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How to curb Airbnb hosting at your property

This question is from Nicole

How can I stop or limit my tenant’s ability to have flatmates or host Airbnb guests at the property?

In general, you are not likely to have absolute control over your tenant’s ability to have flatmates and/or host Airbnb at the property. However, you can place reasonable restrictions using specific clauses in your tenancy agreement.

You can achieve some level of control in these situations by having a clause in your tenancy agreement that prohibits subletting during the tenancy (s44) and another setting the maximum number of occupants who can ordinarily reside at the premises (s40(3)). However, it is important that you understand the nuances and limitations of these clauses.

Generally, a tenant has to part possession with the entire or part of the premises for an activity to be considered a sublet. A no-subletting clause prevents your tenant from leasing the entire premises on Airbnb, but if they only rent a portion while remaining on-site, it may not qualify as a sublet. The question to ask yourself is: Has the tenant parted possession with the whole or part of the premises to a third party? Bearing in mind any body corporate rules prohibiting Airbnb hosting outright will be binding on your tenant.

In most cases, having a maximum number of occupants clause is sensible. While it does not stop your tenant from having flatmates, it limits how many people can ordinarily reside on the premises. It also places a similar limit on your tenant’s ability to partially on-rent the premises on Airbnb.

To effectively address these potential concerns, we advise you to be meticulous with tenant selection and foster an open, honest relationship. This approach ensures that if tenants contemplate inviting others to share the premises, they will proactively communicate their plan with you. This gives you the chance to discuss and address any potential issues or concerns.

Landlords, your questions matter! If you’re facing tenancy uncertainties or need advice, we’re here to help. Drop us a line at [email protected] with your inquiries, and let’s build a community of informed landlords. Your experiences and questions contribute to a collective knowledge that benefits us all. Looking forward to hearing from you!

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