Renting out a vacation home is a great way to earn income from a second property. Depending upon the size and location of the property, a summer rental could bring in several thousands of dollars. Those who think they can engage in such deals without a proper lease, however, are mistaken. A lease affords legal protections to a property owner that would otherwise be omitted. By working with a skilled real estate attorney, you can draw up an effective lease to reduce financial risks and liabilities.

The Assistance of Experienced Counsel

A first-time landlord may opt to download a generic lease agreement from the internet. Doing so could be a huge mistake since generic lease templates are very basic. Working with an experienced lawyer to draft a proper lease will include additional contractual terms such as:

• Relaying Insurance Terms

If a plumbing mishap was to ruin belongings brought inside the property, the rental policy's coverage normally will compensate for those losses. A vacationer may choose to bring rare art, coins, or other property of exquisite value with him/her. Any damage to expensive belongings worth more than the threshold of the policy could leave the landlord legally on the hook for the losses. A lawyer may put a clause into the lease that requires the renter to purchase additional contents insurance on his/her own for assets beyond the policy.

• Clarifying a Guest Policy

Vacationers probably will bring guests into the property, and the landlord should be able to control the terms of their stay. Otherwise, the presence of several unauthorized people "crashing" at the property may create serious liability risks. A clause in the lease barring guests from staying overnight more than three days and no more than two overnight guests at once eliminates several problems. Violations of the guest clause make evictions possible.

• Setting Noise Standards

Guests may get into a festive mood and start cranking up music. Doing so to the point that the local authorities serve the property owner with noise ordinance violations cannot be allowed. The lease might bar music being played after 9 p.m. and/or detail that any citations levied against the owner for the tenant's behavior are to be deducted from the security deposit.

The Airtight Lease

Any and all terms written into a lease must be clearly stated and written in such a way there are no loopholes for tenants to exploit. Work with a real estate lawyer like Mauger & Meter to help you prepare a lease that is legally airtight.