Renting out your apartment on Airbnb can be an appealing way to earn extra income, but it comes with its own set of challenges and considerations. Whether you’re in an apartment in New York, a renting house in Los Angeles, or a condo in Miami, there are important differences and legalities to navigate. This article will guide you through the essentials of hosting an Airbnb while renting, helping you understand the rules, manage potential risks, and maximize your hosting experience regardless of your location.
What are Airbnb, VRBO, and other similar rental sites?
Airbnb, VRBO, and similar sites are online platforms offering alternatives to hotels for travelers, listing various properties like houses, apartments, and individual rooms for rent. These platforms allow hosts to market their rentals, charging fees for bookings.
As a host, you have the flexibility to choose who rents your space and what amenities are included. Renting your apartment short-term can be a great way to earn extra income and connect with new people, as many guests prefer the personalized touch over conventional hotels. If your lease permits short-term rentals, you’ll need to consider security, parking, and tenancy terms before listing your property.
More than four million hosts offer unique stays on the platform — earning an average of $9,600 each year. If you’re looking to make some extra cash, continue reading to learn if you can Airbnb your apartment.
Can I rent my apartment on Airbnb?
Yes, you can rent your apartment on Airbnb (also known as rental arbitrage), but there are several factors to consider before doing so. First, check your lease agreement to see if subletting or short-term rentals are allowed, as many landlords and property management companies have strict policies against it.
Additionally, you should review local laws and regulations, as some cities have specific rules regarding short-term rentals, including registration requirements, occupancy limits, and taxes. It’s also important to consider the potential impact on your neighbors and building community. If all these factors align, you can proceed with listing your apartment on Airbnb, ensuring you comply with all applicable rules and regulations.
Whether you want to rent out a room, an unoccupied house, or a pied-à-terre, Airbnb allows all kinds of listings. With so many offerings, you just might be able to Airbnb your apartment — as long as your property manager is on board.
What’s the difference between a short-term rental and a private sublet?
Understanding the difference between a short-term rental and a private sublet is essential when renting your apartment on Airbnb. Hosting an Airbnb as a renter is similar to subleasing, where you remain a tenant while taking on landlord-like duties. The key difference is that short-term rentals involve additional hosting tasks, such as managing guest reviews and maintaining high ratings.
In contrast, a private sublet involves leasing your apartment to someone else for a longer period, usually with the landlord’s permission. Knowing these distinctions helps you choose the best rental option for your situation, ensuring compliance with all rules and regulations.
What is Airbnb rental arbitrage?
Airbnb rental arbitrage involves renting out your apartment, condo, private room, or unit from your landlord’s property on a short-term basis, such as for a day, a week, or less than a month. This practice is not considered an assignment and may not be covered by your lease’s sublease terms. Essentially, a rental arbitrage host leases long-term rental properties and re-rents them as short-term rentals (STR) on platforms like Airbnb, which widely accepts this practice.
Let’s say you’re renting an apartment in Nashville. After being approved as a tenant, you need to leave town for an extended period or decide to travel for a few months. If your lease and local regulations permit, you could list your apartment on Airbnb as an STR for the time you’ll be away. Guests apply through Airbnb, rent your apartment at the rate you set, sign a contract, pay a deposit, and stay for a short duration. When you return, you move back into your apartment. During your absence, you’ll earn extra income, potentially exceeding your long-term rental costs.
How to rent out your apartment while you’re a tenant
1. Check out local zoning laws
If you’re thinking of listing your space, you might wonder if it’s legal to rent out an apartment on Airbnb. The short answer is that it depends on the location. Local zoning ordinances determine how land and property in a designated region can be used, including rules regarding construction, apartment-based businesses, and short-term rentals of around 30 or fewer days.
For example, in Denver, CO short-term rental hosts are required to obtain a license. In New York City, Airbnb must provide information about hosts and listings with the city government. Meanwhile, hosts renting out their apartment in Los Angeles need to gain written approval from the property manager, report their data with the city, impose limits on stays per year, and follow additional regulations.
To determine if you can Airbnb a rental in your area, take a look at your city regulations. You’ll be able to confirm your eligibility and learn the additional criteria for Airbnb hosts in your region. Keep in mind that these laws change all the time, so make sure you’re staying updated on the latest rules.
2. Take a look at your lease
Even if your local zoning laws permit short-term rentals under certain conditions, you still need to check your lease. The fine print might refer to short-term accommodations as sublets, so keep that language in mind as you’re reading.
Some leases might prohibit short-term rentals altogether, even considering them as grounds for eviction. The vastly different policies between property managers make it all the more important to review your lease agreement before renting out your apartment.
3. Talk to your property manager
While your lease might permit short-term accommodations, it’s essential to gain your property manager’s explicit approval. One way to make this step easier is to establish a good relationship with them.
From there, you can ask your property manager about the possibility of renting out your apartment on Airbnb.
Offering a compromise might make them more likely to approve the plan. For example, you can agree to increase your security deposit or rent so that both parties can benefit from the listing. If your property manager still declines, it’s best not to list your apartment on Airbnb.
4. Pay attention to (and pay) the fees
Figuring out whether you can Airbnb your apartment requires you to keep money in mind. In addition to the fees you’re already paying for your place, you’ll need to keep track of the extra taxes and costs that can come with short-term rentals.
Depending on your area, you may need to collect local tax or Value Added Tax (VAT) from guests. You’ll also have to account for service fees, either by splitting the cost with your guests or covering it on your own.
How to Airbnb your apartment
Now that you’ve determined whether you can rent out your apartment, it’s time to list your Airbnb sublet. To help you through the process, we’ve put together the nine steps to Airbnb your apartment.
1. Create an account
Starting your hosting journey is simple. All you have to do is visit the Airbnb website and navigate to “Airbnb your home.” From there, find the “Get started” button and sign into your account. If you don’t already have an account, you’ll have to make one.
Once you’re logged in, the site will prompt you to create a listing. To begin, you simply type in the address of your Airbnb sublet and follow the remaining steps below.
2. Add property details
Creating a listing on Airbnb begins with some basic questions. In addition to identifying your place as an apartment, you’ll have to add the following important details about your Airbnb sublet:
- Property type (farm stay, nature lodge, bed and breakfast, etc.)
- Whether guests will have the entire place, a private room or a shared room
- How many guests can stay at a time
- How many bedrooms, beds and bathrooms guests can access
- Exact address of your place and its pinpoint location on a map
- Basic amenities and common areas available for guests
Sharing these details will help guests figure out whether your place is the right fit for them. Later, you’ll be able to share more than just the basics.
3. Take some quality photos
Capturing high-quality pictures for your listing is the key to attracting guests. In fact, hosts who use professional photography earn 40 percent more than others nearby. If you’d rather not hire a photographer, there are still ways to secure a good first impression.
To make your Airbnb look its best in photos, here are some pro tips:
- Clean each room
- Take bright photos in natural lighting
- Showcase a variety of angles
- Add captions under each image
- Include pictures of desirable details in the space or stops around the neighborhood
With quality photography, you can give undecided guests the visual that persuades them to book your apartment.
4. Describe your amenities
Airbnb gives you 500 characters to really sell your place to potential guests. In the description, highlighting everything your space has to offer — like a large outdoor space or renovated kitchen — can convince travelers that your apartment will make a great home away from home.
Since more than one in three Americans aren’t satisfied with their current amenities, Airbnb guests might be looking for features their own space lacks. If your place has any of the following sought-after amenities, they’re definitely worth including in the description:
- High-speed Wi-Fi
- Flat screen TV
- Streaming services
- Entire space to yourself
- Patio or balcony
- Scenic views
- Enhanced clean
- Close to nearby landmarks
Writing a description that highlights the best features of your apartment can make your place all the more tempting.
5. Name your Airbnb
When it comes to Airbnb apartments, writing a strong title is essential. It’s a sure way to help your listing rank high, both on the site and in the eyes of potential guests.
Ready to name your Airbnb? Here are some tips for crafting your title:
- Know your customer: Especially in tourism-heavy cities, many guests search for titles that include the proximity to historical landmarks. Similarly, highlighting convenience and quiet for business people or privacy and romance for couples can help you land more bookings.
- Optimize characters: Try to squeeze every appealing detail into the 50-character limit. Using abbreviations like “BR” for bedroom, “APT” for apartment and “DT” for downtown will help you make the most of the title.
- Use exciting language: Rather than dull words like “nice” or “great,” opt for attention-grabbing language like “contemporary,” “spacious” or whatever else describes your space.
- Emphasize standout qualities: If a potential guest sees desirable amenities like “hot tub” or “free Wi-Fi” in the title, it can help your place stand out.
- Be professional: Using all capital letters or a ton of emojis in your title can make you seem like an unprofessional host, or worse, like a rental scammer. Instead, keep it classy and let the features do the talking.
Since the title might be the first thing prospective guests see, writing an effective one can draw them to your listing.
6. Set guest expectations
To make sure everyone is on the same page, Airbnb requires hosts to establish expectations. First, you’ll need to create some rules for your guests. Airbnb asks if the following is permitted on your property:
- Infants
- Children
- Pets
- Smoking
- Events
In addition to setting the rules, you’ll also want to make sure your guests know what to expect on your property. Airbnb will ask you to disclose whether any of these features comes with your place:
- Lack of parking
- Shared living spaces
- Animals
- Noise
- Surveillance devices
- Weapons
- Stairs
Being upfront about guest expectations can lead to fewer surprises down the road.
7. Choose booking specifications
After you’re done setting guest expectations, it’s time to identify your booking preferences. You’ll determine the amount of notice you need before check-ins, the time of day guests can arrive, how far in advance guests should make bookings and how long guests can stay.
From there, you’ll use a calendar to choose dates when guests can book your Airbnb sublet. If your availability changes, you can go back and edit your calendar later.
8. Name your price
Fortunately, Airbnb makes picking your price simple. The site has a smart tool that suggests minimum and maximum nightly prices by comparing your listing to others in the area. The tool also suggests special offers for first guests and longer stays.
If you’d prefer to do it yourself, it’s crucial to keep track of similar listing prices and recent rent reports. That way, you’ll have a better understanding of reasonable rates for your Airbnb sublet.
9. Screen your guests
Letting strangers into your home might feel, well, strange. However, Airbnb has a system designed to make hosts feel comfortable.
Hosts are able to leave reviews of all their guests. Even after you publish your listing, Airbnb allows you to read past reviews of anyone who books your apartment. Based on what you read, you can decide whether the potential guests meet your standards.
Renting your apartment on Airbnb FAQs
Is rental arbitrage legal?
Yes, rental arbitrage is legal, but it depends on local laws, regulations, and your lease agreement. Rental arbitrage involves renting a property and subleasing it on platforms like Airbnb for profit. To ensure legality, you must check local laws, as some cities have strict regulations on short-term rentals, including licensing, taxes, and zoning. Additionally, review your lease agreement, as many leases prohibit subletting or short-term rentals without the landlord’s permission. Even if subletting is allowed, it’s wise to inform your landlord and obtain written consent. By complying with these factors, you can operate within the law and maintain a good relationship with your landlord.
Can I use my rental property for Airbnb?
As long as your local zoning regulations, lease agreement and property manager allow it, you can use your rental property for Airbnb. In general, knowing and following the rules should tell you whether you can Airbnb your apartment.
Is Airbnb considered subletting?
In many cases, rules regarding short-term rentals appear as “subletting” policies on apartment leases. Be sure to review the fine print to determine whether your lease agreement uses this language.
Do you need permission to host with Airbnb?
In order to Airbnb your apartment, you need to comply with your lease agreement and local zoning laws. You should also reach out to your property manager and obtain their approval before renting out your apartment.
Can I put my apartment on Airbnb when I go on vacation?
Assuming your local zoning laws, lease and property manager sign off on your Airbnb sublet plans, you should be able to rent out your apartment while on vacation. Just be sure to follow vacation safety procedures.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.