Use our short-term (vacation) rental agreement to rent out your property for vacations or other temporary stays.
Updated June 17, 2024
Written by Sara Hostelley | Reviewed by Susan Chai, Esq.
A short-term rental agreement or a vacation rental agreement is a legally binding document between a landlord and a tenant for a short stay at a rental property. Parties usually implement it for stays lasting one to 30 days, but it may outline an arrangement lasting as long as six months.
This document details temporary stays for higher-end rental properties, ensuring all parties understand the terms and conditions of the stay.
Include the following details in your short-term rental agreement:
A short-term (vacation) rental agreement is a legal document landlords use when renting a furnished property for short, defined periods. It differs from a month-to-month rental agreement, which offers a tenancy at will.
This rental agreement clearly defines the owner’s and guests’ expectations and protects both parties in case of damages or cancellation. Some instances when you’d use it include the following:
You must abide by all applicable state laws when writing a short-term rental agreement. Furthermore, you must follow federal regulations, such as providing a lead-based paint disclosure form if the building was built before 1978.
Local jurisdictions may have specific requirements for short-term rentals to minimize their potentially negative effects on neighborhoods and communities. For example, local governments may limit the following aspects of short-term rentals:
Explore some short-term rental regulations by city:
| City | Website Announcing the Regulations | When the Regulations Went into Effect | Major Provisions |
|---|---|---|---|
| Alamosa, Colorado | Alamosa News | May 2022 | • Short-term rentals available for less than 30 days can only be in certain buildings, such as one unit in a multi-family property or a single-family home. • Owners must obtain a license (initial cost of $750 and a $300 renewal fee). • Neighbors must receive a notification when a new short-term rental license is issued. |
| Arlington, Texas | Arlington City Hall | April 2019 | • Property owners must pay a $500 nonrefundable permit fee each year. • You must have a permit for each site or address. • The maximum occupancy limit is two to a bedroom plus two, limited to 12 people total. |
| Aspen, Colorado | The Post Independent | November 2022 | • Ballot Issue 2A sets a 10% tax on investment properties and a 5% tax on nightly room rates for STRs with lodge-exempt (LE) permits. |
| Atlanta, Georgia | Atlanta Journal Constitution | March 2022 | • Hosts must pay $150 each year for a permit. • Violating the ordinance results in a $300 fine. |
| Burlington, Vermont | Seven Days | June 2022 | • Owners must live on the property in most cases, but there are some exceptions. • They pay 9% on tax revenue and an annual fee, which can be as high as $110. |
| Chattanooga, Tennessee | Chattanooga Chamber of Commerce | May 2023 | • A local contact must be available around the clock in case the guest has an issue. • Short-term rentals can't consist of more than 25% of the units in multi-family residential building. • Any property that's being rezoned from a residential to commercial property must have an 18-month cooling off period before an owner can apply for a short-term vacation rental permit. |
| Coeur d’Alene, Idaho | City of Coeur d’Alene and KREM | December 2017 | • Owners must pay a rental permit fee of $285 and an additional $180 to renew each year. • The city began requiring permits for all rental stays under 14 days, which conflicted with the previous rules. |
| Dallas, Texas | Dallas City Hall | December 2023 | • A short-term rental property can have no more than three guests per room (and a maximum of 12 guests total). • Hosts must ensure that guests limit their use of amplified sound between 10 p.m. and 7 a.m. • The minimum stay for short-term rentals is two nights. |
| Dauphin Island, Alabama | Town of Dauphin Island | January 2023 | • Hosts must pay a $135 license fee. • Inspections must occur once every three weeks. • Required minimum stays can be two or three nights, depending on the zone. |
| Dillon, Colorado | City of Dillon | March 2022 | • Any advertising for the property should include the STR license number and property occupancy. • All STR licenses expire May 31st each year. • A STR license costs $700 annually. |
| Fort Worth, Texas | City of Fort Worth Texas | February 2023 | • STRs are allowed in most industrial, commercial, and form-based districts. • STRs are not permitted in several residential districts. • Property owners must acquire a permit for $150 and pay an annual renewal fee of $100. |
| Frisco, Texas | Frisco Town Government | October 2022 | • The city allows for a maximum number of 900 STR licenses. • You can renew your license between February 20 and April 30. • The renewal fee is $250. |
| Lexington, Kentucky | City of Lexington | July 2023 | • STRs don't include motel or hotel rooms, farm dwelling units, lodging or boarding facilities, and bed and breakfast facilities. • Residential and commercial/business zones have different occupancy limits. • STRs shouldn't be used for private events. |
| Marco Island, Florida | City of Marco Island | October 2023 | • The city doesn't have restrictions for the frequency or duration of short-term stays. |
| Memphis, Tennessee | The Commercial Appeal | March 2017 | • STR property owners must obtain a license from the Division of Public Works. |
| New York City, New York | NYC Office of Special Enforcement | January 2022 | • Booking service platforms may not process transactions for unregistered STRs. • STRs must register with the OSE. |
| Tybee Island, Georgia | City of Tybee Island | October 2022 | • Residential zoning districts R-1, R-1-B, and R-2 don't allow any new STRs. • Property owners must obtain a unique location identification number. |
1. Governing State. Make sure to check state and local laws regarding vacation rentals before you begin. Short-term vacation rentals are restricted, taxed, or held to specific requirements in some locations.
Some cities, like Austin, TX, require a short-term rental license to rent a property for less than 30 days at a time.
2. Assess Risk. With guests coming in and out of your property more frequently, ensure you factor in an increased risk of damage or degradation of your property.
Consider updating your insurance policy or creating an LLC for your vacation rental property to limit your personal liability and protect your assets.
3. Owner and Guest Information. Write the property owner’s name and the guest responsible for the agreement.
4. Property Information. In your rental agreement, including the property address, property type (house, apartment, etc.), and private and public facilities guests will have access to.
Also, list the amenities included with the property, such as:
5. Guest Details. Write the names of the guest (the person signing the rental agreement with you) and all members of the rental party.
This helps ensure the property does not exceed the maximum occupancy and allows you to charge a fee or respond accordingly if any guests are not a party to the agreement.
6. Occupancy, Visitors, Other Policies. Clearly state your policies regarding the following:
Include specific penalties (like fees or termination of the rental agreement) if the tenant doesn’t comply with a given policy.
7. Check-In and Check-Out Details. Write the arrival date and check-in time, and explain how guests can access the property.
Also, describe the check-out process, including check-out time, key drop-off, and any cleaning guests are expected to do before leaving.
If your guests require a physical key to enter the rental property, note any fees associated with lost keys in the contract.
8. Payment Details. Your short-term rental agreement should clearly state the rental cost (rate and total amount due), with a breakdown of local taxes, cleaning fees, and other applicable charges. Include acceptable payment methods (cash, check transfer, etc.), and the due date.
It is also a good idea to require a security deposit to protect you during a last-minute cancellation. Typically, the guest pays the security deposit when making the reservation, and the owner refunds the deposit at check-out or deducts it from the total balance.
Depending on your cancellation policy, you may offer guests a partial or full refund of their deposit if they cancel with enough notice or unforeseen circumstances occur (like severe weather).
9. Signatures. After the guest has read and agreed to the rental agreement terms, both parties should sign and date the agreement.
Give the guest a copy of the signed rental agreement and proof of payment for their security deposit.
Download a vacation rental contract in PDF or Word format below:
