Airbnb guests could be tenants: Until the law is clear hosts are in limbo

PHOTO: Airbnb

A Victorian court decision that an Airbnb agreement had the status of a lease has profound implications for guests and hosts.

With summer holidays around the corner, many Victorians may be thinking about offering their homes through a home-share platform, such as Airbnb, while they get away themselves. Airbnb’s terms of service describe home-share arrangements as a “licence”. Legally, a licence can be terminated at any time and a guest who does not leave is a trespasser.

However, in 2016 the Victorian Supreme Court decided home-share arrangements may constitute a lease. This decision indicates residential tenancy law may apply to all home-share arrangements where the host is away from the premises.

This would impose significant legal obligations on hosts, who would be regarded as landlords. Guests, if considered tenants, would have all the associated legal protections.

For example, if a guest refuses to leave the premises, the host/landlord would have to follow the eviction process required by tenancy law. This has happened in California. Australian courts will eventually have to decide this issue.

HOW DID THE COURT ARRIVE AT ITS DECISION?