License vs Lease
License Agreement Discussion
The sharing economy is providing new and exciting ways for people to work together and create community. Short-term vacation rentals promote financial independence, allow travelers to feel “at home”, wherever they are, and connect with like minded people from around the world. The number of people both providing and using these types of accommodations has exploded in the last few years. As the numbers grow, so have the concerns over how to regulate these businesses and protect consumers. Enter VacationAgreement.com.
Guestagreement.com. allows owners and guests to create an agreement online that accurately describes the relationship between the parties. The agreement is a license-to-use, as opposed to a lease or tenancy agreement. The license allows the guest to use the owner’s property for a fixed, relatively short, period of time, after which the right to use is terminated. The parties confirm that they both understand the type of relationship being created and both agree to it. If a guest violates the rules set by the owner or refuses to leave after the rental period, they can be removed from the property immediately, without the requirement of a court order. The agreement also contains special liability waivers that protect owners if a guest is injured or damages property.
Guestagreement.com was created by William Ballinger, a Lawyer in Southern California who has been in practice for over 30 years. The contract is written in easy-to-understand language and promotes transparency between the parties by addressing all of the issues that commonly arise in these rental situations. This helps the owners and guests to avoid misunderstandings and surprises.
The agreement is created online, signed by the parties online and stored online. It is easy to use, costs almost nothing, and is backed by a $1 million insurance policy. We are so confident that you will like our agreement that we will give you the first one free.
What is a License Agreement?
The idea of renting out a second home or investment property is not new, but prior to the growth of the sharing economy, most second homes or investment properties were rented for periods of 6 months or longer. Most times the renter would use their own furniture, pay the utilities, and be at least partially responsible for the upkeep of the property. Once the rental period and payment amount were agreed upon, they could not be changed during the rental period. In this situation, it was assumed by the courts that the parties intended to create a “tenancy”, which meant that the renter, or “tenant” was given the absolute right to occupy the property for a fixed period of time. Even if they violated the terms of a rental agreement, a tenant could not be removed from the property without a court order. The eviction process takes months to complete and costs thousands of dollars. The contracts that describe and define these relationships are called leases.
With the growth of the sharing economy, a new business model was created. In this model, the owner of a property provides a fully furnished home, condo or apartment to a guest. The owner pays all of the utilities and is completely responsible for maintenance and repair of the property. The rental period can be as short as one night or a year or longer, but both parties expressly or tacitly agree that the guest is only being given temporary use of the property. The parties do not intend to give the guest a tenancy, only the right to use the property on a temporary basis. This scenario calls for a different type of agreement between the parties. Enter Guestagreement.com.
Guestagreement.com allows owners and guests to create an agreement online that accurately describes the relationship between the parties. The agreement is a license-to-use, as opposed to a lease or tenancy agreement. The license allows the guest to use the owner’s property for a fixed, relatively short, period of time, after which the right to use is terminated. The parties confirm that they both understand the type of relationship being created and both agree to it. If a guest violates the rules set by the owner or refuses to leave after the rental period, they can be removed from the property immediately, without the requirement of a court order. The agreement also contains special liability waivers that protect owners if a guest is injured or damages property.
Guestagreement.com. was created by an attorney. The contract is written in easy-to-understand language and promotes transparency between the parties by addressing all of the issues that commonly arise in these rental situations. This helps the owners and guests to avoid misunderstandings and surprises.