There was a thread recently where the renter was asked to sign a contract saying that in the event of a disaster like a hurricane or whatever it was, the renter was responsible for any damage to the property.
To me that's totally unacceptable.
http://www.flyertalk.com/forum/trave...-landlord.html
There are some sample homeway forms on this page, which may help as a starting point for an agreement
http://community.homeaway.com/docs/DOC-1573
Though the agreement usually comes from the property owner, not the renter. The agreement usually protects the owner, not the renter, so they are usually the ones to issue it.
As to payment, I would bet that most would prefer not to use paypal. The fees are too high, and frankly, they don't want you having the option of an easy way to get your money back.