35+ Sample Vacation Agreement

What Is a Vacation Agreement?

A vacation agreement is a formal written agreement created between a vacation host and a lessee or guest. The agreement outlines the various stipulations regarding the vacation home property and rental stay.

According to a recent article published by CNN, the global vacation rental market is estimated to reach $114 billion by the year 2027. Other data provided by popular vacation rental company Airbnb showed that cabins were deemed the most “wish listed unique stay type” for 2021. Statistics also showed that there was an 80% increase in interest for properties with treehouse views since the start of the worldwide pandemic in March 2020.  

Importance of Taking a Vacation

People go on vacations for various reasons. It is oftentimes by choice, but in other cases it is out of need. Employees are awarded vacation leaves for a reason. The saying that “All work and no play makes Jack a dull boy” cannot ring more true. Without the necessary balance needed at work or basically any aspect of  an individual’s life, performance and motivation can suffer greatly. The following are just some major reasons why taking a vacation is so important.   

To take a break. Obviously, people should consider taking a vacation when they feel overwhelmed by the daily demands and struggles of everyday life. Whether it is taking a break from problems at work or carving out some time to regroup and realign one’s goals and priorities. If you are continuously on the go and working all the time, there can be serious health consequences if you fail to take the time to slow down and pause for a moment. Especially in today’s hyper competitive environment where everyone and everything is moving at a rapid pace, the importance of pausing amidst all the chaos is becoming all the more necessary. Taking a break does not mean abandoning one’s responsibilities or cutting the whole world off. It is simply acknowledging that balance is the goal and by taking some time off, it allows you to go back to work or face life with a renewed sense of motivation. To spend quality time with others. Another key reason why people should go on vacation is to spend more time with family and loved ones. When everyone at home is always rushing or busy attending to their own lives, there can be little substantial interaction. Even if family members have close ties with one another, it can be difficult to forge stronger bonds if everyone is constantly preoccupied at home. Going on a vacation is a perfect opportunity to spend quality time with a spouse, friends, children, and loved ones. It does not even have to be a far-off place or a long, extended vacation. A simple weekend recharge at the nearest beach can do wonders. Not only can quality time help strengthen the relationship, but you are able to form and share memories together while engaging in relaxing and exciting activities. To rediscover the vitality of life. Sometimes, the constant demands and problems of day-to-day living can drain the life out of people and some may find themselves running on empty. Whether it is work-related issues, problems at home or toxic and deteriorating relationships, it can be difficult to regain joy and fulfillment when people are constantly bombarded with all kinds of problems. A remedy to this can simply be a change of scenery or a switch in routine. It does not make the problem go away entirely, but it may help you rediscover your enthusiasm and drive for life. Other people find that going on a vacation may even open their minds to creative solutions to their problems. Travel can be quite therapeutic for some people as well. Just the novel experience and deliberate change in environment that it offers can already have surprising benefits. To manage stress levels. As people hustle more, acquire more, and strive for more, their internal stress levels have the potential to climb higher as well. Stress has a biological and evolutionary function, but chronic stress levels can lead to serious health issues. Dealing with too much pressure at work or having a dysfunctional home life can take a toll on one’s well-being. If you constantly disregard your body’s reaction to the stress you’re feeling or allow it to become worse over time, the physical, mental, emotional and relational cost can be great. A possible solution or quick-fix to managing high stress levels is learning to take a step back and give yourself a break. Try taking a vacation and really focus on self-care and wellness. Doing so may be a welcome, positive change and it can help lower your stress in the process.

Benefits Of Owning a Vacation Rental

Many people dream of having their own beach house or rest house to get away to. Whether it is a beach front property or a cozy cabin situated on a hill, owning one can present many possibilities and opportunities. And although a vacation house is not always the perfect investment, it can come with a number of benefits. The following examples described below are some basic benefits to consider if you’re looking to purchase a vacation rental property.     

Privacy and Flexibility. Having a vacation home all to yourself is great if you value privacy and solitude. Actually owning one and not having to rent one gives you the freedom to do anything you want with it. You’ll have an existing place to host events or intimate gatherings with friends and family. Unlike a hotel, you don’t have to worry about other guests or strangers. You can have total privacy for yourself and for your guests. Essentially, it is a home but considered a ‘getaway’ kind of residence. Most vacation home owners choose locations that are quintessential vacation spots such as by the beach, in the mountains, or anywhere that is not within their ‘regular’ vicinity. Having a vacation home can even serve as a retirement home where you can spend your time leisurely and freely. Passive Income. One major reason people invest in vacation homes is to supplement their income. For others, active income such as employment is not always sufficient. So it is not uncommon for people to take on two or more jobs because they’re trying to hustle as much as they can. The alternative is looking for sources of passive income, in addition to active income streams. Rentals are a popular form of passive income. Whether it’s renting houses, equipment, or even advertising space, these alternative channels of profit can be quite lucrative. Of course, vacation rentals-or basically any type of residence- is still a big investment that requires capital. But those who are fortunate enough to purchase and own one have a worthwhile opportunity before them. Market Opportunity. These days, the market for vacation rentals remains steady and growing. The advent of Airbnb, Vrbo, and other online booking platforms has dramatically bridged the service gap and ultimately changed the game in traditional accommodation. People now have more options other than just the usual hotel accommodation. A growing number of tourists and travelers are constantly looking for alternative places to stay that are able to offer them privacy and lesser restrictions. For an owner of an apartment, beach house or rest house, it is a sizable opportunity to take advantage of. Just having your vacation home listed in any of the popular booking channels has the potential to open many doors for profit or even networking. Depending on your location, you may already have an existing market and all you need to do is grab the opportunity.

How To Create a Vacation Agreement

To create a formal vacation agreement, make sure you have all the details prepared. From the complete name of the lessee down to the detailed list of amenities, these all have to be incorporated in the written agreement. However, if you are looking for a quicker and more convenient way of crafting your agreement, using an existing template will save you a lot of time. Simply select a sample template from the collection above and follow the basic steps below.   

Step 1: Introduce the Parties

The first step is making sure the identities of the parties involved are established. In the case of a vacation agreement, the parties are typically the host or home owner and the guest. Vacation rentals are usually short-term arrangements, but some guests may opt to stay long-term. This must be clearly identified in the introduction or opening of the agreement. Ensure that the complete name of all parties are stated. Although optional, you may also include the complete address of either party. You should also try to keep in mind the format of your agreement contract. To emphasize the names, make the text bold or underscore it. Lastly, it is best to choose a legible and classic font as well.       

Step 2: Give a Background About the Property

Once you have established the identities of the parties, offer a comprehensive background about the vacation property. The key is to be descriptive and specific as much as possible. Describe the type of property, number of rooms, property size, list of amenities and facilities, and what is inclusive or exclusive of the rental agreement. The more details are provided, the better. It can help guests have a clearer picture of the place and also help manage their expectations of the property. Aside from providing the exact location of the property, you can also include various emergency details such as the nearest fire station, police station, etc. The safety and security of both the property and the guests should be your top priority.       

Step 3: Establish the Terms and Conditions

This section is dedicated to enumerating the various provisions and stipulations of the arrangement. Both the guest and the host may have certain expectations and needs from either one, so it must be stated clearly and explicitly what these conditions are. Terms revolving security deposit guidelines, liability clauses, occupancy guidelines, insurance guidelines, payment schemes, duration of stay, and use of facilities are just some of the common provisions that are found in a vacation agreement. It is important to set clear terms and conditions because these don’t just dictate the agreement, they are put in place to help resolve any potential misunderstanding.       

Step 4: Conclude With a Declaration 

The last step in creating a formal contract is by formalizing the parties’ mutual desire to enter into the agreement. This section should be at the end of the contract or located at the bottom of the page. It is primarily a declaration that affirms the host and guest’s agreement to the previously stated terms and conditions. Since a vacation agreement is still considered a binding agreement, signatories are needed. Make sure to leave adequate space for both parties to sign their names and the date.  


How do I write a vacation rental agreement?

To write a vacation rental agreement, you need to have all details prepared. Information on the property, guest details and other related data must all be included in the agreement. Refer to the step-by-step tutorial guide above for more detailed instructions.

Is a vacation rental a lease?

A vacation rental is a lease arrangement between a host, homeowner or a landlord and a guest or tenant. Depending on the arrangement between the parties, the lease can either be short-term or long-term.

Are companies required to give vacation days?

Although it is not always strictly required, it is common practice for companies to award vacation days to their employees. Policies regarding paid or unpaid leaves are highly subjective to company policy and/or state laws.

Vacations are perfect opportunities to discover and explore new places. And whether you are a host or a guest, a credible vacation agreement can help promote accountability and security for both parties. Browse the editable sample templates above to customize your own agreement now!