An article by Peter O'Brien
In most States and Territories of Australia subletting a house on Airbnb is legal, if you have the "written consent" of your landlord. Landlords are required to give consent to reasonable subletting requests, meaning the subletting operates in a legal grey area.
Our industry is at threat of a number of possibilities that is beginning to result as the popularity of Airbnb grows.
- More and more property Owners are now considering using Airbnb instead of engaging a Property Management Company to lease and manage their property.
- Property Managers find it difficult to “police” this activity in their managed properties.
- Owners are allowing Tenants to sublet their properties because it provides a revenue source which will assist the tenants to meet their rental obligations.
- There is no control that the Property Manager has over who is residing in the managed property.
- If the managed property is now earning an income for the tenant there is question as to the need to change the lease from a Residential Tenancies Lease Agreement to that of a Commercial Lease.
- There are certain factors which may cause implications for insurance coverage. This can affect not only the Owners property insurance but also the P.I Insurance that is held by the Agent.
- There is questions concerning which legislation covers the property if it is being utilised as an Airbnb property. Does it fall under the category of holiday leasing or shared housing?
Airbnb’s true size has been the subject of much speculation by lobby groups for some time but an investigationby Fairfax mediareveals the scale of the booming sharing economy. There are almost 1500 apartments and houses in Melbourne’s inner suburbs listed on Airbnb’s Australian website, 180 alone in Southbank, and 190 in the central business district and 27 in docklands. Further out, there are 171 listings in St Kilda, and 104 in Fitzroy. Ofthe 1500 listings, about 1100 are apartments. Overall, the company says, it has more than 8000 listings across the state, double the number from 2014 – and it predicts it will double again in 2016.
There are many potential problems that Airbnb can cause Property Managers. In the long term, Airbnb could potentially push hotels and motels out of business, leading to job losses. It can potentially so the same to Property Management business’s.
Owner’s corporations are fighting for the right to lock Airbnb out of their buildings for good. Lobby groups are clamouring for the government to regulate the area and give owners corporations/body corporates in apartment blocks the power to stop short-stay rentals. Do Property Managers and Real Estate Business Owners need to be worried about the future?
Below is what Airbnb have published on their website providing advice on what tenants should do when acting as Airbnb Hosts.
Do you have any tips for talking to my landlord about Airbnb?
Sure! Here are some tips to consider before you talk with your landlord about Airbnb.
Understand your lease.
Many hosts already know the details of their lease. If you don’t, start by getting familiar with it. Review any rules about guests or subletting carefully and ask your landlord if you have questions.
Offer to provide advanced notice when hosting.
To show that you want to be courteous to your landlord and neighbours, consider offering them advance notice whenever you have a booking. With your guests’ permission, you could also share their names or Airbnb profile pages with your landlord.
Be a responsible host.
Show your landlord that you care about the property and your neighbours as much as they do. Here are some things you can do that may show your landlord you’re a responsible host:
- Only allow groups of a certain size to stay at your home by setting an occupancy limit.
- Share your home and building rules with each guest.
- Provide your guests with phone numbers for emergency responders and a map of emergency exits and evacuation routes.
- Make sure you have a working smoke and carbon monoxide detector.
- Inform neighbours when a guest will be staying in your home.
Make a great first impression.
Consider giving your landlord your resume or showing them some photos of your home to help them understand who you are. Knowing more about you and the way you take care of your space will show your landlord that you’re responsible, caring, and respectful.
Get the neighbours on-board.
Making sure your neighbours are comfortable might help address some of your landlord’s concerns. If they have any concerns about you hosting, you can let your neighbours know that Airbnb is here to address them over the phone or online, 24/7.
Provide information about Airbnb.
Tell your landlord about Airbnb’s trust and safety resources, including community reviews and verified ID. Remind them that you only host people you feel comfortable with. If applicable in your country, you can also explain that Airbnb offers a US$1 million host guarantee.
Educate, inform, inspire.
Airbnb's hosts have helped over 30 million travellers have wonderful travel expenses. Hundreds of corporations now encourage their employees to use Airbnb for business travel. These are guests that landlords should feel comfortable with.