The Lowdown on Vacation Rental Leases
A vacation rental lease is a legally binding document that serves as an agreement between a property owner who is renting out their home or apartment and a tenant who is reserving the property for a certain period of time (much like a hotel reservation). It is primarily used for the rental of residential real estate for periods of less than 30 consecutive days. This type of lease is intended to protect the owner’s legal interests as a landlord, guarding against damage to the property and other liability issues. It alters the tenancy rules to make it more favorable to the owners. For example, most vacation leases are for short periods such as one week or two weeks, and usually do not require the owner to show cause before evicting a troublesome tenant.
If you’ve just booked a vacation rental for your next family getaway , you may never have to think about the fine print as long as you’ve come to an agreement with your landlord over the terms of the lease. But if you are a property owner, this is the most important part of the deal. An especially valuable tip for success in the vacation rental business is to have a strong rental lease agreement that will protect you from costly damages to your property. If it turns out your tenants have a big party with lots of guests, struggle to get the water stains off the bath towels, or sneak in an extra couple of adults in violation of the terms of the contract, you want your lease to be able to defend you against any costly repairs you may need after their departure.
Common Items in a Rental Agreement Template
When it comes to vacation rental lease agreement templates, certain key elements should always be included. These elements provide both parties with the necessary facts and conditions that need to be met. These elements are as follows:
Property Address
This section should contain the exact property location and address, including the building name (if applicable). It should be an undeniable location for both parties and should be located at the very top of the template.
Occupancy Limitations
This section includes the maximum number of people allowed to occupy the space, as well as any children’s limits, and the age-requirement of guests. This is especially important for condo or home rentals located within an HOA.
Rental Term
The rental term shows exactly what days the property is rented and the duration of the rental. It should also include the agreed upon check-in and check-out times for guests.
Rental Payment Terms
This section contains information on rental payment methods, due dates, and late fees. It may also include an associated security deposit.
Rental Policies
Rental policies should be clearly defined, including cleaning fees, and rules regarding refunds and cancellations.
Advantages to Using a Template
Using a vacation rental lease agreement template offers numerous advantages for homeowners, property management companies, and brokers. One of the most significant benefits is the time savings it provides. Writing a lease agreement from scratch every time can be a time-consuming and tedious task. But with a template, you have a framework in place that reduces the time required to draft a lease agreement. All you need to do is enter the details specific to that property, such as the rental period, rental amount, and any specific conditions or stipulations. With a pool of templates to choose from, you can quickly and efficiently create a customized lease agreement tailored to the unique needs of each rental situation.
Another advantage of using vacation rental lease agreement templates is legal compliance. A good lease agreement template will meet all applicable laws and regulations in the relevant jurisdiction(s). This is particularly important given the ever-changing landscape of vacation rental regulations. If a template is drafted by a knowledgeable attorney, it should reflect the latest legal requirements and help you avoid potential legal pitfalls or disputes with your guests. It can also minimize the likelihood of encountering regulatory issues when dealing with local government entities.
A third benefit is increased consistency in your documentation. By using a template, you can ensure that all your lease agreements have a similar format, structure, and language. This consistency not only creates a professional appearance for your documents, but it also streamlines the process of document review, either by yourself or by others in your organization. For those managing multiple properties, this can save a significant amount of time and reduce errors when handling different leases. A clear, consistent template also decreases the chance of misunderstandings, making the conversation between homeowners, brokers, and guests more straightforward and legally protected.
Add Your Own Touch to a Lease Agreement
A template vacation rental lease agreement is usable for homes and apartments, but you’ll still need to make changes so that the document conforms to your particular needs. Wherever provisions differ in the rental market for a house as opposed to an apartment, the generic template must be conformed to the local standard.
There is not much difference between a home and an apartment for the purposes of renting. You sign a lease, submit your deposit, live according to the contract and get your money back. Tenants and landlords essentially negotiate the same lease terms regardless of whether the dwelling is an apartment or a house. You may be more flexible however, in negotiating terms of your lease with a landlord if you are renting a house.
The main consideration when customizing a generic template house/rental contract is the same as with an apartment or any other rental arrangement . You should employ the following guidelines when making changes to your generic vacation rental lease agreement: A lease is akin to the sales agreement that you would sign when buying a product in a store. The seller will expect and demand receipt and the payment of the appropriate fee. There is no ambiguity because the sale is obvious from the transaction. In a lease, however, the relationship between landlord and tenant is less clear and therefore some issues must be addressed in the lease agreement. These concerns include the period of occupancy, the size of the rental deposit, and what will happen to the deposit when the tenant vacates the property.
It is important to note that your generic vacation rental lease agreement template may not address every conceivable issue that might arise. It is advisable to append an addendum to the lease agreement that addresses issues not covered in the generic template. You should also be aware of the basic laws in your jurisdiction that address tenancy issues.
Common Pitfalls and How to Avoid Them
Even the most cautious property owners searching for the ultimate vacation rental lease agreement template can fall victim to drafting mistakes. Let’s look at some of the most common errors seen in these documents and how you can avoid them.
Imagine a scenario where you rented your property to a large group of adults for a weekend holiday. They arrived Friday evening ready to have some fun and fired up the hot tub that had been prepped. However, they neglected to put the cover back on when they were done, and by the time you returned to the property some two days later you found the water looking more green than hot. After seeking estimates, you learn that it’s going to cost $500 to replace the water and clean the hot tub. It’s fully explained in your vacation rental lease agreement that guests are responsible for any damages incurred and you have a $1,000 security deposit on file. When you ask your guests to pay their share, they refuse and head home. If a vacation rental lease agreement template is not clear on the different treatments for damages and missing items, some people could try to play that loophole. Furthermore, some short-sighted property owners may try to get away with a vague template in an effort to keep the security deposit plus charge for more damages than they are truly responsible for. Skimping on details for damages and missing items will result in headaches that could have been avoided. Make sure your vacation rental lease agreement template specifically addresses how damages to products, appliances, and electronics will be handled. Make it clear that costs incurred for replacing missing items, such as a pool table cue stick or the towels you provide, will be deducted from their security deposit and not counted as damages. With this clarity, all guests know exactly where the lines are drawn, and you remain protected.
Where to Locate Trustworthy Templates Online
One of the most convenient ways to access a vacation rental lease agreement template is through a simple Internet search. Websites such as LegalZoom and Rocket Lawyer allow you to either create an agreement for free, could result in having to pay small fee or enrolling in a monthly membership. However , it does not hurt to have a professional view over an existing lease agreement in order to ensure everything is covered before signing. Below are some other ways to find a template:
- Your real estate agent or an agency manager can assist with providing a lease agreement template.
- A lawyer or law firm specializing in property management or landlord-tenant law can draft customized lease agreements specific to your needs.
- Local property management companies can also provide or facilitate access to templates.
- The National Council of State Housing Agencies (NCSHA) provides a basic tenant lease that can be downloaded here.
- The Real Estate Agent Library offers free leases, forms and articles with some templates available only to Registered Members.