Wash. Court of Appeals published opinion — D2 60254-7-II Published Opinion.pdf

Citation: Wash. Court of Appeals published opinion — D2 60254-7-II Published Opinion.pdf
Jurisdiction: Washington (state)
Source: Official source
Original Source: https://www.courts.wa.gov/opinions/pdf/D2%2060254-7-II%20Published%20Opinion.pdf ↗

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Clerk’s Papers (CP) at 16. AMC’s services also include “hiring, supervising, discharging, and

compensating workers on the [Owners’] property,” known as onsite employees or Project

employees. CP at 3.

2
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No. 60254-7-II

1. AMC’s Property Management Agreement

AMC enters into property management agreements (PMAs) with Owners, wherein Owners

engage AMC as the exclusive property manager of a Project. The PMAs set forth the obligations

between Owners and AMC.

Under the terms of the PMA, Owners will create a budget and business plan, which guides

AMC’s management of a property. AMC establishes two types of bank accounts for each property:

an operating account and a trust account. AMC deposits “all security and other refundable deposits

made by tenants” into the trust accounts. CP at 359. All other funds, such as tenant rents collected,

are placed in an operating account.

AMC is authorized to pay for “all expenses and costs of operating [a] Project” from the

operating account, including its own management fee. CP at 360. AMC’s management fee is 2.5

percent per month of a Project’s “monthly total effective gross income.” CP at 366.

The PMA provides for the expenses that AMC must pay from the operating account: