Using a house for Airbnb that is not legaly mine.

[Chas195]

Recently I became a host using a suite of a house that I have no ownership in. I built the house that is mortgage free and is now owned solely by our family trust. My wife is a trustee of the trust. Our kids are the beneficiaries of the trust. My wife has agreed that I can run an Airbnb business using the suite and we will have a solicitor draw up that agreement.

All running costs and profits will be managed by my established business. The trust does not receive any income from my established business or my Airbnb business.

My question is does Airbnb support or recognize such an arrangement? Is it OK that I run the business without owning the house?

My accountant has told me, "The other thing to check out is if Airbnb has requirements regarding the legal ownership of the Property ie will the Trust need to be the ones that register the property with Airbnb."

Many thanks 

Jack.

[Mike-And-Jane0]

@Chas195 there are many many listings on Airbnb run by people or companies that do not won them. All Airbnb requires is that you have a right to list the property but they do not (to my knowledge) check this. As you have permission from the trust you should be fine.

 I am no lawyer but I think yours should surely ensure that the trust benefits from the rentals not you. If the trust is designed as a tax shield I would have thought that an individual benefiting who is not the beneficiary of the trust is a bit odd and the IRS could question the whole arrangement.

[Chas195]

Thanks for your comprehensive reply to me post Mike-And-Jane0. You have been very helpful.  Cheers.

[Frances3408]

@Chas195. Jack, in addition to Mike's comments regarding the ATO and income tax have you considered who is paying the land tax, insurances, etc as these are normally levied against the owner, not the lessee.

[Chas195]

Hi Frances3408,

Once the property got to a certain value, we have had to pay land tax. We have been paying that for about the last 5 years. Re who pays for it, that's me. We only have one breadwinner in our family and when the bills come in, I pay them all. Thanks for your input Frances3408.