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If you've invested in a property, it stands to reason that you'll want to get the best returns possible from it. Airbnb is one way to earn a passive yet steady income. But it takes more than a strategic location and aesthetic furnishings to offer your guests a five-star experience.
Airbnb's Terms and Conditions are usually only applicable between hosts and guests. If you're relinquishing control of your property to a host or property manager, you need to make sure that you are protected too.
Read on to find out how an Airbnb Management Agreement can provide you with that protection while ensuring your guests are taken care of.
If an Airbnb property is to be managed on behalf of an investor or a homeowner, a Management Agreement is a legally binding contract between the homeowner and the property manager or host. It is quite similar to a service agreement. An Airbnb Management Agreement states the operation, control and oversight of an investment property for Airbnb.
A contract must contain an offer, an acceptance, an intention to create a legal relationship and consideration (usually in the form of money) to be legally-binding.
Having a property manager for your Airbnb alleviates the stress of performing daily tasks to keep your investment property in tip-top shape. If you are intending to let your investment property via the Airbnb platform and are on extended vacations or travel frequently, employing an Airbnb property manager could be beneficial. Before the manager performs any services, you will need to sign an Airbnb Management Agreement.
An Airbnb property manager provides management of Airbnb properties in the form of styling, furnishing, marketing, pricing, maintenance and cleaning. Their responsibilities include:
An Airbnb Management Agreement is a contract between the homeowner and the host, while a Rental Agreement is between a tenant and the homeowner. Having a Property Management Agreement guarantees that your property is tended to in your absence. In contrast, a Rental Agreement is a contract for a month-to-month tenancy and includes the terms of the agreement regarding rent payment, obligations of the tenant and any pet policies.
A Rental Agreement does not apply to Airbnb guests who may stay for only a few days. It also does not require tenants to look after the property as a property manager would. Working under a Property Management Agreement, a property manager can make sure that your Airbnb is well-stocked, has a guest check-in and house guide, and a secure key exchange.
The inclusions of an Airbnb Management Agreement depends on the needs of the homeowner. Sometimes an agreement is only for a range of services such as communication or revenue, while others might include full services. This should be discussed between the homeowner and the host.
A property manager is not typically responsible for:
An Airbnb Management Agreement will protect you and your property while it is under the management of a host. It is also especially effective if you need to include terms on confidentiality or insurance requirements.
That's your call – you can write an Airbnb Management Agreement by yourself. However, to ensure that there are no loopholes or any potential risks omitted, consider hiring a legal professional to help you.
Your agreement should cover not only the responsibilities of both parties but also lay out terms in case of property damage, insurance and the maintenance of a reserve fund.
Additionally, a lawyer can help you determine whether you can legally list the property on Airbnb. Any agreement drawn up must be fair to both parties to foster a successful business relationship.
The contents of an Airbnb Management Agreement will depend on what you are looking for, but generally, it should contain:
There are several avenues you can take for finding an Airbnb property manager. The following online services can help to make your search hassle-free and also sufficiently vet potential candidates:
Before you consider hiring a professional lawyer, here are some affordable online legal services you can use:
Read more about how to become an Airbnb host and maximise your income.