Airbnb Management Contract: Free Template

Last Updated March 2024

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 down the road. So, it pays off to spend a bit of time drawing up a document that will protect you—and your property manager, for that matter—if things go wrong.

In this guide, you’ll learn what should go into an Airbnb management contract and what is expected of each party to avoid any misunderstandings in the future. To make it even easier, we include an Airbnb property management agreement template for you to download to give you a solid starting point.

Don’t see the form to download our Airbnb management contract? Click here.

Disclaimers:

Airbnb management contracts are legally binding documents. Our template is not a substitute for legal advice, which we always recommend before entering into any legal agreement. Be sure to alter it for your individual needs and to reflect the local legislation and regulations in your area.

Lodgify is an Airbnb Preferred+ Software Partner. This guide, including any claims or statements within, is solely from Lodgify. It is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.

What is an Airbnb management contract?

An Airbnb management contract 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.

Note that Airbnb management contracts may also be referred to as Airbnb property management contracts and agreements. Additionally, be careful not to confuse them with Airbnb rental agreements, which are between the owner and guest of an Airbnb rental.

Sample Airbnb property management agreement

Here’s an Airbnb management contract sample, to give you an idea of what the agreement typically looks like:

Looking for a customizable version? Scroll to the bottom of the page to download our Airbnb management contract template.

Who should sign the Airbnb management agreement?

In the first instance, the agreement usually sets out the parties entering into the agreement. In this case, that includes 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 property management contract?

An official contract is indispensable for anyone hiring a property manager to manage their Airbnb in order to provide:

• Clear responsibilities: This contract delineates the duties and obligations of both the property owner and the property manager, ensuring clarity regarding each party’s tasks.
• Financial clarity: It also spells out financial details such as commission rates, rental charges, payment schedules, and procedures for handling security deposits, promoting transparency in financial dealings.
• Legal safeguarding: By establishing terms and conditions covering liabilities, insurance provisions, and protocols for dispute resolution, the agreement offers essential legal protection for both parties.
• Regulatory adherence: Moreover, the contract helps ensure compliance with local regulations, zoning ordinances, tax mandates, and licensing requirements pertinent to vacation rental properties, mitigating the risk of legal complications.

Remember, your Airbnb is a business. If you want your business to be professional and successful, you need to start it out on the right foot—with an Airbnb management agreement in place.

What is the duration of the Airbnb management contract?

The document should stipulate how long the contract will be valid for, under which circumstances either of the parties can terminate, and the required notice period for termination.

Ensure that the notice period is not too cumbersome. As the property owner, you want to be able 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.

The conditions under which you can terminate the contract will depend entirely 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 is terminated early.

What to include in an Airbnb management agreement

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 vary widely, but most of them will include the following basic components.

The address of the Airbnb property

The full address of the Airbnb property 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 the property manager must provide, which services are not included in the contract, and which services could be available at an additional cost.

Pay close attention to the defined tasks and fees. Some property managers may charge a lower fee initially, with additional fees for certain 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 property manager’s responsibilities, 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 incur a flat rate or a percentage-based fee.

For example, many companies will exclude extensive refurbishment costs. However, collecting rental revenue, cleaning fees, and booking fees are usually seen as part of the normal duties for Airbnb rental managers.

The property owner’s duties

This part of the contract describes which duties the property manager can expect the owner to perform. For example, the owner should provide sufficient funds in a reserve for the manager to pay for typical maintenance or emergency repairs. It’s also the owner’s job to ensure that the property is sufficiently insured and that the insurance agreement covers 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, use the property themselves, or allow friends or family to use the property during the duration of the contract. If there are any exceptions to this (for example, if the owner wants to use the property during the summer), the contract should clearly define them.

Otherwise, the manager might be expected to manage tenants not recruited through the agreed guidelines and process. Additionally, they could lose the ability to earn the Airbnb property management fee during this period.

The owner also typically can’t enter the property unless they notify 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 manager from responsibility for damage caused by guests or contractors.

Of course, the manager must have taken “reasonable care” when hiring the third party or accepting the guest. For example, the property manager should verify that the guests don’t have a record of negative reviews.

Airbnb property management fee

The contract should, of course, include the Airbnb management company’s fees and how and when the owner must pay them.

Some Airbnb property management companies charge a flat rate that does not change regardless of its occupancy. For instance, you could be charged $450 a month for handling cleaning and booking. In the commission model, on the other hand, the company will take a percentage of your monthly earnings. The commission could be anything between 25-50% of the rent collected.

Read the contract carefully and negotiate to get some of the extra charges to be included in the monthly payment.

Download our free Airbnb property management agreement template

Ready to dive in? Download our free Airbnb property management contract template 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 anything and are complying with local rules and regulations.

In these cases, it’s always better to be safe than sorry. A solid agreement could save you a lot of pain and money in the long run!

Don’t see the form to download our Airbnb management agreement? Click here.

Disclaimers:

Airbnb management contracts are legally binding documents. Our template is not a substitute for legal advice, which we always recommend before entering into any legal agreement. Be sure to alter it for your individual needs and to reflect the local legislation and regulations in your area.

Lodgify is an Airbnb Preferred+ Software Partner. This guide, including any claims or statements within, is solely from Lodgify. It is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.