FAQs about License vs. Lease Agreements for Short-Term Rentals

1. What is the difference between a license and a lease?

• A lease grants exclusive possession of a property, creating a landlord-tenant relationship with legal obligations, including eviction through court proceedings if necessary.

• A license to occupy provides temporary permission to use property without creating a tenancy. It allows the owner to revoke the agreement and remove a guest if they violate terms, similar to how hotels operate.

2. Why haven’t homeowners used license agreements in the past?

• Before the rise of the sharing economy, most rental properties were leased for 30 days or longer, requiring leases with tenant rights.

• With shorter rental periods becoming common, a license to occupy allows owners to manage rentals more flexibly, avoiding lengthy eviction processes.

3. Where can I find a license to occupy agreement that I can use?

• GuestAgreement.com offers an online platform where property owners can create custom license agreements designed for short-term rentals.

• Agreements are written clearly and help prevent misunderstandings while ensuring compliance with relevant legal standards.

4. What about state laws that might automatically give “tenant rights” to guests if an agreement is for longer than 30 days?

• Some states confer tenant rights for rentals exceeding 30 days.

• To avoid this, GuestAgreement.com suggests creating consecutive agreements, such as a 29-day contract followed by another for the remaining period. This approach clarifies the intended temporary nature of the arrangement.

5. Is your agreement enforceable in all 50 states?

• Yes, license agreements are enforceable nationwide.

• However, GuestAgreement.com only provides state-level compliance guidance, excluding specific county or city requirements.

• Contracts for North and South Carolina include special provisions under their Vacation Rental Acts.

6. Is your agreement enforceable overseas?

• Currently, GuestAgreement.com agreements are not guaranteed enforceable internationally, but expansion plans are underway.

7. How does it work?

• Register: Sign up for a free membership (no credit card needed unless purchasing an agreement or background check). Mention the contract requirement in your property listing.

• Create, Purchase, and Sign Agreement: Answer questions about the property to generate a customized agreement. Owners and guests review and sign the contract online.

• Sit Back and Relax: Enjoy peace of mind knowing your rental is protected by a legally sound agreement, reducing liability risks and ensuring compliance with relevant laws.