15 Jul Airbnb Sublet: What Is It, And How To Make It Work For You

The gig economy is booming. Media outlets and social media are always promoting side hustles and new ways to make money. You want in. The best place to start is learning about an Airbnb Sublet.

One of the most common side hustle suggestions is renting a room or your entire space on Airbnb. But what if you don’t own the property? Can you sublet your rented house or apartment on Airbnb? 

Subletting a space on Airbnb is a great money-making opportunity. But subletting on Airbnb also comes up against several potential issues. Check out our tips for tenants who want to rent all or part of their apartment on Airbnb.

[Do you want to know if your location is profitable? Check out this in-depth guide on Airbnb Market Research]

Why You Should Learn About an Airbnb Sublet

There is a considerable amount of potential in the Airbnb market for mid-to long term sublets. Mid-long-term sublets appeal to many different people including longer-term travelers or business travelers on shorter-term contracts.  Sublets are also popular with new arrivals to a city or, renters in-between long-term rental agreements. Some businesses even sublet houses long term for their nomadic employees. 

Unlike a hotel, Airbnbs offer a fully furnished home for your longer stay. Sublets come complete with WiFi and everything you need to live. Airbnb can provide you with the perfect home for your more extended stay. And there’s no hassle of committing to a long-term lease.

Is Airbnb Considered Subletting?

If you rent your home and list it on Airbnb then you are subletting. To “sublet” means you rent out all or part of an apartment or another type of rental property. This could be for a few days, months, or longer. 

Is Subletting on Airbnb Allowed?

Here’s where things get tricky. Your lease may or may not allow you to sublet, on Airbnb or through another avenue. To find out if subletting is authorized, you should read your contract carefully. The lease may say something like “Tenant will not sublet all or any part of the premises without Landlord’s prior written consent.” Some local zoning laws may also restrict or prohibit short-term rental hosting. Research your local requirements before you even think about subletting.

Illegal subletting is a dangerous game to play and could lead to eviction. Before subletting, you should talk to the landlord and get their permission.

Why Don’t Some Landlords Allow an Airbnb Sublet?

Some landlords do not want their tenants to sublet apartments. If you look at it from the landlord’s perspective, this is a reasonable position. The landlord has invested time and money in screening suitable tenants. They spent time deciding who is best placed to look after their investment property. If tenants sub-let the property without the landlord’s permission or knowledge, it opens the door to potential issues. The tenant benefits from extra income generated from the property. But the landlord bears all the risks. 

How to Get Landlord Permission to Host on Airbnb

You should speak honestly to your landlord before considering subletting. But you should go into that discussion prepared with some good arguments and incentives for the landlord. 

Here are some incentives or argument ideas: Profit Sharing

Obviously, offering the landlord a chance to make extra money is one of the best motivators. Profit sharing doesn’t have to be a 50/50 split. If you manage all the work taking bookings, cleaning and promotion, then a 10-20% cut to the landlord would be fair. You could also agree to an increased rent rate, provide a larger security deposit, or pay several months’ rent upfront.

Only an Occasional Airbnb Sublet

If you agree that subletting will only be occasional, then your landlord may be more open to the idea. This could apply to times when you are on an extended holiday or traveling for work for a few months. Explain the alternative is ending the lease while you are away. The landlord may decide it’s easier to allow subletting than to lose a good tenant.

Rent One Room

Noise can be a concern with short term rentals. Many landlords worry that subletting could cause problems with the neighbors. If this is the case, you can rent out only a portion of the property, rather than the entire space. That way, you’ll be living in the apartment as well and can deal with the guests.

Get Insurance

Be sure that you have renters’ insurance with plenty of liability coverage. The landlord may also need to increase their liability coverage. In this situation, you may need to cover or split that cost.

Negotiate House Rules

Be reasonable when negotiating house rules with your landlord. The landlord may want to be stricter with short term renters than they are with leaseholders. You may be allowed a pet in the building, but they may wish to ban short terms guests from bringing pets they don’t know. Other typical conditions include a no party rule, or restrictions on group rental sizes.

Do Your Research

Be sure to do all your research on the legality and taxes for short-term rentals in your area. Be sure to outline these to your landlord clearly and agree that you will cover any extra taxes or fees.

After all of this, if you’re still interested in becoming a host, then you should check out our most complete Airbnb hosting guide.

Getting The Landlord To Agree to an Airbnb Sublet

How do you phrase your value propositions? You need to get landlords interested, comfortable, and more importantly, take you seriously. Our landlord pitch deck has all the info you need to start subletting, you can check it our landlord pitch deck.

Finally, once your landlord has agreed to sublet, you need to be sure to get their agreement in writing. I spent $2k to have a real estate lawyer draft our sublease agreement. If you want to take your own copy of the sublease agreement, check out our Residential Subletting Agreement to get started.