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In this video, Matthew outlines the process of creating a short-term rental agreement using a legal template from legaltemplates.net. He directs viewers to access the website, navigate to real estate forms, and search for the short-term rental agreement. After selecting Texas as the state, he explains the key elements to fill out, including identifying the owner and guests, additional guest information, and setting rules regarding maximum occupancy. Matthew provides an example charge for additional guests exceeding the maximum limit, demonstrating how to effectively complete the agreement. The tutorial emphasizes the importance of using a legal template for clarity and compliance.