Thanks for starting this thread Dawn and Stephen0! I'm in a similar position where I've created a contract/agreement for co-hosting for my first client.
I've included it directly below (in case anyone wants to borrow or shamelessly steal!) - but in the spirit of sharing and supporting each other, would also LOVE any feedback from other experienced co-hosts on anything I'm missing, should add, or should change.
Thanks, all, and happy reading/feedback'ing!
Short-Term Rental (STR) Co-Hosting Agreement
This Short-Term Rental (STR) Co-Hosting Agreement ("Agreement") is made and entered into on ______________ (the "Effective Date") by and between:
Host:
Name: _______________________________
Address: _____________________________
Email: _______________________________
Phone: ______________________________
Co-Host:
Name: _______________________________
Business Name: _______________________
Address: _____________________________
Email: _______________________________
Phone: ______________________________
Collectively referred to as the “Parties.”
- Scope of Services
The Co-Host agrees to provide the following services for the Host's STR property located at:
Property Address: _______________________________________
Initial Setup Services:
- Listing Setup Fee ($_________): Includes creating and optimizing the listing, automating guest communication, and setting up pricing tools.
- Furniture Setup & Design ($_________): Includes designing the layout and selecting furniture and decor to enhance the guest experience.
- Ordering Furniture & Decor ($_________): Includes ordering all required furnishings and decorations to prepare the property for guests.
- Initial Deep Cleaning ($_________): A thorough cleaning of the property before the first guest stay.
- Professional Photography ($_________): High-quality images to attract guests and optimize listing performance.
Ongoing Services (15% of Monthly Revenue for 6 Months):
For a fee of 15% of monthly revenue, the Co-Host will provide:
- Ongoing Listing Management: Continuous updates and monitoring to ensure optimal performance.
- Guest Communication: Handling all guest inquiries and messages with a Service Level Agreement (SLA) of responding within 1 hour, typically 5-10 minutes.
- Minor Repairs/Maintenance: Managing small repairs and coordinating with contractors if needed.
- Pricing Optimization: Adjusting prices dynamically to maximize revenue based on market trends.
- Maximizing Occupancy: Driving occupancy above market averages using best-in-class strategies.
- Cleaning Coordination: Scheduling and managing cleaning services between guest stays.
- Consultation: Regular consultation with the Host on property performance and improvements.
- Host Responsibilities
To ensure the smooth management of the property, the Host agrees to:
- Compliance: Obtain and maintain all necessary permits, licenses, and registrations required by local authorities for short-term rentals.
- Insurance: Maintain adequate property and liability insurance to cover potential guest damages or claims. The Co-Host shall be listed as an additional insured on the policy.
- Utilities and Taxes: Ensure all property utilities (electricity, water, gas, etc.) are fully operational and up to date. The Host is responsible for paying all taxes associated with the property, including occupancy and STR taxes, unless otherwise agreed upon.
- Major Repairs: Cover the costs of any major repairs or renovations that exceed routine maintenance responsibilities managed by the Co-Host.
- Insurance and Liability
- Host Insurance: The Host shall maintain an insurance policy covering property damage, personal injury, and liability for the property. The Co-Host shall not be liable for any damages caused by guests unless arising from Co-Host negligence.
- Indemnity: Each Party agrees to indemnify, defend, and hold the other Party harmless against any and all claims, liabilities, losses, and damages (including legal fees) arising from their respective actions or omissions under this Agreement.
- Service Limitations & Exclusions
The Co-Host will not be responsible for:
- Major Repairs: Structural repairs, HVAC system replacements, or other significant renovations that fall outside routine maintenance.
- Evictions or Legal Issues: The Co-Host will not handle legal disputes, evictions, or issues outside of guest communications.
- Non-Guest Services: The Co-Host will not be responsible for long-term tenants or non-STR services unless explicitly agreed upon.
- Expenses and Reimbursement
- Routine Expenses: The Co-Host may handle routine expenses for cleaning, small repairs, and guest amenities under a limit of $__________ per month without prior Host approval. Any expenses exceeding this amount will require Host approval in writing.
- Reimbursement: The Host agrees to reimburse the Co-Host for any approved expenses incurred on behalf of the property, such as repairs, maintenance, or guest-related services. Reimbursement will be due within 15 days of receiving an expense report.
- Guest Damage and Security Deposits
- Damage Claims: The Co-Host will manage guest claims for damages through Airbnb, VRBO, or other platforms. The Host will be responsible for covering any damages that exceed the guest’s security deposit or platform insurance coverage.
- Security Deposits: The Co-Host will collect and manage security deposits on behalf of the Host to cover potential damages, with proper documentation provided in the event of claims.
- Taxes
- Occupancy and STR Taxes: The Host is responsible for all taxes, including occupancy and STR taxes, unless agreed that the Co-Host will handle these filings. If the Co-Host manages taxes, additional fees may apply, and the Host will be notified in advance.
- Performance-Based Terms
The Co-Host agrees to meet the following performance expectations:
- Timelines: Meeting all agreed-upon timelines for listing and unit setup.
- Guest Communication: Responding to guest messages within 1 hour (usually within 5-10 minutes).
- Revenue & Occupancy: Achieving or exceeding reasonable revenue and occupancy goals, in line with projections from AirDNA or similar tools for STRs of comparable whole units.
If the Co-Host successfully meets or exceeds these performance expectations during the first 6 months of the Agreement, the Parties will renegotiate the contract terms, including the monthly revenue percentage. If the Co-Host’s performance is satisfactory, the fee will increase to 20% of monthly revenue.
- Contract Review and Termination
Review Period:
After the initial 6 months, the Parties will review the Co-Host’s performance. If the Co-Host is meeting or exceeding expectations, the monthly fee will increase to 20%, as outlined above.
Termination by Either Party:
- Either Party may terminate this Agreement at any time with 30 days' written notice for any reason, including dissatisfaction with performance or a change in business models.
- Performance-Based Termination: If the Co-Host fails to meet the agreed-upon performance metrics (timelines, guest communication, or revenue/occupancy targets), the Host may terminate the Agreement with 30 days' notice.
- Payment Terms
- Initial Setup Services Payment: Payment for initial setup services will be due upon completion of the setup process and delivery of all listed services.
- Ongoing Services Payment: The 15% monthly fee will be deducted from the revenue generated from bookings on a monthly basis for the first 6 months. After 6 months, the fee will be renegotiated based on performance, with a potential increase to 20%.
- Dispute Resolution
In the event of a dispute, the Parties agree to first attempt mediation. If mediation fails, the Parties may pursue arbitration before initiating any legal proceedings. Any legal actions will be governed by the laws of the State of ____________.
- Force Majeure
Neither Party shall be held responsible for any delay or failure in performance caused by circumstances beyond their control, including but not limited to natural disasters, pandemics, governmental restrictions, or other unforeseen events.
- Confidentiality
The Co-Host agrees to maintain the confidentiality of all information related to the Host's property, financial details, and other proprietary information.
- Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of ___________.
- Entire Agreement
This Agreement constitutes the entire understanding between the Parties with respect to the subject matter herein and supersedes all prior agreements, negotiations, and understandings, whether written or oral.
- Signatures
By signing below, both parties acknowledge that they have read, understood, and agree to the terms and conditions outlined in this Agreement.
Host
Signature: ________________________
Name: ____________________________
Date: ____________________________
Co-Host:
Signature: ________________________
Name: ____________________________
Date: ____________________________
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This revised contract includes key elements like Host responsibilities, insurance, taxes, performance review, and termination processes, offering a more comprehensive and protective agreement for both parties.
