Renting your Home on Airbnb

From offering a spare room to an entire network of vacation apartments, renting your home has become big business – and its biggest player is Airbnb. Although short term leasing can range from an occasional opportunity to earn some extra cash, to a legitimate business model, like every enterprise it comes with its own potential legal pitfalls.

Things to Keep in Mind Before Renting

A frequent worry for all parties involved is the legal security Airbnb offers owners as well as tenants. While they provide the legal contractual framework for renting a home, their services must not be confused with insurance for all possible scenarios. For example, if damages caused by guests exceed the guest’s deposit, Airbnb covers it up to a value of 1 million USD. This however does not include theft, damage to any objects of art or pets.

The Status of the Owner and Airbnb

While renting out an extra room is rarely a problem, people renting multiple apartments in one building can face legal challenges. In some cases, buildings with a certain number guest beds will be legally classified as hotels and have therefore to follow building standards regular apartment blocks don’t have to abide by. At the same time Airbnb users with a significant income or who offer extra services like a cleaning or room service might be regarded as a business. In other cities with sharply rising rents, such as New York, London and Berlin, renting out whole apartments can be considered illegal without proper legal consultation.

While Airbnb offers a general legal framework, they don’t provide a catalogue of local laws and regulations. Due to this uncertainty, a lawyer should be referred to in case of doubt. Well prepared and advised, renting your home could be a unique opportunity to earn some extra money.