You've probably heard the stories about makeshift brothels, wild parties, trashed homes and unexpected drug raids but the popularity of rental sharing platform Airbnb continues to grow.
There are many rules and regulations in place for traditional accommodation providers that are enforced by councils and governments. With Airbnb much of that responsibility lies on the shoulders of owners and guests.
![Renting out a property on Airbnb can be fruitful until something goes wrong.](/web/20161014234925im_/http://www.brisbanetimes.com.au/content/dam/images/g/q/l/r/f/0/image.related.articleLeadwide.620x349.gqlqqq.png/1471289150996.jpg)
So what happens if you are hurt at an Airbnb property? Or someone accidently burns down your home?
If you are thinking of renting your property out you should consider these things:
- Generally landlord insurance that covers damage to your personal belongings and property will not cover short-term rental arrangements.
- Most home and contents and public liability insurance will not provide coverage for commercial activities, so while the ad hoc rental arrangement might be covered, operating your property like a hotel is unlikely to be. Let your insurer know your plans.
- Airbnb promotes its own host protection insurance providing $1 million coverage in the event of an injured guest or property damage. Read the fine print and look at the exclusions and excesses as this shouldn't replace your own insurance.
- If your property is in a community titles schemes, your body corporate by-laws might also require you to let them know you are renting the property.
- If you rent the property and are thinking of sub-letting it, or even just a room, be aware that this not permitted under most lease agreements without permission from your landlord.
- If you have a mortgage, make sure you let your bank know you are renting the property out.
- The money you receive by renting out your property is income and should be declared to the tax office. A penalty of $180 applies for failing to do so.
Reduce the risk of being personally responsible for damage to your property or for compensation for an injured guest by making sure you take steps to avoid any potential liability in the first place.
Keeping the property in good repair with adequate safety items, like smoke detectors and emergency lighting, can help prevent accidents from occurring.
As a guest you should you ask:
- How old is the property? Are the photos and reviews current? Ensuring it has things like disability and emergency access and meets fire safety requirements could save your life.
- Does the host have permission to lease their property to you? If the host is breaching their lease agreement or their body corporate's by-laws you could find yourself out on the street.
- What insurance does the host have? You can take preventative steps before travelling, by taking out adequate travel insurance but that still might not provide total cover.
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Alison and Jillian Barrett are both principals at Maurice Blackburn Lawyers. The Queensland sisters are experienced lawyers and passionate social justice campaigners. Alison juggles motherhood, as well as heading up a major legal practice area. Younger sister Jillian also leads a team of lawyers and sports a double degree in Law and Journalism.
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