Drafting a Co-Hosting Agreement: Key Clauses

Why You Must Have a Written Agreement

Operating on verbal agreement is the single biggest mistake new co-hosts make in Pakistan. When revenue is good, everyone is happy. When a difficult guest damages furniture, leaves a bad review, or when occupancy dips — disputes emerge fast. A written agreement protects both parties.

The 8 Essential Clauses

1. Party Identification

Full legal names, CNIC numbers, addresses, and contact details of both the property owner and co-host. This establishes who the agreement is between.

2. Property Description

Full address, property type (apartment, villa, etc.), floor number, and any specific areas that are included or excluded from the co-host's management scope.

3. Scope of Services

List every service the co-host will provide. Be specific — "guest communication" is vague; "responding to all inquiries within 1 hour via BookKaaro/Airbnb messaging" is actionable and measurable.

4. Revenue Split and Payment Schedule

State the commission percentage, whether it applies to gross or net revenue, how platform fees are handled, and exactly when payment is transferred (e.g., "within 5 business days of month end").

5. Expense Approval Threshold

Define a spend limit the co-host can approve without owner sign-off. Typical: PKR 5,000–10,000. Anything above requires a WhatsApp or email approval before the expense is incurred.

6. Listing Ownership

Explicitly state who owns the platform listing. In most cases, the listing should be in the property owner's account. If it's in the co-host's account, a transfer clause upon termination is essential.

7. Termination Clause

How much notice is required to end the agreement? Typically 30–60 days. Who retains active bookings during the notice period? How is final revenue distributed?

8. Dispute Resolution

Specify how disputes are resolved: first through direct discussion, then mediation, then (if needed) Pakistani civil court in a specified city. This rarely needs to be invoked, but having it prevents escalation.

📄 Template Available: See Course 31 — "Co-Hosting Agreement Template" in the Checklist section for a ready-to-use agreement you can adapt immediately.

Key Takeaways

1. Always operate with a signed written agreement — verbal deals crumble under financial pressure.
2. The termination clause and listing ownership clause are the two most commonly disputed areas — get them crystal clear.
3. Review and update the agreement every 12 months as the business evolves.
4. Have both parties sign every page, keep a digital copy each, and store original documents safely.