Renting with Airbnb: What do you have to consider?
Whether you only rent out your apartment short-term during your vacation or offer residential space permanently to travelers: Airbnb-renting comes with many legal requirements that need to be considered. Especially the complicated relationship between you as the landlord, your guests, and Airbnb causes many pitfalls that aren’t visible at a first or second glance. As a lawyer with many years of experience around Airbnb I would like to inform you of what to know before renting out.
Airbnb only act as a platform for renting
One of the most important aspects to mind when renting through Airbnb: Airbnb only presents itself as a platform to connect hosts and guests. You don’t enter a rent contract with Airbnb, but directly with your guests. Conflicts and problems caused by a guest are therefore your responsibility. Airbnb profits through a flat charge as commission, but doesn’t appear as a landlord and doesn’t gain rental income. If there are for examples damages to the house or apartment during renting through Airbnb, Airbnb is not liable for the damages.
While there is a protection against damage to property offered by Airbnb, it is up to Airbnb which damages to cover and which not to. My experience shows that Airbnb is very accommodating with smaller damages: If you notice for example after renting out your apartment that a lamp worth 30 EUR has been damaged, the costs are usually replaced immediately. For larger damages or damages outside of the apartment however, difficulties can appear. The frequent change of tenants can potentially also lead to a disturbance of the domestic peace – this, too, is your responsibility.
Renting out through Airbnb is a commercial activity
In addition to questions of responsibilities you don’t use Airbnb as a consumer – as a landlord you enter into a commercial activity, specifically a hospitality business, by renting through Airbnb, as it can be assumed that you host different and changing guests. All rental income from your Airbnb renting has to be declared as such in your income tax declaration. Depending on the sum of your income through Airbnb you also need to examine whether you are still counted as a small business or whether you are already considered a regular business. The place you rent in can also levy their own taxes or dues, for example Berlin has the bed tax that applies to renting out through Airbnb.
Additionally, you have to follow the applicable consumer protection rules. The hospitality business requires that you get building law permission for use for hospitality. That means not only that you have to ensure fire protection and clearly marked emergency exits, but also that these have to be approved by the local building office – the conditions can be compared to small hotels and boardinghouses. The costs for structural adjustments or examinations have to be paid by you.
Before renting out through Airbnb, you have to check whether (sub-)renting is admissible
The use of Airbnb is very easy and renting out becomes child’s play. But before you rent out through Airbnb, you have to check whether your house or apartment allows renting out at all.
As a tenant in an apartment, the misuse of the rented object can even lead to termination without notice by the owner of the real estate, as the Berlin LG decided specifically in the context of subletting through Airbnb. Therefore, if you are a tenant, you should definitely check whether your rental contract allows for subletting before beginning to rent out through Airbnb.
If you are allowed to sublet by your landlord, or if you are the owner of the object, you still have to mind additional legal requirements. Many large cities, especially Berlin, have a misuse prohibition. Through the hospitality business, the object that is commonly only intended as residential space is misused and permission from the local district office is needed. An exception is the renting out of a single room (though this still requires permission from the landlord if you are a tenant yourself).
Even if you are the owner, the owners’ association can prohibit renting to changing guests. The basis for this is that the frequent change of overnight guests can potentially impact the domestic peace.
Definitely check whether the intended rooms can be rented out at all and which permissions you need before you begin renting out through Airbnb. I will gladly advise you in this and check the situation for you.
Legal advice before renting out through Airbnb can prevent expensive mistakes
Airbnb advertises itself as a platform that allows people to rent and rent out very easily under its supervision. But the reality in German is something else. Not only do tax precautions have to be taken and tested, the renting out itself also comes with many hurdles that differ from place to place – there is a lot to consider when renting out through Airbnb. In my work as a lawyer, I have studied the legal situation around Airbnb in depth and want to pass this knowledge on to you through a personal consultation.
I will answer your questions around taxes, regulations and requirements around renting out through Airbnb, specialized on the region of Berlin. Reach out to me at any time. In a conversation in person or on the phone we will discuss your personal situation and the circumstances you need to pay attention to. Online-meetings regardless of place are also something I offer. I look forward to a consultation with you!
I will gladly advise you!
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Lawyer Christian Janssen from Berlin
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