Airbnb is a website that allows people to provide short-term homestays for a fee of 3% of the booking (to the host) and 10%+ to the guest. If you are a homeowner who wants to register as an Airbnb landlord, then it is essential that you comply with any applicable regulation for Airbnb properties – of your city, region or country. This simple guide will give you everything you need to start with Airbnb property compliance.
First of all, those who are preparing to become Airbnb landlords must study thoroughly their city’s laws pertaining to Airbnb rentals because many places have reacted to problems arisen with some Airbnb-related events. However, the platform has been proven to be overall successful for both homeowners and guests.
Most Airbnb-related issues noticed by the government representatives are the possibility of tenants transforming a quiet residential property area into a revolving hotel district, a lack of effective Airbnb-related tax collection, potential upend tenant-landlord relations, and more.
Also, besides reviewing the regulation for Airbnb where you live, it is essential to understand if there are any tourism restrictions in any of the contracts and legal documents in respect of your property. This way, you will know precisely how your ability to host is affected. Also, check the tax implications – typically, any money you earn as a host is a taxable income, and should be declared to the government.
Is the property entirely yours? Currently, more title restrictions are appearing in the legal documents for the apartment block. If it is a flying freehold apartment or share transfer, then you will need to make sure that Airbnb lettings do not restrict the declaration of co-ownership and the rules and regulations. A bonus on Airbnb property compliance for those wanting to host in other people’s properties.
Also, make sure that any mortgage or loan in place over the property does not contain restrictions for forms of letting or sharing occupation of the property without the lender’s consent. If you are a homeowner, be aware that these types of restrictions are common if the mortgaged property was not bought to let. Failing to meet the rules and restrictions may affect you directly – sometimes the lender is even allowed to call in the loan.
If your property is rented, then check your contract thoroughly to make sure that you have the authority to sub-let the house or a room inside your home. To list your property on Airbnb, you must be compliant to the terms of your lease. Otherwise, the landlord can (and probably will) bring the matter to court to terminate your contract or even to claim for property damage.
Assisted buyer schemes
Have you purchased your home with an assisted buyer scheme? If so, then it is very likely that the documents will prohibit leasing or sharing the place, including through Airbnb. Then before creating the listing, you will probably need to obtain consent according to the scheme terms.
Even if you own the home, before registering with Airbnb, it is recommended that you seek the consent of your home and contents insurer. This way, you will make sure that the insurance is aware that you are taking on paying guests and let you know how the terms of the insurance policy deal with this situation. This is often overlooked in Airbnb property compliance.