There are some things about the holiday rental market that are legal benefits and you want to know before you start renting it as a holiday rental.
- Request / Booking Agreement. If you have rented a home with a regular lease, take it. Here's why. Giving a lease leases and literally it may take months to evict a person from your property, depending on the eviction process and the location of the property. Instead, use a hospitality contract, which legally allows you to impose an immediate departure for contract violations. Make the first page of the reservation agreement an application so that it feels more like a privilege than a point of sale. This sets the tone for the respect of your business and your property.
- Deposits. Think of not taking deposits. If you accept credit cards, write something to the contract that allows you to spend on your credit card for damages other than normal wear and tear. A damages deposit is usually not enough to cover most of the damages; and the costs of collecting and returning damages are prohibitive. Purchase a deposit insurance through an insurance company, which allows you to file a claim for damages (up to $ 1,500) to the insurance company. Cover a non-refundable $ 50 fee; which covers the cost of insurance; and get some extra profit to boot.
- Holiday rental insurance. Offer vacation rental insurance to your guests, which covers situations where a guest may need to cancel their rent to reimburse. Reimbursements are difficult in this business, because during the period of time you have reserved your holiday rental, we could not rent it. Although it does, the work doubles for the same amount of cash flows. Offering a vacation rental insurance (for 7% of the rental cost) you will get some extra benefit. Include a waiver that if you choose not to buy the insurance you will not be able to make a refund. In this way, if you get a guest who wishes a last-minute refund and attempts to refuse reasons for breaching your contract, you can refer them to the insurance company to file a claim; Or you can remind them that they gave up buying a vacation rental insurance.
- Local hospitality taxes. Many populations still do not know holiday rentals and do not consider them taxable. Although some populations need to have a license or certificate; Other cities must pay a hospitality tax if the rental period is 7 days or less. Take an informed decision on how you will manage the hospitality tax.