The Rental Arbitrage Lease Addendum has become increasingly important with the growth of short-term rental platforms like Airbnb and VRBO. This document is essential when a tenant wishes to legally operate a short-term rental business in a property they don't own. It provides necessary protections for both landlord and tenant, ensuring clear understanding of permissions, responsibilities, and compliance requirements under U.S. law. The addendum typically includes specific provisions for insurance, guest management, revenue arrangements, and regulatory compliance.
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1. Parties: Identification of primary landlord, tenant (arbitrage operator), and their legal details
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the addendum including 'rental arbitrage', 'short-term rental', and 'booking platform'
4. Grant of Permission: Explicit permission for short-term rental operations and scope of allowed activities
5. Operating Requirements: Specific rules and conditions for running the rental arbitrage business, including guest screening and property maintenance
6. Insurance Requirements: Required insurance coverage and limits for both property and liability protection
7. Compliance Obligations: Legal and regulatory compliance requirements including permits, licenses, and tax obligations
1. Revenue Sharing: Terms for profit sharing arrangements between landlord and tenant, including calculation methods and payment schedules
2. Property Management: Detailed management responsibilities, maintenance procedures, and emergency protocols
3. Marketing Guidelines: Rules and restrictions for advertising the property on various platforms and channels
4. Reporting Requirements: Specifications for periodic reporting of occupancy, revenue, and compliance matters
1. Schedule A - Property Details: Specific details of the property including address, amenities, and areas approved for short-term rental use
2. Schedule B - Insurance Requirements: Detailed insurance specifications including required coverage types, limits, and named insured parties
3. Schedule C - Operating Procedures: Detailed protocols for guest management, cleaning, maintenance, and emergency procedures
4. Appendix 1 - Required Licenses: List and copies of all required business and short-term rental licenses and permits
5. Appendix 2 - House Rules: Comprehensive rules and regulations for guest conduct and property use
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