers and owner shall pay expenses in connection herewith:   (a) To advertise the availability for rental of therein described premises or any part thereof, and to display "for rent" signs thereof; to sign, renew or cancel leases for the premises or any part thereof; to collect rents or other charges and expenses due or to become due and give receipts therefore; to terminate tenancies and to sign and serve in the name of the Owner such notices as appropriate; to institute and prosecute actions to evict tenants and to recover possession of said premises in the name of the Owner and recover rents and other sums due, and when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies.Advertising costs are approximately $75.00 per week.   (b) To make or cause to be made and supervise repairs and alterations, and to do decorating on said premises; to purchase supplies and pay all bills therefore.The Agent agrees to secure the prior approval of the Owner on all expenditures in excess of $300 for any one item, except monthly or recurring operating charges and emergency repairs in excess of the maximum, if in the opinion of the Agent such repairs are necessary to protect the property from damage or prevent damage to life or to the property of others or to avoid suspension of necessary services or to avoid penalties or fines or to maintain services to the tenants as called for in their leases.    (c) To hire, discharge and supervise all labor and employees required for the operation and maintenance of the premises.Agent may perform any of its duties through Owner´s attorney´s agents, or employees and shall not be responsible for their acts, defaults or negligence if reasonable care has been exercised in their appointment and retention.   (d) To make contracts for electricity, gas, fuel, water, phone, and other services or such of them as Agent shall deem advisable; the Owner to assume the obligation of any contract so entered into at the termination of this agreement.   4. The Owner shall:   (a) Indemnify and save the Agent harmless from any and all costs, expenses, attorney´s fees, suits, liabilities, damages, or claim for damages, including but not limited to those arising out of any injury or death to any person or persons or damage to any property of any kind whatsoever and to whomsoever belonging, including Owner, in any way relating to the management of the premises by the Agent or the performance or exercise of any of the duties, obligations, powers or authorities herein or hereafter granted to the Agent.   (b) Reserves.Owner shall maintain at all times a minimum reserve in Agent´s Trust Account of the Managed Property of $500 for repairs and emergencies.   5. To pay the Agent:   (a) For Management 8% of collected rents.  Michael Anthony Properties will be compensated for the full term of any lease negotiated by Michael Anthony Properties plus any extension s thereof at the full management rate.   (b) Multiple Listing Input. (Optional) For a leasing fee of 3% of total lease amount, the property will be offered on the San Diego Multiple Listing Service, (MLS) for other area agents to bring potential renters.   To elect Multiple Listing Input initial here.  OWNER´S INITIALS (_____/_____)   6. In the event that the Owner shall request the Agent to undertake work exceeding that usual to normal management then a fee shall be agreed upon for such services before work begins.Normal management does not include refinancing, restoration, obtaining income tax advice, or other consulting.   Direct Deposit Authorization (optional)    Bank Name:_________________________________________________________   Name on account:_______________________________________________________   ABA Number:__________________________________________________________   Account Number:_______________________________________________________   The undersigned represents and warrants that he/she/it is the Owner or an authorized agent of the Owner, and by signing below authorizes Michael Anthony Properties Inc., its affiliates, agents, successors, and assigns, to cause Available Funds to be direct deposited in the above account.Owner agrees to pay the service fee of Fifteen Dollars ($15) for each transaction.   __________________________          ______________________________ Authorized  Signature                                               Date Other: Owner has deposited $150 with Agent as a deposit for advertising.Please submit a check with this agreement payable to Michael Anthony Properties Inc. 8. If it shall become necessary for Agent or Owner to give notice of any kind, the same shall be in writing and served by sending such notice by certified mail to the address shown below.   9. Owner is advised to carry insurance for personal property and liability, even if property is a condominium.   10. This agreement shall be binding upon the successors of the Agent and the heirs, administrators, executors, successors, and assigns of the owner.   Parties acknowledge having read the foregoing prior to execution and receipt of a duplicate original dated this day of__________________   ______________________________   _____________________________ OWNER                                              Mike Brunnhoelzl                                                          Michael Anthony Properties, Inc.  ______________________________  5920 Friars Rd Suite 100  Address                                            San Diego, CA 92108                                                          619-220-8317,Fax 619-220-8539 ______________________________ ______________________________ Phone ______________________________ E Mail