A. Operating Budget. At least [insert number in words (NUMBER)] days before the beginning of each [calendar year/fiscal year determined by the owner], the manager must prepare and submit to the owner a proposed budget for the estimated revenues and expenses for the promotion, rental, maintenance, operation and management of the property, including all capital expenditures (the „Proposed Budget”) for the next [calendar/fiscal year]. With respect to the proposed budget for the current [calendar/fiscal year], within [insert number in words (NUM)] days after the effective date, the Manager will review and, if necessary, revise any existing budget or prepare a proposed budget for the property for the current [calendar/fiscal year] and present it to the owner. The owner approves or disapproves of any proposed budget within 14 days of submitting the proposed budget to the owner. The Manager undertakes to make commercially reasonable efforts to ensure that the actual cost of operating the property during the period covered by the approved budget does not exceed the amounts set out therein without compromising the quality of the operation of the property. The Manager shall implement the approved budget and shall have the right, without further approval of the Owner, to make the expenditures and meet the obligations set out in this approved budget, except with respect to the restrictions set out in this Section 4. The MANAGER is not authorized to make expenditures or fulfill obligations for an item (or group of similar items) that exceed by five percent (5%) or more the amount provided for that item or a group of similar items. D. Maintenance and repairs. These are basic insurances and guarantees. The owner may want additional agents and warranties for certain licenses (for example. B, brokering permits) or permits or qualifications that the manager may need to effectively manage the property.
F. Representative of the owner. The Owner`s representative, whose name and address are listed above, is the Owner`s duly authorized representative for the purposes of this Agreement, who may change the Owner`s representative by giving ten (10) days` written notice to the Manager. Again, be clear about what constitutes a failure or dispute that „cannot be easily resolved.” This type of disposition is determined by the extent to which the owner wishes to participate in the management of the property and the level of trust between the two parties. Discuss with your lawyer the appropriateness of a budget item or cumulative budget variance. Owners usually want line element gaps, while managers usually want cumulative deviations to give them more flexibility in managing the property. If the manager`s employees do NOT spend all their time on the affected property, you should divide it or limit it to a budget. 4. Functions of the Manager. During the Term, the Manager undertakes to make commercially reasonable efforts in renting, maintaining, operating and managing the Property and, in this regard, to perform the obligations set out in this Section 4, at the Owner`s expense, except as expressly provided otherwise in this Agreement, and subject to the means currently available, provided directly or indirectly by the owner, sufficient to enable the manager to comply with these obligations. .