What should be in your vacation rental agreement?

If you own a property near a popular vacation destination, you might be thinking about renting it out.

This can be a great way to generate income but be sure to craft a rental agreement that fully protects you and your property.

Why is a rental agreement so important?

Rental agreements are legally binding documents that outline the rules for renting a property. If a tenant breaks these rules, you have the option of taking legal action. Even if you do not want to get involved in legal action having clear written guidelines for your renters is a good idea.

Items to include in your agreement

Note that while this is an outline of items you likely want to have in your rental agreement, it is not legal advice. Always review a rental contract with a lawyer before offering it to potential renters.

With that in mind, the key items you will want to have in the contract are as follows:

• Your full name and the full names of all guests who are authorized to stay at the property
• The maximum occupancy for the rental, clarifying how many adults and how many children are allowed
• The amenities included in the rental and their condition at the time of the agreement
• The date and time the renter may arrive at the property and the date and time they must leave
• Extras fees charged for early arrival or late departure
• The location details of your rental property, stated in the manner mandated by local law
• Events that would qualify the renter for removal from the property or other consequences, with the consequences laid out in clear and direct language
• The cost of renting the unit, including deposits and cleaning fees
• Cancellation terms
• Expectations for cleanliness and maintenance
• Your rights to access the property

Even the very best rental contract cannot prevent the occasional problem from arising. Prepare yourself and protect your income by taking out the right insurance policies on the property. To learn about which policies are appropriate for vacation rental properties, contact an insurance broker.