Airbnb and Short-Term Rentals: Practical Considerations for Landlords, Tenants, HOAs, and Other Stakeholders

This CLE course will discuss the effects of short-term rentals on real estate and explore the unique issues confronting owners, renters, and other stakeholders. Our panel will provide insights into the overlapping legal and regulatory regimes applicable to such arrangements—including the restrictions under rental and co-op leases and condominium bylaws—and enforcement difficulties faced by landlords, co-op or condominium owners and boards, and homeowner and neighborhood associations.

Vacation and other short-term rentals have become increasingly popular as businesses such as Airbnb and VRBO connect hosts and guests online and provide an accessible platform to enter into short-term rental agreements. These businesses now have millions of listings worldwide—with the U.S. being the largest market—impacting not only the hospitality industry but also the broader real estate market.

This growth has led to states and cities developing an increasing number of municipal regulations aimed explicitly at reining in the use of short-term rentals. Similarly, homeowners' associations, condo boards, co-op agreements, and other neighborhood organizations often restrict how properties can be used, including the prohibition of short-term renting.

Unlike typical lease agreements, which are more robust, agreements on sites like Airbnb occur after minimal due diligence, creating serious risks for landlords. Liability for short-term rentals usually falls to the owner of the property, even when the landlord has no idea that short-term rentals are occurring. Similarly, neighbors may also have legitimate grievances and claims against an owner when the property is used as a short-term rental. There can also be severe consequences for tenants. A tenant who sublets to Airbnb clients without the landlord's permission may violate the lease with the landlord or the government's rent regulations, which could result in the tenant's eviction.

Listen as our panel of experts in real property transactions discusses practical guidance on how to best address the issues with short-term rentals and balance the interests of each party involved.