Q: We want to rent out a house this summer as a holiday letting, but we need it back in the autumn. Do we need to enter into any special kind of tenancy agreement with the people who are renting it?

A: Be careful. There are three big risks. First, don’t accidentally create an assured shorthold tenancy where you can’t evict the renters for at least six months. To avoid giving security of tenure, you must grant either a “licence” or a tenancy that is not protected by the Housing Act 1988.

It can be hard to draft a licence because the rules are complex and the outcome can be unpredictable. For example, a London county court recently held that agreements by overseas visitors to rent serviced apartments in Mayfair were tenancies, not licences. However, even if the agreement you draft does unintentionally create a tenancy, all is not lost. Provided the purpose is genuinely for a holiday, paragraph 9 of Schedule 1 to the Housing Act 1988 says the occupiers will not get security of tenure.

Mark any agreement “holiday letting”. Get the potential occupiers to sign a specific statement that they will be occupying for their holiday.

However, it’s a common error to believe that this is enough. If you know the letting will not be for a holiday (eg, because the occupiers are actually working) the statement could be held to be a sham.

The second risk is that they do not pay the rent. Prevent this by demanding payment upfront before handing over the keys. You can also ask for a deposit. Make sure that the agreement states exactly how long the occupiers can stay. Specify the daily or weekly rent so that there are no disputes.

Thirdly, the occupiers could damage the place. Make sure the agreement specifically states that the renters will be responsible for damage to furniture, fixtures and fittings, crockery, etc. Attach a list of contents to the agreement. Again, you will probably want to take a deposit against damage or breakages.

If you do take a deposit, you won’t have to comply with the new requirements of the Housing Act 2004 because the legislation covers only assured shorthold tenancies.

Mark Loveday is a barrister at Tanfield Chambers (020-7421 5300). E-mail your questions to: property.consumer@thetimes.co.uk

Times recommends

• Analysis: frustration for everyone - except investors
• Buy-to-let: professional investors cash in on the credit crunch
• Ten things you need to know about house prices