Thinking about making some extra cash by listing your rental on Airbnb? You’re not alone. In Australia, profits from these short-term lets are tax deductible, which sweetens the deal.

This article will guide you through the do’s and don’ts to turn your property into a successful Airbnb without stepping on legal landmines. Ready to learn more?

Key Takeaways

Understanding Airbnb: A Brief Overview

A cozy living room with a welcoming host, showcasing the Airbnb hosting experience.

Airbnb acts as a bridge connecting people who have spare rooms or houses with those seeking places to stay. This online marketplace has adjusted the way we think about travel accommodations, making it easier for anyone to book a short-term rental.

It’s become popular across the globe, including in Australia where it’s perfectly legal to offer your place for such temporary stays.

Hosts find Airbnb useful for estimating potential earnings from their properties without much hassle. Whether it’s an extra bedroom or an entire house, listing on this platform can turn unused spaces into income sources.

Guests benefit too, often finding more personal and unique lodging options than traditional hotels provide— all at the click of a button.

Why Renters Sublet on Airbnb?

A person is surrounded by Airbnb paperwork in a modern living room.

Many renters choose to sublet their spaces on Airbnb for extra cash. This can help cover their rent and other expenses. Some do it because they have a spare room or will be away for a while.

It’s a way to make money without much work.

A friend of mine once said, “>I started subletting my apartment on Airbnb during holidays. It helped pay off my lease agreements faster.” This shows that with careful planning, renting out your place can really pay off.

But remember, doing this without your landlord’s permission can break your rental agreement rules. Always check the terms first to avoid trouble.

Legal Aspects: Can Tenants List Your Property on Airbnb?

Tenants need to know the rules before they put your place on Airbnb. Laws and court decisions change how subleasing works. Landlords, get ready to learn what you can do about it!

The Laws Regarding Subletting

Subletting laws are tricky and vary widely. In some places, like Australia, new rules target those who buy flats to use as short-term rentals without the owner’s okay. Even if you just want to rent out a spare room on platforms like Airbnb, it’s not always clear cut.

You have to check your tenancy agreement closely. If it says no sub-letting or needs the landlord’s permission first, listing your place could get you in hot water.

Landlords and tenants often clash over this issue. Bodies corporate might also step in with rules that stop tenants from using Airbnb. These by-laws aim to keep things fair for everyone in the building but can feel restrictive if you were counting on extra rental income from your space.

Always read up on what’s allowed where you live – getting caught out could lead to disputes or even eviction notices landing at your door.

Recent Court Decisions on Airbnb Subletting

Courts in Victoria have made decisions that affect how people use Airbnb for subleasing. In 2016, the Supreme Court of Victoria said tenants broke their lease contract by putting a property on Airbnb without the owner’s OK.

This shows listing your place with Airbnb can lead to legal issues if you don’t get permission first.

Another decision from this court looked at whether using Airbnb counts as a short-term rental or just letting someone stay temporarily. They decided it does follow tenancy laws which means rules around renting apply.

Also, they found out that groups owning buildings cannot stop owners from renting their places short-term through rules alone. These decisions help everyone understand more about what’s allowed and what’s not when it comes to renting out properties via online platforms like Airbnb.

Protecting Your Property: Measures for Landlords

Landlords can keep their homes safe with smart moves – like using clear contracts and checking on insurance. Get savvy, learn how!

How to Prevent Your Property from Being Used as an Airbnb

Stopping tenants from using your property for Airbnb isn’t hard. You just need the right steps and knowledge. Here’s how:

  1. Add a Clause to the Lease Agreement: First things, make sure your lease agreement clearly states no sub-leasing is allowed. This simple step is your best defense. If it’s in writing, tenants know they can’t rent out your place on sites like Airbnb.
  2. Require a Security Deposit: Ask for a security deposit before tenants move in. This money can cover any damage if they break the rules and sub-let your property.
  3. Offer Vacation Rental Insurance: Encourage or require renters to get third-party vacation rental insurance. This protects both you and them if guests damage something.
  4. Check Tenant Backgrounds Thoroughly: Doing deep checks on tenant history saves you trouble later on. Look into their past with other landlords, focusing on any evictions or issues with sub-letting.
  5. Write Clear House Rules: Along with the lease agreement, have a list of house rules that ban using the place for Airbnb without permission.
  6. Know Your Area’s Laws: Some places have tight rules about short-term rentals. Make sure you’re up to date so you can inform your tenants accurately.
  7. Connect with the Neighbors: Neighbors are great allies in keeping an eye on things. Let them know that your property shouldn’t be on Airbnb and ask them to alert you if they notice anything odd.
  8. Use Technology to Your Advantage: Install smart locks that alert you every time someone enters or leaves the property. Cameras in common areas (while respecting privacy laws) also help monitor who’s coming and going.

From first-hand experience, I’ve found these steps effective at preventing my properties from ending up as short-term rentals without my permission. It all started when one of my Melbourne houses strangely had groups of people coming in every weekend until I found it listed on Airbnb! After adding specific clauses to my leasing contracts and setting up a security system that notifies me when there are frequent entries and exits, the problem stopped completely.

These practical moves ensure everyone respects the rules, ensuring your property stays off platforms like Airbnb unless you say otherwise.


Renting your place on Airbnb might seem like easy money. But, it’s not always straightforward. You’ll need to juggle state rules, insurance policies, and possibly upset neighbors. Before listing your home for strangers to stay in, make sure you’re okay with the possible hiccups along the way.

It could be a smart move—or a headache waiting to happen.


1. Can I list my rented property on Airbnb?

Yes, you can list your rental property on Airbnb, but first, check your lease or rental agreement. It’s essential to ensure there are no rules against sub-letting or using the property as an Airbnb.

2. What should I do if my lease says I can’t sub-let?

If your lease has a clause against sub-letting, talk to your property manager. They might allow it with some conditions or for a share of your earnings.

3. Do I need extra insurance to host an Airbnb?

Absolutely! While Airbnb offers a Host Guarantee, it’s wise to have liability insurance too. This covers you if guests damage the property or get hurt during their stay.

4. Are there legal issues with hosting an Airbnb in a rental?

Yes, there could be licensing issues and tax implications like Value Added Tax (VAT) that apply when you earn income from renting out space. Always consult solicitors to avoid surprises.

5. How does rent control affect listing my rental as an Airbnb?

In areas with rent control or stabilisation ordinances, turning a long-term rental into an Airbnb could lead to trouble—like getting evicted! Check local laws first.

6. Will running an Airbnb impact my security deposit?

It might! If guests cause damage beyond normal wear and tear, you’re responsible for repairs—and this could eat into your security deposit when moving out.

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