THE RIGHT TYPE OF CONTRACT FOR YOUR SHORT-TERM RENTAL
You need a contract
If you are not using any contract for your short-term rental you are putting yourself at unnecessary risk. It is important to have a contract to protect you from liability for injuries on your property, which could be extremely substantial. Injury awards in court frequently exceed hundreds of thousands, even millions of do
llars. Even if you have proper insurance for your rental, such awards could exceed your coverage limits. A contract can also protect you from damages to your property and a host of other potential problems. Many owners ignore the necessity of a contract because of the inconvenience to themselves and their guests. GuestAgreement.com provides agreements that require just a few moments to complete by the owner or manager and only seconds to sign by the guest. GuestAgreement.com then stores the agreements permanently. You need the right type of contract
If you currently use a contract for your short-term vacation rental, chances are that you are using some form of a lease agreement. This is because lease agreements are common and easily available. However, by using a lease instead of a license to occupy agreement, you put yourself at a distinct disadvantage when dealing with your guests. The distinction between a lease and a license is that a lease grants exclusive possession of specific property by an owner, or “landlord”, to a “tenant”, who is given an interest in the property during the length of the lease. This relationship automatically creates significant obligations on the landlord. A license, on the other hand, gives temporary permission to use property that belongs to another. A license is revocable at the will of the licensor, and creates no legal interest in the property. In a license relationship the owner has the right to revoke the license “at will” and to use “self-help” to remove a defaulting licensee from the licensed premises. Lease agreements, on the other hand, require months of expensive time in court suing the tenant to leave the premises if they refuse to leave. This process is called eviction. There are also many other legal obligations placed on landlords in a lease arrangement, even if they do not appear in the lease document. Clearly, this is waste of your asset as well as a loss of income. There are specific requirements for a contract to be termed a license agreement as opposed to a lease. At GuestAgreement.com we have created a license agreement designed specifically for short-term rentals. Our agreement contains the language necessary to create the licensor/licensee relationship. Using GuestAgreement.com
Using GuestAgreement.com is as simple as 1, 2, 3:
1. Sign up for a free membership (we don’t have recurring fees and don’t require a credit card at this point).
2. Create your first agreement for free by answering a short series of questions about your property (again, no credit card required for the first agreement).
3. Sign the agreement online and the agreement will be emailed to your guest, where they can also sign online. That’s it. Your agreement is now completely enforceable and stored permanently. GuestAgreement.com provides an easy to use questionnaire that the owner or manager completes online. It asks for information about the booking and what amenities are provided at the property. If the owner checks certain types of amenities, like a swimming pool, a specific liability waiver for use of the pool is automatically attached to the agreement. Insurance companies recommend our agreement because it protects owners from liability in areas that insurance can’t cover or that exceed policy limits. It is also beneficial to the insurance company to the extent that the company might offer you a discount for using it. There are no negative impacts to the owner for using the agreement. GuestAgreement.com agreements are signed by both parties online. By federal law, this is a valid and enforceable signature. However, while unnecessary, parties are free to print and physically sign the document. We are confident that you will appreciate the convenience and protection offered by a GuestAgreement.com agreement. Your membership and your first agreement are free. Thereafter, agreements are only $10 per use. There are no hidden or recurring charges. Extras
We can also put you in touch with insurance companies that provide the right type of insurance for short-term rentals. (Normal homeowner’s insurance is likely void if you rent your property.) And we can provide criminal background checks on your guests if desired – also at a flat fee. To sign up for your free guest agreement, visit us at GuestAgreement.com. About the author: William (Bill) Ballinger is a California attorney with over 30 years of experience with business transactions and litigation. His partner, Randy Finney, is an attorney and entrepreneur. GuestAgreement.com was created after significant legal research into this rapidly expanding area of law and commerce.
