For landlords

Rental arbitrage consent agreement: every clause a landlord should include

A clause-by-clause walkthrough of the addendum that allows an operator to host short or mid-term guests, with sample language to discuss with your attorney.

By ··4 min read

Most leases ban subletting and short-term use by default. A consent addendum overrides those clauses for one specific use, by one specific tenant, on clear terms. It protects you if something goes wrong and protects the operator from a surprise default. Keep it separate from the lease so it can be reviewed and renewed on its own.

This guide is general information, not legal advice. Have an attorney in your state review the final document.

1. Parties and property

Name the operator's legal entity (usually an LLC), the guarantor if any, and the exact unit. Consent applies only to that entity and that address.

2. Permitted use

State exactly what is allowed: short-term stays (under 30 nights), mid-term stays (30+ nights), or both. Name the platforms if you want to (Airbnb, Vrbo, Furnished Finder) or allow "any lawful booking channel." Prohibit events, commercial shoots and resale of the lease.

3. Minimum stay and occupancy

Set a minimum stay if you only want mid-term guests, and a maximum number of overnight guests, usually two per bedroom plus two. Tie occupancy to what your insurance and local code allow.

4. Insurance

Require a short-term rental liability policy with at least $1M per occurrence, naming you as additional insured, and proof of coverage before the first booking and at each renewal. Confirm your own landlord policy covers the use, or ask the operator to pay any surcharge.

5. Compliance

The operator obtains and maintains every permit and registration, collects and remits occupancy taxes, and follows HOA rules. Any fine caused by the operator's use is theirs to pay.

6. House rules, noise and security

Require posted house rules, a noise monitor that measures decibels only, no interior cameras, and a 24/7 local contact for neighbors. Set a response time, for example within one hour.

7. Condition, cleaning and inspections

Require professional cleaning after every stay, a move-in condition report with photos, and inspections on a set schedule (quarterly is common) with reasonable notice. Specify which alterations need your approval: paint, fixtures and smart locks usually do; furniture doesn't.

8. Deposit and guarantee

Furnished, guest-occupied use justifies a higher deposit than a standard tenancy, where your state allows it. For newer operators, ask for a personal guarantee.

9. Exit and change of law

Say what happens if your city bans or restricts the use: a notice period, conversion to mid-term only, or termination without penalty. Require the unit to be returned in move-in condition with furnishings removed.

Checklist
  • Operator entity and guarantor named
  • Permitted use: STR, MTR or both
  • Minimum stay and max occupancy
  • $1M STR liability, you as additional insured
  • Operator responsible for permits and taxes
  • Noise monitor, no interior cameras, 24/7 contact
  • Cleaning standard and inspection schedule
  • Deposit and guarantee
  • Exit clause for changes in law

Frequently asked questions

Do I need an attorney?

Yes. Use this as a checklist for the conversation; state law on deposits, notice and liability varies.

Can I revoke consent later?

Only as the addendum allows. Include a change-of-law clause and a fixed term so both sides know the rules.

Own a rental? List it free and get matched with verified operators.