Is it possible to become a landlord by using a short-term rental app?

Using a short-term rental app might be a fantastic way to supplement your income, but there are certain legal risks to be aware of. Learn more about the legal aspects of short-term rentals by clicking here.

What you will discover:

What exactly is a short-term rental?
What exactly is a landlord?
Is it legal for me to be a landlord if I am a renter but offer my apartment for a short-term lease while on vacation?
Is it considered a landlord if I temporarily sublease my rental property?
What if I charge a friend or relative rent to stay in my apartment while I am away?
Is it legal for me to rent out my flat during a major event?

The travel business has been changed by short-term rental applications and websites. Their ascent has not been without controversy, and towns and governments have responded with a slew of legislation that may convert short-term rentals into long-term difficulties. However, with a little planning, you may participate in the short-term rental boom while avoiding the legal risks. The following are answers to frequently asked questions concerning the legal implications of short-term rentals.

What exactly is a short-term rental?

The legal meaning of a short-term rental differs from state to state and even city to city. Two major factors influence whether a property qualifies.

The first thing to examine is structure. Short-term rentals in multifamily residential structures, such as apartments and condos, are prohibited in several jurisdictions, including New York City and Nevada. Others restrict the amount of bedrooms. In Richmond, Virginia, this number is five, although Las Vegas has a three-bedroom restriction. Other cities, such as San Francisco, restrict short-term rentals to a host’s principal house. It is important to note that many localities need hosts to get a permission before to renting out a house or unit.

The duration of stay is the second factor to consider. Some sites require a minimum duration of stay for short-term visits. In Nevada, for example, such visits must last at least two nights. The duration of most short-term rentals is limited. The most typical limitation is 30 days.

What exactly is a landlord?

A landlord, in the widest sense, is a person that leases property to another party, often known as the tenant, in return for rent. The leased property is typically, but not always, owned by the landlord. Landlords have legal obligations to their tenants, including keeping the rented property safe, clean, and livable.

You are not a landlord if you charge someone money to remain on your property. Otherwise, every hotel owner is a landlord. Short-term stays are excluded from landlord-tenant legislation in all states. After living on the property for more than 30 days, most states consider someone to be a tenant. However, this time frame is subject to change. For example, Virginia landlord-tenant legislation does not apply to rental agreements that are less than 90 days in duration.

Learn the maximum stay limitations in your location and get rid of short-term tenants that approach those boundaries if you want to avoid landlord-tenant regulations. You should also have a lawyer check your short-term rental agreement or Vacation Lease to ensure that you are complying with local legal laws.

Is it legal for me to be a landlord if I am a renter but offer my apartment for a short-term lease while on vacation?

No, as long as the lease is not lengthy enough to activate your state’s landlord-tenant regulations (30 days in most states). If your visitor overstays their welcome, you may become their landlord and find yourself in a difficult legal scenario. Getting legal advice as soon as your short-term tenant violates their agreement might possibly save you a lot of time and stress in this circumstance. If this occurs, having a clear, written agreement might be really beneficial.

Is it considered a landlord if I temporarily sublease my rental property?

Yes, as long as the length of the sublease is long enough for your state’s landlord-tenant regulations to apply (30 days in most states). Although your landlord retains ownership and accountability for the property in the presence of both tenants and subtenants, you would enter into your own Sublease Agreement with each subtenant. With relation to the subtenant, this agreement places you, the renter, in the position of the landlord. It implies that you, the renter, are responsible for ensuring that your subtenant follows the conditions of the Sublease Agreement as well as the terms of your original Lease Agreement.

Many lease agreements forbid subletting wholly or only with the landlord’s authorization. However, you may sign a Lease Amendment documenting your landlord’s agreement to rent the property.

What if I charge a friend or relative rent to stay in my apartment while I am away?

This might be a sublet rather than a short-term rental, depending on how long you intend to be gone. You may be regarded a landlord regardless of the subtenant’s connection to you if it is lengthy enough to trigger your state’s landlord-tenant legislation. Even if the vacation is brief, signing a Vacation Lease is a smart idea.

If you intend to be away from your property for a lengthy period of time, you should enter up a Roommate Agreement with a friend or family in addition to a Sublease Agreement. A Roomate Agreement might assist in ensuring that the connection is properly established. Before permitting someone to move in, even temporarily, always verify your lease and seek formal permission from your landlord, if necessary.

Is it legal for me to rent out my flat during a major event?

Because no state applies landlord-tenant rules to rental agreements of less than one week, you are unlikely to be labeled a landlord.

When major events visit your city, the short-term rental market may be quite profitable. Keep in mind that short-term rentals in apartment complexes are prohibited in several cities, including New York City and Los Angeles. Others may have rigorous laws that require you to get a permission, license, or insurance before listing your property.