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Ashton Kutcher joins the Airbnb battle

Lifestyle
8 years ago
3 minutes
How would you feel if you found out your tenant had been sub-letting your valuable investment property to strangers via Airbnb?
 
It’s a concern for many, and the ongoing battle between local councils and the accommodation-sharing site continues, with star Ashton Kutcher joining the fray this week.
 
He and a collection of big names have written a letter to the Governor of New York, Andrew Cuomo asking him to scrap recently-approved legislation that penalises users of the site across New York City. Under the legislation, Airbnb hosts face fines of up to US$7,500 if a third party stays in a property without the legal tenant being present.
 
But Ashton Kutcher and co. want this legislation overturned and have written to the New York Governor saying they feel Airbnb is a good thing.
 
The letter states, “As investors and industry leaders, we believe in the good that Airbnb and home sharing have done for residents of New York... We implore you to reaffirm your commitment to fostering technology and innovation.”
 
It’s no surprise that tech fan and Airbnb investor Kutcher — who has also invested in Twitter, Skype and Foursquare — would be against the new legislation. But how do regular landlords feel? Is it really a case of landlords vs the city? Far from it, as a recent Melbourne case illustrates.
 
In June, landlord Catherine Swan successfully won her case to evict tenants who, without her knowledge, had sub-let her St. Kilda apartment through the site. She discovered they had been listing the apartment for $102/night whenever they were on holiday.
 
Initially, the Victorian Civil and Administrative Tribunal (VCAT) ruled in favour of the tenants, saying they had been granting guests a ‘license to occupy’, rather than actually sub-letting.
 
Swan contested this and Supreme Court Justice Clyde Croft agreed, overturned the ruling and found that the tenants were technically sub-letting and therefore contravening a clause of their rental agreement.
 
It’s not difficult to see how, as a landlord, you might not wish to have random strangers staying in your investment property. Especially after you probably took the trouble to go through the strict vetting process most agents recommend to find the right tenant.
 
There are ongoing crackdowns on Airbnb around the world, with Barcelona ramping up its laws this week. So, with common complaints being those about noise and damaged property, how long will it be before all rental leases include a clause prohibiting tenants from listing their homes on the site?
 
This may not happen, at least in larger apartment buildings. As we reported last month, the Victorian Supreme Court ruled that apartment owners cannot prevent other landlords in their building from listing their properties on short-term leasing sites.
 
The celebrity backlash might help draw attention to the issue, but it will clearly take more work to find a solution that appeases both sides of the argument. There are a large number of apartment owners who never planned to live in a building that is effectively being turned into a hotel, and it’s a fine line to walk in ensuring everyone is happy with the outcome.