There’s been a 94% increase in nights booked for stays of 30 days or more in the U.S. in 2023. This surge in demand for mid-term rentals is off the charts! Both renters and landlords are looking for stability and flexibility. Mid-term rentals can handle everything from long business trips to relocations or temporary housing during life transitions. However, to have a pleasant stay for both the guest and the host, there needs to be pre-defined rules in place. A mid-term rental agreement is the perfect way to ensure that. It enables longer-term solutions that fit everyone’s needs perfectly.
What is a Mid-Term Rental Agreement?
When people need a place to stay, that’s more than just a vacation spot but not quite a forever home, mid-term lease agreements come in. A mid-term rental is for a stay duration between one month and less than a year. It’s perfect for landlords in busy cities or near colleges because it’s flexible, usually lasting between three to nine months.
Mid-term rentals are a great entry point for landlords dipping their toes into the rental market who don’t want the added effort of managing short-term rentals and don’t want to commit to the long haul either. Moreover, it’s beneficial for both parties as tenants get a stable place to live, and landlords can make the most of the changing demand in the rental market. Whether for students, professionals, or temporary workers, mid-term lease agreements offer a practical housing solution while safeguarding them against malpractices.
So, what exactly goes into a mid-term rental lease agreement? Let’s break down the 12 essential parts you need to include in your agreement to help you stay organized and ensure a smooth rental experience.
12 Things to Include in a Mid-Term Rental Lease Agreement
There isn’t a one-size-fits-all template for mid-term rental lease agreements. You should also be open to making reasonable changes or adjustments when needed. This helps build a good relationship with your tenants. That means you can tailor your agreement to fit your tenant’s needs and property just right. Include the following important elements in your agreement:
1. Property Details
Ensure you include all the important and comprehensive property details in the rental agreement. Specify the vacation rental’s full address, square footage, number of bedrooms and bathrooms, amenities like Wi-Fi access, and attic, basement, and parking spaces available. Also, mention if it’s furnished or not so guests know what to expect.
Furthermore, ensure you include everyone’s names, addresses, and phone numbers so everyone can get in touch if needed.
2. Rental Period
Ensure clarity regarding the rental period by specifying check-in and check-out dates. Decide if your mid-term agreements can give some flexibility, letting your tenants stay a bit shorter or longer if it works out. Check if you can renew the agreement if they want to stay longer.
3. Rent Details and Payment Terms
Specify how much the rent is when it’s due and what payment methods guests can use. Moreover, outline any additional fees like late check-out charges or cleaning fees, along with penalties for non-payment.
You should also mention if utility bills and certain services are included in the monthly rent; if not, clarify which utilities are covered and which fall under the guest’s responsibility. Also, mention prorated amounts for the first and last month’s rent if applicable, and any grace periods or penalties for overdue payments.
Bonus Read: How to optimize short-term rental pricing strategies for mid-term stays
4. Security Deposit and Other Applicable Fees
Specify that if no damage happens during the stay, the guest will get their deposit back after check out, and if there is any damage, you might take some money from the deposit to cover it. Also, clarify when they need to pay the deposit, why it’s there, and when they can expect to get it back.
5. Maximum Occupancy of the Rental Property
Ensure the mid-term rental agreement says how many people can stay there. This helps maintain safety standards, prevent overcrowding, and protect the property from excessive wear and tear.
Bonus Read: How to handle extra guests in your Airbnb?
6. House Rules and Restrictions
Make sure to set clear rules about noise, pets, smoking, guests, quiet hours, and property access, alongside any property-specific regulations. Penalties for rule violations should be clearly outlined. Also, if your rental is in an apartment building, you should mention the building’s rules to keep things peaceful for everyone.
Bonus Read: Airbnb House Rules: Best Examples
7. Responsibilities and Expectations
Ensure your tenant knows what they’re responsible for, such as rent payments and maintenance requests. Add a liability clause to limit your responsibility for accidents or losses on the tenant’s side.
Specify how much you’re willing to pay if guests accidentally break something, and clarify who’s responsible for what losses, ensuring clear expectations and protecting both parties’ interests in the agreement.
Bonus Read: Aircover Airbnb for Host: What it is? How to Claim, Pros & Cons
8. Use of Premises
Ensure clarity on the use of premises, mentioning acceptable activities such as residential living or potential business use. Clearly define visitor policies, such as specifying the duration of guest stays before they qualify as tenants and start paying rent.
9. Termination and Eviction
Ensure your mid-term rental agreement specifies lease termination terms, notice periods, and grounds for eviction. It should say how much notice period needs to be given before ending the lease and why someone could be evicted. To ensure legal compliance, you must align these clauses with local regulations governing landlord-tenant relationships.
10. Pet Policy
Make sure your mid-term rental agreement has a clear pet policy. It should say what kinds of pets are allowed, such as their size and breed, and how many pets guests can have. Also, outline the rules about taking care of your pets. If there are any extra fees or deposits for pets, such as non-refundable fees or extra rent each month, mention them in the agreement.
Bonus Read: A Complete Guide on Airbnb Service Animal Policy
11. Governing Law
Specify the governing law in the mid-term rental agreement, identifying the state or jurisdiction whose laws dictate the lease terms. So, if there’s a disagreement or some rule needs to be enforced, everyone knows what rules to follow.
12. Right to Entry
Define specific circumstances necessitating entry and outline conditions under which visits to the rented space are permissible. Clarify entry frequency, duration, and purpose, ensuring tenants’ privacy and comfort while addressing landlords’ property maintenance and inspection needs.
Key Takeaways
Understanding the ins and outs of mid-term rental agreements is crucial. After all, this makes crafting a mid-term rental agreement easy as you know what to include and why. Before we sign off, here are some last-minute tips:
- Ask a lawyer to review your draft and ensure it follows all your area’s rental rules and regulations.
- Stay informed about relevant laws, regulations, local ordinances, and Airbnb guidelines to ensure your agreement remains compliant and legally sound.
- Maintain open lines of communication with all parties involved. If there’s a problem, you can sort it out quickly.
- Schedule regular check-ins to review if the agreement is still working well and make any adjustments needed to meet changing circumstances.
Adhering to our suggestions will lead to a mid-term rental agreement that provides clarity, security, and peace of mind for everyone involved, whether you’ve rented lots before or even if it’s your first time.
About PriceLabs
PriceLabs is a revenue management solution for the short-term rental and hospitality industry, founded in 2014 and headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize their pricing and revenue management, adapting to changing market trends and occupancy levels.
With dynamic pricing, automation rules, and customizations, we manage pricing and minimum-stay restrictions for any portfolio size. Prices are automatically uploaded to preferred channels such as Airbnb, Vrbo, and 100+ property management and channel integrations.
Every day, we price over 300,000+ listings globally across 135+ countries, offering world-class tools like the Base Price Help and Minimum Stay Recommendation Engine. Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.
