Airbnb Property Management Contract (Free Template)
When you appoint a property manager or a property management company to run your Airbnb rental business on your behalf, you definitely want to enter into an Airbnb property management agreement to ensure that everything runs smoothly.
The small print in this type of agreement can save you thousands of dollars later down the road, so take a bit of time to draw up a document that will protect you, and the agent for that matter, if things go wrong. Nobody likes to think about problems before they arise but life is unpredictable, and even if you trust the Airbnb management company 100% things can still go wrong.
In this guide, you’ll learn what details should go into the contract and what is expected of each party to avoid any misunderstandings in the future. The more detailed you can be, the better. This way you can sleep soundly at night, knowing that you will be covered if things don’t go to plan.
To make it even easier, we include an Airbnb property management contract template for you to download to give you a solid starting point when you create your own.
Just a head’s up – there are many variables in this situation, but at least a template will help you focus on the type of information you need to think of including in this contract.
Of course, as this is a legally binding document, our sample Airbnb management contract is not intended as a substitute for legal advice, which we always recommend you get before entering into any legal agreement.
Also, if you plan to use our free Airbnb management contract template, be sure to change it to suit your needs and to reflect the laws and regulations in your area.
Disclaimer: Lodgify is an Airbnb Preferred Software Partner. This guide, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.
If you’re a Lodgify customer and want to connect via API with Airbnb, please get in touch with our customer support team. For more information: Connect Lodgify to Airbnb
What is an Airbnb property management agreement?
An Airbnb management agreement is a formal, written document signed by the property owner and Airbnb property manager to regulate the relationship between them. It defines the duties of each party, how long the contract will last and what happens if either party does not comply with the terms and conditions of the contract.
For this reason, it is crucial to protect both the owner and the manager in case anything goes wrong and there are any disputes or discrepancies.
This is not to be confused with the Airbnb rental agreement, which is between the owner and guest of an Airbnb rental.
Who should sign the Airbnb management contract?
In the first instance, the agreement usually sets out the parties entering into the agreement. In this case, the owner of the property listed on Airbnb and the property manager or management firm. It should also include the full and permanent address of both parties, either at the start or at the end of the Airbnb property management contract.
Why do you need an Airbnb management agreement?
More than just a nice-to-have, the contract can be a lifesaver as it sets out for all the world to see exactly what is expected of the owner and property manager. The purpose of the contract should be clearly stated, in other words, the fact that the Airbnb owner is giving the property manager the exclusive right to rent the property on behalf of the owner, with all the rights and obligations associated with such an agreement.
It is important to emphasize the exclusivity of the contract to ensure there are no former agreements or subsequent contracts entered into between the owner of the Airbnb rental and any other parties at a later date, which could alter the agreement or lead to confusion about duties involved in the management of the Airbnb property.
This document serves to protect everyone involved as it regulates in detail what each party can expect from the other and should spell out consequences in case these expectations are not honored.
What is the duration of the Airbnb management contract?
The document should also stipulate how long the contract will be valid, under which circumstances either of the parties could terminate and what the notice period for termination of the contract would be.
Ensure that the notice period is not too cumbersome to allow you as the landlord to end the agreement if you are not entirely happy with the property manager’s results.
The usual notice period for this type of agreement is between 30 and 90 days on either side.
When exactly the Airbnb rental owner can cancel the contract, will entirely depend on what is spelled out in this contract, for example, you may want to include that the owner has the right to cancel the contract if the property manager fails to find guests for the Airbnb rental within a specified amount of time.
It also usually states by which date the parties have to pay any outstanding amounts owed to the other if the contract should be terminated early.
What should be included?
Before you put pen to paper, it may be helpful for you to take a look at the most important elements normally included in this type of contract. Airbnb property management contracts can be very different, but most of them will include the following basic components.
The address of the Airbnb property
The full address of the property owned by the Airbnb rental owner has to be stated at the start of the contract, including the U.S. state in which it is located.
The property manager’s duties
From the owner’s point of view, this part of the Airbnb property management agreement is probably what matters most. It explains the exact services provided by the property manager and for which he or she will get paid Airbnb management fees. It should also spell out which services are not included in the contract, as well as which services could be available at an additional cost.
Pay close attention to this, as some property managers may charge a lower fee initially, but could charge more for additional tasks, such as paying the bills or dealing with difficult guests. All these costs add up and could push up the contractual fee quite a bit. The more specific the contract is about the duties of the manager, and both parties for that matter, the better.
In the case of extra fees, the Airbnb property management agreement should also give examples of what such services may entail and whether they will be performed at a flat rate or as a percentage fee or whether each case will be judged on merit.
So, for example, many companies will exclude extensive refurbishment costs, but collecting rental revenue, cleaning fees and booking fees are usually seen as part of the normal duties for Airbnb rental managers.
What is expected of the property owner?
This part of the contract describes which duties the property manager can expect the owner to perform, for example, to provide sufficient funds in a reserve fund to enable the manager to pay for typical maintenance or emergency repairs.
It’s the owner’s job to ensure that the property is sufficiently insured and the insurance agreement should also cover the property manager or company.
From the manager’s perspective, it is also important that the owner does not have the right to find tenants for the property or use the property themselves or allow friends or family to use the property during the duration of the contract.
Any exceptions to this, for example, if the owner wants to use the property during the summer, should be clearly agreed upfront and included in the agreement.
Otherwise, the manager might be expected to manage tenants not recruited through the agreed guidelines and process, or could lose the ability to earn the Airbnb property management fee during this period.
The owner also is not usually allowed to enter the property unless he or she notifies the guest via the property manager beforehand.
Limited liability for the Airbnb rental manager
This type of contract usually includes a clause that protects the property manager from responsibility for damage caused by guests or contractors hired by the manager to perform specific duties, provided that the manager had taken ‘reasonable care’ when hiring the third party or accepting the guest.
For example, the property manager could reasonably be expected to verify that the guests don’t have a record of negative reviews by other vacation rental managers.
Airbnb property management fee
The contract should, of course, include the Airbnb management company’s charge and how and when the property manager’s charges will be paid by the owner.
Some Airbnb property management companies charge a flat rate which does not change regardless of the number of nights the rental is booked in a month. For instance, you could be charged $450 a month as the average Airbnb property management fee for handling cleaning and booking. As mentioned above, read the contract carefully and negotiate to get some of the ´extra services’ which are charged at an additional cost included in the monthly payment. In the commission model, the company will take a percentage of your monthly earnings and could be anything between 25-50% of the rent collected.
Download our free Airbnb management contract template
We hope this article has given you a good starting point for creating your own Airbnb property management agreement. An Airbnb property management contract is essential to assure you and your guests are on the same page. Additionally, it will protect you and your property in the event of any emergencies or unexpected situations.
Download our free Airbnb management contract sample as a Word document below, complete the blanks, and alter it to represent your circumstances and the features of your Airbnb rental. Then, consult a legal expert to ensure you haven’t missed out on anything.
In these cases, it’s always better to be safe than sorry and a solid agreement could save you a lot of pain and money in the long run.
*Disclaimer: this is NOT official legal advice nor an official legal document. Please consult an attorney or lawyer for more information about rental agreement documentation.