Does Your Airbnb Need a Rental Agreement? Here Are the Essential Terms to Protect Your Property
It only takes one guest complaint to realise that you need a solid set of terms to protect both yourself and your property. For individual property owners, these terms don’t have to be complicated, but they should cover key points to ensure you’re fully protected.
Here are the essential areas to include:
- Cancellation or Modifications to Bookings: Clearly state your cancellation policies and any fees associated with changes to bookings.
- House Rules: Define what’s allowed and what’s not, including any restrictions on activities, pets, or smoking.
- Maximum Number of Guests: State the maximum occupancy to prevent overcrowding and potential damage.
- Check-in/Out Times: Specify standard check-in and check-out times, and include your policy on late check-outs.
- Check-out Instructions: Provide clear instructions for guests on what is expected before they leave the property.
- Additional Fees: Outline potential charges for excess cleaning, damages, noise disturbances, or other violations of the house rules.
- Liability Statement: Include a statement that disclaims liability for any loss or injury guests might experience during their stay.
- Security Deposit: Mention whether you will require a refundable security deposit and outline the conditions under which it may be withheld, such as damages or breaches of house rules.
- Quiet Hours: Define quiet hours to minimise noise disturbances for neighbours, which can help protect the property’s reputation and avoid complaints.
- Parking Restrictions: Clarify the parking arrangements and any limits on the number of vehicles allowed on the premises.
- Unauthorized Guests: Specify that only registered guests are permitted to stay at the property, and outline penalties for bringing unauthorized guests.
- Age Restrictions: If applicable, include any age restrictions for booking or staying at the property, which can help prevent liability issues with younger guests.
- Environmental Policies: Encourage guests to be mindful of energy use (such as turning off lights and air conditioning when not in use) and water conservation practices.
- Event and Party Policies: Make it clear whether parties or events are allowed on the property. If not, include consequences for violations.
- Smoking Restrictions: Specify whether smoking is allowed and outline fines or extra cleaning fees for non-compliance.
- Pet Policies: If pets are allowed, mention any restrictions, additional cleaning fees, or damage deposits required for guests with pets.
- Cleaning Standards: Provide details on the level of cleanliness expected upon check-out, including guidelines for tidying up, washing dishes, or disposing of rubbish.
There’s no need to specify payment terms if they’re already covered by the booking platform (like Airbnb or Instant Booking).
Uploading Terms and Conditions
Many booking platforms allow you to upload your own set of terms, which are displayed during the booking process. If the platform doesn’t have this option, you can send a copy to the guest as part of their booking confirmation or include it in your online guest guidebook. If you choose not to display them directly on the booking website, make sure your house rules section makes it clear that guests will need to accept additional terms.
Handling Cancellations
Some guests mistakenly assume that booking an Airbnb is like booking a hotel room, and they may not realise that cancelling a booking, especially at the last minute, can leave property owners with little opportunity to rebook the property.
Guests will often appeal for refunds using emotional reasons, but as a business owner, you should stick firmly to the cancellation policies set by the platform. As a safeguard, recommend that guests purchase travel insurance to cover unforeseen circumstances. That way, if they request a refund due to a change of plans, you can politely refer them back to the insurance recommendation.
It’s important to note that some booking platforms may overrule your terms if they deem the guest’s reason for cancelling to be valid, such as illness.
