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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!
Before we dive into the juicy parts, why is it even important to have a rock solid short term rental policy? Here’s why;
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.
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.
— 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.
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:
Yeah your apartment is a vacation rental, but it’s still your house and you call the shots.
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:
Photo by Ketut Subiyanto
Here are some major clauses to include in your guest check in and check out 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:
— Standard Cleaning Requirements: This ensures consistent property presentation. Detail your professional cleaning protocol between stays, including sanitization standards and special attention areas.
A robust safety policy protects both your guests and your vacation rental business from liability issues.
Photo by Andrea Piacquadio
Essential elements include:
Clear guidelines for amenity use prevent misuse and extends the life of your vacation rental features.
Include usage policies for:
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.
Get access to our 5-day training course on managing your vacation rental property in Dubai.
Learn More