Tenant want's to AirBnB the flat!

Hi all,

We have a house advertised for rent and it's not getting much interest (i think it's way over priced) but after the first home open we have had a request for a 2 year lease and asking permission to sub-let the flat downstairs as a AirBnB.

I will have to do some research on the AirBnB but just wanting to know if this is a common thing or should I leave it alone at the get go.

The flat is self contained and has it's own entry but it's not pretty yet and we have just bought the place and not in any position to do renovations until we return to live in it. I would be curious to how this would effect insurance and who's responsibility it becomes etc with the flat as you would think it would have to look pretty nice to be rented to travellers etc.

Any advice appreciated, and where to get more information.

 

Tenants subletting on Airbnb would not be uncommon. Asking permission would be uncommon. It means they want to defray the cost of renting the house. The fact that they are living on-site would make me comfortable with this - it will be in their best interests to keep everything in good order.

 

First check with your local council that this is allowed.

Otherwise you, as the owner, may find yourself in trouble.
Marg

 

Thanks, the real estate has come back saying it opens a can of worms and may have legal implications. They have suggested maybe offering her a reduced rent on the grounds of renting the flat separately. This would be more rental money for me but, just not sure it's worth the risks of trying to have two separate tenants sharing the space.

 

Who pays the Pub Liability/Medical bills if the tenant's AirBnB guest falls over and breaks their arm/wrist etc (or worse)?

That'd be my biggest question about it. I don't think normal LL insurance would cover this?

 

Insurance companies eventually caught up with short term rentals. Most of them offer liability cover for short term rentals, self managed.
The original poster hasn't had much interest from prospective tenants. Now there is one willing to pay the asking price and sign up for 2 years provided they can Airbnb a self contained flat. I would be giving it some consideration. Especially given they will tart the flat up a bit and keep everything in good order.
No point talking to council because their default answer will be 'no'. Most of them are taking longer than insurance companies to get their heads around short term rentals.
You could make it a condition that they get insurance to cover them subletting short term.

 

I am surprised they also told you their plans and just didn't go ahead and do it. I wouldn't think it would be that different to them subletting the flat. Also, Airbnb offers host protection insurance. Go for it I say!

 

Thank you all for your responses. It sounds enticing from the view that the place would be kept looking nice. They have now come up with a plan to offer the main house at a cheaper rate to the original interested tenant and rent the flat separately. This opens up a whole pile of worms. I might re-post it as a new topic.

 

I reckon having one tenant who sublets the flat would be a better option than two tenants.

 

You would also be able to look at the listing on Airbnb and see some photos of the place and read the reviews. That's a rare opportunity for a landlord.
Maybe when you're in town, you could even book it and stay there without letting her know who you are.

 

Thanks, I did think of this. Would be good to get such feedback and see the property. May have to look into it more.

 

The house has only been on the market for a week and not available until mid December. They are still confident they can get the full $725 per week renting as is. Given we have since decided to put a dishwasher in the main house and pay for a regular gardener and this tenant will likely be making a profit from the Airbnb would it be cheeky to up the price a bit?
This of course depends on the insurance and legalities.

 

Yes it would be cheeky. Would you be upping the price on other applicants too?

I really don't get what your line of thinking is here - if it was me, I would have accepted the applicant already.

Personally I think someone who wants to rent out a section of the property on airbnb is a net positive in terms of strength of the application, but even being pessimistic I would have thought it its at least on the same level taking into account pros and cons.

 

I agree with that bum above.
It's a bird in the hand.
You said at the start that you thought the asking rent made it 'way over priced' and now you have someone willing to pay it. They won't be making a profit, they will be offsetting their costs.
You are heading into the time of year when getting tenants is tough and you have a prospect who is keen.

 

Thanks, i guess it comes down to whether we want the airbnb aspect. The prospective tenant did ask for the dishwasher to be put in which will cost a bit as there is no current space for it. We haven't even been given any details about the tenant at all yet so will see how it goes.

 

Yeah but I think my point is that the airbnb 'aspect' isn't really as big a deal as most people think. I mean, as long as the rent is paid and the property looked after, why does it matter what your tenants do with the property? At least this set of tenants are being honest about it as well.

 

Yes, i guess i just had a different mindset about it. Thanks, I think you have put it in perspective for me. A tenant paying good money with a vested interest to look after the property is much more valuable without focusing on them using the property to make money.

 

If the property consists of two self contained areas, whoever rents it is going to lease out one of the areas anyway, unless they have an adult dependent or something like that.

 

Yeah, but no.

 

i would ask for more rent if you agree to air bnb..i think thats perfectly fair