Short-Term Rental Partnership Agreement

What a good one includes

• A clear breakdown of the initial capital each partner is contributing and how that translates to ownership equity.
• A detailed schedule explaining how booking revenues are split, when payouts occur, and how operational expenses like cleaning fees and utilities are deducted.
• A clear division of daily labor specifying who handles guest inquiries, coordinates cleaning turnovers, and manages emergency maintenance issues.
• Strict guidelines outlining how the partners themselves can use the property for personal stays and how major property upgrades are approved.
• A step-by-step process for how a partner can exit the venture, how the property will be valued, and who has the first right of refusal to buy out the other’s share.
• A defined protocol for breaking deadlocks on major decisions, such as changing listing platforms or adjusting nightly pricing strategies.

Common mistakes to avoid

• Many partners fail to assign a clear financial value to operational work like hosting and cleaning, which leads to resentment when dividing profits.
• Partners often overlook who pays for guest-inflicted damage that platforms do not cover, or how to handle a sudden listing suspension.
• Partners frequently argue over peak-season personal stays because they did not establish a fair booking calendar for themselves beforehand.
• Many ventures stall because partners do not agree upfront on how to dissolve the partnership or sell the property when one person's life circumstances change.

Frequently asked questions