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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 locates the short-term rental agreement template. After selecting Texas as the state, he outlines the need to identify the owner and guests, mention additional guests, and provide their information. Matthew also emphasizes specifying the maximum number of guests and visitors, providing an example where the charge for each person exceeding the maximum occupancy is five dollars.