A Simple One-Page Agreement for Your Neighborhood Service

When you walk a neighbor’s dog, mow a lawn or tutor a child down the street, it’s tempting to keep everything friendly and informal. But a short written agreement protects the friendship as much as the money.

It doesn’t need a lawyer or legal language. One page, in plain words, is usually enough for small jobs. And it can help the money you earn arrive on time, so you can count on it toward that bill you’re working to cover.

Why write it down?

Nolo, the legal publisher, points out that a written agreement avoids one person’s word against another’s if there’s ever a disagreement. Most mix-ups between neighbors aren’t about bad intentions. They’re about different memories of what was said.

What to include

SCORE, the nonprofit business mentoring group, lists the basics that any service agreement should cover. Adapted for a small neighborhood job, that means:

1. Who: your name and the client’s name, with phone numbers and email.
2. What: the service in plain words. For example, “walk Buster for 30 minutes, Monday through Friday, around noon.”
3. When: start date, end date or how often the service repeats.
4. Price and payment: your rate, when you’ll be paid and how (cash, check or a payment app).
5. Changes and cancellations: how much notice either of you should give to cancel or reschedule.
6. Ending the arrangement: how either side can stop the service.

For some jobs, it’s also practical to add:

• Emergency contacts and, for pet sitting, the vet’s name and number
• Where the house key will be kept and when it will be returned
• Any limits, such as “no ladder work” or “no medications given”

Write two copies, both sign and date them, and each keep one. A photo of the signed page on your phone works as a backup.

A note on the FTC Cooling-Off Rule

If you ever sell goods or services at a customer’s home, you may hear about the Federal Trade Commission’s Cooling-Off Rule. It lets buyers cancel certain sales of $25 or more made in their home until midnight of the third business day. But it has exceptions, including repairs the customer asked for. If you’re not sure whether it applies to what you do, read the FTC’s plain-language guide.

Keep good records

The IRS recommends keeping records of income, such as receipt books and invoices, plus receipts for expenses showing who you paid, how much, when and why. File your agreements with them, sorted by year.

Taxes and benefits

Income from neighborhood services is usually self-employment income. The IRS self-employment tax page says self-employment tax applies once net earnings reach $400 in a year. If you receive Social Security before full retirement age, or get SSI, Medicaid or housing help, extra earnings can affect your benefits. See the Social Security Administration’s page on working while receiving benefits and check your own situation.

This article is general information, not legal advice. Contract rules vary by state, so for anything large or unusual, ask a local attorney or your state’s consumer protection office.

More on Replace a Bill

• Finding Your First Local Customers: Word of Mouth, Bulletin Boards and Nextdoor
• Pet Sitting and Dog Walking Through Rover: How It Works
• Step 5: Set Up a Simple Record-Keeping System

Sources

• SCORE: How to Write a Business Contract
• Nolo: Put Your Independent Contractor Agreements in Writing
• FTC Consumer Advice: Buyer’s Remorse: The FTC’s Cooling-Off Rule May Help
• IRS: What kind of records should I keep
• IRS: Self-employment tax (Social Security and Medicare taxes)
• Social Security Administration: Receiving Benefits While Working