Start with a standard lease, plus written consent
A lease with a rental arbitrage operator is still a lease. Most owners start from the standard residential or commercial lease they already use, then add a consent addendum that allows one specific use, by one specific tenant, on clear terms. The tenant is the operator's company, and the operator hosts guests under that permission.
The goal of everything below is simple: answer the hard questions on paper before move-in, so nobody has to argue about them after something goes wrong.
This guide is general information, not legal advice. Landlord-tenant law and rental rules differ by state and city, so have a local attorney review your lease before you sign.
1. Permitted use
Say exactly what the operator may do: short-term stays (under 30 nights), mid-term stays (30+ nights), or both. If you only want mid-term guests, write a minimum stay. Add a maximum number of overnight guests, and list what is not allowed, such as events, parties, commercial shoots or assigning the lease to someone else.
2. Subletting and consent
Most standard leases restrict subletting and short stays by default. Your consent clause overrides that for this operator only. Name the operator's legal entity and the exact unit, say that consent doesn't transfer to a new owner of the operator's business without your approval, and state how and when consent can end. Keep a signed copy with the lease.
3. Permits, and who holds them
Many cities require a permit, license or registration for short stays, and some don't allow them at all in residential zones. Write down who applies, who renews, who pays the fees and what happens if a permit is denied, capped or revoked.
Don't assume the operator can hold the permit. In some cities the owner must: in Columbus, for example, a unit nobody lives in needs the owner to hold the city license. Ask to see each permit before the first guest arrives.
4. Taxes, and who files
Short stays usually carry occupancy or lodging taxes, and in some states longer stays do too. The operator normally registers, collects and files, because they run the bookings. Put that in the lease, along with who pays any penalties. Some platforms collect certain taxes automatically, but not always every state and local tax, so ask the operator how each one is handled.
5. Insurance
Require the operator to carry liability coverage written for the use you allow, plus coverage for their own furnishings, with you named as additional insured. Ask for the certificate and endorsement before keys and at every renewal, and make a lapse a default under the lease. Your own agent should set the limits. Our insurance guide covers what to ask for.
6. House rules, HOA and building rules
Attach your house rules: quiet hours, parking, trash, pets, smoking, and whether noise monitors that measure decibels only are required. If you have an HOA or condo association, attach its rules too and make the operator responsible for following them and for any fines their guests cause. Check first that the association allows the use at all; our HOA guide shows how.
7. Damage, deposits and condition
Do a move-in condition report with dated photos, signed by both sides. Set the security deposit within what your state allows, say what it can be used for, and say how damage beyond normal wear is handled during the lease, not just at the end. If the signing company is new, many owners also ask for a personal guarantee. See how rent, deposits and guarantees work.
8. Maintenance and repairs
Split the work clearly. A common approach: the operator handles cleaning, supplies, small repairs and anything their guests damage; you handle the structure, roof, major systems and appliances you supply. Set how fast urgent issues must be reported, who can call which vendors, and which alterations need your written approval (paint, fixtures and smart locks usually do).
9. Early termination and change of law
Rules change. Decide now what happens if your city or HOA restricts the use during the lease: switching to mid-term stays only, a notice period, or ending the lease without penalty. Also cover what happens if the operator wants out early, misses rent, or loses a required permit, and how much time each side has to fix a problem before it becomes a default.
10. Exit and handback
Plan the last day on the first day. The lease should say the unit comes back in move-in condition, less normal wear, with the operator's furniture removed (unless you agree to buy it), keys and codes returned, smart locks reset, and guest bookings cancelled or moved so nobody arrives after the lease ends. Set a walk-through date and a deadline for returning the deposit that matches your state's rules.
- Permitted use: STR, MTR or both, with minimum stay and guest cap
- Consent addendum naming the operator entity and unit
- Who applies for and holds each permit
- Who registers, collects and files each tax
- Insurance naming you as additional insured
- House rules and HOA rules attached
- Condition report, deposit and guarantee
- Maintenance split and response times
- Change-of-law and early-exit terms
- Handback condition, furniture removal and bookings
How ArbiBase fits
Listing your property on ArbiBase is free. You sign a consent form and set your rules (rental type, quiet hours, guest caps, insurance minimums, HOA limits), and vetted short- and mid-term rental operators send proposals showing their business, insurance, offered rent and lease term. You decide who tours and who signs, and you can withdraw consent anytime.
The operator signs a standard lease directly with you. ArbiBase is not a party to the lease, and is not a broker or property manager: we don't collect rent, supervise guests or run operations. A listing is marked Verified only after signed owner consent, a Greenlight underwriting pass and a check of the city and ZIP rules for that address. List your property free or read how it works for owners.
Before you sign, it is worth running through our operator vetting checklist and the free lease clause checker.
Frequently asked questions
Can I use my regular lease form with an operator?
Often, yes, as the base. Most standard leases restrict subletting and short stays, so add a written consent addendum that names the operator, the permitted use and the conditions. Have a local attorney review the two together.
Who should hold the short-term rental permit?
It depends on your city. Some let the operator apply, while others require the owner to hold the license for a unit nobody lives in. Write down who applies, who renews and what happens if the permit is denied or revoked.
Who is responsible for occupancy taxes?
Usually the operator, because they run the stays. Put it in the lease: who registers, who collects, who files and who pays any penalties. Some platforms collect certain taxes automatically, but not always every local tax.
What happens if my city bans short-term rentals during the lease?
The lease should answer that before it happens. Common options are switching to mid-term stays of 30+ nights, a notice period, or ending the lease without penalty. Choose one with your attorney and write it in.
Is ArbiBase a party to the lease?
No. The operator signs a standard lease directly with you. ArbiBase is not a party to the lease, and is not a broker or property manager. We don't draft your lease, collect rent or run operations.
Do I need a lawyer to review the lease?
We recommend it. This guide is general information, not legal advice. Landlord-tenant law, deposit rules and rental ordinances differ by state and city, so have a local attorney review the lease and addendum before you sign.
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