Can I assume you agree that a large number of Airbnb hosts lease their property, and don’t have explicit agreement to then short term rent out their home? I don’t have any idea on numbers, but it must surely be an enormous number, and a large proportion would have a clause in the primary lease to prohibit sub-lease or short term rentals. This has been the case for a decade or more. So I think the concept of renting a space you don’t own or have explicit rights to rent on STR is extremely mainstream. Such clauses can be used to evict tenants of course, but the reality is the majority of landlords don’t mind, so long as there are no problems. Complaints from neighbours, parties or damage. Those who quietly rent and don’t cause trouble are unlikely to come under the attention or even care (if they do) of the landlord in most cases. But having the clause is good. Just like there is a law on jaywalking, but millions do often, and occasionally but very rarely get fined. It’s the normal of society. Good to have rules, good they can be enforced where needed (or even to just prove they exist as validation), but many have so much discretion and just do not cause problems. A squatter may be illegal until one day they may own the very property they were illegally inhabiting.
So agreed terms are one thing, but the spirit of the law is another, as is common practice. And critically one would needs to consider loss in examining what is right.
So in this example, the intention and expectation of this host to EVENTUALLY own the property should not mean there are any laws broken by taking bookings now, for the period they will occupy it. And in the somewhat creative or cheeky example of renting an Airbnb, this is no different to any other rental being then advertised on Airbnb… which could be perhaps even be half of the hosts, who knows. But we would surely be talking millions.
Renting a property on Airbnb regardless of if you own, loan, lease etc is quite normal, as is doing so even if the agreement specifically prohibits it. And it should not cause any loss to have someone else stay with you in an Airbnb you legally booked. That you ‘met’ them through Airbnb is no different to sub-leasing the room to your friends, who all chip in to pay you for their room in the place you booked. It causes no harm to the owner of the property, and like usual, you take responsibility for your guests while occupying the property.
I think the term disruptive idea or loophole really isn’t the case in either of these examples. Because sub-leasing as a STR is so extremely common.
But I am interested in your comment on contractual agreements. If you have an Airbnb, and you bring other guests in to the property, who have paid you for their share, regardless if it’s a church group, friends of friends, work colleagues or complete strangers… are you aware of any contract or legal requirement that prohibits this arrangement? Isn’t it extremely common? As is listing a property you don’t explicitly have a clause permitting this?
I am curious if you are aware of any law, or policy that may prohibit this common practice? And is there anything you are aware of that is unfair in this common practice? Well, the ‘way’ you advertise for room mates may be creative in this way perhaps, but it’s not unfair I don’t imagine, so long as you comply with the host rules and airbnb rules, and don’t exceed total guest count booked and take full responsibility for any damage.
But regards tax, I assume you don’t see any tax issues here. If you rent on Airbnb, you claim expenses and income. The tax authorities do not care surely what the nature of property ownership is, be it lease (long or short term), ownership, pending ownership or just a friends home. So there seems no evasion here as far as I can see.
It’s easy in life to see problems in not doing what others do. But ask yourself if Brian Chesky came to you and said he had a good business idea, to sub-lease properties to strangers on the web, I assume you would not encourage him, and would cite many reasons why it would not be a good idea. Including that you can’t sub-lease a property you don’t own for a start, given that was the majority of the entire business model to begin with!
Fortunately for Brian, he was bolder. He didn’t create an unfair platform, he didn’t evade tax, but he was disruptive. Lucky for you and me and millions of others, nobody talked him out of his idea, to (largely) rent other peoples properties to strangers, on the internet for short term rentals. Now worth billions and a way of life. It’s lucky we have people like Brian.
Maybe in this light, and the points above, you may soften and see that if not against the law or policy or causing harm to others… and benefiting you and others who you offer rentals to that could not otherwise access them (if you booked it) then it’s probably a good thing!
Well, that’s my take. So I strongly feel we should encourage the host who began this thread, to begin taking bookings for a property he doesn’t even own yet. It feels like exactly the sort of clever strategy Brian Chesky would have done and probably did back in the day!
I’d love to get feedback on how it works out too @marb1 - Share some good news, or challenges that you could still overcome on this approach!
, pseudo-host”.
(yeah, both feet) on your way out w/ no refunds. Yeah, it’s in the agreement!