I am looking for advice from other owners on how to handle situations where your paying guests are having additional company.
My Jan/Feb 2011 renters rented from me in 2010. I negotiated a rate with them based on two guests - I said I will charge you X amount if it is just two of you staying in our home. In a roundabout way, I discovered they had another couple visiting for two weeks.
In correspondence with my renters regarding their 2011 visit, it came to my attention from a question they asked, they would be having guests again. I replied and asked them how much company they would have. They stated they would be having three couples for a week each. I replied and said I had two concerns about them having additional guests:
1. Our HOA requires notification of who is staying in the home at all times, including how many guests. Failure to give proper notification will result in fines (which at this time are $100). I have their lease addendum sent to the HOA already, and it indicates just the two of them as guests.
2. Our rate was negotiated based on two guests. Having additional guests adds additional water, electricity and cleaning costs. Also it adds liability and wear and tear on the home. I am not being compensated for this.
I told them I needed to know who would be in the unit...and I hoped they would be considerate and offer to send additional payment.
I had no response from them. Obviously they are not happy with me and with the note I sent them.
Other than this, they are responsible, considerate renters.
How should I handle this situation this year? I don't want to lose them as renters, but I feel I am being taken advantage of. I feel they are saying to their friends - "come on down and stay with us, it won't cost you anything" - however it costs me! Or, they are charging them, and recouping some of their rental cost? In either event, it is not fair to me as the homeowner.
How should I handle this situation in the future? Should I change the language in my contract and invoice to indicate "The above stated rate is based on X number of people staying in the unit. There will be a charge of X amount per night per person for additional guests"...
Another big concern I have is liability. The guests my renters have are not signing the contract, or named in the contract. Therefore, they are not signing anything saying they are responsible for damages, etc. And they are not signing anything saying the homeowner is not responsible for any accidents, injuries, etc that would occur while staying at the home.
I would appreciate any comments, suggestions or solutions other homeowners have regarding this.