One of the most important aspects of the rental process, literally a contract between you and the renter of your vacation residence. While some agreements are voluminous and others are limited in length, we suggest a middle ground to 1) protect your home and valuables and 2) not intimidate your renter.

• Work out the terms of the rental verbally with the renter until you come to an agreement that is acceptable to both parties.
• Fax of e-mail the written agreement containing everything discussed. If using e-mail we suggest creating a PDF to protect the integrity of the document.
• Give the renter two - seven days to return the signed agreement and the deposit for the rental. The time frame for hold should be based on demand and season.
• Hold the renter’s dates for the period advised after you have faxed or e-mailed the agreement to the renter. The rental is not yet confirmed, but you should not make any other lease agreement for that time frame during the “HOLD” period. If another renter is interested in those dates during the “HOLD” period, let the renter know that you have a hold for a potential renter for those dates, but you will contact them on [a specific date] if your property is available or that you are willing to take a back-up reservation with the provision that it is a back-up and not enforceable until an actual agreement has been executed by both parties.
• If you receive a signed agreement and funds, the reservation is confirmed and subject to the cancellation policy spelled out in the agreement. If you do not receive the agreement within the “HOLD” period, feel free to take other rentals.

Years ago most vacation rental owners waited for a check to come in the mail and or a wire-transfer. Times have changed as credit cards have become the norm for processing most transactions. In general potential clients feel more confident when they can pay with a credit card because credit cards provide more protection from fraud.

Accepting credit cards can give you a bit of an edge over listings that do not accept credit cards. In addition, by accepting credit cards, you can eliminate the “HOLD” period by accepting payment immediately. In addition, you can add a clause to your written agreement authorizing damages to the property or contents to be charged to the card on file. Of note, be sure to document with photos and text as the guest may “contest the charge” and complain to their credit card company.

Concerning credit cards, consider the following:

1) Merchant Fees: Each card issuer has a merchant fee which varies. Your credit card processor can advise and fees are negotiable.
2) American Express: In general fees charged by American Express are the highest; however, the demographic of the American Express card holder is attractive to those renting deluxe and luxury homes.
3) Your Bank: Consult with your bank concerning a merchant account. This should be your first call as set-up and maintenance may be easy and cost-effective.

Checks: some clients may wish to send a check and this can be an advantage to you as you can avoid the merchant fee. Be sure the check clears and the money is in your account prior to arrival. If time is short, call the issuing bank, provide the account number and ask if sufficient funds are available. The check may still bounce, however, calling the bank can provide additional piece of mind.

Wire-Transfers: This is an opportunity to have funds within hours of a reservation. However, by providing your bank’s routing number and account number, you run the risk of fraud. We STRONLY SUGGEST you set up a separate account AKA “the receiving account” for just receiving proceeds for vacation rentals. Once the monies have been wired to this account, immediately transfer to one of your personal or business accounts (never provide those account #’s to anyone). Just leave the minimum amount on deposit to keep the account open.