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Vacation rental management agreement template

A management agreement is the document every later conversation with an owner goes back to: what you said you would do, what you said you would charge, and when the owner gets paid. Vague wording here is what turns a routine question into a dispute six months later.

This template is written for a vacation rental management company taking on full-service management of an owner’s property. Adjust the services list and the commission to match your offer, and delete anything you do not provide.

This template is a starting point, not legal advice. Rules differ by country, state, and city — have it reviewed by a qualified local lawyer before you rely on it.

Vacation rental management agreement

This agreement is made on [date] between [Owner full name] ("the Owner") and [Management company legal name], registered at [company address] ("the Manager"), for the property at [full address] ("the Property").

1. Appointment

The Owner appoints the Manager as the [exclusive] manager of the Property for short-term rental for the term set out in clause 10.

2. Services

The Manager will: [market the Property on booking platforms and the Manager’s website; set nightly rates; manage reservations and guest communication; arrange check-in; arrange cleaning, linen, and restocking between stays; inspect the Property after each stay; arrange maintenance and repairs; collect and remit tourist taxes where required; and provide monthly owner statements].

3. Commission

The Manager will receive a commission of [20]% of [net booking revenue, meaning accommodation revenue received after platform commission and excluding cleaning fees and taxes]. Cleaning fees charged to guests are retained by the Manager to pay for cleaning. No other fees are charged unless listed here: [none].

4. Statements and payouts

The Manager will provide a statement for each calendar month by the [10th] of the following month, listing every booking, the commission, and each expense with its receipt, and will pay the balance due to the Owner to [bank account] by the [15th]. Bookings are allocated to the month in which the guest [checks out].

5. Owner reserve and expenses

The Manager will hold a reserve of [500] from rental income to pay for repairs and supplies. The Manager may spend up to [250] on any single repair without the Owner’s prior approval, or more in an emergency that threatens guest safety, the Property, or a current stay. The reserve balance will be shown on each statement and returned to the Owner on termination, less any outstanding costs.

6. Owner use

The Owner may reserve the Property for personal use with at least [30] days’ notice, for up to [4] weeks per year [outside peak season, defined as ___]. No commission is charged on owner stays; the Owner pays the cleaning fee of [amount] for each owner stay.

7. Owner obligations

The Owner will keep the Property furnished, equipped, and in a safe and lettable condition; maintain buildings and contents insurance that covers short-term letting; hold any registration or licence required for short-term rental at the Property’s location; and declare rental income for tax.

8. Manager obligations

The Manager will hold [professional liability insurance], keep accurate records of all income and expenses relating to the Property, and give the Owner access to those records [through an online owner portal] at any time.

9. Damage

The Manager will claim for guest damage through the relevant platform or the guest’s security deposit and will pass amounts recovered to the Owner. The Manager is not responsible for damage caused by guests except where the Manager has been negligent.

10. Term and termination

This agreement begins on [date] and continues for [12] months, then renews monthly until either party gives [60] days’ written notice. Bookings confirmed before termination and falling within [90] days after it will be [honoured by the Owner, with commission paid to the Manager / transferred with the guests’ consent]. The Manager will provide a final statement and return keys, codes, and the reserve balance within [30] days of termination.

11. General

This agreement is governed by the law of [country / state]. Changes must be agreed in writing by both parties.

Signatures

Owner: ____________________ Date: __________

For the Manager: ____________________ Name and title: __________ Date: __________

Getting the commission clause right

Clause 3 defines the commission base in words: accommodation revenue after platform commission, excluding cleaning fees and taxes. Most fee disagreements come from that base not being written down, so even if you charge on gross, say exactly what gross includes. The property management fee calculator helps you see what your structure costs an owner as an effective rate — the number they will compare you on.

Listing "no other fees" explicitly is a selling point. Owners who have been surprised by add-on charges before will notice it.

Statements, reserves, and the owner’s right to see the books

Clauses 4, 5, and 8 commit you to a statement date, a payout date, a visible reserve, and access to records. These are the promises that build trust in the first year, and they are only easy to keep if statements come out of your system rather than being assembled by hand. The vacation rental owner statement template shows a layout that works.

Termination without a fight

Clause 10 handles the part most agreements leave vague: future bookings. When a management relationship ends, there are always stays already confirmed for the coming months, and someone has to honour them. Deciding in advance who does, and who earns the commission, avoids the worst version of that conversation.

If you are building a management business around agreements like this one, The Property Tool for vacation rental managers keeps each owner’s terms, bookings, and owner statements together, and our guide on how to start a property management company covers the rest of the setup.

Common questions

What should a vacation rental management agreement include?

The services provided, the commission and exactly what it is calculated on, statement and payout dates, the owner reserve and spending limits, owner use of the property, insurance and licensing responsibilities, damage handling, the term, and how termination affects future bookings.

What commission do vacation rental managers charge?

Full-service vacation rental management commonly ranges from about 15% to 30% of booking revenue. Lower rates often come with separate fees for cleaning, linen, or maintenance, so compare the total.

How long should a management agreement run?

A 12-month initial term with monthly renewal and 30–60 days’ notice is common. Long lock-ins with high exit fees are a frequent owner complaint and can make your offer harder to sell.

Can I use this template as-is?

It is a starting point, not legal advice. Rules on letting agents, client money, short-term rental licensing, and consumer contracts differ between countries and cities, so have a local lawyer review it before use.

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