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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.
What's in this guide?
- What is an Airbnb Management Agreement?
- When should I use an Airbnb Management Agreement?
- Get access to customisable Airbnb Management Agreement templates online
- What services does an Airbnb property manager perform?
- Airbnb Management Agreement vs Rental Agreement
- What does an Airbnb Management Agreement include and not include?
- How effective is an Airbnb Management Agreement?
- Do I need a lawyer for an Airbnb Management Agreement?
- How do I write an Airbnb Management Agreement?
- How can I find an Airbnb property manager?
- More on where to get free legal consultations online
What is an Airbnb Management Agreement?
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.
When should I use an Airbnb Management Agreement?
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.
Get access to customisable Airbnb Management Agreement templates online
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What services does an Airbnb property manager perform?
An Airbnb property manager provides management of Airbnb properties in the form of styling, furnishing, marketing, pricing, maintenance and cleaning. Their responsibilities include:
- Managing the pricing and availability calendar
- Responding to any enquiries regarding the listings
- Managing all communications with the guests
- Providing housekeeping and linen service
- Coordinating urgent repairs or maintenance works
- Hiring a photographer to take photos of the property.
Airbnb Management Agreement vs Rental Agreement
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.
What does an Airbnb Management Agreement include and not include?
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.
What's typically included in an Airbnb Management Agreement?
- Information on the parties involved in the agreement
- Information about the property
- Details of the property manager's responsibilities and services to be performed
- The obligations of the host or homeowner
- Airbnb availability period and minimum agreement
- A fixed-term option, if applicable
- Cancellations or refunds of bookings
- Fees and payment
- Extra charges
- Property maintenance and expenses
- Excluded services
- Creating house rules
- Guest-ready checklist and essentials.
What is not included in the Airbnb Management Agreement?
A property manager is not typically responsible for:
How effective is an Airbnb Management Agreement?
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.
Do I need a lawyer for an Airbnb Management Agreement?
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.
How do I write an Airbnb Management Agreement?
The contents of an Airbnb Management Agreement will depend on what you are looking for, but generally, it should contain:
- The scope of service. The homeowner and the host should have a clear understanding of what services are needed for the Airbnb property so that guests can have a pleasant experience.
- Compensation. Include how much remuneration the host makes as well as the payment terms and method.
- Property damage. Detail the procedure the host should follow when guests damage your property.
- Termination. An essential clause in the agreement as it defines the procedure when terminating a contract. For example, a host has to give 30-days notice before ending their contract.
- Contract duration. Specify how long the host will be managing the property on your behalf.
How can I find an Airbnb property manager?
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:
- Hey Tom. With the flexible pricing options, Hey Tom aims to give homeowners higher returns on their investment property.
- hometime. Using data-driven insight, hometime partners with local hosting experts to increase earnings and listing visibility.
- MadeComfy. Choose from a range of services such as Airbnb management, guest management, Airbnb maintenance, cleaning services, and furnishing and styling services. MadeComfy prepares your property so that guests feel at home.
More on where to get free legal consultations online
Before you consider hiring a professional lawyer, here are some affordable online legal services you can use:
- Lawpath. Customisable service agreements are available on Lawpath upon signing up. At $24 per month, you can access their legal documents with unlimited revisions, customisation and edits.
- Sprintlaw. Choose between a fixed-fee package or a membership with Sprintlaw. Gain access to over 100 legal templates with the option of a unique template tailored to your needs for a custom quote.
- bnbspecialist. This Airbnb niche blog has a detailed template for a Property Management Agreement. You can either customise it to fit your needs or use it as a reference to draw up your own.
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