APIA Blog

RSS Feed

Landlord Q&A - Extra Airbnb income for landlords?

Wednesday, March 08, 2017



APIA Ask An Expert

If a landlord’s consent is being sought for the tenant to sublet the property to Airbnb guests and in return for the consent the tenant offers a percentage of the Airbnb earnings, could the landlord legally accept that offer under the RTA?

  

 

APIA Ask An Expert

Interestingly, the Tenancy Tribunal has recently ruled that Airbnb is subletting and so the tenant requires the owner’s written consent.

The Residential Tenancies Act 1986 provides that the landlord cannot charge key money which is a payment for granting the subletting. However, in the case of a sublet, the landlord can recover their legal and non-legal expenses. Furthermore, the rent must be at market rates and any increase of the rent must be carried out in accordance with the procedure in section 24 of the Act. This suggests that Parliament intended for rents to be fixed amounts rather than a percentage of variable sub-tenancy income.

The tenancy agreement may also impose restrictions on subletting. Furthermore, some developments have required that short term tenancies must be done through an agent, which is aimed at preventing Airbnb type arrangements, so we recommend that the landlord also check the title for any such provisions.

 

Shaun Peacock

For further information please contact, [email protected]

Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matters and should not be relied upon for that purpose.

 

 

 

Recent Posts


Tags

property cycle scotney williams partners housing affordability management Question and answer trespass cgt short term rental heat pump ask an expert twg report interest limitation Q&A negotiation rent asbestos meth worksafe winz debt to income ring-fencing privacy Gluckman commerce commission TCIT sale and purchas investor wealth creation p lab covid-19 holiday house damage Level 4 daikin kiwibuild Investor story inspection positive cash flow interest rates tax tenancy tribunal short-term rental clnz renovation building Must know finance How to HHS Landlording Jeff Bezos insurance re agent housing package retaliatory notice data security termination advice Investment tip rta reform education property apprentice fixed-term tenancy personal growth speculator subdivision legal cost property management development wins first home buying lvr Standards New Zealand structure DTI ocr television rent increase buyer's agent Market report rental market lockdown Sponsored post auckland council Kris Pedersen Mortgages and Insurance rent arrears meth contamination Editor's Choice principal and interest bond form anz election 2017 CCC bankruptcy Property (Relationships) Act apia Holler HHGA reserve bank banking house prices will trust rental wof equity shower dome minor dwelling Tribunal case study letting property sublease tenancy issues cash-flow auckland government brightline extractor fan sale and purchase quiet enjoyment nzpif income barfoot and thompson relationship early termination anti-social behaviour financial advisers act ventilation tenancy services CoreLogic shortland chartered accountants debt enforcement inflation property value rtaa2020 beginner investor letting fee robert kiyosaki heater buying rules market recycling equity opes partners insulation business gluckman report heating warm up new zealand housing bubble watercare interest deductibility legal rta mindset mortgage RBNZ RTAA 2019 interest only boarding house tenant Must knows Guest blog HSWA airbnb warren buffett off the plan Zodiak Management investment strategy travel bubble landlord bad tenant election2020 Case study market rent unitary plan skill shortage yield ird maintenance trademe water bill khh initio bond productivity smoke alarm return buying cat parry v inglis LIM property maintenance capital gain rent control

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo