Table of Contents
- Can I host an Airbnb if I rent?
- What’s the difference between a short-term rental and a private sublet?
- How can I rent out my place while I’m a tenant?
- Getting permission from your landlord
- Local regulations for short-term rentals
- Short-term rental agreements
- Additional tenant insurance
- Get ready to host
Can I host an Airbnb if I rent?
What’s the difference between a short-term rental and a private sublet?
Private sublet | Third-party short-term rental (Airbnb) | |
Roles | Sublandlord: The person renting out, sometimes also known as the master tenant.
Subtenant: The person renting the property. | Host: The person renting out the property. Guest: The person staying in the property. |
Rental term | Typically longer term, often several months to years. | Often shorter term, anywhere from one night to several weeks and sometimes months. |
Income | Fixed monthly rate, providing a consistent and predictable income. | Income depends on season and popularity, which could yield higher results during peak seasons. However, the revenue is more unpredictable. |
Legal considerations | Getting approval from the primary landlord is recommended and often necessary. Lease agreements and local laws could impact subleases. | Getting approval from the primary landlord is recommended and often necessary. Lease agreements and local laws could impact or even prohibit short-term rentals. |
Protection and support | Sublandlords and subtenants must get their own insurance for liabilities and damages. Sublandlords must vet their guests and solve disputes by personal or legal measures. | Airbnb offers AirCover, a specific insurance for hosts. The platform can also help with vetting guests and solving disputes. |
Relationship | Subtenants often stay for several months, giving a better chance to form a good relationship with a high level of trust. In many cases, the sublandlord shares the property with the subtenant. | Guests often stay for short bursts, and interactions between guests and hosts are limited. |
Responsibilities | A sublandlord has responsibilities as both a landlord and a tenant. They will need to ensure that rent is paid on time, that no property is damaged, and that the property meets building standards. | Hosting is a hands-on role, and hosts will have responsibilities to maintain the property before, during, and after guest stays. This could include cleaning, providing bed linens and towels, and being available for requests or issues. |
Rental agreement | A Sublease Agreement is best practice to prevent misunderstandings over payment details, maintenance duties, and liability for damages. | A rental agreement is generally not necessary. Guests are required to follow Airbnb’s ground rules, and hosts can add additional house rules to their listings. Hosts can require that guests sign a rental agreement before the stay. |
A traditional private sublet offers a more secure source of income, while a short-term rental is better for flexibility of rental periods. Short-term rental platforms often help vet guests and offer support in case of accidents or disputes, but a longer-term private sublet gives you a better opportunity to form a good and trusting relationship with your subtenant. Traditional sublets are also less regulated, and you will have fewer responsibilities for your guests.
Read our article To Sublease or Not to Sublease for more information on subleasing.
How can I rent out my place while I’m a tenant?
- Landlord permission
- Local regulations
- Short-term rental agreements
- Additional tenant’s insurance
Getting permission from your landlord
Reasons why your landlord might not approve a short-term rental
- Your landlord is unfamiliar with short-term rentals. They might not have stayed with or heard of Airbnb.
- Your landlord has heard stories about short-term guests treating properties with little respect.
- The naturally high turnover rate of short-term rentals means a higher risk of property damage.
- Your landlord won’t be able to personally vet the guests, meaning they can’t verify if the people staying at their property are responsible tenants.
- The guests won’t be signing a lease contract directly with your landlord, giving your landlord less control over the terms of their stay.
- Short-term rental guests are less invested in the property, increasing the risk of them being less considerate of neighbors or other tenants.
Reasons for your landlord to approve a short-term rental
- A short-term rental will let you earn additional income and make rent payments more easily. This means you can sustainably maintain your tenancy for longer.
- You’ll be vetting tenants before their stay. Your landlord can be part of the vetting process or have the final say in who gets approved.
- You’ll have additional property and liability insurance in case of damages or accidents.
- You’ll ask guests to sign a rental agreement, and you can even offer that your landlord read through and approve the agreement.
- Your landlord can set a limit on the amount of time you can rent out the property.
- Assure your landlord you’ll supervise the property whether you’re present or at a distance.
- Offer to split a percentage of the rental income with them. For instance, offering 20% of the rental income may make financial sense if you anticipate earning a significant amount from the property.
- Offer to increase your rent payments. This could be better than offering a percentage because you will have a set amount to pay rather than a flexible one.
- Offer to pay part of your rent upfront or increase your security deposit. This could be a better option if you want to pay a lump sum instead of a percentage or increased rent. Increasing your security deposit also guarantees that you’ll get all the rental income. Plus, you’ll have the opportunity to receive your deposit back at the end of your lease, after any deposit deductions.
Any increase in security deposit is subject to local laws. Some states have an upper limit on how much of a security deposit a landlord can take.
Local regulations for short-term rentals
- Duration: Some cities only allow a certain length for short-term rentals, often between 1 and 120 days.
- Host: Some cities only allow the property owner to rent out short-term.
- Residence status: Some cities only allow short-term rentals if you live on the property a certain percentage of the time or at the time of rental.
- License: Some cities require that short-term rentals register or apply for a license and pay specific fees.
- Zoning: In some cities, properties in certain zoning districts are not allowed to be short-term rentals.
Regulations for short-term rentals are part of an ongoing conversation in many cities, and the following information is subject to change. While LawDepot always aims to offer accurate and helpful information to our users, we recommend you seek out local authorities for exact details. |
Example of short-term rental regulations in Los Angeles, CA
- The property is your primary residence
- The property has no code violations
- The property is not subject to the Rent Stabilization Ordinance (RSO)
- You have legal proof of landlord approval, using a notarized copy of the Landlord’s Authorization to Conduct Home-Sharing form
- You have registered your short-term rental property with the city and included the registration number in your online listing
- If you’re renting out the property for more than 120 days, you have an extended registration
- You have paid the application and registration fees.
Example of short-term rental regulations in New York, NY
- Short-term is defined as a period shorter than 30 days
- You can only rent out part of a property, such as a room or a floor
- The unit can’t be on the list of prohibited buildings
- You have to stay in the same unit or apartment as your guests
- You can’t have more than two paying guests at the same time
- You have to register your short-term rental through the short-term rental registration portal
- You have to pay an application fee
Example of short-term rental regulations in Miami Beach, FL
- The property follows the limitations of the short-term rental zoning districts
- Short-term is defined as a period of less than six months and a day
- You have a Vacation/Short-Term Rental Business Tax Receipt
- You have registered your property as a business
- You have paid the application and licensing fees
- You also meet any requirements set by Miami-Dade County
Remember that income from short-term rentals could be taxable, depending on your personal use of the property. You might also be able to deduct some business expenses. Seek guidance from the Internal Revenue Service (IRS) for details.
Short-term rental agreements
- The renting period
- Which part of the premises is being rented
- The cost of the rental
- House rules or guest limitations
- Any cleaning duties or other obligations