APIA Blog

RSS Feed

Landlord Q&A - Extra Airbnb income for landlords?

Wednesday, March 08, 2017



APIA Ask An Expert

If a landlord’s consent is being sought for the tenant to sublet the property to Airbnb guests and in return for the consent the tenant offers a percentage of the Airbnb earnings, could the landlord legally accept that offer under the RTA?

  

 

APIA Ask An Expert

Interestingly, the Tenancy Tribunal has recently ruled that Airbnb is subletting and so the tenant requires the owner’s written consent.

The Residential Tenancies Act 1986 provides that the landlord cannot charge key money which is a payment for granting the subletting. However, in the case of a sublet, the landlord can recover their legal and non-legal expenses. Furthermore, the rent must be at market rates and any increase of the rent must be carried out in accordance with the procedure in section 24 of the Act. This suggests that Parliament intended for rents to be fixed amounts rather than a percentage of variable sub-tenancy income.

The tenancy agreement may also impose restrictions on subletting. Furthermore, some developments have required that short term tenancies must be done through an agent, which is aimed at preventing Airbnb type arrangements, so we recommend that the landlord also check the title for any such provisions.

 

Shaun Peacock

For further information please contact, shaun@dklaw.co.nz

Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matters and should not be relied upon for that purpose.

 

 

 

Recent Posts


Tags

rta election 2017 insurance capital gain rental wof fixed-term tenancy p lab unitary plan TCIT scotney williams asbestos rent warm up new zealand Investment tip equity speculator principal and interest housing affordability watercare tenancy issues gluckman report winz trust mortgage worksafe Market report advice tax management renovation meth contamination smoke alarm legal housing bubble letting building rta reform Tribunal case study RBNZ twg report airbnb Guest blog tenancy services cat HHS ventilation market rent market ask an expert finance Question and answer trademe parry v inglis Holler lvr investment strategy HSWA wins property management banking ring-fencing sale and purchase first home buying interest only Jeff Bezos personal growth education heater business short-term rental property value cash-flow beginner investor subdivision minor dwelling structure CCC auckland council negotiation damage LIM return boarding house house prices income letting fee rent arrears ird Must knows sale and purchas RTAA 2019 sublease How to holiday house cgt Sponsored post debt enforcement water bill property maintenance anz robert kiyosaki inspection insulation auckland investor tenant property bond clnz warren buffett Standards New Zealand relationship trespass television Must know landlord interest rates buyer's agent productivity ocr rental market HHGA maintenance Q&A Landlording nzpif wealth creation Investor story rent increase bond form financial advisers act government positive cash flow privacy Editor's Choice meth development initio DTI CoreLogic extractor fan Property (Relationships) Act skill shortage partners buying rules property cycle tenancy tribunal reserve bank termination heating off the plan data security Kris Pedersen Mortgages and Insurance buying Gluckman shower dome bad tenant

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited