July 7, 2025

Vacation Rental Nightmares: Know Your Legal Rights

As the summer season heats up, so does the vacation rental market. Whether you’re a homeowner renting out your beach house for extra income, or a family booking a week-long stay through Airbnb or Vrbo, vacation rentals offer flexibility and convenience—but they can also become legal minefields when things go wrong.

From last-minute cancellations to property damage and local ordinance violations, vacation rental disputes are becoming increasingly common. Here’s what landlords and tenants need to know to protect themselves legally before handing over the keys—or checking in.

For Landlords: Protecting Your Property and Your Rights

1. Know Local Laws and Licensing Requirements
Many towns—especially popular coastal and tourist destinations—have enacted strict short-term rental ordinances. Some require permits, limit the number of rental days, or even ban vacation rentals altogether.

Tip: Before listing your property, check local zoning laws and HOA rules. Non-compliance could result in fines, legal action, or forced cancellation of bookings.

2. Create a Solid Rental Agreement
Platforms like Airbnb offer standard terms, but they don’t always protect your full rights as a property owner. A separate rental agreement can clearly outline:

  • Check-in/check-out times
  • Occupancy limits
  • House rules (no parties, no smoking, etc.)
  • Damage deposit terms
  • Cancellation and refund policies

Tip: Don’t rely solely on platform messaging. Have guests sign a custom agreement drafted by a lawyer to reduce your liability and ensure enforceability.

3. Screen Your Guests
While you can’t discriminate, you can—and should—verify guest information and use platform reviews to assess risk.

Tip: Consider requiring a security deposit and renter’s insurance for high-value properties or longer stays.

4. Document the Property Condition
Before and after each rental, take time-stamped photos or videos of the property. This documentation can be critical if you need to pursue a damage claim.

For Tenants: Avoiding Scams and Booking Disasters

1. Verify the Legitimacy of the Rental
Fake listings are a growing problem, especially on classified sites or newer platforms. Look out for red flags:

  • Prices that seem too good to be true
  • Requests to pay via cash apps or wire transfers
  • No verified reviews or vague descriptions

Tip: Stick to reputable platforms with verified hosts and secure payment processing.

2. Understand the Cancellation Policy
Not all cancellations are treated equally. Some hosts offer full refunds, others are strict—and platforms may not intervene unless there’s a policy violation.

Tip: Read the cancellation policy carefully and consider purchasing travel insurance that covers rental disruptions.

3. Document Any Issues Immediately
If you arrive to find the rental is dirty, unsafe, or significantly different from the listing, report it right away through the platform.

Tip: Take photos and communicate through the rental platform to create a paper trail in case you need to dispute charges or request a refund.

4. Beware of Local Laws That May Affect Your Stay
In some cities, guests have been evicted mid-stay due to the host violating local ordinances. Unfortunately, the tenant often bears the brunt of the disruption.

Tip: Do a quick search on local short-term rental laws before you book, especially in major cities or beach towns with heavy regulation.

When to Call a Lawyer

Vacation rental disputes can escalate quickly—from withheld security deposits to lawsuits over damage, injuries, or ordinance violations. Whether you’re a landlord facing a claim or a tenant who lost thousands to a scam, legal guidance can help you recover your losses or defend your rights.

At the Law Offices of Michael Kuldiner, we’re experienced in real estate and contract law, and we help both renters and property owners resolve disputes efficiently and fairly.

Don’t let your vacation—or your rental income—turn into a nightmare.
Know your rights. Have a plan. And when in doubt, get legal support before a small problem becomes a major headache.