A well-written short-term rental agreement is one of the most powerful tools a vacation rental operator can add to their business. It not only protects the property itself but also builds trust with the guest by clearly laying out expectations and rules right from the beginning. In this guide, we will discuss why rental agreements are essential, break down the most important clauses to include in a short-term rental agreement, and show how OwnerRez makes adding rental agreements a seamless process.
Why Rental Agreements Matter
Rental agreements serve three essential purposes for your vacation rental business.
- They set clear expectations. A rental agreement provides an opportunity to clearly outline what guests can expect during their stay and what you expect from them. It doesn't matter whether the guest is a first-time visitor or someone who returns every summer. A signed agreement ensures that everyone has the same understanding and creates an opportunity for any misunderstandings to be worked out prior to arrival. It's like the old saying, "Good fences make good neighbors."
- They provide legal protection. Many hosts assume that platforms like Airbnb and Vrbo offer all the legal coverage they would need. Unfortunately, that is rarely the case. Platform agreements are designed to protect the platform first, not the property owner, and protections can disappear quickly if a reservation is canceled or a dispute arises. A well-written rental agreement provides a legally enforceable foundation that holds up outside the platform.
- They help you capture the guest’s real contact information. Nowadays, listing channels prefer to keep control of the guests and their information so they can charge ongoing fees to both sides. Instead of providing a real email address, they create temporary "proxy" email addresses that they filter and control, so you are unable to reach the guest once the booking is complete. With OwnerRez, you can automatically send your guests a link to a customizable rental agreement, which collects a real email address and phone number from the guest. This gives you a reliable way to communicate directly with your guests during and after the stay.
In addition to these core benefits, they are essential for direct bookings. When guests come to you without an OTA acting as a middle layer, your agreement becomes the foundation that protects your business and ensures everyone understands the terms of the stay. A strong rental agreement is more than a safety net. It's one of the most effective ways to run a trustworthy and professional short-term rental business.
What to Include in a Vacation Rental Agreement
While every vacation rental property and its amenities are unique, here are some standard clauses that we recommend including in your rental agreement. Please note that we are not lawyers. Always consult an attorney who practices in your jurisdiction with any specific legal concerns.
Agreement Details and Applicability: Every agreement should begin with the basic information. This includes the property address, guest and owner names, stay dates, and any other details that define the reservation. It should also state that the agreement applies to everyone in the guest’s party and that updated agreements may be required if the reservation changes.
Guest Responsibilities: This section outlines expectations for how the guest should treat your property. It typically covers cleanliness, safety, respect for house rules and restrictions on illegal or commercial use. These guidelines give you a clear basis for addressing issues if something goes wrong during the stay.
Occupancy and Property Use: Agreements usually specify the maximum number of guests allowed and any rules surrounding large groups, visitors, or pets. They also note that the owner may need access for maintenance or, if the home is for sale, scheduled showings. These details help prevent overcrowding or unwelcomed guests and provide clarity around how the property is managed.
Payments, Cancellations and Refunds: This section explains payment schedules, refund policies, and any nonrefundable fees. It also outlines what happens if a payment fails or if a guest cancels at the last minute. Setting these expectations in advance ensures there are no surprises for either party.
Security Deposits: Many owners require a security deposit or security deposit hold before the stay begins. Agreements outline how the deposit is collected, what may be deducted, and the terms and conditions for its release.
Pets and Children: If your property has rules about pets or requires guests to disclose if children will be present, this is the place to include them.
Amenity Use and External Conditions: If your rental includes a pool, hot tub, grill, or other notable amenities, you can include special rules surrounding their use. Some agreements note that refunds are not issued for malfunctioning equipment or external issues like weather or power outages.
Lost and Found: Some agreements outline how forgotten belongings are handled. This typically includes a statement that guests are responsible for shipping costs when items are returned and that unclaimed items may be discarded after a set period.
Damage, Liability and Waivers: This section outlines what damages the guest is responsible for and may include a liability waiver for amenities such as pools, hot tubs, saunas or recreational equipment. These clauses help clarify responsibilities and protect you from potential legal disputes.
Termination and Enforcement: Most agreements include a clause stating that serious violations may result in the stay being terminated. This reinforces expectations and provides a clear path for action if rules are not followed. You may also include governing law and dispute resolution information based on your location.
Guest Acknowledgements: Many operators end their agreements with simple confirmations from the guest, including acknowledgment of safety risks, agreement to return the property in good condition, and acceptance of responsibility for everyone in their group.
Sample Vacation Rental Agreement
Below is an example of a short-term rental agreement. Your agreement will vary depending on your property, policies, and local requirements. Please note that we are not lawyers. Always consult an attorney who practices in your jurisdiction with any specific legal concerns.
Vacation Rental Agreement
Property Name: Beach House
Property Address: 123 Ocean Rd, Oak Island, NC
Guest Name: Susan Jones
Guest Address: 123 Happy Street, Luray, VA
Phone: (111) 111-1111
Email: susan@123example.com
Arrival: July 10 at 4 PM
Departure: July 17 at 11 AM
Length of Stay: 7 nights
Party Size: 6 guests
This agreement applies to all members of the guest’s party and to any updated reservation dates if the stay is modified.
- Guest Responsibilities: Guests agree to follow all house rules provided before or during the stay. The property must be kept clean and safe, and used only for lawful purposes. Activities that disrupt neighbors or violate local laws are not permitted. Serious violations may result in early termination of the stay without refund.
- Occupancy and Property Use: The property may not exceed the stated maximum occupancy. Subletting or transferring the reservation is not allowed. The owner may access the property for maintenance, repairs or inspection if necessary.
- Payments, Cancellations and Refunds: A deposit is due at booking, with the remaining balance due before arrival. If payment is not completed on time, the reservation may be canceled without refund. Nonrefundable fees may include travel insurance, damage protection or administrative charges. Refunds follow the cancellation policy provided at the time of booking.
- Security Deposit: A security deposit will be collected before arrival. It will be returned in full if the property is left in good condition. Deductions may be made for excess cleaning, missing items or damage to furnishings, amenities or the structure. Guests are responsible for any damage that exceeds the deposit amount.
- Pets and Children: Pets are only allowed with prior approval. Unauthorized pets may result in eviction and loss of rental funds. Guests must inform the owner if children are part of the group.
- Amenities and External Conditions: No refunds are issued for temporary malfunctions of appliances, pools, hot tubs or utilities. Weather events, power outages or nearby construction are outside the owner’s control and do not qualify for refunds. Hot tubs and pools must be used responsibly. Pets are not allowed in any water feature.
- Lost and Found: Items left behind will be returned at the guest’s expense. Items not claimed within 30 days may be discarded.
- Liability and Waivers: Guests use the property and all amenities at their own risk. This includes pools, hot tubs, bicycles and any recreational equipment. The owner is not liable for injuries or accidents unless caused by gross negligence. Guests accept responsibility for the actions of everyone in their group and anyone they allow onto the property.
- Owner’s Right to Terminate: The owner may end the stay early if the guest violates the terms of this agreement. Rental payments will not be refunded if termination is due to guest misconduct.
- Governing Law: This agreement is governed by the laws of the state and county where the property is located. Any disputes must be resolved in that jurisdiction.
Guest Acknowledgement
By signing below, I confirm that:
I have read and agree to all terms of this rental agreement
I understand the risks associated with pools, hot tubs and outdoor activities
I accept responsibility for all members of my group
I agree to return the property in the same condition it was received
Guest Signature: __________________
Date: ___________________________
How OwnerRez Streamlines this Process
Collecting and sending short-term rental agreements on your own can be a time-consuming process, especially when bookings come from multiple listing channels, reservation details change, and you’re forced to manually type guest names, dates, property information, and payment terms into every agreement. This type of busy work is not only tedious but also creates opportunities for mistakes. OwnerRez eliminates that complexity by integrating rental agreements into your everyday workflow. Vacation rental agreements inside of OwnerRez utilize field codes, e-signatures, and powerful automations so you are able to protect your business without adding any extra work.
When you partner with OwnerRez, renter agreements are added automatically to the checkout process when you send a quote or when guests book through your website. And if a booking originates from Airbnb, Vrbo, or other listing channels, a message including the rental agreement will automatically be sent to the guest. You can also send links when you want multiple members of a group to sign. The entire process is seamless from start to finish. Each agreement is also fully customizable so that you can add your branding and include clauses specific to your property. Field codes allow the agreement to pull information directly from the booking, such as guest names, dates, property details, and payment terms. This eliminates manual editing and ensures every agreement reflects the most up-to-date information you have set in OwnerRez.
Once a guest signs, the agreement is securely stored in OwnerRez. Both you and the guest receive a confirmation email, and the signed document is added to the Legal tab with a timestamp and IP address. Agreements stay on file for the life of your account, giving you a complete record whenever you need it. Real guest contact information, not just proxy email addresses, is collected during the signing process and is sent straight to your CRM, giving you an easy way to build long-lasting relationships with your guests. OwnerRez also supports automated reminders if a guest forgets to sign, along with automated security deposits and security deposit holds that work alongside your rental agreements for added protection. The built-in e-signature system is fully compliant with the Federal ESIGN Act and similar legislation, ensuring your agreements remain enforceable.
You set it up once, customize your templates to match your needs, and let OwnerRez handle the rest.
Conclusion
A vacation rental agreement is one of the easiest ways to protect your property, set clear expectations, and collect guest information. It reduces misunderstandings, provides legal backing outside of the OTAs, and helps you operate a professional and trustworthy business.
OwnerRez has made this a seamless process for vacation rental owners and managers. The rental agreements automatically pull in booking details, send at the correct time, collect compliant e-signatures, and store safely inside your account. You get stronger protection for your vacation rental business and more transparent communication with your guests, all without any added work.
If you are not yet using OwnerRez, get started today by signing up for a 14 day free trial or by signing up to join one of our weekly live demo webinars.
FAQs About Short-Term Rental Agreements
Q: Why is a vacation rental agreement important for my short-term rental business?
A: A vacation rental agreement is one of the most powerful tools you can add to your short-term rental business. It sets clear expectations for guests, provides legal protection outside the OTAs, and collects the guest’s real contact information.
Q: Are Airbnb or Vrbo’s policies and agreements enough to protect my vacation rental property?
A: Platform terms are designed to protect the platform first, not the vacation rental owner. Their protections can disappear quickly if a reservation is canceled or a dispute arises. A well-written short-term rental agreement gives you a legally enforceable foundation that holds up outside the platform and protects your business.
Q: What should be included in a short-term rental agreement?
A: A vacation rental agreement should include reservation details, guest responsibilities, occupancy and property use, payment and cancellation terms, security deposit information, pet and child policies, amenity rules, lost and found procedures, damage and liability clauses, and enforcement terms. These sections help set expectations and provide clarity if issues arise.
Q: Do I need a rental agreement for direct bookings?
A: Yes. When guests book directly with you, the rental agreement becomes the primary document that protects your vacation rental business and ensures the guest understands the terms of the stay.
Q: How does OwnerRez streamline rental agreements for vacation rental owners?
A: OwnerRez integrates rental agreements into your normal workflow. Agreements use field codes, e-signatures, and automation to streamline the entire process. When bookings come from Airbnb, Vrbo, or other channels, OwnerRez automatically sends the rental agreement to the guest and collects their contact information.
Q: Can I customize my vacation rental agreement inside OwnerRez?
A: Yes. OwnerRez allows full customization so you can add your branding and include clauses specific to your property.
Q: How can I collect a guest’s real contact information using OwnerRez?
A: OwnerRez collects real guest information through its rental agreement process. When a guest signs your agreement, they enter their real email address and phone number instead of the proxy information provided by listing channels. The guest’s real contact details are stored securely in your account and automatically sent to your CRM, where you can use it for marketing.
Q: How do I get started with OwnerRez?
A: You can get started by signing up for a 14-day free trial or by signing up to join one of our weekly live demo webinars.