Vacation rental agreement- do you use one?

Question

Villy Ellinger · Answer

Hi, @Mark Futalan, I am not arguing with all the other people above who said they don't use extra agreements or are annoyed when they have to sign those. I totally get it -- guest experience can be hampered by a 5 page legal document that goes on and on. My opinion on the issue is (just my opinion) -- you own an an $X00,000 property and your guests are there for just a week... all is well (99% of the time) until it isn't.... and then.... a guest paying $2K can sue you worth $2M. So... to avoid that I have ALL my guests, including friends electronically sign a rental agreement prepared by a lawyer. My commercial liability insurance actually requires that, so I tell that to the guests. The agreement protects the guests as well. We live in a litigious society. I personally would rather miss out on a guest or two (who is turned off by having to sign an agreement) than lose my pants in court. I use RightSignature.com for my e-sign agreements. It tells them where to initial and where to sign and it's a 5 minute process. Most guests don't actually read the full 6 pages but you are still protected if they sign. DocuSign is a similar service you can subscribe to.

Joe Splitrock · Answer

@Mark Futalan I use Airbnb quite often and typically there is no extra agreement I have to sign. Then when I was planning a vacation this summer, I got a separate agreement from the host after I booked. It was totally unnecessary and the agreement basically said they could cancel at any time, I could never cancel. It also said they could enter the property at any time. I am hoping it works out, but it was honestly just offensive that they sent it. On top of that three months after I sent the signed form back, the lady e-mails and says she can't open the file on her computer so I must resend it again within 24 hours. It was her fault she didn't even look at the file when I sent it back. I get the "old" vibe from these people, which is probably why they are married to these old agreements. The whole point of Airbnb is to have a standard way for hosts and guests to do business, so the forms are just not necessary. I will never book a property with an extra agreement again.

Peter Hagemann · Answer

Use them all the times, even for when friends rent our Vacation Rentals

Everything is spelled out black and white,

No... You told me this or you did not tell me that.

This way everyone is on the same page

Al Williamson · Answer

I do a lot of direct marketing and book most of my stays outside of Airbnb. When I book direct, I have guest sign a abbreviated lease agreement.

Joe Splitrock · Answer

I am just saying as a guest having stayed at around 30 places through AirBNB, I have only received an agreement to sign once. In the future, I will not stay at any place that has an extra agreement. I have always left every property I stayed at as good or better than when I arrived. If 29 out of 30 don't require the agreement, why stay at that one place? The problem is the agreement was one-sided. It said the host could cancel reservation without penalty at any time and enter property at will, with no guest rights written into the agreement.

You telling me that AirBNB is pro-guest makes me want to use them even more often over other services. Why do guests need protection? My last stay was for a private 3 bedroom home. I get a text the day before I will arrive and the owner asks if I need all three bedrooms, I say no thinking he was storing stuff in one or something. Then he asks if I mind sharing a bathroom with his friend. This was not disclosed in the listing. So thankfully AirBNB cancelled it no questions and gave me 10% credit to rebook. That is why I use a service, to protect me from crap like that. I don't need to sign an agreement that says "owner can enter property at any time". I have a wife and young daughter, so for their safety, no thanks. If I pay $300 a night, I am entitled to privacy. I treat every property with respect and expect the same in return. It should be a two-way relationship.

This is just my view as a guest (customer). I get your concerns to protect your property, but the existing AIrBNB agreements do provide owner protection. How often have you had to take your written agreement to court for AirBNB guests?

I compare AirBNB to a hotel stay (because that is my option, stay at a hotel), not leasing a property for years. Staying 4 days at a property is totally different than someone moving in for a year. People operating short term rentals are basically just running small hotels.

Garry C. · Answer

Completely disagree with what @Joe Splitrock said above. I feel the need to point that out, because it's worth noting if you want to keep your property safe, and/or protect yourself when it is treated poorly by guests. The point of AirBNB is not 'to have a standard way for hosts and guests to do business', it is 'to make money for shareholders'. The lion's share of that money comes from the guests, not the hosts, so they naturally want to do what they can to protect the interest of guests, more so than owners' interests.

A rental agreement is absolutely necessary. But don't take my word for it. You do have a lawyer on your team, right? Ask them for their opinion. Or simply ask yourself, would you rent out a traditional rental, for an annual lease term, without a written agreement?

I imagine that VRBO will eventually do away with their rental agreements too, as they attempt to become an AirBNB clone. When that happens, I will require guests there to do the same as the AirBNB guests, visit my web site and digitally sign the renter agreement before access instructions are released.

John D. · Answer

We use them in some cases, not in others.  Many desert cities require them (including names of all guests, license plate numbers, etc.) however La Quinta is a bit more lax.

Chai Xiong · Answer

I don't either

Travis Rasmussen · Answer

@Mark Futalan

You could, but we have decided not too.

I am ALL about safety when it comes to my investments, but I guess there is a certain point that I don't want to scare off clientele.

Vacation rental agreement- do you use one?

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