Rental Agreement verbiage to address pandemics

[ldodd]

For nearly 20 years, I have rented one of my Maui weeks and never had a cancellation. I always rent Presidents Week and for 2020, there was still no problem. Normally I rent my week out as soon as I reserve it, but have held out posting it for 2021 due to COVID and the quarantine. My cancellation policy has always said "The only type of refund that would be allowed is if the unit is uninhabitable on the date the term starts, by reason of flood, fire, storm, or other natural disaster and the resort has no other unit equal to or greater than to substitute." I feel I should add wording to exclude a refund for situations such as COVID and to encourage renters to buy trip insurance that would cover pandemics. I am not aware of any insurance that I can purchase that would cover any losses that I would incur due to a renter cancellation.

Does anyone have suggestions on what additions I should make to the rental agreement? I know other Tuggers rent out their units and may have updated their own documentation to cover such cancellations.

Thanks in advance!

 

[Luanne]

For nearly 20 years, I have rented one of my Maui weeks and never had a cancellation. I always rent Presidents Week and for 2020, there was still no problem. Normally I rent my week out as soon as I reserve it, but have held out posting it for 2021 due to COVID and the quarantine. My cancellation policy has always said "The only type of refund that would be allowed is if the unit is uninhabitable on the date the term starts, by reason of flood, fire, storm, or other natural disaster and the resort has no other unit equal to or greater than to substitute." I feel I should add wording to exclude a refund for situations such as COVID and to encourage renters to buy trip insurance that would cover pandemics. I am not aware of any insurance that I can purchase that would cover any losses that I would incur due to a renter cancellation.

Does anyone have suggestions on what additions I should make to the rental agreement? I know other Tuggers rent out their units and may have updated their own documentation to cover such cancellations.

Thanks in advance!

Just my two cents. First, point me to travel insurance that will cover a pandemic? Those are pretty much excluded from any I've seen.

Second, I probably wouldn't rent from someone who had that kind of inclusion in their rental agreement.

Again, that's just my two cents.

 

[DeniseM]

Travel Insurance is not covering C-19.

I would offer the renter whatever the resort would offer you: "If your reservation has to be cancelled due to the Coronavirus, XYZ resort is offering a credit for a future reservation, but they do not provide cash refunds. Please initial_____"

 

[chapjim]

The more terms and conditions in the contract, the less likely someone will agree to it.

 

[DeniseM]

Currently, I'm finding that most renters are asking what my Coronavirus policy is. I prefer to be upfront.

 

[hurnik]

Just my two cents. First, point me to travel insurance that will cover a pandemic? Those are pretty much excluded from any I've seen.

Second, I probably wouldn't rent from someone who had that kind of inclusion in their rental agreement.

Again, that's just my two cents.

Pandemic exclusions don't need to be listed in the exclusions in order to be well, excluded. Go to insuremytrip.com and the top 5 (at least for my state-NY, and Indiana) do NOT list pandemics in the exclusions.

However, the list of covered reasons does not list pandemics either. If it's not in a covered reason, you have no coverage. Period. (Unless you get a CFAR policy).

Nor do they list "voluntary" quarantines. And some, like Travelex/Berkshire Hathaway actually (in their list of exclusions) have "government regulations" as an exclusion. So if the State or Federal government says you have to do a 2-week quarantine (if you are NOT infected and NOT under medical/doctor ordered quarantines) no soup for you.

CFAR is the only "coverage" in that event. Of course, we still can't get CFAR in NY.

Fortunately my 3 rentals so far, I made it quite clear that CFAR is required to cover COVID cancellations. But since the 3 rentals are from a long-time, repeat rental, I've also offered a rebooking option for a change fee (if applicable) for 1 year.

 

[davidvel]

Travel Insurance is not covering C-19.

I would offer the renter whatever the resort would offer you: "If your reservation has to be cancelled due to the Coronavirus, XYZ resort is offering a credit for a future reservation, but they do not provide cash refunds. Please initial_____"

But what if the resort isn't offering that later? Seems it would need to be more generic.

 

[Ianneyan]

Would either of you, @DeniseM @ldodd, be willing to send me a copy of your rental agreement?

 

[LisaRex]

When I rented in June from a Myrtle Beach owner for a September 2020 rental, I asked her to include both hurricane and COVID language. It basically said that in the event that either happened and I was locked out of the resort, I would be offered either a refund OR the same remedy that the resort offered the owner. For instance, if she was refunded points with which she could book a future week, I would be happy working together to book a future week for my use.

No way would I have signed a contract that said there were no refunds for any reason in a hurricane-prone area or in any location once Covid entered the picture. I would have just waited until the last minute to book something.