Is it against most lease terms to rent out a private room?

Andy493
Level 1
Ottawa, Canada

Is it against most lease terms to rent out a private room?

I'm about to move into a 3 bedroom apartment in Montreal, it's against 95% of leases to do AirBnB. However, most of it seems to relate to renting out the entire unit, as it becomes a problem for the city if many units are not occupied by main residents.

 

However, is it any different if I am staying in the unit, and just renting out individual rooms? Would it be considered a "room-mate" or "overnight guest" situation that would circumvent the rules?

7 Replies 7
Yadira22
Level 10
London, United Kingdom

Hi @Andy493 

Hope you are well. 

Not Canada based but have seen its hard to rent out even bedrooms there. 

 

Here is an idea of the rules you must follow. 

https://www.airbnb.co.uk/help/article/878/montr%C3%A9al

 

Furthermore, as it is not your space you should have a written agreement with the landlord as to be able to do this legally and pass-by any potential issues. 

 

Good luck 🙂

Sarah977
Level 10
Sayulita, Mexico

@Andy493  Airbnb paying guests are not considered to be "roommates or overnight guests". It is considered to be a business. Landlords don't want tenants listing on Airbnb for very good reasons. If a guest plugs up the plumbing, or creates a flood that leaks through the ceiling into the room below, or breaks a door or otherwise causes damage, are you going to be willing to pay for the damage, or a repairman, however expensive? I'd bet not. You'd call the landlord, not mentioning that it was the Airbnb guest who did it, and expect the landlord to fix things.

When you rent a place as a long-term tenant with a lease, the landlord requests info from you- they have your full name, your employment history, references, etc. There are no such safeguards with Airbnb guests.

Kelly149
Level 10
Austin, TX

My long term leases specify how often tenants can host guests. Reading your specific lease would be a first step. 

but then also your municipality may have rules/registration requirements. You’ll need to confirm your landlord’s agreement & that as a tenant you qualify with the city terms

Thank you for the reply! If that's the case (your lease allows 1 guest per few days), would AirBnB guests count towards that? Or are those "unpaid guests"?

@Andy493 interesting you should ask, my lease actually specifies that they may not bring anyone into the home that is a "new" acquaintance to them and they're actually limited much more stringently than 1 guest per few days. 

A lease is meant to create a relationship between 3 entities: the tenant - the owner - and the space. You don't get to add a 4th (abb guests or any other guests) bc you'd like some extra $, or extra company, unless the owner is cool with that. IMO

 

bc presumably the owner would have charged more rent if the space was rented to 2/3 roommates instead of just 1. the wear/tear/utilities/noise/parking/etc... all these resources come into play. When in doubt, ask the person who owns your place, and don't forget to check with the city too.

DAK-Design-and-Home0
Level 3
Montreal, Canada

In Montreal each borough has its own rules, as well as the general overall regulations by the city. Double he k with the city of Montreal office nearest to your apartment in Montreal and see what their rules are first, as they will tell you if it's even possible to Airbnb at that address.

David
Robin4
Top Contributor
Mount Barker, Australia

@Andy493 

 

Andy, in almost all lease agreements there will be a clause prohibiting sub-letting. The reason for this clause is, Insurance companies will not cover properties that are sublet.

The reason for this is you alter the scope and property risk the insurer undertook when they offered property coverage. When a general insurer finds out that subletting is taking place in their insured space, they will cancel their property cover, not just your tenancy but, all other tenancies on the property title.

 

You have altered the scope of coverage. It is the same as insuring your vehicle comprehensively for private use and you then start doing Uber or use it as a taxi. As soon as something happens, or the insurer finds out......they will decline coverage!

 

There are insurers who will cover the short term rental market, but landlords do not in general use them because an STR policy is considerably more expensive than a general tenancy rental policy!

 

Andy, do not consider sub-letting unless you have the landlords permission in writing. In my time in support I did come across this issue many times and I only ever saw personally one instance where subletting successfully took place. In that instance the rented property was a stand alone property in a desirable tourist area. The tenant was an Airbnb user and got together with the landlord, paid the additional premium for STR insurance and passed a percentage of each Airbnb rental payout to the landlord. It appeared to be a win/win for both of them!

It worked, but that's the only instance I have ever heard of that did work, in all other instances the tenant, when discovered,  had to immediately stop, or would be faced with eviction!

 

Andy, it's a big risk to take and certainly not one I would advise you to do!

 

Cheers........Rob