For those who argue that renting out their vacation home is not a business because they do it infrequently or just to friends and family, the counter is that the moment you accept money for the accommodation it becomes a business transaction. Your insurance company would class it as such so it's a smart idea to think about it in those terms from the very start.

Being professional in this business means providing a written agreement, taking payment a few weeks before the rental starts and providing guests with important information they need to know about the property and how you wish it to be treated.

Even if you are just renting to friends it makes sense to use a professional approach so that if things do go wrong, you have a more formal framework to refer to. Here's five ways to demonstrate you are serious about renting:

Respond promptly to all enquiries

Think back to the last time you emailed or left a voice mail message with a company and were not given an immediate response. You probably moved on to another provider complaining about how unprofessional it is not to be more responsive to a potential customer. This applies in our business too and guests will just move on to the next listing if you don't get back to them promptly.

Use a rental agreement and written Terms and Conditions of rental

A rental agreement and your Terms and Conditions formalize the transaction and cover the things you want included in the contract. Without one, you may have no grounds to ask guests to comply with your wishes regarding occupancy, smoking, pets or additional guests, among other issues.

Never Rent Without Insurance

Check your home/cottage insurance thoroughly as most policies don't cover short-term rental as standard. Check with your broker or insurance company before offering your property for rental as the consequences for renting uninsured could be significant is something catastrophic occurred.

Accept payments formally

It is fairly standard to take a deposit on booking and final payment before the rental takes place. Most owners are not able to accept credit cards with a merchant account but you can offer PayPal so your guests can still use their cards. Alternatively, take cheques or money orders in advance. Don't be tempted to offer acceptance of cash or certified cheques on arrival -- your 'guests' may simply not turn up, and you are completely out of pocket if that occurs.

Respect Your Guests

Your guests have paid to stay in your property. They have the right to a freshly cleaned, well equipped and comfortably furnished property. If you aren't able to meet these three primary conditions, this may not be the business for you.

Being professional from the start means you will be more structured and organized which in turn will reduce stress and make problem management easier. Regardless of how modest your property is, this approach works -- I'd be interested to hear your views on how it works for you.

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