How Bulletproof Are Your Vacation Rental Agreement Tools? - Part 2

By Author: Michael Canson
Total Articles: 7
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Continued from "How Bulletproof Are Your Vacation Rental Agreement Tools? - Part 1"

There are several useful books on the market. One is Cliff Roberson's The Landlord's Book of Forms and Agreements (McGraw Hill, 2006) which features several examples of agreements and a CD with several downloadable forms that you can adapt to your situation. The book also provides well-organized information on such topics as rights and responsibilities, liability issues, tenant screening companies, a list of provisions that are prohibited in rental agreements and a glossary of legal terms. Another useful reference is Christine Hrib Karpinski's How to Rent Vacation Property by Owner which provides good examples of rental rules and regulations and more.

At the very least, your rental agreement should include articles dealing with the following areas:

1. Your contact information

2. Property information - Address, phone number, email address if one exists for your rental property, parking information

3. Information specific to your guest's stay - You might want to present this information in a frame that stands ...
... out:

- Name and full address of person who booked and will sign the contract
- Number of persons booked
- Check-in and check-out dates and times

4. Restrictions - Age, maximum occupancy, minimum stay, etc.

5. Rules and policies - This is a good place to use the appendix technique we proposed earlier. Cover all your rules - one policy per appendix - including noise, pets, smoking, fire safety, garbage disposal, use of hot tub or pool, BBQ, etc. In the agreement itself, introduce this section with a short, general text that explains why these policies are important and list them. Then refer your guest to the specific policies that apply to him, such as your policy on pets.

Remember to include information and policies regarding the use of any public facilities in your building or complex, such as a swimming pool or workout room. Add a warning that says that you cannot be held responsible should any of those facilities, over which you have no control, be inaccessible during your guest's stay. Include elevators, alarm systems, etc. Stipulate that you will not give refunds or discounts in such cases.

You could post a friendlier version of your rules and policies near your hot tub, pool and other appliances. Your rental agreement is a legal document but the version your guest will see everyday could have a more welcoming and friendly tone.

6. Weather and other events out of your control - List these events and for each, clarify under which precise circumstances you will or will not make refunds - be as detailed as possible.

7. Check-out rules - Clarify what you expect of your guest at departure time:

- Check-out time and penalty for late check-out - you'll save yourself a lot of trouble by not allowing early check-ins and late check-outs.
- Housekeeping procedure
- Where to leave keys
- Damage deposit refund deadline

8. Payment details - Part of this section will be standard information provided to all your guests, some may be specific to this particular guest. There may be some repetition with other articles but it is important to consolidate all monetary details under this article.

- Reservation deposit - State the amount of the deposit and the purpose - the reservation deposit is required to secure the booking. You should convert this deposit into the damage deposit. If more than one deposit is involved, specify the date of the second deposit.
- Damage (security) deposit guidelines and refund policies - Inform your guest that you have inspected your property prior to his arrival and have found everything to be in order, and that should he discover upon arrival either damage or a missing item, he must immediately advise you. State the amount of your damage deposit and explain its purpose. Lay out exactly what you mean by violations of your policies and how they could lead to a partial or full loss of the deposit - be specific and detailed. State that the deposit is fully refundable within, say, 15 days of departure providing certain conditions are met - lay out those conditions in detail.

Make sure you inspect the property before your next guest arrives and before you refund the deposit. Ask your attorney to advise you of any laws regarding deposits and respect those laws. If you withhold part or all of the deposit, you need to be able to justify your action, so remember to keep the invoices for repairs or purchases made to replace items.
- Cancellation / refund policy - List possible scenarios - natural disaster, medical emergency, death in the family, etc. - and explain your policy for each case should such an event prevent your guest from honoring the booking. As a general rule, the security deposit is not refundable and you may even want to charge an additional penalty should your guest cancel within 60-90 days of the arrival date, unless you are able to rebook those dates.
- Penality for late check-out
- Rate change policy
- Payment instructions - Provide instructions for paying by check (mailing address, returned check fee) or by credit card (which cards are accepted, etc.)
- Detailed invoice - Include your invoice as an appendix of your rental agreement, but you should also provide it as a separate document - to be signed by your guest and returned to you as confirmation that he understands and accepts your invoice. It is friendlier to present your invoice in the form of a dated, personal letter. The letter / invoice should include the following points:

* Thank your guest for choosing your property and wish him a pleasant vacation.
* Repeat the full name, address and phone number of your guest and at your property.
* State check-in and check-out dates and times and the number of guests
* Provide billing information including any details that could avoid questions: reservation deposit (convertible to damage deposit), rental balance (show rental rate), taxes (and tax rates) and all refundable or non refundable fees such as damage deposit or damage waiver fee, pet deposit or fee, cleaning fee, fees for heating the pool or cleaning the hot tub, amenity fee (for access to facilities on the grounds such as tennis or golf), etc.
* Explain your payment schedule for deposits and rental costs - usually two equal payments, one 60 days prior to arrival and the final payment, 15-30 days prior, unless the booking is last-minute - in that case, you should insist on full payment.
* Mention that you will provide further instructions (keys, directions) as soon as you receive final payment.
* Ask your guest to return to you by mail signed copies of the invoice, the Credit Card Authorization form (or a check) and the rental agreement.

- Credit Card Authorization form - Create a form with these fields: name appearing on the credit card, guest's billing address, type of card, credit card number, expiration date, a signature line and date plus an authorization statement such as this one: I hereby give permission to charge my credit card for the amounts indicated. I agree that all rental amounts are non-refundable as per the cancellation policy. I have read and agree to the terms and conditions of the rental agreement. You could also recommend paying through Paypal.

9. Special arrangements / exceptions - Use this normally blank section to note the results of any discussions or negotiations you had with your guest. When your guest reviews the rental agreement, this is where he would indicate any requested modifications or clarifications which you can agree to or refuse.

10. Legal age statement - Just before the signature line, add an article stating that the renter testifies that he is of legal age to sign a contract in your district.

11. Signature and date lines - This is where you and your guest to sign and date the rental agreement

References

1. Cliff Roberson, The Landlord's Book of Forms and Agreements (McGraw Hill, 2006)
2. Christine Hrib Karpinski, How to Rent Vacation Property by Owner, 2nd edition (Kinney Press Pollack, 2008)

Tags : Vacation rentals, vacation rentals by owner, vacation home rentals, vacation homes for rent