The new era of risky rentals
You may have heard about people renting out their home online for a week or weekend here and there for huge money…
Apart from the logistical issues this presents, let’s consider the increasing areas for concern.
Local council does not support this activity. Your property will not be zoned correctly to allow this function. It would have to be a hotel or motel to allow per night occupation.
Strata/Body corporates are increasingly getting wind of this activity and are making it known they cannot turn a blind eye. The insurance taken as a building or Strata Plan generally would not cover someone residing on per night accommodation. Committee members and other occupants take issue with people coming and going every few days, not to mention the impossibility of the By-Laws being adhered to.
Don’t forget Insurance! As the registered owner, you should check to see if your insurer offers short stay/holiday landlord policies. (Where the property is being leased for less than 12 weeks) Ensure you read the fine print. You may not be covered if the guest is not on a lease governed by the Residential Tenancy Act in the relevant state or territory.
If you have a tenant that is bold enough to sublet your property via a holiday website (one of the conditions of listing a property is that you are the registered owner) It’s unlikely your tenant will be able to gain any insurance to cover the individuals they sublet to.
How do you combat the threat of a tenant listing your investment for shot stay accommodation? Ensure your property manager regularly inspects the property and looks for signs of subletting. For further tips on what is a tell-tale sign of someone subletting, contact Apex.
Juliette Wright, Director, Apex Property Management
About Apex Property Management:
Apex Property Management Specialists, is as the name would suggest, a Specialist organisation by nature. We purely focus on leasing and managing investment properties.
By choosing Apex Property Management Specialists, you will ensure you have the right partner to guide you through the process.