If you already have an investment property, you’re probably eager to start renting out the property to guests.
Before you do, though, you need to make sure you’re protecting yourself, and your property.
A short-term rental agreement is used when you’re renting out your property for any length of time up to 30 days.
With an Airbnb, you ask your guests to sign the short-term rental agreement before booking.
A short-term rental agreement commonly includes
- Property details
- The rental period
- Occupancy limitations
- Rules & restrictions
- Payment details & fees
- Legal liability
- Violation of agreement
Property details
This is your opportunity to showcase the property with a clear description of what it offers. Be specific in your description, and make sure you highlight some of the amenities that are included with the rental.
Go into detail with things like
- Furniture
- TVs
- Air conditioning
- Bedding/linens
The rental period
A short-term rental agreement also needs to disclose the rental period. It needs to clearly state the
- Arrival date
- Departure date
If you or your guests make any changes to the dates, you’ll want them to sign an updated agreement.
Occupancy limitations
A short-term rental agreement also needs to specify maximum occupancy limitations. You need to clearly state how many guests are allowed to stay at the property and define sleeping arrangements.
You can also ask for a list of names of everyone staying at the property, along with their phone number and address. This helps protect you in case your guests bring in unannounced guests.
Rules & restrictions
You can additionally use the rental agreement to specify any rules and restrictions you have surrounding the use of your property.
Commonly, short-term rentals express rules such as
- No pets
- No smoking
You also want to include any penalties you’ll charge in case your guests break the rules.
Payment details & fees
A short-term rental agreement should be clear about the rental rate and the due dates for all payments.
It should also list any extra fees you’ll be requiring as part of the stay. This includes the cleaning fee.
Asking for a security deposit can help further protect you if your guests cause any damage to the property.
You’ll want to be specific about how guests can cancel the agreement, too. Usually, it’s in writing.
Legal liability
You may also want to include some information about liability related to potential accidents and injuries.
This is a good place to seek out some legal advice.
You also want to make sure your property is fully insured.
Violation of agreement
Finally, consider putting in a section in the short-term rental agreement regarding what happens if either one of you violates the agreement.
This will help you in case your guests break any of the terms and conditions of your short-term rental agreement.
