Renting townhome to a tenant who plans to host

[Tyler798]

Hello,

I am the owner of a townhome with no AirBNB restrictions. I was contacted by someone who wants to furnish the unit and use it as an AiBNB. They will pay me the monthly rent.

My primary fears are liability for damage and that my property won’t be cared for as much as a long term tenant. Who takes on liability if something gets damaged during a stay? Do I need to get any extra insurance? What else do I have to worry about?

[Elisa]

Hi @Tyler798 😊, 

Thank you so much for asking this question here!

Did you get the chance to discuss this with some hosts in the meantime?

I'm tagging a few experienced hosts here to see what advice they can offer you: @Oksana127, @Guy991 and @Patricia2526.

Thank you in advance, everyone!

Warm regards 🌻

[Helen3]

I am a landlord as well as a host and I would run a mile. @Tyler798 

Guest can present problems for your neighbours particularly if the host doesn't live close by . Guests can also damage your property. 

there is home insurance for short term let's but you can't take it out as you wouldn't be the host . And the person who wants to sublet won't be able to take it out as they don't own the property. 

also what happens if the person subletting doesn't generate the bookings they need - how will they pay their rent? 

[Guy991]

Hello @Tyler798 , @Elisa ,

In my opinion, Airbnb is not a party to this agreement. It is a third-party platform, and the agreement is solely between you and the tenant. You may allow the tenant to sublease the property specifically for short-term rentals on Airbnb, with each reservation not exceeding 25 days.

The tenant must:

• Hold their own insurance policy covering short-term rental activity.
• Ensure guests do not cause disturbances or damage.
• Limit occupancy to the agreed maximum.
• Comply with all applicable local registration, licensing, and tax requirements. If a short-term rental license is required, the tenant must provide proof that they have obtained it.

• Maintain a minimum average Airbnb rating—for example, 4.75 or higher—to ensure consistent quality of guest experience and property care.

It should also be clearly stated that the security deposit will only be returned once:

• The property has been removed from all platforms, including Airbnb.
• There are no upcoming reservations remaining.

Lastly, establish and agree in writing with the tenant on when and how you can visit or inspect the property.

These are just some of the points you should consider. Let’s see what other hosts here might have to share based on their experiences. And please remember—when it comes to these kinds of arrangements, there’s nothing better than consulting a professional local legal service (a lawyer)  to ensure your rights are fully protected.

[Patricia2526]

Hi @Tyler798  Thanks @Elisa 

I highly suggest to draft a very clear lease agreement that states that the tenant is fully responsible for all guest-related damages.

Requires the tenant to maintain liability and renters insurance, naming you as “additional insured”. Require Proof of Insurance from Tenant

Consider a commercial landlord policy or umbrella policy, especially if they’ll have a high turnover of guests.

Vet the renter person well. Ask for references or examples of other properties they manage and get everything in writing.

From what I’ve seen as a host, Airbnb places tend to be cleaner and better maintained than many traditional rentals. Since we’re rated after every stay, we take upkeep seriously to ensure guests have a great experience and to avoid any risk of being penalized by the platform.

Best Regards