EXHIBIT 7

$600 – HVAC replacement on a monthly basis

This expense is excessive. A typical HVAC filter costs no more than a few dollars, so that the total yearly expense would not rise above $100 if the filter was replaced monthly. However, that is beside the point. Replacement of the HVAC filters was not a term of the owner-manager agreement, and so my client is not obligated to pay this charge.

FACTS

• The HVAC system is new (cost $5,000). We had condensation problems - because previous tenants did not change the filter - causing costly breakdowns and damages. 
• We emailed EM October 18th - to write this into the addendum. Oops. They forgot. Oh well. 
• Yes, the cost of the filter may be $100 or less - yet the filter does not know how to walk to our house and install itself. We need a person to do this. I believe this is called labor and we actually underestimate this expense. 
• This labor fee will be waived if EM wants to install the filter once a month. We will need proof that they are doing so. 
• Again, do not base all of our agreements on the unsigned owner-manager agreement - the following email exchange will be an EXHIBIT for our lawsuit filing. 

From: xxx
Sent: Thursday, October 18, 2012 11:34 AM
To: Dan
Subject: Re:xxx, Elk Grove, CA 95624

Dan,

1 - What does "immediate family" mean in the contract ? (1.B.)

2 - There is no gas - the tenants need to pay us for all the utilities. They may put SMUD in their names.

3 - You need to write in that the tenants will change the HVAC filter once a month.

4 - There needs to be numbers identifying the appliances (required by police).

5 - Are they paying for Jose Luis to do the gardening ?

I will have more questions/comments.

xxx

----- Original Message -----

From: Dan

Sent: Monday, October 22, 2012 10:35 PM

Subject: RE: xxx, Elk Grove, CA 95624

Hi xxx,

Immediate family is considered children under the age of 18 (although both tenants have none). All utilities are the tenants responsibility. They will be able to transfer the SMUD but unable to get Water, Sewer, Garbage into their name without you calling and allowing this. If you would like my help on this please just let me know. When the tenants come back in to get keys I will give them an updated addendum to sign stating that they are to replace HVAC filter once a month and will have the appliance numbers on there as well (we have them all in our system already). I informed them of Jose and his services. Not sure if they decided to use him or not. Will ask them again when they come in.

Thanks,

Dan

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