Thousands of people earn a reasonable sum by renting homes using the model commonly known as the Airbnb sublet. Considering the popularity and increasing Airbnb business, this may not come as a surprise to you that the annual income of an individual renting out a single room on Airbnb can generate a whopping 3,000 a year, as shown by Airbnb figures.
If you own a house, then the Airbnb business can be a simple source of earning; however, if you wish to give your place on short-term rent as a tenant, the renting business can get a bit complicated here. Even Airbnb renting is a tempting business, but this never is a tough choice for you.
Renting out a place when frequently vacant on weekends is a wise option. But, as a tenant, there are some technicalities that you should consider before listing your room on Airbnb.
Does the lease allow Airbnb sublet?
Whether you want to put your room on Airbnb on not, it’s always a wise idea to thoroughly understand your lease agreement and understand each point.
Your lease agreement may have a provision that reads something like this ‘Without Landlord’s prior written content; the tenant cannot sublet all or any part of the property. There may also be a clause that states the number of guests that could stay at the property. Either the case, you can get evicted if you violate the above-stated clauses.
If you have a good reputation, your Landlord may not ask to evict you right away but can give you a warning not to rent their place out again. However, if you live in a rent-controlled area, then there’s a piece of bad news for you. Landlords in such areas need even a tiny reason to evict a tenant for a higher rent.
The takeaway lesson is, always seek written permission from your Landlord before listing it on Airbnb.
Know the laws about Airbnb sublet
With the increasing popularity, increasing regulations are being imposed on Airbnb by local administrations. Make sure you understand these laws and know which laws can affect your or your landlord.
If your local laws don’t allow you to host Airb, there’s no point in even talking about it with your landlord. Please don’t waste the time of yours and him and quit the idea of Airbnb hosting altogether.
In some areas, Airbnb rentals are allowed but with tons of restrictions. For instance, some local laws allow you to rent your place for not more than 120 days. You may also have to register or pay a license fee.
Use the following button to head over to the Airbnb repository, where they put together city-wise regulations collectively in one place.
Note: Regulations mainly apply to hosts renting an entire property on Airbnb. Sharing a room within your primary residence is considered good and generally excluded from rules.
This link not only provides you with the regulatory information in your area but also offers guidance on how to ensure your Airbnb is safe for guests and complies with all the local safety regulations.
I cannot stress enough how important it is to check every information on this link and make sure you operate your Airbnb per the law and keep it safe for guests.
Ensure you have all your taxes paid that your city, state, country, or government agency imposes on short-term rentals.
Government websites are the best source to know about the local tax laws regarding short-term rental, so don’t forget to visit it and keep yourself updated about any law change.
Screen your guests before handing over your place
Carefully screen your guests before renting out your space to them.
Some guests can cause such a nuisance that you can get an instant eviction notice from your landlord because why would anyone tolerate if their property is damaged or there are regular complaints from the neighbours?
Screen your subtenants like your landlord screened you.
Work something out with the landlord
The renters who haven’t talked to their landlords about listing their place on Airbnb can be in hot waters. Honestly, this is like playing a Russian Roulette with the lease.
You wouldn’t want to take this much risk, would you? If your guests cause no problems and your neighbours don’t complain about them, your landlord may not find out, especially if he lives outside the town, but Airbnb sublet is still risky.
It’s better not to take a chance and discuss with your landlord and seek his permission before renting out the place on any short-term hosting site like Airbnb.
To get permission from your landlord, you will have to take specific steps to make the conversation more convincing.
- Start with a meaningful and straightforward conversation.
- Make your conversation with your landlord more casual, and do not give it a business pitch. This means having a proper dialogue with him and asking for his opinions on the matter.
- Sometimes it’s better to arrange a conversation in person because some non-verbal expressions are better understood in person and not on call. For instance, if something you said has bothered your landlord, you can easily judge it by his expression. You may uncover the objection and talk about it more clearly.
- Before sharing your rental idea, it’s better to know your landlord more.
Consider the following:
- What is the thing your landlord cares about the most related to his property? What worries him, and what’s important to him?
- Does your landlord need some extra income like you? Is he going through rough times?
- How can your rental business help him?
- Frame your conversation by getting to know the answers to the above-stated questions. Focus on mitigating the risk as much as possible if your landlord like to play it safe.
Ask for his opinions.
A good conversation is when you don’t impose your ideas on others; instead, ask their opinions on the matter. Start by asking their views on Airbnb renting business and Airbnb Sublet.
You may dispel any misconceptions about Airbnb and provide him with information that he didn’t know.
Please keep it simple.
Let’s face it, talking and providing information about how Airbnb works can be a little complex if you try to explain its technicalities.
These details can annoy your landlord because people may stick to the status quo when presenting something they can’t understand.
So, don’t bombard them with excessive information; instead, try to explain things straightforwardly. Try to tell everything in simple terms and dive into the details when asked.
Focus on the benefits
Everyone loves to talk about their benefits; therefore, try to convince your landlord by focusing heavily on how he can be benefitting from the short-term rental business. Try convincing him that giving out a property on Airbnb can help both of you. You can phrase it like:
‘I want to list my rental on Airbnb to know if it’s worth investing time in the long run. This is not permanent until I see how it can benefit both of us.’
The idea behind a test run is that people are more convinced to try out new things if they are phrased as temporary because no one would like to take a risk, especially when it comes to their real estate properties.
Also, mention how you will be improving the aesthetics and ambience of the property before listing because guests would want a pleasant space to stay in to keep your property in the best shape possible.
Airbnb sublet: The bottom line
Running a short-term Airbnb business is not as easy as it seems especially if it’s Airbnb Sublet. You will have to understand so many technicalities and need to convince your landlord too. Landlords will be cautious as to who is living on their property.
You wouldn’t want to take the risk of eviction. If things don’t go as planned with your landlord, quit the idea of Airbnb Sublet altogether and if it did, then make sure you satisfy your landlord by keeping his property safe and even make him a partner in some percentage of profit.
Read my post on how Airbnb works?