SHORT-TERM RENTAL COMPLIANCE RIDER

ARTICLE 1. GENERAL PROVISIONS

1.1 Parties

This Short-Term Rental Compliance Rider (the "Rider") is entered into as of [__/__/____] by and between:

Property Owner / Host:
Name: [________________________________]
Address: [________________________________]
Email: [________________________________]
Phone: [________________________________]
(hereinafter "Host")

Co-Host / Property Manager / Guest (as applicable):
Name: [________________________________]
Address: [________________________________]
Email: [________________________________]
Phone: [________________________________]
(hereinafter "Operator")

1.2 Property

Address: [________________________________]
Unit / Apartment No.: [________________________________]
Borough / City: ☐ New York City (Borough: [________________________________]) ☐ Dallas, TX
Building Type: ☐ Class A Multiple Dwelling ☐ Class B Multiple Dwelling ☐ One- or Two-Family Home ☐ Condominium ☐ Cooperative ☐ Single-Family Residential ☐ Multi-Family Residential ☐ Other: [________________________________]
Number of Bedrooms: [____]
Maximum Legal Occupancy: [____] persons

1.3 Underlying Agreement

This Rider supplements and is incorporated into the following agreement (the "Underlying Agreement"):

☐ Residential Lease dated [__/__/____]
☐ Property Management Agreement dated [__/__/____]
☐ Co-Hosting Agreement dated [__/__/____]
☐ Vacation Rental Agreement dated [__/__/____]
☐ Other: [________________________________] dated [__/__/____]

In the event of any conflict between this Rider and the Underlying Agreement, this Rider shall control with respect to short-term rental regulatory compliance.

1.4 Definitions

"Short-Term Rental" (STR): Any rental of a dwelling unit or portion thereof for a period of fewer than thirty (30) consecutive days.

"Booking Platform": Any online marketplace that facilitates STR transactions, including but not limited to Airbnb, VRBO, Booking.com, Expedia, and similar services.

"Listing": Any advertisement or posting on a Booking Platform or other medium offering the Property for short-term rental.

"Applicable Law": All federal, state, and local statutes, ordinances, rules, regulations, and orders applicable to the operation of STRs at the Property, including those enacted or amended after the date of this Rider.

ARTICLE 2. APPLICABILITY

☐ Module A (New York City) applies — Complete Article 3
☐ Module B (Dallas, Texas) applies — Complete Article 4
☐ Both Modules apply — Complete Articles 3 and 4

ARTICLE 3. MODULE A — NEW YORK CITY COMPLIANCE (LOCAL LAW 18)

3.1 OSE Registration

(a) Host represents and warrants that the Property is registered with the New York City Mayor's Office of Special Enforcement ("OSE") under Registration Number: [________________________________].

(b) Registration Date: [__/__/____]. Expiration / Renewal Date: [__/__/____].

(c) Registration Fee: $145.00 (non-refundable), paid by ☐ Host ☐ Operator.

(d) Host shall maintain the OSE registration in good standing at all times during the term of this Rider, including timely renewals and updates to registration information within the timeframes required by OSE rules.

(e) Host shall promptly provide Operator with a copy of the current registration certificate and shall notify Operator within forty-eight (48) hours of any change in registration status, including suspension, revocation, or non-renewal.

(f) Prohibited Buildings List: Host represents that the Property ☐ is ☐ is not on the OSE Prohibited Buildings List. If the Property is on the Prohibited Buildings List, no STR activity shall occur, and this Module is void.

3.2 Primary Residence Requirement

(a) Host certifies that the Property is Host's primary residence, meaning Host resides at the Property for no fewer than 183 days per calendar year.

(b) Host shall maintain documentation sufficient to demonstrate primary residence status, including but not limited to: ☐ voter registration ☐ driver's license ☐ tax returns ☐ utility bills ☐ bank statements.

(c) If Host ceases to maintain the Property as a primary residence, Host shall immediately notify Operator and cease all STR activity.

3.3 Host Presence and Occupancy Restrictions

(a) Host Presence Mandatory: During any STR stay of fewer than thirty (30) consecutive days, the Host (or a permanent resident of the dwelling unit designated by Host) must be physically present in the dwelling unit for the entirety of the guest's stay.

(b) Guest Limit: No more than two (2) paying guests may occupy the Property at any time during an STR stay. This limit applies per booking, not per bedroom.

(c) No Locked Doors: Guests shall have access to every room within the dwelling unit. No interior doors may be locked to prevent guest access, as this may constitute operation of an illegal rooming house under MDL § 4.

(d) 30-Day Minimum for Unhosted Stays: If the Host is not present during the guest's stay, the minimum rental period is thirty (30) consecutive days, and the rental is not subject to LL18 registration requirements (but is subject to standard landlord-tenant law).

3.4 Multiple Dwelling Law Compliance

(a) Class A Multiple Dwellings: If the Property is located in a Class A multiple dwelling (three or more residential units designed for permanent residence), occupancy of the entire unit by transient guests for fewer than thirty (30) days is prohibited under MDL § 4 unless the permanent resident is present and the unit is shared as a common household.

(b) Class B Multiple Dwellings: Hotels, rooming houses, and similar transient-use buildings are subject to separate licensing requirements under the MDL and the NYC Building Code.

(c) Host represents that the Property's Certificate of Occupancy permits the use contemplated by this Rider.

3.5 Building and HOA Approvals

(a) Host represents that:
- ☐ The building's governing documents (proprietary lease, bylaws, house rules, or CC&Rs) permit STR activity
- ☐ The building has not submitted the Property to the OSE Prohibited Buildings List
- ☐ Host has obtained written consent from the ☐ co-op board ☐ condo association ☐ building owner (as applicable)

(b) If the building subsequently prohibits STR activity or is added to the Prohibited Buildings List, all STR operations shall cease within [____] days, and neither party shall have further obligations under this Module except for accrued liabilities.

3.6 Listing Requirements

(a) Every Listing must display the valid OSE registration number.

(b) No Listing shall advertise the entire dwelling unit to guests if the Host will not be present.

(c) No Listing shall advertise capacity for more than two (2) guests.

(d) No Listing shall misrepresent the nature of the accommodation (e.g., listing a shared room as an entire unit).

(e) Operator shall monitor all active Listings for compliance and promptly correct any non-conforming content.

3.7 Posting and Recordkeeping

(a) Host shall conspicuously post within the Property:
- ☐ OSE registration certificate (or legible copy)
- ☐ House rules, including emergency procedures and quiet hours
- ☐ Emergency contact information for Host
- ☐ Building fire safety notice and evacuation plan
- ☐ 311 complaint information for neighbors

(b) Host and Operator shall maintain records for a minimum of seven (7) years, including:
- Guest identification and contact information
- Dates of each STR stay
- Rental income received per stay
- Booking Platform confirmation numbers
- Proof of Host presence during each stay
- Tax remittance receipts
- Correspondence with OSE or other enforcement agencies

3.8 NYC Tax Obligations

(a) The following taxes apply to STR stays in New York City:

(b) If the Booking Platform collects and remits taxes on Host's behalf, Host shall verify remittance and retain Platform tax reports.

(c) If taxes are not collected by the Platform, Host (or Operator, as designated) shall register with the NYC Department of Finance, collect all applicable taxes, and remit them on or before the twentieth (20th) day of the month following the month of collection.

(d) Host shall file all required annual and periodic tax returns.

3.9 NYC Penalties and Enforcement

(a) Violations of LL18 may result in:
- Civil penalties of $1,000 to $5,000 per violation per day
- Treble the amount of illegally obtained revenue (in litigation)
- Revocation of OSE registration
- Denial of future registration applications
- Inspection of the registered unit by city enforcement personnel
- Referral to other city agencies (Department of Buildings, FDNY, HPD)

(b) Host and Operator shall cooperate fully with any OSE inspection or investigation. Operator shall notify Host within twenty-four (24) hours of receiving any notice, complaint, or inquiry from OSE or any other enforcement agency.

(c) Indemnification: The party whose act or omission caused the violation shall indemnify the other party for all fines, penalties, legal fees, and costs arising from such violation.

ARTICLE 4. MODULE B — DALLAS, TEXAS COMPLIANCE

4.1 Regulatory Status and Injunction Notice

(a) IMPORTANT NOTICE: In June 2023, the Dallas City Council enacted Ordinance Nos. 32625 (zoning amendment to Ch. 51A creating an STR Lodging use category) and 32626 (mandatory annual registration). On December 6, 2023, a Texas district court issued a temporary injunction prohibiting enforcement of both ordinances. As of the date of this Rider, the injunction ☐ remains in effect ☐ has been lifted ☐ has been modified as follows: [________________________________].

(b) Regardless of the injunction status, the following regulations remain enforceable and apply to all Dallas STR operations:
- Dallas Hotel Occupancy Tax (HOT) collection and remittance
- Property maintenance and building code standards
- Noise ordinance compliance
- Private nuisance prohibitions
- Fire and life safety requirements

(c) Host shall monitor the status of the litigation and promptly comply with any new or reinstated regulatory requirements.

4.2 STR Registration (When Enforceable)

(a) If the registration requirement is or becomes enforceable, Host shall register the Property with the City of Dallas Code Compliance Services.

Registration Number (if applicable): [________________________________]
Registration Status: ☐ Active ☐ Pending ☐ Grandfathered ☐ Not Yet Required
Annual Renewal Date: [__/__/____]

(b) Registration Requirements (as enacted, subject to injunction):
- Annual registration fee: $[________]
- Proof of ownership or authorization from property owner
- Site plan showing parking, entrances, and exits
- Proof of insurance (see Section 4.6)
- Designation of a local responsible party available 24/7
- Acknowledgment of compliance with all applicable codes

(c) Host shall post the registration certificate (when required) in a conspicuous location inside the Property.

4.3 Zoning Compliance

(a) Property Zoning District: [________________________________]

(b) Under the 2023 ordinance (if/when enforceable), STR Lodging is:
- ☐ Permitted by right in this zoning district
- ☐ Permitted as a grandfathered nonconforming use
- ☐ Not permitted (operations must cease if injunction is lifted)

(c) Host represents that ☐ no ☐ the following pending zoning actions or litigation affect the Property: [________________________________]

4.4 Occupancy and Use Restrictions

(a) Maximum overnight occupancy: [____] persons (recommended: 2 persons per bedroom plus 2, not to exceed local building code maximums).

(b) Maximum daytime gathering size: [____] persons.

(c) Prohibited Activities:
- ☐ Commercial events, weddings, or corporate functions exceeding [____] attendees
- ☐ Parties or gatherings exceeding the maximum daytime gathering size
- ☐ Use of the Property for any commercial purpose other than STR lodging
- ☐ Storage, manufacture, or sale of controlled substances
- ☐ Discharge of fireworks
- ☐ Any activity that creates a public or private nuisance

4.5 Noise, Parking, and Neighborhood Relations

(a) Quiet Hours: [____] p.m. to [____] a.m. (Dallas noise ordinance restricts unreasonable noise between 10:00 PM and 7:00 AM). Outdoor amplified sound is prohibited during quiet hours.

(b) Parking:
- Maximum vehicles on-site: [____]
- Guest vehicles must be parked ☐ in designated driveway/garage ☐ on-street in compliance with posted restrictions ☐ in designated off-street parking area
- No commercial vehicles, trailers, or RVs
- No parking on lawns or unpaved surfaces

(c) Trash and Maintenance:
- Trash receptacles must be stored ☐ in garage ☐ behind fence ☐ in screened enclosure except on collection days
- Yard maintenance shall be performed at least ☐ weekly ☐ bi-weekly
- Property exterior shall comply with Dallas Property Standards (Ch. 27)

(d) Neighborhood Notification:
- Host has provided written notice of STR operations to property owners within [____] feet of the Property: ☐ Yes ☐ No ☐ Not required
- HOA approval obtained: ☐ Yes ☐ No ☐ N/A (no HOA)
- HOA short-term rental restrictions: [________________________________]

(e) Complaint Response: Host or designated local responsible party shall respond to any neighbor complaint within [____] hours. If the complaint involves an immediate safety hazard or severe nuisance, response shall be within [____] minutes.

4.6 Insurance Requirements

(a) Host shall maintain the following insurance coverage:

(b) All policies shall:
- Name Operator as additional insured (if applicable)
- Include coverage for STR / transient occupancy use (standard homeowner policies may exclude this)
- Provide thirty (30) days' written notice of cancellation or material change

(c) Host shall provide certificates of insurance to Operator within [____] days of this Rider's execution and upon each renewal.

(d) Booking Platform Insurance: Host acknowledges that Booking Platform host protection programs (e.g., Airbnb AirCover) ☐ do ☐ do not satisfy the insurance requirements of this Rider. Platform insurance is supplemental only and does not replace the coverage required herein.

4.7 Fire and Life Safety

(a) The Property shall be equipped with:
- ☐ Working smoke detectors in each bedroom and on each level (tested monthly)
- ☐ Carbon monoxide detectors on each level and near sleeping areas
- ☐ Fire extinguisher(s) (minimum one per level, ABC-rated, inspected annually)
- ☐ Emergency exit map posted in each bedroom and common area
- ☐ First aid kit
- ☐ Flashlights or emergency lighting

(b) Host shall conduct and document safety inspections: ☐ Monthly ☐ Quarterly ☐ Between each guest stay.

(c) Pool / hot tub (if applicable): ☐ Compliant with Dallas barrier/fencing requirements ☐ Alarm installed ☐ Safety signage posted ☐ N/A

4.8 Dallas Tax Obligations

(a) The following taxes apply to STR stays in Dallas:

(b) HOT applies to any rental of a sleeping room for fewer than thirty (30) consecutive days.

(c) If the Booking Platform does not collect and remit Dallas HOT, Host shall:
- Register with the City of Dallas Controller's Office
- Collect HOT from each guest at the time of payment
- File monthly reports via the MUNIRevs system by the fifteenth (15th) day of the following month
- Remit all collected taxes with each monthly report

(d) Host shall file Texas State Hotel Occupancy Tax returns with the Texas Comptroller of Public Accounts on a ☐ monthly ☐ quarterly basis, as required by the Comptroller based on Host's tax liability.

(e) Host shall maintain all tax records for a minimum of four (4) years.

4.9 Dallas Penalties and Enforcement

(a) Violations of enforceable Dallas ordinances may result in:
- Municipal court citations and fines of up to $500 per violation per day (general code violations)
- HOT penalties: 5% penalty if payment is 1-30 days late; 10% penalty if more than 30 days late; plus interest at the rate prescribed by Texas Tax Code
- Revocation of STR registration (when registration is enforceable)
- Injunctive relief sought by the City or affected neighbors
- Private nuisance claims by neighboring property owners

(b) Indemnification: The party whose act or omission caused the violation shall indemnify the other party for all fines, penalties, legal fees, and costs arising from such violation.

ARTICLE 5. BOOKING PLATFORM OBLIGATIONS AND COORDINATION

5.1 Platform Compliance

(a) Host and Operator acknowledge that Booking Platforms are required to:
- NYC: Verify OSE registration before processing any booking; prevent bookings for unregistered or prohibited units; transmit booking data to OSE upon request
- Dallas: Collect and remit applicable HOT (to the extent the Platform has entered into a voluntary collection agreement with the City or is required by law)

(b) Host shall provide each Booking Platform with all required registration numbers, tax identification numbers, and compliance certifications.

5.2 Listing Management

(a) Operator ☐ Host shall be responsible for creating, maintaining, and updating all Listings.

(b) All Listings shall accurately reflect:
- The legal maximum occupancy
- Host presence requirements (NYC)
- Applicable house rules
- Valid registration numbers
- Check-in and check-out procedures

(c) Listings shall be promptly deactivated if:
- Registration is suspended, revoked, or expires
- The Property is added to the Prohibited Buildings List (NYC)
- A court order, cease-and-desist, or enforcement action requires cessation of STR activity
- Insurance coverage lapses

5.3 Data Retention

Both parties shall retain copies of all Booking Platform correspondence, booking confirmations, payout statements, guest reviews, and tax reports for a minimum of seven (7) years (NYC) or four (4) years (Dallas), whichever is longer.

ARTICLE 6. INSURANCE AND INDEMNIFICATION

6.1 Host Insurance

Host shall maintain the insurance coverages specified in Section 3.8 (NYC) and/or Section 4.6 (Dallas), as applicable.

6.2 Operator Insurance

If Operator manages the Property or interacts with guests, Operator shall maintain:
- Commercial General Liability: $[________] per occurrence
- Professional Liability / Errors & Omissions: $[________] per occurrence
- Workers' Compensation: Statutory limits (if Operator has employees)

6.3 Mutual Indemnification

(a) Host Indemnification: Host shall indemnify, defend, and hold harmless Operator from and against any claims, damages, fines, penalties, and expenses (including reasonable attorneys' fees) arising from: (i) Host's failure to maintain valid registrations or permits; (ii) Host's misrepresentation of property status or eligibility; (iii) structural or building code deficiencies at the Property.

(b) Operator Indemnification: Operator shall indemnify, defend, and hold harmless Host from and against any claims, damages, fines, penalties, and expenses (including reasonable attorneys' fees) arising from: (i) Operator's failure to comply with guest screening or occupancy limits; (ii) Operator's negligent management of the Property; (iii) Operator's failure to collect and remit taxes when designated as the responsible party.

6.4 Limitation on Liability

Neither party's aggregate liability under this Rider shall exceed $[________] or the total rental income generated by the Property during the twelve (12) months preceding the claim, whichever is greater, except that this limitation shall not apply to indemnification for government-imposed fines or penalties, intentional misconduct, or personal injury claims.

ARTICLE 7. COMPLIANCE MONITORING AND REPORTING

7.1 Compliance Officer

Each party designates the following individual as its Compliance Officer:

Host Compliance Officer: [________________________________], Phone: [________________________________], Email: [________________________________]

Operator Compliance Officer: [________________________________], Phone: [________________________________], Email: [________________________________]

7.2 Periodic Compliance Review

The parties shall conduct a compliance review ☐ monthly ☐ quarterly ☐ semi-annually, covering:
- ☐ Registration and permit status
- ☐ Tax filing and remittance verification
- ☐ Insurance coverage confirmation
- ☐ Listing accuracy audit
- ☐ Guest complaint log review
- ☐ Safety equipment inspection records
- ☐ Regulatory update review (new laws, ordinances, or court rulings)

7.3 Regulatory Change Notification

Each party shall promptly notify the other of any change in Applicable Law that materially affects STR operations at the Property, including but not limited to: new registration requirements, changes to tax rates, modifications to occupancy limits, lifting or modification of the Dallas injunction, or amendments to LL18 rules.

ARTICLE 8. ENFORCEMENT, DEFAULT, AND REMEDIES

8.1 Events of Default

The following constitute an Event of Default under this Rider:
- (a) Failure to maintain valid registration or permits for more than [____] days after notice
- (b) Failure to maintain required insurance coverage
- (c) Failure to collect or remit taxes when due
- (d) Operation in excess of occupancy limits on [____] or more occasions
- (e) Receipt of [____] or more verified noise/nuisance complaints within any [____]-month period
- (f) Any material misrepresentation regarding property status, registration, or eligibility
- (g) Conviction or admission of a violation of Applicable Law related to STR operations

8.2 Cure Period

Upon the occurrence of an Event of Default, the non-defaulting party shall provide written notice specifying the default. The defaulting party shall have:
- [____] days to cure monetary defaults (tax remittance, insurance premiums, fines)
- [____] days to cure non-monetary defaults
- No cure period for defaults under Section 8.1(f) or (g), or for defaults posing an immediate threat to health or safety

8.3 Remedies

If a default is not cured within the applicable cure period, the non-defaulting party may:
- (a) Immediately suspend all STR operations and deactivate all Listings
- (b) Terminate this Rider and the STR-related provisions of the Underlying Agreement upon [____] days' written notice
- (c) Exercise any indemnification rights under Article 6
- (d) Pursue all remedies available at law or in equity, including injunctive relief

8.4 Emergency Suspension

Notwithstanding the cure periods above, either party may immediately suspend STR operations without prior notice if:
- (a) A government agency orders cessation of STR activity
- (b) A condition at the Property poses an imminent threat to guest or public safety
- (c) The OSE registration is revoked or the Property is placed on the Prohibited Buildings List

ARTICLE 9. TERM AND TERMINATION

9.1 Term

This Rider shall be effective as of the date first written above and shall remain in effect for the duration of the Underlying Agreement, unless earlier terminated as provided herein.

9.2 Termination Events

This Rider shall automatically terminate upon:
- (a) Expiration or termination of the Underlying Agreement
- (b) Sale or transfer of the Property (unless the successor assumes this Rider in writing)
- (c) Repeal of all Applicable Law governing STRs in the relevant jurisdiction (both NYC and Dallas modules must be inapplicable for automatic termination)
- (d) Permanent revocation of registration without possibility of reinstatement

9.3 Surviving Obligations

The following provisions shall survive termination: indemnification obligations (Article 6), tax remittance obligations for pre-termination periods, recordkeeping obligations, and any accrued but unpaid liabilities.

ARTICLE 10. GENERAL PROVISIONS

10.1 Notices

All notices under this Rider shall be in writing and delivered by:
☐ Certified mail, return receipt requested
☐ Overnight courier (FedEx, UPS, or equivalent)
☐ Email (with read receipt or delivery confirmation)
☐ Hand delivery

To Host: [________________________________]
To Operator: [________________________________]

10.2 Governing Law

☐ NYC Module: This Rider shall be governed by the laws of the State of New York and the ordinances of the City of New York. Disputes shall be resolved in the courts of [________________________________] County, New York.

☐ Dallas Module: This Rider shall be governed by the laws of the State of Texas and the ordinances of the City of Dallas. Disputes shall be resolved in the courts of Dallas County, Texas.

10.3 Severability

If any provision of this Rider is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

10.4 Entire Agreement

This Rider, together with the Underlying Agreement, constitutes the entire agreement between the parties with respect to STR compliance. Amendments must be in writing and signed by both parties.

10.5 Counterparts

This Rider may be executed in counterparts and by electronic signature, each of which shall be deemed an original.

SIGNATURES

HOST / PROPERTY OWNER:

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

OPERATOR / CO-HOST / PROPERTY MANAGER:

Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

ANNEX A — HOST PRESENCE AND CHECK-IN VERIFICATION (NYC)

Guest Name: [________________________________]
Booking Confirmation No.: [________________________________]
Check-In Date: [__/__/____] Check-Out Date: [__/__/____]

Host Presence Certification:

I, [________________________________], certify that I am the permanent resident of the dwelling unit and was physically present in the unit during the guest's entire stay.

☐ Host greeted guest in person at check-in
☐ Host provided guest with house rules and emergency information
☐ Guest count verified: [____] guests (maximum 2)
☐ No interior doors were locked to restrict guest access
☐ OSE registration certificate was displayed

Host Signature: [________________________________] Date: [__/__/____]

ANNEX B — SAFETY INSPECTION LOG (DALLAS)

ANNEX C — COMPLAINT RESPONSE LOG

ANNEX D — INSURANCE CERTIFICATE REQUIREMENTS

Certificates of insurance must include:

1. Named insured: [________________________________]
2. Additional insured: [________________________________]
3. Policy number(s): [________________________________]
4. Effective dates: [__/__/____] through [__/__/____]
5. Coverage types and limits as specified in this Rider
6. Confirmation that the policy covers short-term rental / transient occupancy use
7. Thirty (30) days' advance written notice of cancellation or material change
8. Insurer's A.M. Best rating: [____] (minimum A- VII recommended)

ANNEX E — TAX REMITTANCE CHECKLIST

NYC Tax Remittance

☐ Registered with NYC Department of Finance
☐ NYS Sales Tax Certificate of Authority obtained (No. [________________________________])
☐ Monthly tax returns filed by the 20th of the following month
☐ Annual reconciliation completed
☐ Records retained for minimum 7 years

Dallas Tax Remittance

☐ Registered with City of Dallas Controller's Office via MUNIRevs
☐ Texas Hotel Occupancy Tax Permit obtained (No. [________________________________])
☐ Monthly HOT reports filed by the 15th of the following month
☐ State HOT returns filed with Texas Comptroller (☐ monthly ☐ quarterly)
☐ Records retained for minimum 4 years