Don’t Get Burned In Your Summer Rental Deal

For many New Englanders, summer vacation means heading off to a rental cottage for a week or more of sun and relaxation. But if you’re not careful, you can get burned in your summer rental deal. When you rent a vacation home or cottage you are entering into a contract, and whether you are the one who owns the cottage or the person renting it, the deal should be in writing to legally protect everyone involved. We all know someone who’s had a nightmare experience – the family who ended up with a summer rental that looked the Adam’s Family’s house, or the owner whose property got trashed by unruly seasonal tenants. There are basic contractual terms of the rental deal that need to be spelled out, and depending on which side of the fence you’re standing on, there’s additional language you’ll want to include to cover yourself.

Like any contract, there are standard terms that should be included. For instance, make sure you include the following obvious details: the property address, the names of the renter and owner, when the rental period begins and ends, the cancellation policy (if any), the amount of the rent, acceptable methods of payment, and what deposits are required. Owners have to make sure they are following their particular state’s laws regarding deposits or they could find themselves in a heap of trouble. Renters should double check to make sure what they are being asked to do is acceptable. Same goes for making sure the rental agreement complies with all relevant laws including health/safety codes.

The agreement should specify how many people can occupy the property. This is a big ticket item because renters often plan on inviting friends and family to visit, sometimes overnight. If you are renting and you have a pet you plan on bringing with you, read the rental agreement very carefully. Many owners do not allow dogs or other animals. Imagine getting all the way to the cottage and having to turn around to bring Spot back home. The only thing worse would be your in-laws showing up and having to send them back home because you’ve gone over the occupancy limit – well, maybe not!

If you are the renter, you’ll want a written promise that the property will be cleaned before you arrive, as well as verification that the property is insured in case someone gets injured. The agreement should also spell out who the contact person is in case there is a problem with the property. If an owner takes a security deposit, the contract should clearly spell out what specifically entitles him/her to keep part or all of your money. If you are an owner, you should consider putting language into the contract that states what condition the renter has to leave the property in, and that you can use their deposit to clean up if the place is filthy or towards repairing any damage. If you are the owner, you also want the renter on the hook for any damage caused by their abuse or neglect. Make sure your agreement obligates the renter to immediately alert you if they find any dangerous or defective condition so you can fix it right away (as well as state in the contract that you may have reasonable access to access the property while the renter is there). Most rental contracts include language that prohibits the renters from illegal activity or disruptive behavior (like making excessive noise that will bother the neighbors).

Many people like to coordinate rentals over the internet. If you are a renter, though, you have to remember that seeing an offer on a website is not the same as having a contract. A website can easily be changed and provides no proof of the offer as you first saw it. And remember, most vacation websites do not warrant or verify the information they receive and post. And finally, with regards to payment, using a credit card can be a win-win all around. From the perspective of the renter, in case your dream vacation rental turns out to be the shack the Beverly Hillbillies left behind, you’ll have a better chance of getting your money back if you paid by credit card rather than cash or check. You might also be protected by the Fair Credit Billing Act. If you are the owner, getting payment via a credit card means you don’t have to worry about bounced checks or last minute cash payments that never materialize. You can’t control the weather this vacation season, but you can do what it takes to legally protect yourself from getting burned in your summer rental deal!

Copyright 2006 - Law Office of Gina M. Ghioldi, P.C.

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