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7 Must-Have Policies For Vacation Rental Hosts


A policy in hand…is better than fighting with your guests in the future.

(Okay that’s not a real quote. Tee, you can do better than that.)

Question is… what are the most important policies for holiday homes and short term rentals? This includes the guest cancellation, house rules, payment, check-ins, maintenance, and safety policies. 

Setting up proper vacation rental policies is crucial for protecting your investment and ensuring smooth operations. In this blog, we’ll explore each of these must-have holiday homes policies in detail — so you can protect your rental business from day one.

Let’s jump right in!

 

What Are The Key Benefits of Having Strong Vacation Rental Policies?

Before we dive into the juicy parts, why is it even important to have a rock solid short term rental policy? Here’s why;

  1. You’re Protected Legally: Your policy serves as your foundation for dispute resolution and liability management. This is by far the most important reason to have a strong vacation rental policy. When guests accept your holiday home policies, you create a binding agreement that clearly outlines responsibilities and consequences, protecting all parties involved.
  2. Clear Expectations: By setting transparent guidelines before arrival, your guests will understand exactly what’s expected of them, resulting in fewer issues during their stay. Ultimately, this leads to fewer disputes, better guest behavior and property care.
  3. You’ll Have A More Professional Image: Well-documented short-term rental policies signal professionalism to potential guests, which can lead to higher-quality bookings and better reviews. 

 

Top Holiday Homes Policies Every Host Should Have

Image showing a man showing holiday homes rental policies to a couple

Photo by RDNE Stock project

Now that you understand why having a vacation rental policy is important, let’s dive into the types of policies you should set in place for your rental business.

1. Guest Cancellation Policy

Your vacation rental cancellation policy directly impacts your income stability and booking reliability (even Eminem can’t compete with those rhymes). However, your guest cancellation policy requires careful consideration of your financial protection…as well as flexibility for your guests.

Here are the important components of your holiday homes cancellation policy:

— Refund Structure: This forms the core of your cancellation terms. Consider a tiered approach based on notice period

  • Full refunds for cancellations 14+ days before check-in
  • 50% refunds for 7-13 days notice
  • No refunds for last-minute cancellations 

— Special Circumstances: This protects both you and your guests during unexpected events. Include clear terms for natural disasters, health emergencies, or travel restrictions. At Homevy, we recommend offering flexible terms for documented emergencies while maintaining strict policies for standard cancellations.

However, at the end of the day…your cancellation terms should align with both your property’s location and your target guest demographic. 

High-demand locations can sustain stricter policies, as guests are often more committed to their travel plans. On the other hand, if you’re operating in an area with high competition or during slower seasons, offer a more flexible cancellation policy. The key here is to find the sweet spot that protects your income and helps you remain competitive.

 

2. Payment and Security Deposit Policy

Someone play “Money” by Cardi B. Now while that’s playing in the background, let’s talk money. 

Having a payment and security deposit policy in your holiday home helps you prevent any money-related issues like refunds or payment processing

Here’s what your payment policy for vacation rentals should have: 

  • Deposit Requirements: This safeguards your property against potential damages. Industry standard is 20-30% of the booking value, which provides sufficient coverage without deterring bookings. This range optimally balances protection and booking conversion rates.
  • Payment Schedule: Structure payments with booking deposit due immediately, final payment 30 days before arrival, and security deposit released within 7 days after checkout (pending inspection). This clause can help you set clear financial milestones.
  • Processing Timeline: Clearly state when payments are due, how deposits are processed, and what conditions must be met for refunds. Include specific timeframes for each transaction type as well.
  • Accepted Payment Methods: List approved payment platforms and any associated processing fees. This prevents payment disputes and ensures secure transactions.

3. House Rules Policy

Yeah your apartment is a vacation rental, but it’s still your house and you call the shots. 

Image of a woman delivering house rules to the front door of a guest

Photo by Samuel Peter

A clear house rules policy for vacation rentals protects your apartment from misuse, and helps create a better experience for everyone. When guests know exactly how to behave, you’ll avoid potential issues.

Some key policies to include in your House Rules include:

Maximum Occupancy: This prevents overcrowding and property wear. Calculate your limit based on bedroom count and local regulations – typically two people per bedroom plus two additional guests maximum.

Quiet Hours: Set specific quiet times (often from 10 PM to 8 AM) and clearly outline consequences for violations. Include specific decibel limits if your property has noise monitoring devices. Setting quiet hours helps you maintain good relationships with neighbors. 

— Party Restrictions: Define what constitutes a party (number of guests, noise levels, duration) and specify consequences for violations, including potential eviction and forfeit of security deposit. This clause helps protect your property from excessive wear and liability.

— Pet Guidelines: If you allow pets, specify the following:

  • Size and breed restrictions
  • Additional pet cleaning fee
  • Required vaccination records
  • Areas where pets are allowed/restricted

 

4. Check-in/Check-out Policy

Image of guests arriving at a vacation rental

Photo by Ketut Subiyanto

Here are some major clauses to include in your guest check in and check out policy:

  • Standard Check-in/Check out Times: This enables proper property preparation between guests. Set check-in at 3 PM or later and check-out at 11 AM or earlier, so you have more than enough time to thoroughly clean AND inspect the apartment. You can be more flexible with check-in and check-out times during low guest season, but you should stand firm during peak season when turnover is high.
  • Early/Late Fees: What if a guest doesn’t adhere to your check in or check out times? To avoid this, set an early or late fee as a fine. This encourages compliance with standard times. Structure fees progressively – for example, $50 per hour outside standard times, with clear communication about availability.
  • Property Inspection: This documents property conditions at key transition points. Outline your inspection process, including photos before check-in and after check-out, protecting both parties from disputed damage claims.

 

5. Cleaning and Maintenance Policy

Your short-term rental policy should outline expectations for property care during and after stays. Key components of your cleaning and maintenance policy should include:

— Cleaning Fees: State your standard cleaning fee depending on property size – and what it covers.

— Guest Responsibilities: Clearly list guest duties such as daily trash removal, dishes cleaned and put away, used towels placed in designated areas, and reporting maintenance issues promptly etc.

— Professional Services: Outline when professional cleaning occurs such as:

  • Pre-arrival deep clean
  • Mid-stay cleaning for extended bookings
  • Post-departure cleaning and sanitization

— Standard Cleaning Requirements: This ensures consistent property presentation. Detail your professional cleaning protocol between stays, including sanitization standards and special attention areas.

 

6. Safety and Security Policy

A robust safety policy protects both your guests and your vacation rental business from liability issues.

Image showing a man holding documents containing holiday homes policies

Photo by Andrea Piacquadio

Essential elements include:

  • Emergency Procedures: Document clear steps for common emergencies – medical issues, power outages, natural disasters – with relevant local contact information. Having an emergency procedure in place helps prepare your vacation rental guests for unexpected situations.
  • Security Measures: This protects your property and guests. Detail all security features – smart locks, outdoor cameras (with required disclosure), alarm systems – and proper usage guidelines.
  • Insurance Requirements: Specify required insurance coverage for both host and guest protection, including any additional coverage needed for high-value amenities. This way, you’ll prevent any potential liability issues.

 

7. Amenities Usage Policy

Clear guidelines for amenity use prevent misuse and extends the life of your vacation rental features.

Include usage policies for:

  • Pool/Hot Tub Rules: This prevents accidents and maintains safety. Include specific operating hours, maximum occupancy, and child supervision requirements. Detail proper chemical handling and emergency shut-off procedures as well (if relevant). The key here is to ensure you leave no stone unturned.
  • Entertainment Systems: Provide clear instructions for using smart TVs, streaming devices, sound systems, and gaming consoles, including login credentials and usage limitations.
  • Shared Spaces: This manages common area access. For properties with shared amenities, establish clear usage guidelines to prevent conflicts between guests.

 

Outro: Go Forth and Set Your Vacation Rental Policies In Motion

Strong vacation rental policies create the foundation for a profitable and protected rental business. Each policy we’ve covered – from guest cancellations to amenities usage – plays a vital role in preventing disputes and setting professional standards for your property.

Start by implementing these policies one at a time. Focus first on the essentials: house rules, payment, and guest cancellation. Then gradually build out your complete policy framework. Remember to document everything and also review your policies quarterly because the market conditions can change from time to time.

And if you need help managing your rental property as a whole, you already know Homevy offers the best short term rental property management service in Dubai. Give us a call, okay?

Catch you in the next one!

Xoxo, Gossip Homevy girl.

 

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