Common Questions Regarding Airbnb - Evictions and Profits
Can you rent your property via Airbnb? Can you evict tenants for using Airbnb without your consent? These are very common questions, especially with the meteoric rise of peer-to-peer apps such as Uber and Airbnb.
Is it legal to lease some of my apartments via Airbnb?It depends. The benefits are obvious - some of our clients report an income bump of 50% compared to traditional 1-year lease. However, many cities in California have a "bed tax" for revenue coming from daily rental of residential rooms/apartments - sometimes as high as 14% for the collected amount. Other cities, like San Francisco, have limited Airbnb use by property owners through a series of legislation. You can avoid bed taxes by using Airbnb for monthly rentals, which may remove the risk of paying a bed tax.
Is using Airbnb cause for eviction?This is a very common question I get from residential landlords. They lease a unit to a promising tenant in a desirable area, just to find out the tenant has posted the unit on Airbnb, and now making money rental income than the landlord himself. The answer is simple - assignment without your consent are a breach of the lease agreement and you have a cause for eviction. Look in your leases and make sure all assignments must be reasonably approved by the landlord.
Is it worth it to lease some of my apartments to Airbnb?The answer really depends. Leasing your units to traditional tenants is more stable (1-year lease), but Airbnb users will pay you far more per day. Airbnb management is much more labor intensive as it requires constant cleaning for every new visitor, a fully furnished unit, personal care for the guest, reputation management (your online reviews will make or break you), and most importantly - there is a 3rd party involved - Airbnb the company. The answer to this question really depend on you, and how you view your property.
Are Airbnb visitors to my apartment considered "Tenants"? Do I need to evict them if they refuse toThe answer is much more complicated than yes or no. But enough cases in the past year showed us that under some circumstances - judges will provide some Airbnb users "tenant" status and thus, will be forced to be evicted. Remember - Airbnb still carries some risk. Tenants who stayed in the unit for longer than 30 days may very well be tenants under California law, as they probably established tenancy (albeit at a very high rental rate). Consult with Airbnb and your attorney to see if this kind of business plan is worth your time.