Common Uses
- Permitting a tenant to host through a short-term rental platform (e.g., Airbnb)
- Fulfilling specific requests lodged by tenants (e.g., disability accommodations)[1]
- Updating an existing lease to reflect newly passed laws or HOA policies
- Adding supplemental rules to an existing short-term rental agreement
How Long Is a Short-Term Lease?
Generally, a lease shorter than one year is considered short-term. Local laws, however, define short-term rentals differently. Some cities and counties consider a rental agreement covering a period of fewer than 30 days short-term; others describe short-term as anything shorter than 90 days.
Knowing whether a rental is short-term according to local laws is important, given this will affect such matters as taxes, permits, and eviction procedures. Month-to-month and residential lease addenda are suitable for longer leases.
Can a Tenant Host on Airbnb?
Increasingly, landlords are allowing tenants to list their properties on Airbnb and other short-term rental platforms, usually for a percentage of the profit. Airbnb even hosts Airbnb-friendly Apartments, a program connecting renters with apartments that allow Airbnb hosting.
To permit tenants to be hosts, landlords can add a short-term rental addendum to an existing lease. In drafting this type of addendum, consider:
- Number of nights a tenant can host per year
- Rules for guests (e.g., quiet hours, smoking)
- Permits – Permitting requirements vary, so it’s a good idea to search “short-term rentals” on the websites of the city, county, and state in which the rental property is located.
- Taxes – Check Airbnb’s Help Center for local laws on occupancy taxes. Both tenants and landlords will also have to report rental income differently.[3]
- Insurance – Some policies exclude short-term rental activity. An addendum should state whether a tenant is required to carry appropriate insurance coverage.