Rental contracts and rental agreements

[Astrid]

Hello everyone,

I am wondering what types of rental contracts or agreements other property owners use when making their bookings.

I send my potential renters a formal rental contract which I ask them to sign and return to me. This contract give the dates and for how many people my house is available. It also gives some disclaimers, says what happens in case of a cancellation and states that the reservation will be confirmed upon receipt of the payment.

Do other people use similar contracts or rental agreements? Or do most owners just assume that the payment of the rent closes the deal? Are there different practices in different countries? Do people include them on their
web-site for potential renters to down-load? etc. etc.

I feel that my "contract" is more a matter of trust than a legal document. However, I also do wonder what the legal base is for such contracts, if any, since they usually concern people in different countries: I live in Holland and my rental property is in Portugal (I have never had any trouble so far, but one should be prepared).

Best regards,

Astrid
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http://home.wanadoo.nl/algarve.holiday/

[John Borg]

This is a problem I have thought about many times, as the only for of contract I use is the deposit (by bank transfer). Other than that, seeing that all of my guests come from overseas, there is not much point in such formal contracts. If they don't turn up (which has never happened so far!) they forfiet the deposit and so be it.
I too would be interested if someone can give us some some info on contracts, disclaimers and such.
This forum is really reaching the targets of it's creator Paolo.
Thanks once again Paolo!

[Linda Freese]

I use a contract that I found on someone elses website a few years ago!!! It works well for me as it states quite clearly when the apartment is rented to the tenants and how much they are paying for it! It also has a disclaimer on personal injury whilst at the property which I think is important. The contract also advises the guest to take out personal travel insurance to cover any losses incurred. Not sure how "legal" it is but it's worked for us and I think that guests take it quite seriously so that's what counts! It's also a useful tool for me as they have to list their flight arrival/departure details which makes it easier for me to track everyone as we have several properties that we manage.

[paolo]

If you want to 'borrow' and tailor someone else's rental agreement you can find them online. Just type phrases like 'holiday rental lease agreement' or 'vacation rental lease agreement' into a search engine.

Some owners and management companies have these agreements up on their sites so this search will find them.

A big US listing site, cyberrentals.com, has four examples of agreements for download and adaptation here:
http://www3.cyberrentals.com/lease1.html

[Astrid]

Hello to all !

thank you for the many good ideas!!

I'm quite interested in hearing the pro's and cons's of using signed rental contracts.

I suppose that one advantage in asking guests to sign a contract is that they will most certainly read it very carefully and take note of all the conditions...more so than if the booking conditions are only listed on the owner's Web site.

A contract can also be reassuring for guests, if the owners include a statement saying that they commit themselves to having the house clean and in good shape for the guests.

Best regards,

Astrid

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http://home.wanadoo.nl/algarve.holiday/

[debk]

Hi, all. We have a vacation rental in Lisbon and always use a rental contract. Ours is straightfoward and simple and I think it leaves the guest with a good impression about the whole transaction. I pulled mine together based on the many samples available on the internet, and then gave it my own personal touches.
debk
ps-Thanks, Paolo, for this site. It's wonderful to have a forum that includes the European viewpoint on holiday rentals!

[Beach House, Bolinas, CA]

Hello Folks--if anyone would like to see the rental agreement I use, feel free to email me and I will attach it. I wouldn't be willing to allow rentals if it weren't for my rental agreement. Serious vacationers expect it and are actually happy to sign one..it tells them I have something of value to offer them and my prices and my professional rental agreement prove it. It scares away renters I wouldn't want in my home!

[Deedee]

Hi there! We send a copy of our booking conditions with our booking form. The renters have to sign to say they have read and agree with the conditions. It includes things like leaving the villa in good order, being responsible for breakages, times allowed for arrival and departure (to give time for cleaning between guests), cancellation costs, compaints procedure etc. We copied it from someone else! No-one has ever objected to it, and it makes the point that they have obligations as well as us.

[paolo]

If anybody wants to post their rental agreement here to show what they might look like, feel free!

Note that if you have 'borrowed' a contract from another site, they have to be substantially tailored or they will infringe that site's copyright.

[DivineMrsM]

We don't actually issue a booking form or have anything signed by anyone. When we have a confirmed booking, I send them an email with our Terms and Conditions attached which details all kinds of things including where to send the deposit . Once the cheque arrives, I confirm by email and snailmail along with a hard copy of the T&C and the Owners in France discounted crossings leaflet. The balance is due 8wks prior to commencement. If they pay up and don't turn up then I figure that's their problem - am I being naive? We also encourage in our T&C that they take out travel insurance.

At the point when I remind them for the balance, I reiterate the 4pm check in time and ask them to let us know their expected time of arrival (no point breaking your neck for a 4pm check in if they're not getting there until 10pm...!). Where possible, we ask them to call when they estimate that they are half an hour away. Better than having them turn up when you're still in your marigolds... .

I also nicked *cough* borrowed and amended our T&C from elsewhere. Seems to work OK. Actually - should we add the T&C to our website when we overhaul it?

[PeeJay]

APARTMENT 202. LOS DIAMANTES PHASE 3.
CALLE LOS ANGELES, OASIS DEL SUR, LOS CRISTIANOS, TENERIFE

PRIVATE LETTING TERMS AND CONDITIONS

Full payment for the booking is due 8 weeks before departure.
A £100 per week non-refundable deposit is required to confirm bookings.

Cancellation Charges:
More than 8 weeks prior to departure.
No Additional Charges.
4 – 8 weeks prior to departure.
50% of Total Rental Charges.
2 - 4 weeks prior to departure.
75% of Total Rental Charges.
Less than 2 weeks prior to departure.
100% of Total Rental Charges.

The owner reserves the right to give written notice of cancellation of reservations due to any unforeseen circumstances.

On receipt of your full payment, the owners will forward an INFORMATION PACK, giving full details of the apartment facilities including transfer details and access arrangements etc.

Please note it is advisable to avoid early hours arrivals or late departures due to the restricted access times on arrival and departure of the apartment, as detailed below. Bookings are normal only taken Friday to Friday, we will try to be flexible regarding access to the apartments on arrival and departure, but where we have concurrent bookings normal check in time is no earlier than 2.00pm and latest departure on check out is 10.00am. Therefore you are advised to avoid flights with very early arrival and late departure times.

All clients must arrange their own comprehensive travel insurance (to include full cancellation cover), sickness and health cover and all other insurances in advance prior to departure, for all the party`s personal belongings, public liability etc. since this is not covered by the owners or the Community insurances.

The rental period will commence at 2.00pm on the first day and end of 10.00am hours on the last day of the booking agreement.

The agent will not be required to provide accommodation before the time stated and the client will not be entitled to remain in occupation beyond the time stated. The client agrees to be a considerate tenant and abide by the house rules and to take good care of the property and its contents, and will leave it in a clean and tidy condition at the end of the rental period. The client will, without delay, report to the agent any defects to the property or any breakdown of equipment/appliances within the property. Repair and replacement will take place as soon as this is reasonably possible. The agent or the owner will not be responsible nor liable to the client for any temporary defect or stoppages in supply of public services to the property or for any loss, damage or injury from adverse weather conditions, rior for any losses due to, war, strikes or other acts of god beyond the control of the agent or owners. Under no circumstances will the agent or the owner`s liability to the clients exceed the amount paid in rental charges. The client will be subject to a 30 Euro Call Out Charge for matters due to the client`s negligence or for loss of keys etc.


FURTHER DETAILS:

Singles Groups. No bookings will be taken for singles groups and access to the apartment will not be allowed by the site management.

Welcome Pack. A free welcome pack will be provided to include bottled water, milk, and tea.

Additional items can be provided on request for special occasions i.e.
Flowers, Champagne, etc. at an additional cost payable locally to the site management.

A NAMED RESPONSIBLE ADULT OVER THE AGE OF 21
MUST BE STATED ON THE BOOKING FORM:

It must be noted, and is a condition of the booking, that all clients are deemed to have accepted the above terms and conditions and shall take full responsibility for there own well-being, health and safety at all times and the Named Responsible Adult shall accept all liabilities for any and all losses, damages or injuries to themselves or any other third parties.

[paolo]

Thanks for sharing that Peejay.

[Tykatem]

Hi

Last night I sat down to try and draw up a new rental contract, after inserting everything I thought should be included and things other people have suggested to me, i've ended up with 5 pages of what can only be descrided as "bumph". If as a customer I was to get that through my letter box and start to read it, I'd probably say "sod the holiday" and throw it in the bin.

Has anyone got any useful tips about the key elements of a rental contract

Pete

www.Tykatem.co.uk

[tansy]

this is what I use on the back of the booking form that they sign agreeing to our terms...don't know how waterproof it is...but so far OK _ iwill be looking at changing it a bit...but as per someone else comment not too much bumpf!!

1. Please make sure you have adequate holiday insurance for cancellation, accidents, hospitalization and return of yourselves and vehicle/vehicles to your home address. We cannot be held responsible for any accidents, break in’s or theft within the property during your stay. In the event of cancellation within 4 weeks the full amount is due and is non refundable.

2. Lettings are as agreed in writing. The property is available at midday on arrival day and must be vacated by 10.00 a.m. on departure day unless agreed prior. We regret we are unable to meet incoming parties later than 6 p.m. unless specifically agreed.

3. To confirm the reservation for your holiday the confirmation/booking form must be returned with 25% deposit within 14 days of the verbal/email booking. The deposit is non refundable is 25% of the total rental as per invoice enclosed with booking form. A separate cheque for £250 is required (which is not banked), at this time for any breakage’s or damage. This will be returned to you on inspection of the property. Any breakage or damage should be notified immediately. This is the formal acceptance of the booking.

4. Cheques to made payable to....

5. Prices as set out in the letter enclosed. The balance should be settled not less than 4 weeks before commencement date.

6. Late bookings i.e. less than 6 weeks prior to commencement of the holiday must send confirmation form with the full amount plus a separate £250 cheque.

7. We offer the property for holiday use to you subject to confirmation by ourselves.

8. The maximum number of guests must not exceed those detailed on the booking/reservation form, a charge will be made for extra guests who are not included in the original booking or have not been agreed to in writing.

9. Smoking – please respect that this is a no smoking house and we request that you smoke outside – smoking in bedrooms is prohibited.

10. We sincerely hope you have an enjoyable stay and a great holiday that you will leave the property in a clean and tidy condition at the end of your stay. Due to the proximity of the beach we automatically do a full end of stay clean service. We automatically do a weekly clean for all longer stays.

I cover cleaning and breakages on a seperate page...how we would calculate deductions for cleaning or breakages if necessary.

[paolo]

Welcome to the forum, Pete!

I have no legal knowledge, but I think one important thing to mention is that your guests make sure they have adequate personal liability insurance. Some owners make it a condition of the rental that the renter must provide proof of this insurance.

You should have a clause that states your liability cannot exceed the amount of the rental rate, but theirs can.

And I would ask them to fill in the number of people in the booking party and the ages of any children. Then you state that this is the maximum number of people allowed for the rental.

Here is an examples of some booking conditions you could include:

1. The property situated at ................., is offered for holiday rental subject to confirmation by Mrs .............. (the owner), to the renter (the client).

2. To reserve the property, the client should complete and sign the rental agreement and booking form and return it with payment of the initial deposit (25 % of the rent due). Following receipt of the booking form and deposit, the owner will sign a copy of the booking form and send it to the client.

3. The balance of the rent together with the €600 security deposit is payable not less than 8 weeks before the start of the rental period. If payment is not received by the due date the owner reserves the right to give notice by post or e-mail that the reservation is cancelled. The client will remain liable to pay the balance of the rent unless the owner is able to re-let the property.

4. A security deposit of €600 is required in case of, for example, damage to the property or its contents. However the sum reserved by this clause shall not limit the client's liability to the owner. The owner will account to the client for the security deposit and refund the balance within 1 week of the end of the rental period.

5. If the client has to cancel the booking at any stage, the owner will return any money received, minus bank charges and commissions, if she can find another renter for that period.

6. It is understood that no children aged between 2 and 6 years will be allowed at the property.

7. The client leaves his car on the property at his own risk, and the owner takes no responsibility for any vehicle or the contents of any vehicle.

8. The rental period shall commence at 3 pm on the first day and finish at 10 am on the last day.

9. No tents, caravans or camping cars can be accepted on the property. If the client wishes to invite any person, over and above the number listed on the booking form, on to the property, he must obtain written permission from the owner who reserves the right to make an appropriate charge.

10 .The client agrees to be a considerate tenant, to take good care of the property and leave at the end of the rental period. Although the after-stay clean is paid for by the renter, the owner reserves the right to make a retention from the security deposit to cover additional cleaning costs if the client leaves the property in an unacceptable condition.

11. The client may in no circumstance re-let or sublet the property, even free of charge.

12. The renter’s group should ensure they have arranged adequate insurance cover for themselves. The owner does not carry personal accident liability, and this is an explicit condition of the rental agreement.

13. The owner shall not be liable to the client:
- for any temporary stoppage in the supply of public services to the property;
- for any loss, damage or injury which may result from adverse weather conditions or any other matters outside the control of the owner;
- for any loss or damage or inconvenience suffered by the client if the property is destroyed or substantially damaged before the start of the rental period. In any such event the owner shall immediately refund to the client all sums previously paid.

14. Under no circumstances shall the owner's liability to the client exceed the amount paid to the owner for the rental period.

15. The contract shall be governed by French law in every particular, including formation and interpretation, and shall be deemed to have been made in France.

To find more sample agreements, Google for 'holiday download rental agreement' or 'vacation download rental agreement'. This should take you to the part on a rental property's site where you can click to download their agreement.

See any clauses you like - borrow them!