Understanding Why an Airbnb Rental Agreement is Essential
Without a proper rental agreement, Airbnb hosts are left obligated to comply with many laws they might otherwise have been able to avoid. For instance, by failing to have a legally compliant rental agreement, the host may be forced to allow emotional support animals on his or her property despite the fact that the property owner does not want them present.
Rental agreements are also a great way to protect yourself from abusive guests. A guest may reserve an Airbnb property with the hopes of having a ton of friends over for a party or other loud and obnoxious gathering. Most Airbnb sites have rules against excessive noise and partying. When the host has a hard copy of the rental agreement and the guest breaks the rules , it is much easier to hold the guest responsible for violating the terms. Likewise, if there is damage to the Airbnb property, it is much easier to hold the guest accountable when the parties have a written rental agreement.
These are just a few of the reasons why an Airbnb rental agreement is so important. Having a rental agreement in place protects the host and ensures that the property is safe, that local laws are not being violated and that the guests have no questions about what the consequences will be if they misbehave during their stay. Whether there is some other reason a rental agreement benefits you, it is certainly very important to consider having one in place when guests reserve your property through Airbnb or any other similar site.
The Key Components of a Solid Airbnb Rental Agreement
When it comes to an Airbnb rental agreement, the seller (host) and buyer (guest) are often only required to provide minimal information because Airbnb’s policies supersede the specifics of a standard rental agreement. However, it still pays to have an agreement that includes certain key elements. Please note that this is an agreement template and legally enforceable terms can be changed depending on your local laws.
Names of the Guest(s) and Host
The vacation rental agreement should clearly name the parties who are entering into the agreement. The host should provide his or her name and contact information, including the operational name if he or she operates multiple rentals through the same platform.
Length of Stay and Check-in/check-out Times
As with every vacation rental agreement, this one should clearly state the term of the rental agreement as well as the check-in and check-out times. If you have flexible hours for guests, specify that guests will respect the host’s quiet hours, but also be able to be flexible with their check-in/out times.
House Rules
Guests should be provided with the list of house rules before booking their stay. By listing house rules as part of the rental agreement, you hold guests responsible for following them. An example of a basic house rules section of an agreement is as follows:
House Rules
• No smoking.
• No pets.
• Koi pond is off limits.
• Pool/Hot Tub use is off limits 10 pm-7 am.
• Pool table is off limits 10 pm-7 am.
Cancellation policy
If you want to specify your cancellation policy in your rental agreement, you can do so here. Specify how many days in advance guests must cancel to receive a refund. Some hosts offer tiered refund policies that offer more of a refund if the guest cancels 14 days in advance, and less of a refund if they cancel seven days in advance.
Legal Aspects of an Airbnb Rental Agreement
Legal considerations for Airbnb rental agreements are a critical aspect that hosts must take into account while drafting a rental agreement template. Every location or jurisdiction has its own set of mandatory rules, ordinances, and regulations. For instance, some impose lengthy waiting periods for booking changes, while others put a cap on the number of nights that a property can be rented out on a yearly basis. Considering these factors is extremely important, especially when the property is situated in a different state or country.
It may also be important to consider whether the property is in an area with particular privacy laws with regards to data collection and customer privacy. If you happen to rent out a commercial space (for example, a ground floor flat), then you might need to take privacy laws into consideration.
Apart from local regulations, it is important to analyze the terms of service provided by Airbnb, as well as make sure that the agreement embeds local restrictions such as country specific taxes, such as VAT or Arunachal pradesh luxury tax or any other form of local taxes.
Personalizing Your Airbnb Rental Agreement Template
The beauty of having a rental agreement template is that it is easy to customize to suit your individual needs. Even though Airbnb rental agreements are typically the same from host to host, there are still unique characteristics that every host should take into consideration when they draft their own rental agreement .
Some of the things you may want to personalize your rental agreement template include:
Payment Terms – If you require payment up front, how early do guests have to reserve your home? What form of payment do you accept for deposit and final payment? Do you give back the deposit for cancellations? If the deposit is not returned following a cancellation, how will you process the refund? What is the date by which time the full payment must be received? If the full payment is not received, how do you handle the reservation?
Utilities and Fees – If you include any utilities or fees in your rental price, which are you including and why? If you are willing to negotiate, what items will you be flexible on? Which, if any, will you consider to be firm? Are there circumstances where you would make an exception and negotiate (for example, if a guest rents for an extended period of time)? Are there circumstances under which you will allow guests to choose to have certain items taken out of the rental price?
Using Your Home – If you are renting your own home, what items would you allow guests to use? Can they help themselves to your liquor cabinet? May they cook on the stove? Use anything in the refrigerator? How clean do you expect the home to be left? Would you consider anything to be "poor condition"?
Eviction – What will you do if the terms are violated? What are your rights of entry, and when may you enforce those rights? What is grounds for eviction? What happens if an eviction cannot be completed? What kind of access can the tenant expect during an eviction, or will you grant them access? What if the guest refuses to leave the property? What if temporary occupants prevent you from approaching the tenant?
Fines – Are you willing to negotiate on the amount of fines charged? Under what situation would you waive a fine? Would you allow the guest to negotiate the amount of a fine? What kind of proof will you require for a fine to be levied?
Fees – Are your fees negotiable? Will you ever bend on your fees? Can you be convinced to give in on a fee after the fact? What is the limit of how much you are willing to sacrifice in fees? Do you have a set amount of fees that you deem acceptable? Do you have a set amount of fees you will not go below, regardless of circumstances?
Top Tips for Implementing Your Airbnb Rental Agreement
Once you have your rental agreement template perfected, it’s time to show it off! You can do this a couple of different ways: In the listing description or in the first contact with the guest. For example, in the listing description, you can add a short paragraph about some (not all) aspects of your rental agreement. Below is an example:
"By choosing to book our private residence, you acknowledge that you have read the full rental agreement at [insert URL here]. If you have questions, please contact us before booking."
Keep in mind that some platforms will have their own rental agreements that supersede yours, so clarify that it’s your rental agreement they have to follow.
The other option is to send the guests a copy of the rental agreement in your initial correspondence with them. This is usually a better option because we have all clicked "I agree" to something we haven’t read just to get the refund policy on a different angle at Shipshewana Flea Market, but that may come back to bite us later. It also allows you to make sure that the right person has agreed to the terms. Use the email address provided in the agreement template and copy it into the "bcc" line. Send it when you send the initial reply to your email or when you send them your PayPal invoice. You can also attach the agreement to the end of the invoice itself.
Now that you’ve sent it out, you need to enforce it. Your rental agreement template should have a space for an initial or signature. When you send to them, ask which name should be added to the rental agreement. You can also use a program like DocuSign. You should also mention it to them in your communication at that time, but it’s good to have a visual reminder for them as well. This way, they know what they agreed to and it’s clear in case of a dispute.
Template Resources for Your Airbnb Rental Agreement
Airbnb hosts have various options when it comes to obtaining a rental agreement template that is tailored to their specific needs. Two of the most common sources are online resources and template providers.
Online Resources
There are many different legal websites that provide free legal documents for their users. A simple internet search with terms such as "free Airbnb rental agreement sample" or "Airbnb rental agreement template" will produce many options. However, keep in mind that some of these agreements may lack important provisions or may not be up to date with current laws.
Template Providers
Many website professionals have also created generic rental agreements . These mass-produced contract templates are often available for sale at different price points. Some Airbnb hosts find that they need specific language in their rental agreement to limit their liability to the extent permitted by law. These priorities are best served by mentioning them to a lawyer who has experience with Airbnb rental agreements and other rentals that are similar. The lawyer will then draft a customized rental agreement based on the specific needs of the Airbnb host. Such rental agreements are personal and unique. They can include provisions imposing specific obligations upon the parties (or restricting them), while maximizing a rental property’s commercial potential and minimizing a rental property’s legal risks.