When a Tenant Wants to Run Airbnb or Short-Stay Accommodation
Why landlords in Australia and New Zelanad can refuse, what to consider, and how to respond
Why Airbnb Requests Matter
Requests to run Airbnb, Stayz, Booking.com, or other short-stay accommodation are becoming more common. Unlike long-term subletting, short-stay letting is treated as a commercial activity, not residential use. This creates insurance, legal, and property risks that most standard tenancy agreements are not designed to cover.
This guide explains what counts as short-stay letting, why landlords can refuse, what to consider, and how to respond if a tenant asks.
What Counts as Airbnb or Short-Stay Letting?
Short-stay letting is when the tenant wants to:
- Rent the property (or a room) to multiple short-term guests
- Operate a commercial accommodation activity
- Host stays ranging from 1 night to a few weeks
This is not residential use — it is a commercial operation and is treated differently from normal subletting.
The Rules
- Tenants must get the landlord's written consent before running Airbnb or short-stay accommodation
- Landlords can refuse Airbnb in every jurisdiction
- Airbnb is considered a commercial use, not residential accommodation
- If the tenant Airbnbs without consent, it is a breach of the tenancy agreement
- The original tenant remains fully responsible for all guest damage
Impacts of Short-Stay Letting to Consider
Insurance often does not cover it
Most landlord insurance policies:
- Exclude short-stay letting
- Void coverage if the tenant runs Airbnb
- Require you to know who is living in the property
This alone is a valid refusal.
Strata or body corporate rules
Many buildings prohibit:
- Short-stay letting
- High-turnover guests
- Commercial use of residential lots
If strata rules prohibit it, refusal is automatic.
Council and zoning restrictions
Some councils require:
- Short-stay accommodation permits
- Fire safety upgrades
- Registration
Tenants generally cannot meet these requirements without the owner's consent.
High risk to the property
Short-stay guests increase:
- Damage risk
- Noise complaints
- Security issues
- Wear and tear
- Liability exposure
You cannot increase the bond
Bond limits are capped by law. You cannot take:
- A commercial bond
- A higher bond for Airbnb risk
- A per-guest bond
Even though the tenant remains responsible for all damages and costs, recovering losses beyond the bond can be difficult in practice.
Inspection Rules — Including the Need for Tenant Consent
If a tenant requests Airbnb approval, you may want to inspect the property first. A pre-Airbnb inspection counts as a routine inspection. You can only do it if:
- You are within your routine inspection limits, or
- The tenant gives clear written consent for an extra inspection
How to Decline an Airbnb Request (Best Practice)
Provide a short, factual reason such as:
- Insurance does not cover short-stay letting
- Strata rules prohibit it
- Council rules prohibit it
- The property is not approved for commercial accommodation
- The risk to the property is too high
- The tenancy agreement is for residential use only
Keep it simple and factual.
If You Approve (Rare)
If you ever approve, you should:
- Confirm insurance coverage in writing
- Confirm strata approval
- Confirm council approval
- Update the tenancy agreement
- Require the tenant to keep a guest register
- Conduct more frequent inspections (with consent)
Mint's Takeaway
Airbnb and short-stay letting are commercial activities, not residential use. Across Australia and New Zealand:
- Tenants must ask for consent
- Landlords can refuse in every jurisdiction
- Insurance and building rules almost always prohibit it
- Risk is significantly higher than normal subletting
- A pre-Airbnb inspection requires tenant consent if you're outside routine inspection limits
A simple, factual refusal is all you need to stay compliant and protect your property.