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

There are several useful books on the market. One isloss of the deposit - be specific and detailed. State
Cliff Roberson's The Landlord's Book of Forms andthat the deposit is fully refundable within, say, 15
Agreements (McGraw Hill, 2006) which featuresdays of departure providing certain conditions are
several examples of agreements and a CD withmet - lay out those conditions in detail.
several downloadable forms that you can adapt toMake sure you inspect the property before your
your situation. The book also provides well-organizednext guest arrives and before you refund the
information on such topics as rights anddeposit. Ask your attorney to advise you of any
responsibilities, liability issues, tenant screeninglaws regarding deposits and respect those laws. If
companies, a list of provisions that are prohibited inyou withhold part or all of the deposit, you need to
rental agreements and a glossary of legal terms.be able to justify your action, so remember to keep
Another useful reference is Christine Hrib Karpinski'sthe invoices for repairs or purchases made to replace
How to Rent Vacation Property by Owner whichitems.
provides good examples of rental rules and- Cancellation / refund policy - List possible scenarios -
regulations and more.natural disaster, medical emergency, death in the
At the very least, your rental agreement shouldfamily, etc. - and explain your policy for each case
include articles dealing with the following areas:should such an event prevent your guest from
1. Your contact informationhonoring the booking. As a general rule, the security
2. Property information - Address, phone number,deposit is not refundable and you may even want to
email address if one exists for your rental property,charge an additional penalty should your guest cancel
parking informationwithin 60-90 days of the arrival date, unless you are
3. Information specific to your guest's stay - Youable to rebook those dates.
might want to present this information in a frame- Penality for late check-out
that stands out:- Rate change policy
- Name and full address of person who booked and- Payment instructions - Provide instructions for
will sign the contractpaying by check (mailing address, returned check
- Number of persons bookedfee) or by credit card (which cards are accepted,
- Check-in and check-out dates and timesetc.)
4. Restrictions - Age, maximum occupancy, minimum- Detailed invoice - Include your invoice as an
stay, etc.appendix of your rental agreement, but you should
5. Rules and policies - This is a good place to use thealso provide it as a separate document - to be signed
appendix technique we proposed earlier. Cover allby your guest and returned to you as confirmation
your rules - one policy per appendix - including noise,that he understands and accepts your invoice. It is
pets, smoking, fire safety, garbage disposal, use offriendlier to present your invoice in the form of a
hot tub or pool, BBQ, etc. In the agreement itself,dated, personal letter. The letter / invoice should
introduce this section with a short, general text thatinclude the following points:
explains why these policies are important and list* Thank your guest for choosing your property and
them. Then refer your guest to the specific policieswish him a pleasant vacation.
that apply to him, such as your policy on pets.* Repeat the full name, address and phone number
Remember to include information and policiesof your guest and at your property.
regarding the use of any public facilities in your* State check-in and check-out dates and times and
building or complex, such as a swimming pool orthe number of guests
workout room. Add a warning that says that you* Provide billing information including any details that
cannot be held responsible should any of thosecould avoid questions: reservation deposit (convertible
facilities, over which you have no control, beto damage deposit), rental balance (show rental rate),
inaccessible during your guest's stay. Includetaxes (and tax rates) and all refundable or non
elevators, alarm systems, etc. Stipulate that you willrefundable fees such as damage deposit or damage
not give refunds or discounts in such cases.waiver fee, pet deposit or fee, cleaning fee, fees for
You could post a friendlier version of your rules andheating the pool or cleaning the hot tub, amenity fee
policies near your hot tub, pool and other appliances.(for access to facilities on the grounds such as tennis
Your rental agreement is a legal document but theor golf), etc.
version your guest will see everyday could have a* Explain your payment schedule for deposits and
more welcoming and friendly tone.rental costs - usually two equal payments, one 60
6. Weather and other events out of your control -days prior to arrival and the final payment, 15-30
List these events and for each, clarify under whichdays prior, unless the booking is last-minute - in that
precise circumstances you will or will not makecase, you should insist on full payment.
refunds - be as detailed as possible.* Mention that you will provide further instructions
7. Check-out rules - Clarify what you expect of your(keys, directions) as soon as you receive final
guest at departure time:payment.
- Check-out time and penalty for late check-out -* Ask your guest to return to you by mail signed
you'll save yourself a lot of trouble by not allowingcopies of the invoice, the "Credit Card Authorization"
early check-ins and late check-outs.form (or a check) and the rental agreement.
- Housekeeping procedure- "Credit Card Authorization" form - Create a form
- Where to leave keyswith these fields: name appearing on the credit card,
- Damage deposit refund deadlineguest's billing address, type of card, credit card
8. Payment details - Part of this section will benumber, expiration date, a signature line and date plus
standard information provided to all your guests,an authorization statement such as this one: "I
some may be specific to this particular guest. Therehereby give permission to charge my credit card for
may be some repetition with other articles but it isthe amounts indicated. I agree that all rental amounts
important to consolidate all monetary details underare non-refundable as per the cancellation policy. I
this article.have read and agree to the terms and conditions of
- Reservation deposit - State the amount of thethe rental agreement." You could also recommend
deposit and the purpose - the reservation deposit ispaying through Paypal.
required to secure the booking. You should convert9. Special arrangements / exceptions - Use this
this deposit into the damage deposit. If more thannormally blank section to note the results of any
one deposit is involved, specify the date of thediscussions or negotiations you had with your guest.
second deposit.When your guest reviews the rental agreement, this
- Damage (security) deposit guidelines and refundis where he would indicate any requested
policies - Inform your guest that you have inspectedmodifications or clarifications which you can agree to
your property prior to his arrival and have foundor refuse.
everything to be in order, and that should he10. Legal age statement - Just before the signature
discover upon arrival either damage or a missing item,line, add an article stating that the renter testifies
he must immediately advise you. State the amountthat he is of legal age to sign a contract in your
of your damage deposit and explain its purpose. Laydistrict.
out exactly what you mean by violations of your11.
policies and how they could lead to a partial or full