Jeffrey Nadrich, an attorney handling Airbnb injury claims in Fresno, warns Airbnb hosts of the liability risks associated with operating a rental property. Hosting guests can create legal responsibilities that extend beyond simply providing a place to stay. It’s important to know when a host may be liable for damages sustained on or near their property.
Managing Property Damage and Guest Injury Risks
Guests may sue you if they are injured, become ill or their property gets damaged in your home.
Make sure you’re insured properly. While Airbnb offers up to $1 million of liability insurance, you may wish to purchase your own insurance.
Airbnb’s terms of service makes you responsible for a lot of aspects of renting your home out. There are also a lot of requirements you need to meet for Airbnb’s protections to apply to you.
Damage to Adjacent Properties
You can be held liable if your guest damages an adjacent property. A guest who starts a fire or causes a flood could leave your neighbors with injuries or a lot of property damage.
Airbnb’s liability coverage may not be adequate in this situation. Having your own insurance is the best option here.
Investigate prospective renters when you rent your home out on Airbnb, which lets hosts post reviews of guests.
Require that guests provide security deposits.
Legal Compliance
Some towns, cities and states regulate or prohibit home rentals. Breaking these laws can lead to expensive fines.
If you enter a contract that is illegal because of violation of a local law, you could have difficulty enforcing the contract’s terms and conditions.
Don’t assume it’s legal to rent your home out just because Airbnb lets you, and don’t be tempted to do so if you know it’s illegal. Your neighbors may be willing to complain if they see strange people entering and leaving your home or if your guests behave annoyingly or loudly.
Understanding Violations of Agreements
You could violate housing authority rules or your lease by renting your home out if you’re a renter.
You could violate your homeowners association, co-op or condo agreement if you own your home.
Check up on the rules before you proceed so you don’t end up being evicted or facing penalties.
Tax Obligations
Some areas charge taxes when you rent your home out. Sometimes Airbnb will collect the tax for you. Other times you will have to do so yourself.
You could also need to pay state and federal income tax on the money you earn from renting your home out.
FAQs
Who Is Responsible When Someone Is Hurt at an Airbnb?
It’s usually the host and property owner who is responsible, since they control the property’s condition and have a duty to maintain said condition.
However, other parties can be responsible. Property management companies who handle inspections, repairs, cleaning or maintenance can share responsibility. And, of course, some injuries are simply the fault of the person who was injured and nobody else’s.
Can Injury Victims Sue Airbnb?
Sometimes. However, Airbnb usually keeps legal distance from properties using terms which frame Airbnb as not a property operator but a marketplace.
Airbnb may be held liable for an injury if it can be shown that Airbnb knew about a hazard, made false safety representations, or didn’t remove a listing following repeated complaints about safety.
What Does Airbnb Host Liability Insurance Cover?
Airbnb host liability insurance covers:
- Bodily injury to guests and others
- Theft of or damage to property that belongs to a guest or others
- Damage which is caused by a guest, or another person, to common areas such as nearby properties and building lobbies
What Doesn’t Airbnb Host Liability Insurance Cover?
Airbnb host liability insurance does not cover:
- Injury or damage because of something that was done intentionally
- Damage to your belongings or property caused by a guest
- Additional exclusions apply
