Renting out cars and homes for short periods can be a lucrative way for asset owners to make money.
However, there are risks involved in renting out your property for short stays as well. In Kenya, a devastating incident occurred where a young woman tragically lost her life while staying in a rented apartment. It was later discovered that her partner, who had a track record of luring women to rented units, had violently assaulted and robbed them. This heartbreaking event serves as a poignant reminder of the potential legal dangers that homeowners may face when providing their properties for short-term rentals.
Studies conducted by two universities have revealed a correlation between an upsurge in short-term rental properties and an increase in criminal activities and acts of violence. The most frequently reported offences include intoxication, disturbance, physical aggression, and noise disturbance. Nevertheless, certain researchers contend that these conclusions are flawed and warrant scrutiny. Despite the associated risks, short-term rentals can serve as a valuable means of generating supplementary income for homeowners, while also offering affordable accommodation alternatives for customers. Regrettably, rented spaces have been exploited by malevolent individuals and criminals for their illicit intentions.
Homeowners not only have to worry about crime and violence but also the possibility of their property being damaged or stolen. There is a potential risk of clients using the property in a way that goes against common decency and societal standards, such as hosting drug parties or engaging in immoral activities. To mitigate this risk, Airbnb provides a system called Aircover which helps reduce potential dangers. This system includes insurance for homeowners, guest verification, screening of reservations, and host liability. Additionally, guests are expected to adhere to the rules and regulations set by the site. In the event of a disagreement, mediation services are available through Airbnb.
Homeowners can further protect their properties by consulting security experts. This may involve installing security cameras and having private security on the premises during the rental period. To minimize legal risks, legal documentation is important, especially when guests cause damage or destruction to the property. Airbnb rental facilities operate under a property access model known as a licence. This licence allows guests to access and use the property for a limited period in exchange for payment of licence fees (accommodation rate).
The individual who possesses the dwelling possesses the authority to establish regulations regarding the utilization of their property. Guests are required to adhere to these regulations, which encompass guidelines for property usage and permissible noise levels. Hosts can pursue legal measures against guests who violate these regulations by having them sign a document granting permission to utilize the property. This document holds legal validity within Kenyan courts. Although it may not prevent guests from causing damage, it does provide hosts with a means to seek recompense.
To ensure effectiveness, the license should include appropriate provisions for recovering damages and resolving disputes in cases where the damages amount to less than Sh1 million, hosts can turn to the Small Claims Court. For more serious offences, such as murder committed on the premises, homeowners can seek compensation under the breach of contract and general damages stipulated in the license agreement.
