Property Management

Tenants, Airbnb and Your Investment Property

Published 10th October 2017Updated 3rd April 2023

airbnb interior
Related Posts
A brainstorming session among agency principals about driving sales leads from rent rolls
How To Generate Property Sales Leads From Your Rent Roll
new owner app :Different
:Different UpdatesProduct Update: Introducing Our Brand New Owner App
A man calculating a property maintenance price list
Property MaintenanceHere's How A Fair Property Maintenance Price List Looks Like

Since launching in Australia in 2012, Airbnb has taken our nation by storm. For home owners who are just looking to make a quick buck while they’re out of town for the week, Airbnb is a super flexible and easy-going option. For your investment property however, you might run into some trouble if your tenant takes the freedom to list your rental on the site.

Let’s look at why subletting and Airbnbs are a source of problems, and how you can avoid it.

The problems with Airbnb subletting

Let’s say your tenant is going away for a couple of days around New Years. They lease out the property to some random person who hosts a huge party.

Someone gets drunk, slips and is hurt. You get sued, and landlord insurance doesn’t cover it.

When people are just staying for a weekend or a couple of days, they have little incentive to take good care of the property and treat it with respect.

Uni students like to rent out cheap Airbnbs for parties and even adult movie shoots! Do a quick Google search for “trashed Airbnb''. The results are horrifying.

In 2016 a St Kilda property owner ran into trouble when they were legally unable to evict tenants who were renting out their apartment on Airbnb. There was a sublet clause in their lease, but it did not cover Airbnb rentals and Airbnb property management so the landlord’s hands were tied. As the Airbnb visitors weren’t given “exclusive possession” of the property, they didn’t count as illegal Airbnb subletting. 

Here's what you can do to prevent Airbnb subletting

Don’t let these horror stories scare you, there are steps you can take to protect yourself against Airbnb subletting at your investment property. These include:

  • Take a look at your current lease agreement. Has your property manager included a special condition banning short-term rentals (over and above a general ban on subletting)? If not, you could be left exposed.
  • Conduct regular inspections at your property to check your tenants haven’t set up an Airbnb or other subletting arrangement without letting you know.
  • Whenever you have new tenants move in, go over the lease agreement with them in person if you can, or ask your property manager to. This way you can double check that they’re aware of the terms and neither of you will run into any surprises down the track.

Don’t leave yourself exposed to Airbnb subletting and damage liability - have a chat to your property manager about how they’re protecting you and whether there are any changes that could be made to your lease agreement.

Airbnb might be great for a weekend away, but not in your investment property.

Like what you just read? There’s a lot more where that came from.

Subscribe to our FREE quarterly newsletter for the best property content on the internet!

What is your first name?*
What is your last name?*
What is your email address?*

Disclaimer: The information provided on this blog is for general informational purposes only. All information is provided in good faith; however, we do not account for specific situations, facts or circumstances. As such, we make no representation or warranty of any kind whatsoever, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information presented.

This blog may also contain links to other sites or content belonging to or originating from third parties. We do not investigate or monitor such external links for accuracy, adequacy, validity, reliability, availability or completeness, and therefore, we shall not be liable and/or held responsible for any information contained therein.

CategoriesView all (+4)
Recent Posts
property investing strategies
Property InvestingHow to Invest in Property With Little Money
house
Property InvestingIs It A Good Time To Invest In Property? Here's How You Can Tell
io vs p&i
Property FinanceP&I or IO? - Best Loan Structure for Investment Property Explained

Ready to get more out of your rent roll?

Contact sales
Gain predictable cash flow
Retain full ownership and control
Scale your rent roll efficiently