The success of your short-term rental business is dependent on the type of agreement you have put in place for your guests. A vacation home rental agreement is just as important as your marketing campaigns or your property management efforts.
An agreement serves as a foundation for mutual understanding between you and your guests. It ensures that both parties know their rights and obligations during the rental period. A good rental agreement will clearly define expectations, responsibilities, and protocols for potential issues.
This will prevent misunderstandings and conflicts and provide a smooth and enjoyable staying experience for the guests. An agreement builds trust and fosters professionalism when it comes to managing a short-term rental property.
If you are a short-term rental investor, a vacation property owner, or a manager looking to create a long-term agreement for your rental property, here are five things that are essential to add to the document. If you need more information or assistance in creating or managing contracts and agreements for your property, schedule a consultation call with a short-term property agent from The Short Term Shop today.
Key Things to Add to Your Short-Term Rental Agreement
1. Rental Property Details
This section should provide a complete description of the property, including its address, amenities, and any unique features. The clarity ensures guests know exactly what to expect and what they will be paying for.
2. Rental Period and Occupancy
Always define the lease term, including check-in and check-out dates, and stipulate the maximum occupancy (the maximum number of people allowed at one time in your property) to maintain property standards and ensure safety.
3. Payment and Security Deposit Information
Detail payment terms, such as amounts due and due dates, and explain the security deposit process. This financial clarity is essential for a smooth transactional experience.
4. House Rules and Restrictions
Establish rules regarding pets, smoking, noise, and other potential issues. It will help maintain the property's condition and neighbor relations, echoing the professional standards discussed in the Forbes article.
5. Cancellation Policy
Outline the cancellation policy by providing clear instructions and consequences for booking changes. Your guests should understand the financial and logistical implications of altering plans.
These five elements in a short-term rental agreement template build a comprehensive contract that protects both owner and guest interests.
Here is a free sample of a vacation home rental agreement that incorporates these five elements:
Free Short-Term / Vacation Lease Agreement Template
Short-Term / Vacation Lease Agreement
This Lease Agreement ("Agreement") is made this ____ day of __________, 20__, by and between __________________________________________________________________ ("Property Owner") and __________________________________________________________________ ("Guest").
1. Property Description
The property located at _________________________________________________________________ ("Property") is fully furnished and includes _________________________________________________________.
2. Lease Term
The lease begins at ____:____ [AM/PM] on ____________, 20__, and ends at ____:____ [AM/PM] on ____________, 20__.
3. Payment Details
A. Rental Amount: $__________ due by ____________, 20__.
B. Security Deposit: $__________, due by ____________, 20__, to be refunded within _____ days of departure, subject to property inspection.
4. Occupancy
The Property shall not be occupied by more than ______ persons without prior consent.
5. House Rules and Restrictions
A. Pets: ____________________________________________
B. Smoking is allowed: Yes [ ] No [ ]
C. Quiet Hours: From ____:____ [AM/PM] to ____:____ [AM/PM].
6. Cancellation Policy
Cancellations must be made by ____________, 20__. Cancellations made before this date will be refunded: Yes [ ] No [ ] (minus a $__________ processing fee).
7. Liability and Insurance
The Guest agrees to indemnify and hold the Property Owner harmless from any liabilities, including but not limited to, any injury or damage to persons or property occurring on the Property during the lease term.
8. Governing Law
This Agreement shall be governed by the laws of the State of ____________.
9. Entire Agreement
This document and any attachments constitute the entire agreement between the parties and supersede any prior understanding or representation of any kind preceding the date of this Agreement.
10. Acknowledgment
The undersigned have read and understood this Agreement and hereby acknowledge receipt of a copy of this Lease Agreement.
Property Owner Signature: __________________________________ Date: ____________, 20__
Guest Signature: _________________________________________ Date: ____________, 20__
This format is designed to be adaptable and should be reviewed by a legal professional to ensure compliance with local laws and regulations. Simply copy and paste it onto your document.
Buy, Sell, and Manage Your Short-Term Property With The Short Term Shop
The Short Term Shop specializes in maximizing investment potential through vacation properties. We help investors to purchase and sell short-term rental properties nationwide. Our expertise and commitment are grounded in the fact that we are property agents who deal exclusively with short-term rental properties.
Do you desire to see a return on your investment? Do you seek assistance in property management? Would you like to know more about the best short-term rental properties on the market today? Or do you just need a professional opinion on your vacation home rental agreement? Book a consultation call with a short-term rental real estate agent today.
