Whether you are looking for someone to manage your property as a short term rental or you manage vacation rentals or serviced apartments on behalf of property owners, having a proper and detailed contract in place is a must. Even if the partnership comes from a friendship bond, a co-hosting contract in effect helps as all the parties involved know exactly how to deal with future problems, should the problem arise in a co-host relationship. A sample co-hosting contract can always be helpful especially if you’re new to the short term rental industry.
Basically, any contract should be able to clarify the binding responsibilities of the parties and the duration of such a commitment. Likewise, the reason for having a co-hosting contract between the property owner and the property management agency is to establish a ground for who has to do what and for how long. It has to include the scope of work, responsibilities, flexibility and amendment conditions, fees, and the period during which the contract is binding and applicable.
Zeevou is run by actual property managers with expertise and experience in managing serviced apartments. So, we know what exactly goes into co-hosting contracts, and we have put together a sample property management contract at the very end of this post. But before that, please read the following section to get a clearer understanding of what constitutes a contract for vacation rentals and property management in general.
What Does A Property Management Contract Have To Contain?
Eventually, if you wish to draw up accurate and articulate property management or co-hosting contract, make sure to include the following items/articles:
1. Specify the ownership, and if the property has more than one owner, you need to determine the contact person. To what extent the property manager has the right to rent the property, do marketing duties and booking related tasks?
2. Who is going to accept liability for the damage caused and associated legal costs incurred?
3. Is there any indemnity for loss of or damage to the property?
4. What is the current condition of the property? For instance are there any ongoing maintenance problems for the property? What are the types of problems the property owner has to pay for?
5. Who is going to pay the bills for the utilities and services?
6. How much of the rent is for the property owner? Is there any additional cost that is going to be deducted from the rent?
7. Who is eligible to announce the termination of the contract? How early do they have to send a notice? And who is responsible for the management during the notice period?
8. What happens if the property owner wants to sell the property?
9. What is the safety condition of the property? In other words, are there any national safety regulations and standards that have to be taken into account?
10. Is there any obligation and responsibility for property insurance?
11. Which parties have access to tenants’ details? Who is eligible to take the interest of all the money clients to pay for their stay? Should the manager pay anything due to income from additional services to guests?
12. How much is the management fee? Does the property manager charge card processing commission? What are all the other fees property owners have to pay to managers?
Sample Co-Hosting Contract!
Zeevou has put together a very detailed and comprehensive sample of a co-hosting contract. It includes all the aspects mentioned above in more detail. Please note that legal requirements change from jurisdiction to jurisdiction. This document is only meant to give you an idea of points you may wish to cover. You should seek independent legal advice for any documents you adopt in your business to ensure you are fully protected. Zeevou accepts no liability arising as a result of you using any part of this document. To download the sample co-hosting contract for free, click here.