15 Short-Term Rental Agreement Tips + Free Template

Having a short-term rental agreement is a smart move to protect the rights and responsibilities of both you and your guests. Here are the 15 most important elements every short-term rental agreement should include.

Key Takeaways

• Short-term rental agreements define the rights and responsibilities of both hosts and guests. 
• It is designed to help the host avoid conflicts that may arise during and after a guest’s stay.
• An additional rental agreement gives you the right to require the guest to pay for damages resulting from violations of the short-term rental agreement during the stay.

A short-term rental agreement, also known as a vacation rental agreement, is a legal document between a property owner or property manager and the renter. As a short-term rental host, you can ensure that your property rental business runs smoothly by composing a short-term rental agreement that minimizes your risks. 

This agreement should cover the rights and responsibilities of the host and guests. In addition, it should contain the terms and conditions of the lease, which the 15 elements outlined in this article will help you to cover.

What Is a Short-Term Rental Agreement?

A short-term rental agreement outlines the terms and conditions of the rental, detailing the rights and responsibilities of both parties. It goes by various names such as holiday let agreement, temporary rental agreement, short-term lease agreement, Airbnb agreement, and others and is usually meant for a short rental period (between 1 and 30 days). 

Short-term leases become a legally binding agreement once a tenant agrees and you collect payment. That said, you will gain the right to cancel a booking instantly if the property policies and rules are broken.

When Should You Use a Short-Term Rental Agreement vs a Vacation Rental Agreement?

A short-term rental agreement and a vacation rental agreement are the same thing. Given that a short-term vacation rental agreement helps define hosts’ and guests’ rights and responsibilities for a particular lease term, it is a good idea to use it every time you rent your property to new guests.

The length of the stay should not determine when you use your short-term lease agreement. Use it even if the guests are only staying one night, and even when renting to friends.

The only time that you shouldn’t use a short-term lease agreement is when renting with the intention of having a guest stay longer than 30 days. In this case, you should draw up a formal month-to-month agreement or a fixed-term, long-term lease agreement.

You can ask a guest to sign a short-term rental agreement before they gain access, as long as you disclose the terms prior to booking. Airbnb recommends that you do this by mentioning the agreement in your listing description.

In this way, both parties can discuss specific terms that both agree upon, including things like the length of stay, rules, and regulations, payment terms, etc.

You should also list the terms of the vacation rental contract again in a message thread with your guest.

15 Elements to Include in Short-term Rental Agreements

As every property is different, the terms you should cover in an agreement will vary. That said, the following are 15 key elements you’ll always want to include:

1. Rental property details

In addition to sharing your property description on online travel platforms like Airbnb, you’ll also want to include the listing description of your vacation rental property in your short-term rental agreement again. This section should include: 

• Your property address
• Other key property information, like accessibility 
• The amenities that are included, for example a swimming pool and basic supplies that guests can expect

2. Rental period

This is one of the most important sections. The agreement should include: 

• The date of arrival 
• Time of check-in
• The date of departure
• Checkout times
• Any specific checkout procedures

If you adjust these dates before guests arrive, they should sign an updated rental agreement.

3. Information about the guests

List all of the guests who will stay at your property during the dates specified in the previous section. Be sure to include: 

• Each guest’s full name
• Current home address
• Phone number

4. Maximum number of guests

The maximum occupancy is the maximum number of guests permitted to stay at your property at a given time. It will be determined by the state and local laws, and not purely a matter of preference. In fact, it can be a good idea to include the fire code regulations that justify your maximum occupancy number in your vacation rental contract.

This section of the agreement protects you in the event that your guests bring other people to your property unannounced. It also places liability on the guests if those unauthorized visitors suffer injuries or cause damage.

5. Keys and access

This section should explain how guests will gain entry to your vacation rental property. Here, you can share instructions for your lockbox, smart locks, or other key exchange solution. If you’re planning on offering self-check-in, this section is especially important.

6. House rules

Instead of listing all your house rules here, use this space to reiterate that when guests sign this agreement they agree to follow all your house rules. If you charge any penalties for breaking the rules, be sure to highlight them in this section as well.

7. Payment details

In this section, cover everything related to payment. Include the agreed-upon nightly rate and the date on which you’ll collect payment. Also, explain the details about other extra paid services that you provide. For example, if you offer guided tours, transportation, or breakfast, describe the details here.

8. Security deposit

A security deposit protects you in the event that a guest causes damage to your property. It will be returned back to the guests after checkout, providing that no incidents occurred. Before selecting an amount to charge for a security deposit, make sure that it is on par with what other hosts in your area charge.

9. Extra fees

Some hosts charge extra fees. For example, if you’re running a pet-friendly Airbnb, this can include pet fees. Make sure that you define the cost, purpose, and required payment dates for any additional fees that you charge outside of the rent and security deposit.

10. Cancellation policy

This section should explain how a guest can cancel the agreement. Usually, hosts require guests to submit a cancellation request in writing. Ensure that you also clearly explain the Ts and Cs like cancellation fees, notice period, etc.

11. Cleaning

This is where you should outline exactly what is covered by the cleaning fee. You should also explain any checkout procedures regarding rubbish bins, dirty linen, etc. so that your guests know exactly how to leave your property upon checkout.

12. Amenities and furnishings

Depending on the number of amenities you offer, it might make more sense to include a dedicated section where you can make a list of all the amenities that are available. Be sure to mention any outdoor areas that your guests will have access to as well.

13. Limitation of liability

Accidents and injuries can happen regardless of how well you maintain your property. The limitation of liability clause helps limit your responsibility if such cases occur and the amount that you have to pay if the guest suffers a loss.

This section should include the following:

• The statutory limits for the guest to bring a claim against you, the host
• The losses each party accepts to compensate with and without limit
• The losses that each party will completely exclude (specific losses that each party will not be liable for)

14. Violation of agreement

This section should explain what will happen if either party violates the agreement. You can support your right to cancel their stay if guests break the terms and conditions.

15. Extra clauses

You may include extra clauses in your vacation rental agreement. These will further limit what guests may and may not do while staying at your property.

For example, if you don’t want your guests to access certain parts of the property, define this in an extra clause. You can deny them access to the pool area or a particular room in the house.

What Are the Consequences of Not Using a Short-term Rental Agreement?

Here are the most common problems that a short-rental agreement can protect you from:

Tax confusion

The Internal Revenue Service (IRS) provides a 14-day vacation rental tax exemption. This means that if you rent out your property for fewer than 14 days each year, you don’t have to pay taxes on your rental income.

However, to prove that your rental income is non-taxable, you must have records of the dates you rented out your property. A vacation rental agreement can double up as the proof you need in case the IRS audits you.

Guests who won’t leave

Guests who won’t leave are unfortunately one of the common vacation rental horror stories. Having a rental agreement in place will give you more leverage if you end up having to formally evict your guest via the courts.

Damaged property

Airbnb and other vacation rental platforms have insurance in place to cover damages to your property caused by guests. However, if you want to make a claim with your own insurance company, short-term rental agreements can come in handy.

Expensive attorney fees

A lack of documentation supporting your case increases the chances that you will lose a claim against a guest. It will also take an attorney more time to sort out who is liable for the claim if you did not have a short-term rental agreement in place.

Final Tips on How to Draft A Short-Term Rental Agreement

Your Airbnb rental agreement should also be revised and updated regularly to ensure that you adhere to any changes in local or state laws. This is essential if you want your agreement to hold up in a court of law. It also important to keep up-to-date with state and local laws in order to ensure your short-term rental agreement is a legally-binding document.

As you draft your short-term lease agreement, keep in mind that listing platforms like Airbnb and VRBO will not be able to help you enforce any special provisions within your contract.

Therefore, you must speak with an attorney if any issues with your short-term rental agreement arise. You will most likely have to settle any breach of contract in a court of law. Take a look at this suggested wording for a short-term rental contract.

Short-Term Rental Agreement Template:

Property Address:

[Insert Property Address]

Property Owner/Host:

[Insert Name]

[Insert Address]

[Insert Phone Number]

[Insert Email]

Guest(s):

[Insert Full Names]

[Insert Addresses]

[Insert Phone Numbers]

[Insert Email Addresses]

Effective Date:

Guest Will Check In On: [Insert Effective Date]

Guest Will Check Out On: [Insert Effective Date]

Rental Property Details

The property located at [Insert Property Address] (the “Property”) is a [describe type of property, e.g., two-bedroom apartment] with the following amenities: [list all included amenities].

Rental Parties

The agreement is made between [Owner/Host Name] (“Owner/Host”) and the following guests (“Guests”):

[Guest Full Name, Address, Phone Number]

[Guest Full Name, Address, Phone Number]

[Repeat as necessary]

Rental Period

The rental period begins on [Insert Arrival Date] at [Insert Check-in Time] and ends on [Insert Departure Date] at [Insert Check-out Time]. 

Any changes to these dates must be confirmed in writing by both parties.

Maximum Occupancy

The maximum occupancy for the “Property” is [Insert Number] guests. Additional guests are not permitted without prior approval from the “Owner/Host”. Any unauthorized guests may result in additional charges or termination of the rental agreement.

Keys and Access

Guests will gain entry to the “Property” using [describe entry method, e.g., lockbox code, key handover]. The lockbox code is [Insert Code], and instructions for use are provided upon booking confirmation.

House Rules and Restrictions

Guests agree to abide by the following house rules:

* No smoking inside the “Property”

* No pets allowed.

* No parties or events without prior approval.

* Quiet hours are from [Insert Time] to [Insert Time].

* Violation of these rules may result in penalties, including but not limited to additional cleaning fees or termination of the rental agreement.

Payment Details

The total rental fee is [Insert Amount], due by [Insert Due Date]. Payment includes the following services: [list services, e.g., guided tours, transportation, breakfast]. Additional charges may apply for services not listed.

Security Deposit
A security deposit of [Insert Amount] is required and will be refunded within [Insert Number] days of departure, provided no damage to the “Property” occurs. The deposit will cover damages or additional cleaning required beyond normal wear and tear.

Fees

Additional fees include:

* Cleaning fee: [Insert Amount]

* Extra guest fee: [Insert Amount]

* Late checkout fee: [Insert Amount]

Cancellation Policy

Cancellations must be submitted in writing. Full refunds are available if cancellation is made [Insert Number] days prior to arrival. Cancellations made within [Insert Number] days of arrival may result in forfeiture of the deposit.

Cleaning

The cleaning fee covers standard cleaning of the “Property”. Guests are requested to leave the “Property” in a tidy condition. Specific departure instructions and check out procedures include [list instructions, e.g., removing trash, washing dishes].

Amenities and Furnishings

The “Property” includes the following amenities and furnishings:

[List all included items, e.g., furniture, linens, kitchen appliances, TV, air conditioning]

Guests have access to [describe any outdoor areas, e.g., patio, garden, pool].

Limitation of Liability

The “Owner/Host” is not liable for any accidents, injuries, or illnesses that occur while on the “Property” or its facilities. By accepting this agreement, guests agree to indemnify and hold harmless the “Owner/Host”  from any and all claims of personal injury or property damage.

Violation of Agreement

Violation of the terms of this agreement may result in immediate termination of the rental agreement and forfeiture of the security deposit. The “Owner/Host” reserves the right to cancel the stay without refund if guests fail to comply with the house rules.

Extra Clauses

Guests are not permitted to access the following areas: [list restricted areas, e.g., storage rooms, certain outdoor areas]. Any unauthorized access will result in additional charges.

Signatures

By signing below, the parties agree to the terms and conditions of this short-term rental agreement.

Owner/Host:

Signature: [Owner/Host Name]

Date: [Insert Date]

Guest(s):

Signature: [Guest Name]

Date: [Insert Date]

Signature: [Guest Name]

Date: [Insert Date]

FAQs

When should you use a short-term rental agreement?

Given that a short-term vacation rental agreement helps define hosts’ and guests’ rights and responsibilities for a particular lease term, it is a good idea to use it every time you rent your property to new guests. The length of the stay should not determine when you use your short-term lease agreement. Use it even if the guests are only staying one night, and even when renting to friends.

May Airbnb hosts ask guests to sign rental agreements?

You can ask a guest to sign a short-term rental agreement before they gain access, as long as you disclose the terms prior to booking. Airbnb recommends that you do this by mentioning the agreement in your listing description. In this way, both parties can discuss specific terms that both agree upon, including things like the length of stay, rules, and regulations, payment terms, etc. You should also list the terms of the vacation rental contract again in a message thread with your guest.

Do hosts need a separate agreement when listing on Airbnb or Vrbo?

Yes, it’s strongly recommended. While platforms like Airbnb and VRBO provide their own terms of service, these mainly detail the platform relationship and not all the specific rules and expectations for your property. Having your own rental agreement gives you an extra layer of legal protection, allows you to set custom house rules, clarify liability, and document guest acknowledgment of your specific policies.

How can hosts share a rental agreement with guests?

Hosts can use the check-in form feature of iGMS. This feature allows hosts to send their guests a rental agreement and verify their identity by requesting their IDs.