STR Management Contract: What to Include and Common Mistakes to Avoid

Your management agreement is the single most important document in your STR management business. It defines the scope of your services, protects you from liability, sets clear expectations with property owners, and provides a framework for resolving disputes. Most operators spend far too little time on their contract — and pay for it later. Here's what every STR management agreement needs to include.

Why You Need a Written Agreement

We've heard every version of "we have a handshake deal" and "they're a friend, we don't need a contract." We've also heard the stories of what happens when those arrangements go sideways — disputed fees, unclear termination terms, arguments over who owns the Airbnb listing, and liability disputes when something goes wrong at the property. A written agreement protects both parties and sets the professional tone for the relationship from day one.

Never manage a property without a signed agreement. This applies to friends, family members, and anyone else. The contract isn't a sign of distrust — it's a sign of professionalism.

The Essential Clauses

Every STR management agreement should include the following core sections:

• Scope of services: A detailed list of exactly what you will and won't do. Be specific. "Guest communication" should specify response time commitments. "Cleaning coordination" should clarify whether you're managing the cleaning team or just scheduling. Ambiguity here is the source of most disputes.
• Fee structure: Your management percentage, how it's calculated (gross revenue before or after platform fees?), when it's collected, and how it's remitted to the owner. Include any additional fees — onboarding fees, maintenance coordination fees, restocking markups — explicitly.
• Term and termination: The initial contract term (typically 6–12 months) and the notice period required for either party to terminate (typically 30–90 days). Include a clause specifying what happens to existing reservations if the agreement is terminated — you should be entitled to your management fee on all bookings made during your management period, regardless of when the stay occurs.
• Platform account ownership: Specify who owns the Airbnb listing and what happens to the reviews if the relationship ends. This is one of the most contested clauses in STR management — establish it clearly upfront.
• Owner responsibilities: Define what the owner is responsible for — major repairs, property insurance, ensuring the property meets safety standards, providing adequate supplies for the initial setup.
• Liability and indemnification: Clarify the limits of your liability as a manager and require the owner to maintain appropriate property and liability insurance. Have a lawyer review this section specifically.
• Dispute resolution: Specify how disputes will be resolved — typically mediation before litigation, and the governing jurisdiction (your province or state).

Common Mistakes to Avoid

Beyond missing clauses, these are the most common contract mistakes we see from new STR managers:

• Vague service descriptions: "We handle everything" is not a service description. List every task explicitly. If it's not in the contract, it's not your responsibility — and it's not the owner's expectation either.
• No termination protection: Without a clear termination clause, an owner can fire you mid-summer with bookings already on the calendar. Protect your fee on all existing reservations regardless of when the relationship ends.
• Gross vs. net revenue ambiguity: Make absolutely clear whether your percentage is calculated on gross booking revenue (before Airbnb's host fee) or net revenue (after). The difference on a $3,000 booking can be $90 or more.
• No maintenance markup disclosure: If you charge a coordination fee on maintenance work, disclose it in the contract. Hidden fees destroy trust and relationships.
• Using a template without legal review: Templates are a starting point, not a finished product. Have a lawyer familiar with property management in your jurisdiction review your agreement before you use it. The cost is minimal compared to the cost of a dispute.

The Bottom Line

A well-drafted management agreement is an investment in your business, not a bureaucratic formality. It sets professional expectations, protects you from liability, and gives you a clear framework for every client relationship. Spend the time and money to get it right — and use it with every single client, without exception.

Our mentorship program includes a management agreement template and a full walkthrough of how to customize it for your market and service model. It's one of the most valuable resources we provide to mentees.