Writing a short-term rental agreement means putting every term that matters — who, where, when, how much, what’s allowed, what happens if something goes wrong — into a single signed document before the guest ever walks through the door. Even a two-night booking deserves one, because the agreement is your only real leverage if a guest damages the sofa, throws a party, overstays, or disputes a charge after check-out. The sections below cover the clauses that actually earn their keep.
Identify the Guests, the Property, and the Dates
Start with full legal names for every adult who will occupy the property. Those are the people bound by the contract, so spelling matters. Request a copy of a government-issued ID or passport before the stay and keep it on file. That paper trail discourages fraudulent bookings and matters if a dispute ever reaches small claims court.
Write out the property’s complete street address, unit number, and any gate or access codes. Pin down check-in and check-out to the exact day and time: “Check-in: Friday, March 14, at 3:00 PM. Check-out: Sunday, March 16, at 11:00 AM.” Vague language like “the weekend of March 14th” invites conflict and wrecks your turnover schedule.
Set a minimum age for the booking guest. Minors generally cannot enter enforceable contracts, so requiring the primary renter to be at least 18 is standard. Many hosts raise the floor to 21 or 25, particularly for larger properties. Whatever number you pick, state it in the agreement and apply it to every booking so you aren’t exposed to discrimination claims.
Spell Out Every Dollar
List the nightly rate, the cleaning fee, and any service or booking fee as separate line items. Bundling charges into one lump sum is a common source of post-stay complaints because the guest cannot tell what they paid for.
A security deposit protects you against damage beyond normal wear. For most short-term rentals, deposits range from $250 to $500, with high-value properties or homes with pools and expensive furnishings often at $1,000 or more. State the exact amount, explain what it covers, describe how you’ll hold the funds, and specify when and how it will be returned. Return deadlines vary by state, generally falling between 14 and 60 days after the guest leaves, so look up your jurisdiction’s rule and write the applicable deadline into the agreement. Penalties for a late return can be steep — in some states, two to three times the deposit amount.
You will almost certainly need to collect and remit a lodging tax, often called a transient occupancy tax or “bed tax.” State rates range from about 1.5% to 15%, and many cities layer additional local taxes on top; in some jurisdictions the combined rate pushes past 15%.1National Conference of State Legislatures. State Lodging Taxes Disclose the applicable rate and say whether it is included in the quoted price or added on top. Major booking platforms often collect and remit lodging taxes automatically; if you book directly, that job is yours.
Write House Rules You Can Actually Enforce
House rules do the heavy lifting. They translate your expectations into terms you can point to when something goes wrong, so each one needs a consequence attached.
Set the maximum number of overnight guests and, separately, the maximum number of daytime visitors. Overcrowding is the fastest route to noise complaints, fire code violations, and damage. Tie specific consequences to violations: forfeiture of the security deposit, an additional fee, or early termination without a refund.
Address smoking, quiet hours, and trash disposal plainly. If smoking is prohibited, say so and attach a financial penalty. Noise restrictions often track local ordinances, with many communities enforcing quiet hours between roughly 10:00 PM and 7:00 AM. State which day trash and recycling go to the curb and where bins should be placed. These details feel mundane, and they are exactly what generates neighbor complaints and municipal fines.
Pets and Service Animals
If you prohibit pets, say so clearly. A blanket no-pets policy, however, does not reach service animals. Under federal law, businesses and places of public accommodation must allow trained service dogs even when a no-pets rule exists.2ADA.gov. Service Animals You may ask two questions: whether the dog is a service animal required because of a disability, and what task the dog has been trained to perform. You cannot demand documentation, certifications, or a demonstration. Emotional support animals do not qualify as service animals under the ADA, though some state or local laws may extend broader protections.
Whether the Fair Housing Act applies to your rental depends on how many properties you own, whether you live on-site, and whether you use a broker or platform. Exemptions exist for owner-occupied buildings with four or fewer units and for individual owners of up to three single-family homes who rent without a broker. Those exemptions narrow quickly once you list on a major platform or add properties, so err toward compliance.
No Subletting, No Re-Listing
Explicitly prohibit the guest from re-renting the property, listing it on another platform, or transferring the reservation to someone else without written consent. Guests have been caught listing properties on competing platforms at a markup while staying there themselves. A clear clause gives you grounds for immediate termination if it happens.
Make Cancellation Terms Unambiguous
Cancellation is where most guest disputes originate. Define exactly what the guest gets back depending on when they cancel. Platform tiers work as a starting template; Vrbo’s options, for example, range from a relaxed policy granting a full refund up to 14 days before check-in, to a strict policy requiring cancellation 60 days out with no refund after that cutoff.3Vrbo Help. About Cancellation Policy Options
If you book outside a platform, build your own structure. A common approach: full refund for cancellations 30 or more days before arrival, 50% refund between 14 and 29 days out, no refund within two weeks of the stay. State whether refunds apply to the full amount paid or only the nightly rate minus non-refundable fees like cleaning. Also cover what happens if you, the host, need to cancel. Guests who get stranded deserve clear terms for a full refund and, where possible, relocation help.
Handle Liability and Insurance
This is the section most hosts skip, and it is the one that costs the most. Standard homeowners insurance is not designed to cover injuries or losses from short-term rental activity. Even without an explicit rental exclusion, your insurer can deny a claim on the ground that renting to paying guests is a business use of the home.4National Association of Insurance Commissioners. Renting Out Your Home You Need Insurance Coverage for Home-Sharing Rentals A guest who slips on your stairs may find there is no coverage, which means they come directly after you.
Options for closing that gap include a landlord policy, a short-term rental endorsement on your existing homeowners coverage, or on-demand coverage that activates only during booked stays.4National Association of Insurance Commissioners. Renting Out Your Home You Need Insurance Coverage for Home-Sharing Rentals Whichever route you choose, reference the applicable policy in the agreement and require the guest to acknowledge that the host’s coverage does not extend to the guest’s personal belongings.
Many agreements include a hold-harmless or indemnification clause under which the guest agrees not to hold the host liable for injuries arising from amenities like pools, hot tubs, or fire pits. These clauses are worth including, and they are not bulletproof. Courts scrutinize them for unconscionability, and some states refuse to enforce liability waivers for injuries caused by the host’s own negligence. The clause is a layer of protection, not a substitute for adequate insurance.
Disclose Every Camera and Monitoring Device
If your property has any exterior cameras, doorbell cameras, noise monitors, or smart home devices that collect data, you must disclose their existence and exact location in the agreement. Major platforms require it, and Airbnb went further in April 2024 by banning all indoor security cameras and recording devices, even if turned off or disconnected.5Airbnb Help Center. Use and Disclosure of Security Cameras Recording Devices Noise Monitors and Smart Devices Hidden cameras have always been prohibited.
Beyond platform rules, most states have laws against recording people where they have a reasonable expectation of privacy. Bedrooms, bathrooms, and enclosed outdoor spaces like saunas are off-limits everywhere. For exterior cameras, the safest approach is a dedicated paragraph listing each device, its location, and what it records, with the guest’s written acknowledgment. Failing to disclose a camera is one of the fastest routes to both a platform ban and a lawsuit.
Match Local Permits, Zoning, and Nuisance Rules
Many jurisdictions require hosts to obtain a short-term rental permit and display the permit number on listings and contracts. Annual fees typically run from around $150 to $2,000 depending on the municipality. Operating without a required permit can bring fines and forced delisting from platforms.
Zoning laws often restrict where short-term rentals can operate. Some areas limit them to owner-occupied properties. Others cap the total number of nights you can rent per year. Reference those limitations in the agreement where relevant, both to inform the guest and to document your own compliance.
Noise and nuisance ordinances frequently apply with extra force to short-term rentals. Many cities impose fines for violations, and repeated complaints can lead to permit revocation. Put the applicable quiet hours, parking restrictions, and waste disposal requirements directly in the agreement so the guest has no excuse for noncompliance.
Say Who Handles Lodging Tax — And Know the 14-Day Rule
Your agreement should state whether the host will collect and remit lodging tax, whether the platform handles it, or whether the guest is responsible. Getting this wrong creates liability for the host.
At the federal level, if you rent a home you also use as a personal residence for fewer than 15 days in the tax year, you do not need to report the rental income at all. This is the so-called 14-day rule or “Augusta Rule.” The trade-off is that you also cannot deduct any expenses tied to those rental days.6Office of the Law Revision Counsel. 26 USC 280A Disallowance of Certain Expenses in Connection With Business Use of Home Rental of Vacation Homes Once you cross 14 days, all rental income becomes reportable and you need to track expenses accordingly.
Keep copies of every agreement, payment record, and tax remittance for at least three years after filing the related tax return. If you fail to report more than 25% of your gross income, the IRS extends the audit window to six years, and claims involving bad debt deductions push it to seven.7Internal Revenue Service. How Long Should I Keep Records Keep records longer rather than shorter.
Keep a Guest from Becoming a Tenant
Here is the risk that catches many hosts off guard. A guest who stays long enough can acquire tenant status under state law, which means you cannot simply ask them to leave; you would need to go through formal eviction. In most states the threshold is around 30 days of continuous occupancy, but some jurisdictions set it much shorter. In parts of California, a guest can gain tenant protections after just seven consecutive days.
Your agreement is the primary defense. Specify the exact duration of the stay and state that the agreement creates a license to occupy, not a tenancy. Include an explicit end date with no option for extension without a new written agreement. If a guest requests an extension that would push total occupancy past your state’s threshold, treat it as a new booking with a gap between stays or decline it. Eviction in many jurisdictions takes weeks or months and costs thousands of dollars, so the drafting is worth getting right.
Pick Your Dispute Forum in Advance
Decide how disputes will be resolved and write it into the agreement. The three common options are direct negotiation, mediation, and binding arbitration. Mediation often fits short-term rental disputes well because it is faster and cheaper than court, and both parties keep control of the outcome. Arbitration is binding and harder to appeal, which makes it efficient but sometimes unfair to the party with less bargaining power. Courts have occasionally struck down arbitration clauses in rental agreements as unconscionable when the terms were one-sided or poorly disclosed.
If the dispute involves property damage or an unpaid bill, small claims court is often the practical choice. Monetary limits vary by state, generally from $2,500 to $25,000. Specify which state’s laws govern the contract and where disputes will be heard. Without a venue clause, a guest from another state could argue the dispute belongs in their home jurisdiction, which turns a simple damage claim into an expensive interstate problem.
Sign Electronically and Keep the File
Federal law treats electronic signatures as legally equivalent to handwritten ones for most contracts. Under the E-SIGN Act, a contract cannot be denied enforceability solely because it was signed electronically.8Office of the Law Revision Counsel. 15 USC Ch 96 Electronic Signatures in Global and National Commerce Platforms like DocuSign and Adobe Sign produce time-stamped audit trails showing when the guest received, opened, and signed the document. That trail is valuable evidence if the guest later claims they never agreed to a particular term.
One exception matters: the E-SIGN Act does not apply to certain notices related to a rental agreement for a primary residence, including notices of default or eviction.8Office of the Law Revision Counsel. 15 USC Ch 96 Electronic Signatures in Global and National Commerce If a guest overstays and you need to send a formal notice to vacate, check your state’s requirements for physical delivery before relying on email.
Send the guest a fully executed copy before check-in. Keep your own copies organized by property and date, and store them for at least three years after the related tax return is filed. If you have household employees such as cleaners on payroll, employment tax records require at least four years of retention.9Internal Revenue Service. Topic No 305 Recordkeeping Digital storage is fine; keep backups. A well-organized file of signed agreements is the single most useful thing you can hand a lawyer or insurance adjuster if a dispute escalates.