Property Management Agreement for Airbnb

PROPERTY MANAGEMENT AGREEMENT FOR AIRBNB

1. Document Preamble & Recitals

This Property Management Agreement for Airbnb (the "Agreement") is entered into and made effective as of [Effective Date] (the "Effective Date"), by and between:

Owner: [Owner/Entity Legal Name], having its principal place of residence or registered office at [Owner Address] ("Owner"), and

Manager: [Management Company Legal Name], a [State of Incorporation/Organization] [Corporation/LLC], having its principal place of business at [Manager Address] ("Manager").

Owner and Manager may collectively be referred to as the "Parties" and individually as a "Party."

Recitals

WHEREAS, Owner is the lawful owner or authorized lessee of certain real property and improvements located at [Property Street Address, City, State, Zip] (the "Property");
WHEREAS, Manager is engaged in the professional business of operating, marketing, and managing short-term residential rental properties through online hosting platforms, including Airbnb, VRBO, and other alternative lodging networks; and
WHEREAS, Owner desires to retain Manager to exclusively manage, market, maintain, and operate the Property as a short-term rental, and Manager agrees to provide such services under the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

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2. Operational Definitions

For purposes of this Agreement, the following terms shall have the meanings ascribed below:

1. "Airbnb Platform" means the online lodging marketplace operated by Airbnb, Inc., and any related or successor applications or websites utilized for booking the Property.
2. "Available Nights" means all calendar nights during the term of this Agreement that the Property is legally permitted, structurally sound, and made available by Manager for short-term rental occupancy.
3. "Booking Revenue" means the gross monetary proceeds actually collected from guests for the rental of the Property, inclusive of nightly rates and cleaning fees (unless retained or paid directly to third-party cleaners), but expressly excluding occupancy taxes, platform service fees, and security deposits.
4. "Default" means the material breach of any covenant, representation, warranty, or obligation under this Agreement, or the occurrence of any event designated as a default under Section 4 hereof.
5. "Gross Receipts" means all monies, funds, and revenues of every kind derived directly or indirectly from the operation, rental, and exploitation of the Property, including Booking Revenue and damage claim recoveries.
6. "Management Fee" means the compensation due to Manager for services rendered under this Agreement, calculated as [Numeric Percentage, e.g., 20] percent ([20]%) of the Gross Receipts generated by the Property.
7. "Operating Reserve" means the initial and recurring working capital fund established by Owner pursuant to Section 3.8 to cover immediate operational expenses, maintenance, and emergency repairs.
8. "Property" means the real property described in the Preamble, together with all fixtures, furniture, appliances, electronics, amenities, and personal property owned by Owner located therein.
9. "Short-Term Rental Regulations" means all applicable federal, state, county, and municipal laws, ordinances, zoning codes, homeowner association (HOA) bylaws, and CC&Rs governing transient occupancy, short-term rentals, licensing, and transient occupancy taxes (TOT).

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3. Substantive Terms & Obligations

3.1 Appointment and Exclusivity

Owner hereby grants to Manager the sole and exclusive right to rent, market, manage, and operate the Property as a short-term rental during the term of this Agreement. Owner shall not list the Property on any short-term rental platform independently, nor retain any other leasing agent, property manager, or intermediary for the Property.

3.2 Term

This Agreement shall commence on the Effective Date and shall continue for an initial term of [Number, e.g., 12] months (the "Initial Term"). Upon the expiration of the Initial Term, this Agreement shall automatically renew on a month-to-month basis unless either Party provides written notice of non-renewal at least sixty (60) days prior to the expiration of the then-current term.

3.3 Manager Duties and Operational Authority

Manager shall perform the following operational duties with professional skill, care, and diligence:

1. Listing Creation and Optimization: Create, manage, and optimize listings on the Airbnb Platform and other designated channels, including professional photography coordination, dynamic pricing strategies, and compelling copywriting.
2. Guest Communications: Handle all guest inquiries, screening, pre-booking communication, reservation management, check-in instructions, and 24/7 guest support throughout the stay.
3. Cleaning and Turnover Management: Coordinate and supervise third-party housekeeping and turnover services following the departure of each guest to ensure pristine Property presentation.
4. Maintenance Coordination: Oversee routine and emergency maintenance, repairs, and restocking of essential household supplies (linens, toiletries, consumables). Manager is authorized to incur routine maintenance expenses up to [Dollar Amount, e.g., $500.00] per occurrence without prior Owner consent.
5. Tax Collection and Remittance: Where applicable and supported by the platform, collect and remit transient occupancy taxes, lodging taxes, and sales taxes to the appropriate governmental authorities, or ensure proper reporting mechanisms are established.

3.4 Owner Representations, Warranties, and Covenants

Owner represents, warrants, and covenants that:

1. Legal Authority: Owner holds fee simple title to the Property or possesses valid, unencumbered leasehold rights with explicit contractual authorization to sublease or operate short-term rentals.
2. Compliance with Laws: The Property complies with all Short-Term Rental Regulations, building codes, fire safety laws, and HOA rules. Owner shall provide Manager with copies of all applicable permits, licenses, and HOA bylaws prior to the Effective Date.
3. Insurance: Owner shall maintain comprehensive homeowner's or commercial general liability insurance with minimum limits of [Dollar Amount, e.g., $1,000,000] per occurrence, naming Manager as an additional insured. Owner acknowledges that standard homeowner policies often exclude short-term rental activities and warrants that a specific short-term rental rider or policy is active.
4. Habitability: The Property is, and shall remain during the term, structurally sound, safe, habitable, and equipped with all necessary utilities, functioning HVAC, smoke detectors, carbon monoxide detectors, and fire extinguishers.

3.5 Compensation and Financial Accounting

1. Management Fee: Manager shall retain or be paid the Management Fee from the Gross Receipts for each applicable accounting period.
2. Statement and Disbursement: Manager shall provide Owner with a monthly statement of account detailing all Gross Receipts, expenses, platform fees, taxes withheld, and net disbursements on or before the [Day, e.g., 10th] day of each calendar month following the operating month, accompanied by the net proceeds due to Owner via electronic funds transfer (ACH).
3. Expenses: Owner shall bear all costs and expenses related to the physical operation of the Property, including utilities, internet, cable, HOA dues, property taxes, insurance premiums, mortgage payments, major repairs, and specialized maintenance.

3.6 Performance Metrics

Manager shall use commercially reasonable efforts to maximize Booking Revenue and maintain an average review rating of at least [Number, e.g., 4.7] out of 5.0 stars on the Airbnb Platform.

3.7 Indemnification

Owner agrees to indemnify, defend, and hold harmless Manager, its officers, directors, employees, and agents from and against any and all claims, liabilities, losses, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to: (a) any breach of Owner's representations or warranties; (b) personal injury or property damage sustained by guests or third parties at the Property, except to the extent caused by the gross negligence or willful misconduct of Manager; (c) violations of any Short-Term Rental Regulations or HOA rules; or (d) mortgage foreclosures or tax liens affecting the Property.

3.8 Operating Reserve

Owner shall fund and maintain an Operating Reserve in the amount of [Dollar Amount, e.g., $1,000.00] in a designated account managed by Manager to be utilized for immediate operational needs, emergency repairs, and guest reimbursements. Manager may replenish the Operating Reserve from Gross Receipts when depleted.

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4. Default, Termination, and Remedies

4.1 Events of Default

The occurrence of any of the following shall constitute a material Default under this Agreement:

1. Failure of either Party to pay any monetary sum due under this Agreement within ten (10) days of receiving written notice of non-payment.
2. Failure of either Party to perform, keep, or fulfill any other material covenant, undertaking, obligation, or condition set forth herein.
3. The filing of a petition in bankruptcy or insolvency by or against a Party, or an assignment for the benefit of creditors.
4. Revocation, suspension, or violation of any required short-term rental license, permit, or legal right to operate the Property.

4.2 Notice and Cure Periods

In the event of a material Default, the non-defaulting Party shall provide written notice to the defaulting Party specifying the exact nature of the Default. The defaulting Party shall have thirty (30) business days from the receipt of such written notice to cure the Default. If the Default is incapable of being cured within thirty (30) business days, but the defaulting Party has commenced and is diligently pursuing a cure, the cure period shall be extended for an additional thirty (30) days, not to exceed sixty (60) total business days.

4.3 Termination for Cause

If a Default is not cured within the applicable cure period specified in Section 4.2, the non-defaulting Party may terminate this Agreement immediately upon written notice to the defaulting Party. Termination for Cause shall not prejudice or waive any other legal or equitable remedies available to the non-defaulting Party.

4.4 Termination for Convenience

Either Party may terminate this Agreement without cause upon providing at least sixty (60) days prior written notice to the other Party. In the event Owner terminates for convenience prior to the expiration of the Initial Term, Owner shall pay to Manager a liquidated early termination fee equal to the average monthly Management Fee multiplied by the remaining months of the Initial Term, or [Dollar Amount, e.g., $2,500.00], whichever is greater. Active guest bookings scheduled to occur after the effective date of termination shall either be honored and managed through completion by Manager (with Manager retaining its full Management Fee for such bookings) or successfully transitioned to Owner pursuant to a mutually agreed transition plan.

4.5 Remedies Cumulative

All rights, options, and remedies granted to either Party under this Agreement shall be cumulative and in addition to any remedies available at law or in equity.

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5. Boilerplate Legal Provisions

5.1 Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid and enforceable. If modification is not possible, the provision shall be stricken, and the remaining provisions of this Agreement shall remain in full force and effect.

5.2 Entire Agreement

This Agreement, together with any attached exhibits and addenda, constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No amendment, modification, or waiver of any provision of this Agreement shall be binding unless executed in writing by both Parties.

5.3 Force Majeure

Neither Party shall be liable for any failure or delay in performance under this Agreement (other than for the payment of money) to the extent such failure or delay is caused by acts of God, natural disasters, epidemics, pandemics, government restrictions, utility failures, civil unrest, war, terrorism, or other causes beyond the reasonable control of the affected Party (each, a "Force Majeure Event"). The affected Party shall promptly notify the other Party in writing upon the occurrence of a Force Majeure Event and shall use commercially reasonable efforts to resume performance as soon as practicable.

5.4 Governing Law and Venue

This Agreement shall be construed, interpreted, and governed by the laws of the State of [State], without regard to its conflict of laws principles. Any legal action, proceeding, or arbitration arising out of this Agreement shall be brought exclusively in the state or federal courts located in [County], [State], and the Parties hereby irrevocably consent to the personal jurisdiction and venue of such courts.

5.5 Dispute Resolution

Any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, breach, termination, or validity, shall first be subjected to good-faith mediation administered by a mutually agreed mediator in [City, State]. If the dispute is not resolved through mediation within thirty (30) days of commencement, the dispute shall be finally settled by binding arbitration administered by the American Arbitration Association (AAA) in accordance with its Commercial Arbitration Rules. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The prevailing party in any such arbitration or litigation shall be entitled to recover its reasonable attorneys' fees, expert witness fees, and costs.

5.6 Assignment

Owner shall not assign this Agreement or any of its rights or obligations hereunder without the prior written consent of Manager. Manager may assign this Agreement to any affiliate or successor entity resulting from a merger, acquisition, or corporate reorganization without Owner's consent, provided written notice is given to Owner.

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6. Formal Execution Block

IN WITNESS WHEREOF, the Parties hereto have executed this Property Management Agreement for Airbnb by their duly authorized representatives as of the Effective Date written above.

OWNER:

[Owner/Entity Legal Name]

By: ____________________________________________________
Name: [Signatory Name]
Title: [Signatory Title, e.g., Managing Member / Individual]
Date: ____________________________________________________

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MANAGER:

[Management Company Legal Name]

By: ____________________________________________________
Name: [Signatory Name]
Title: [Signatory Title, e.g., Chief Executive Officer]
Date: ____________________________________________________