Updated on November 19, 2025
If you manage your own direct bookings, the answer is simple: yes, you need a rental agreement for every stay. The debate begins when a booking comes through Airbnb, Vrbo, or another online travel agency (OTA). Should you still ask guests to sign a separate agreement after they’ve already accepted the platform’s terms?
Short-term rental platforms include booking terms and host protections, but these provisions may not cover a host in every situation.
“Rental agreements are the first line of defense for a liability claim [and] should not be optional for any host,” said Nick Massey, Chief Sales Officer at Proper Insurance.
What’s covered in OTA booking terms?
Online travel agencies like Airbnb and Vrbo provide some baseline protections, including limited coverage for guest-caused damage and liability for injuries or third-party property damage. For example, Airbnb’s Host Damage Protection can reimburse hosts for accidental damage caused by guests, up to $3 million under its AirCover. Vrbo offers hosts up to $1 million in liability coverage, but those protections aren’t comprehensive. Gaps include intentional damage to your property, theft, guest misconduct, and lost income.
Separate rental agreements
Because of these gaps in OTA protections, hosts should rely on a separate rental agreement and dedicated STR insurance to fill in what platforms don’t cover.
STR insurers typically require a rental agreement. For example, Proper Insurance requires hosts to keep a signed agreement on file through the statute of limitations in their state, which can range from two to ten years. For OTA bookings, a guest’s acknowledgment of the house rules usually satisfies that requirement, Nick added.
While Proper doesn’t require a separate document beyond OTA terms, Nick recommends making house rules more comprehensive or following up with a detailed agreement after booking.
“Some may argue that sending additional agreements feels like a heavier lift and could result in a canceled booking,” he said. “Others would argue they’re fine with a guest cancelling over it because they likely would have been a problem guest anyway.”
Attorney Keith Brady of Florida Vacation Rental Law agreed that a separate rental agreement provides protection beyond what OTAs offer.
“It is best practice to have a written rental agreement signed by all guests,” he told Rent Responsibly. “The reason is simple: added protection.”For example, in a rental agreement, you can include an attorney’s fee clause.
“It says that if a lawsuit arises, the losing party pays the prevailing party’s attorney fees,” Keith said on the Vacation Rental Formula Podcast. “It’s powerful because it lets you negotiate from strength.”
Read more: Short-term rental agreements: A guide for hosts
What do hosts say about rental agreements?
Many hosts have learned from experience that a rental agreement is in their best interest.
“I simply say our insurance requires it, and if they’re not comfortable, they’re welcome to cancel the reservation,” said Beata Lorinc, a host in Cary, North Carolina.
Maura Giannobile, a host in Columbus, Ohio, avoids misunderstandings by making her policy clear from the start:
“I have it listed in my house rules that a rental agreement must be signed within 48 hours of booking,” she said. “We’ve never had anybody push back, but if they did not want to sign, then we would not rent.”
Stacey St. John, host of the STR Sisterhood podcast and founder of the Female Short-Term Rental Investors Facebook group, encourages hosts to stand firm when guests push back on the policy.
“It’s great that you have a short-term rental agreement in place! Policies like this protect you, your property, and your guests,” she wrote. She also shared a template that hosts can use when guests question the policy:
Hi [Guest’s Name],
Thank you so much for reaching out! I completely understand your concern and want to assure you that the rental agreement is in place to protect both you and me as the host. It outlines key details to ensure a smooth, enjoyable stay for everyone.
This requirement is stated in my listing, and I ask all guests – no matter where they book – to sign it for consistency and clarity. If you’d like, I’m happy to walk you through any parts of the agreement that you may have questions about.
I truly value your understanding and cooperation, and I’m looking forward to hosting you!
Best,
[Your Name]
Not all hosts agree. Susan Walsh, a host in San Diego, California, looks at it from a guest’s perspective.
“As a guest, if I book via an OTA, I’m not signing a rental agreement. That’s why I go through an OTA,” she said.
Still, most legal and insurance experts say the benefits of a rental agreement outweigh the drawbacks. Without one, conflicts can devolve into “he said, she said” exchanges that platforms can’t always resolve. In some jurisdictions, failing to define terms in writing could even allow a guest to claim tenancy rights rather than short-term occupancy, a costly complication for any host.
“We have been saved too many times in both our long-term and short-term rentals due to our agreement to do away with it or tell someone they don’t have to sign it,” Maura said.
Read more: 4 vacation rental guest agreement clauses every host needs
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