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In this video tutorial, Matthew demonstrates how to create a short-term rental agreement using a legal template from legaltemplates.net. He guides viewers to access the site, navigate to the real estate forms section, and find the short-term rental agreement option. Matthew selects Texas as the state and explains the importance of filling out sections regarding owners and guests, including details about additional guests and relationships. He also highlights the need to specify maximum guests and excessive charges, using an example rate for additional overnight guests. The video provides a step-by-step approach to drafting a compliant rental agreement.