Hi there. The Residential Tenancies Act 1997 (Vic) sets out the rules for landlords and tenants in Victoria. Under the RTA, a tenant is prohibited from subletting the whole or part of their rented premises without the landlord’s consent. The question is whether allowing AirBnB guests to stay in your rented premises in exchange for money amounts to ‘subletting’. In Victoria, there is not a straightforward answer to this question, so it is not clear whether allowing AirBnB guests to stay in your rented premises is lawful.

In mid-2016, a case appeared before the Supreme Court of Victoria in which a whole apartment was advertised for guests on AirBnB. In that situation, the court held that the arrangement amounted to a sublet and was therefore in breach of the tenancy agreement and RTA. However, the outcome may have been different if the tenants had only allowed guests to stay in part of the rented premises (e.g. a spare room).

In addition to the RTA, you also need to be aware of your obligations as a tenant under your tenancy agreement (usually called a ‘lease’). Often these agreements contain ‘special conditions’ that specifically prohibit guests from AirBnB or similar accommodation sharing websites from staying in the rented premises without the landlord’s prior consent. You should review the terms of your tenancy agreement to determine if these special conditions apply to your lease.

Remember that breaching your tenancy agreement or the RTA can give the landlord the right to evict you from the rented premises with only 14 days’ notice.

Suggested way forward

While there is a financial incentive to listing your rented premises on AirBnB, breaching your tenancy agreement or the RTA can result in serious consequences. You should consider speaking to a property lawyer to fully understand your rights. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.