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In this video, Matthew demonstrates how to create a short-term rental agreement using a legal template from legaltemplates.net. He navigates to the real estate forms section and specifically selects the short-term rental agreement. Matthew chooses Texas as the location and discusses the sections regarding the owner and guests, including providing information for additional guests and their relationships. He emphasizes the importance of specifying maximum guest capacity, such as seven overnight guests and five visitors, and details how to set charges for any additional guests exceeding maximum occupancy. The link to the legal template is provided in the video's description.