What is a Vacation Property Rental Agreement?
A Vacation Property Rental Agreement is a legal document that specifies the terms of renting a vacation property.
A Vacation Rental Property Agreement can also be called a short-term rental agreement as it details a stay of a tenant around a period between one and 30 days. This Rental Agreement for Vacation Property outlines the terms of the tenant’s temporary occupancy and the house rules they must abide by to continue that stay.
Writing up a Vacation Property Rental Agreement Template is always advisable to those who are interested in providing their property as a rental vacation home. This is because having such an agreement would protect the interest of both parties.
A Vacation Property Rental Agreement allows a clear set of rules to be set upon that temporary stay of that tenant which allows both parties to hold each other accountable in the event of a dispute. Problems concerning property damage, overstay, and bad conduct can all be referred to in this agreement to clarify the “house rules” that must be followed.
Another benefit of writing up a Vacation Property Rental Agreement is the fact that it has positive consequences in terms of tax. The Internal Revenue Services (IRS), exempts properties rented out for 14 days or less from tax. Thus, it can be a useful way to write off expenses such as mortgage interest and property tax. However, to do this, you will need a reliable record of the dates when the property was rented out. A Vacation Property Agreement Serves this purpose well.
However, it should also be kept in mind that the income you generate from renting out properties must still be filed under income tax if you have rented out your property for more than two weeks per year.
How to fill out a Vacation Rental Property Agreement?
Lessors who are interested in using this agreement can find a Vacation Property Rental Agreement PDF copy on any online document database that offers legal templates. You may download and print out a copy that you can fill out manually. Alternatively, you can also fill out the form electronically on PDFRun.
The opening line of the agreement details the significant terms that will be used throughout the agreement such as how the agreement (“Lease”) and the parties will be addressed (Landlord and Tenant), and the date when the agreement is made.
Hence, you are required to enter the date when the agreement was made as well as your name (the rest of the agreement will refer to you as “Landlord”) and the name of your lessee (the rest of the agreement ill refer to them as “Tenant”).
Under this opening statement, you will then find two prerequisites that must be addressed before continuing on the terms and conditions of the agreement. These are as follows:
- It must be verified that you, the landlord, have legal ownership over the vacation property. Input the complete address of the property here. This property will now be called the “Leased Premises” for the rest of the agreement.
- This agreement must be done in the interest of both parties. That is, the tenant must confirm their interest in leasing your property and you must confirm your interest in having your property leased.
After this section of the agreement, you and your Tenant can begin detailing the terms that both of you must abide by. The terms can be found below.
- Lease Term
This is where you will detail for how long you, as a Landlord, will lease the Leased Premises towards them. To do this, indicate the number of months that the Leased Premises will be leased to the tenant. In addition, indicate the day, month, and year their stay will begin and the day, month, and year that they will end their stay.
This part of the agreement is important to prevent any form of overstaying from the tenant and movies the landlord a concrete ground to stand on when they try to make an overstaying tenant leave.
This is the clause that states that all rent payments must be paid before the actual date of occupancy unless otherwise agreed upon. This means that before the date that the Tenant will arrive and begin their stay, all their rent payments must be paid and complete.
This is to prevent difficult tracking of payments, especially if the tenant happens to take permanent residence somewhere far away. Having all the payments in order will cause less trouble for both you and your tenant when the time comes to leave the Leased Premises.
- Security Deposit
This clause states that the Tenant must pay a Security Deposit in addition to the rent. This amount to be paid must be agreed on if it is already agreed upon, input the amount in this clause. The Security Deposit must be paid alongside the Rent and must be paid before the Tenant’s occupation of the Leased Premises.
The Security Deposit is insurance for the event that the Tenant causes property damage or the maintenance of certain facilities after the stay of the Tenant. This is to ensure that the Leased Premises are maintained in a good state even after the Tenant’s stay has concluded by repairing or replacing any items the tenant might have damaged or used.
This clause states that the Tenant, during their stay in the Leased Premises, is liable to any damages in or around the property caused by their willingness to do so or negligence. Any damages that can be attributed to their stay. Thus, you cannot be faulted, unless otherwise evidenced by other circumstances.
This clause is to protect you, the Landlord against any acts to damage your property under the court of law. As such, if ever the Security Deposit is not able to cover the damages done, you will have the complete and legal right to ask for more compensation.
Signing this agreement means that the agreement is now in full effect and all the above clauses are understood.
Affix your signature here.
Input the date of signing.
Affix the signature of the tenant here.
Input the date of signing.