Your Complete Guide to Solidifying a Short-Term Rental Agreement
Every day, people clock in and clock out, toiling away for less money than they want and more effort than they can sustain. If you're a burnt-out professional, tired of constraining schedules and limited freedom, and feeling as if there has to be something better, you're not alone.
If you want financial freedom, luxury assets, and an end to choking hustle and debilitating debt, you owe it to yourself to learn about luxury short-term rentals.
Every short-term rental investment begins with a short-term rental agreement.
It's time to unlock everything you need to know about the short-term rental agreement and vacation rental agreement. Let's get started!
So What Is a Short-Term Rental Agreement, Anyway?
The answer is quite simple. Often called a vacation rental agreement, a short-term rental agreement is a type of lease, or legally binding agreement, drawn up between the landlord and tenant.
Both landlord and tenant agree on various aspects of property details, rental expenses, and rental duration.
This short-term lease agreement can be an easy way to generate continuous and robust income, from multiple 'guests' in a short time.
Difference Between a Short-Term Rental Agreement and a Normal Lease Agreement
Unlike a traditional rental agreement, the short-term agreement covers a rental property used for a relatively short rental period. In some cases, the tenant only stays for a maximum of 30 days, using a one-month rental agreement. In other cases, they may stay month to month for up to six months and require a substantial security deposit.
Whether the agreement is a vacation rental agreement for a vacation rental property, or the property is being leased for other reasons, the short-term agreement should stipulate all conditions of the rent.
Is a Short-Term Rental Agreement Stricter Than a Standard Rental Agreement?
This is a subjective question, one that will receive different answers from tenants, landlords, and investors alike. It all depends on the contract stipulations.
That said, short-term rental agreements may require that the landlord handle costs associated with all property utilities, services, and similar expenses. This is atypical in a standard lease agreement or long-term rental agreement for long-term rentals.
If you are an investor looking to form a rental agreement, whether a vacation rental contract or some other type of short-term rental agreement, you must ensure your short-term rental agreement addresses important information.
What Exactly Constitutes a "Short-Term Rental" or "Vacation Rental"?
A short-term rental is any living space with furniture that is occupied for short periods. These periods can range from just a few days to sometimes months. Again, it all depends on the conditions of the short-term rental agreement or vacation rental agreement.
Many times, a new tenant will use such a rental property when visiting a location for business travel, vacation, or other temporary reasons. Other times, short-term lease agreements apply to rentals that are intermediary properties while the tenant awaits a more permanent residence.
In these cases, the landlord may require a significant security deposit in the payment details of the rental agreement.
How Do Property Owners Come Upon a Short-Term Rental Property or Vacation Rental?
It is common for homeowners to rent out their property when they are away, whether the full property or part of it. People with more than one home may also rent that property out as a vacation rental. Investors can also acquire vacation rentals for the sole purpose of short-term rental agreements and vacation rental agreements.
Depending on the rental period, a homeowner may establish a vacation rental agreement with new tenants frequently or draw up a short-term rental agreement as needed month to month.
What Types of Property Can Be a Short-Term Rental or Vacation Rental Property?
Basically anything. As long as the short-term rental agreement or lease agreement adheres to state and local laws, and the tenant agrees, the property manager can generate rental income. A rental property can take all kinds of forms.
In terms of luxury rent or vacation property, the property is usually a house, townhouse, or some other form of spacious, fully-furnished dwelling. Nothing beats renting out a lavish vacation home for a large rent amount - especially if the rental party is agreeable!
Online services such as Airbnb and Vrbo may require a short-term rental agreement as well.
Understanding a Rental Agreement for Airbnb and Vrbo
Depending on your mailing address, property address, local requirements, and state laws, you may have to structure a fairly thorough short-term rental agreement for Airbnb and Vrbo-hosted properties.
As two of the most popular online hosting platforms, Vrbo and Airbnb are great options for investors looking to accrue rental income from prospective tenants.
What Kind of Lease Agreement and Licensing Do Vrbo and Airbnb Require?
All parties should be aware of how these laws also apply to the property and its lease term. In Florida, for example, hosts must be licensed if the days of the short-term lease agreement exceed a certain fixed term.
All these questions and more can be answered by a short-term rental investment specialist. Experts like Rachel Gainsbrugh can provide you with all the tools and knowledge, such as a short-term rental agreement template, that you need to get started on your investment.
With luxury short-term rentals, you can pursue a full-fledged, lucrative business with sky-high ROI. Through her comprehensive and one-of-a-kind Luxury Short-Term Academy, Netflix-featured investor Rachel has helped medical professionals everywhere unlock the power to generate profitable, continuous income. Contact Rachel to discover how to unlock your financial freedom today.
Formalizing the Short-Term Rental Agreement: Everything You Need to Know
As a first-time or inexperienced short-term rental investor, you may be confused. After all, you're spending your day working hard just to pay the bills. This is why it's a good idea to check out the many online resources available to find a printable short-term rental agreement.
A rental agreement template will outline all of the important details you and your tenants must agree on. As you analyze a free template online, you'll immediately notice the types of details you need to include as the landlord.
Remember, your short-term rental agreement is a legally binding document, so it must include critical information that will keep you from getting in trouble as the landlord.
What is Included in a Short-Term Rental Agreement or Vacation Rental Agreement?
It's important that your short-term or vacation rental is firstly, legally able to be rented. In some areas and developments, a private residence cannot be converted into a vacation rental. Different areas prohibit or tax such leasing.
Once you have confirmed with a professional that you can form a vacation rental contract, it's time to brainstorm everything that applies to the vacation rental.
Does Your Short-Term Vacation Rental Agreement Cover the Bases?
As the landlord, you need to communicate to each tenant or group of tenants the expectations, rules, and regulations. After all, this is your property and your investment.
You want to protect it!
So don't be timid. Before you formalize the short-term lease, make sure you're thinking about all the right things.
As Landlord, You NEED to Ask the Right Questions
What kind of property is it? What kind of furniture? Are you aware of the condition of appliances and amenities in case they're damaged? What fees apply? Are there fees for any other aspect of the property?
How about the duration of stay for various parties? How long will the tenant be staying? What can the guests bring, such as personal belongings, onto the property?
How is payment made? How is rent collected? What happens in case of emergencies? What are the rules of the short-term rental agreement? How about the check-in and check-out procedures?
All parties should clearly understand these crucial terms of the vacation rental agreement.
The details can be divided into various main categories.
Categories of Information in a Short-Term Rental Agreement
Every landlord has to safeguard his or her property. Although you can always outsource these responsibilities to other parties, but you are ultimately the one that has invested in the vacation rental. So, if something bad happens, it could be your neck and your dollars on the line.
Fortunately, any good rental agreement template you find online will help you do this. It will help you manage each tenant agreement you strike, giving you the coverage and flexibility to ensure a healthy, productive, and profitable relationship with the tenant.
Every vacation rental contract should include the following categories.
Important Property Information
In your contract, you want to ensure that all aspects of the rental property are clearly and concisely communicated. For legal and practical purposes, make sure you identify the property address.
Describe the rental. What does it look like, what colors are the roof and front? Does it have a porch and a big yard or a small yard? Is it on the water, at a mountain lodge, or somewhere tucked away in the city?
These details will help delineate the property from others, as well as establish evidence in case anything happens to the property. You also want to note what amenities exist. Is there a pool? A court? What kind of appliances are used?
Your Lease Agreement Reiterates Advertising Points
All of this information is also great for marketing. Remember, you want to target a specific audience. You can't please every tenant, so as the landlord, it's best to accentuate the qualities that make your land and lease attractive to a certain kind of tenant.
One tenant may be seeking a quiet woodsy retreat for one, whereas another tenant may be seeking a spacious beachside house that accommodates a large family. Every landlord should highlight the details of the property to establish information in legal, practical, and marketing/advertising terms.
Once you've identified and described the aspects of your property, you want to identify the tenants. This is usually pretty straightforward. Who is the rental party? Make sure you have their legal names on paper. Make sure you know how many people are at the rental party.
Is it a family? Are there children?
As a landlord, it's up to you to determine how many people you want in your place. Your vacation rental agreement should mention any cutoffs for occupancy. If you have a maximum occupancy, make it clear so that the tenants don't overrun your property!
This is one of the more important categories you need to consider as a landlord. Every property is different, so every vacation rental contract is different. Some short-term rentals command a higher price for shorter stays. Some are more amenable to long-term stays.
Whether your rental is used as a multi-week vacation spot, a business weekend rental, or a temporary 'layover' for tenants moving into a permanent residence, you still have to come up with terms for your guests.
Do you typically keep the rental period the same for all tenants, or are you flexible? Is there a minimum or maximum period? Is it days, weeks, or even months? How many tenants do you expect to turn over in a given period?
In some cases, you may be better off targeting tenants for short stints. In other situations, your rental may be great for tenants staying weeks on end. When guests arrive and leave, what are the check-in and check-out procedures? What's the check-out time?
Do they have to lock certain doors? Do they need codes? Do they need to provide a physical or electronic signature for the check-in and check-out process? Should they email you when they check in or complete a check-in form online or on paper?
Rachel Gainsburgh has a series of signature courses where you can learn about the viability and usability of your property - no matter where you’re starting from! Rachel’s courses can help you understand your target market so that you can maximize income for a given period.
House Rules & Regulations
Every short-term lease comes with house rules. For instance, you may have no cancellation policy or a cancellation policy that allows for a full return if the cancellation occurs within 24 hours. You may have certain rules about using appliances, rooms, or amenities. You may want tenants to lock certain doors or close windows when leaving.
There may be maximum occupancy for parking in the garage, driveway, or along the street. There may be home security systems tenants must activate or disarm. Ensure the tenant is made aware of any unique circumstances, features, and situations that apply, such as a pet policy.
Landlords may consider short-term rental insurance in the event these rules are blatantly violated.
Last, but perhaps most important is payment. Is there a security deposit? What is the rental amount? The landlord should enumerate all payment fees the tenant must pay in the lease. Additional fees should also be detailed.
Payment delinquency conditions are also important. How is the money paid? In what kind of cycles? On a set schedule? How much upfront for a security deposit? Through what channels and currencies?
Ultimately, getting paid is what it's all about, and if you have any questions or concerns about short-term leases, you should consult a leading short-term investment specialist who knows best. Rachel Gainsbrugh is one of those experts.
Unlock Full Time Freedom with Your Powerful New Income
Born dirt poor in Haiti, Dr. Rachel is the epitome of a self-made success story. Saddled with half a million dollars in student loan debt, she knew that she was tired of burning the midnight oil, exhausted and discouraged.
Then one day she discovered real estate investing.
Since then, Dr. Rachel has taken luxury short-term rental investments to a whole new level. The star of a Netflix series, and featured in major publications such as Forbes, Vogue, and People, Rachel Gainsbrugh has become a veritable guru of invest-by-night, lucrative wealth generation.
She has empowered numerous mothers, healthcare specialists, and entrepreneurs to realize something greater. With luxury rental properties, the financial upside is absolutely undeniable.
A healthcare professional by day, Dr. Rachel knows the struggle of medical workers. If you're burnt out, and want more freedom and money, apply to her groundbreaking Luxury Short-Term Rental Academy and gain the tools to change your life.