Yahoo Finance Here’s what you should know before you rent your home out on Airbnb
Renting out your home on Airbnb can be an extremely lucrative side-hustle, with some Airbnb landlords raking in as much as $4,000 per month.
But while it can be a great way to make a little extra coin, if you’re a renter, it could be cause for a whopping fine if you don’t abide by your state’s tenancy laws.
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It’s a lesson one Airbnb landlord in the UK found out the hard way, after he was slapped with a huge £100,000 (AU$177,880) fine, and was evicted, for letting out his home for years on Airbnb.
His home was one of 1,500 investigated by Westminster council, who owns the property, for potential ‘abuses’ of short-term lets, The Telegraph reported.
Here’s what you need to know if you’re planning on renting out your rental on Airbnb.
Is it legal to rent out my apartment on Airbnb in Australia?
Here in Australia, there are different laws surrounding Airbnb depending on which state you live in, and the laws are still changing.
And, like the UK, whether you can list your property on home-sharing sites like Airbnb is determined by your local council, not your strata (or owner’s corporation).
Short-term holiday letting is considered a commercial activity, which means it’s mostly banned in residential areas. There are only 12 councils in New South Wales that allow home-owners to lease their homes, and further zoning restrictions within those areas, according to property and financial services group, Pica.
In 2014, City of Sydney and Randwick Council threatened unauthorised Airbnb hosts with fines of over $1 million.
Over in Queensland and Victoria, some councils even require development permits for owners to be able to rent out their properties legally.
What should I do before I rent my home on Airbnb?
If you’re a tenant wanting to rent out your home, the first thing you need to do is check your council’s rules to see whether you’re in a permitted area for Airbnb, or a prohibited one.
If your local council allows you to lease out your home on home-sharing sites, your next step is to read your lease.
It will most likely have a provision that either permits or restricts you subletting all or any parts of your home without your Landlord’s prior written consent.
If you violate that provision, it is grounds for your lease to be terminated - and you can be evicted.
On the other hand, if you get their permission, you’re not breaking any lease agreements.
Sydney’s new Airbnb laws
Sydney has twice as many Airbnb listings as Melbourne, so it’s safe to say it’s a growing market - one that needs to be legally addressed.
Last year, the NSW government revealed that strata corporations in Sydney would be able to ban Airbnb from their apartment blocks.
But, even if your strata committee passed a law banning Airbnb, you could still rent out your room with one caveat: there would be a 180-night limit on the number of nights your property could be rented out on Airbnb each year.
There will also be a two-strike policy, which would see hosts or guests who commit two serious breaches of the new code within two years banned from using Airbnb for five years.
Those laws were meant to come into effect this year but haven’t yet, which means there still aren’t firm laws around Airbnb in Sydney.
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