Property Observer Staff Reporter | 10 June 2016
The Supreme Court of Victoria has ruled in favour of St Kilda landlord, Catherine Swan, who was seeking to overturn a state ruling that a tenant was not in breach of their lease by offering the use of an entire property for a short-term rental.
Honourable Justice Clyde Elliott Croft said the original move by Swan to evict tenants was valid and she should be granted possession of the apartment.
Ms Swan rented her two-bedroom apartment to tenants in August 2015 and later found a spare bedroom in the apartment had been made available for rent on through Airbnb.
Justice Croft said by entering into the Airbnb agreement, they were sub-letting the apartment.
"I am of the opinion that the particular Airbnb agreement in issue in this appeal, for occupation of the whole of the apartment, constitutes a lease," he said.
Justice Croft ordered the tenants be evicted and possession of the two bedroom apartment be returned to Ms Swan.
Outside court she said the ruling gives landlords confidence that the persons they lease the property to are the persons who will be living there.
"We can't just be leasing out our properties and not knowing what's going on in them," she said, adding she wanted leases to be written differently in the future so that 'house sharing' is explicitly barred.
This story has been brought to you by the Emerald Chamber of Commerce Inc.
(Ph: 07 4982 3444)
The Supreme Court of Victoria has ruled in favour of St Kilda landlord, Catherine Swan, who was seeking to overturn a state ruling that a tenant was not in breach of their lease by offering the use of an entire property for a short-term rental.
Honourable Justice Clyde Elliott Croft said the original move by Swan to evict tenants was valid and she should be granted possession of the apartment.
Ms Swan rented her two-bedroom apartment to tenants in August 2015 and later found a spare bedroom in the apartment had been made available for rent on through Airbnb.
Justice Croft said by entering into the Airbnb agreement, they were sub-letting the apartment.
"I am of the opinion that the particular Airbnb agreement in issue in this appeal, for occupation of the whole of the apartment, constitutes a lease," he said.
Justice Croft ordered the tenants be evicted and possession of the two bedroom apartment be returned to Ms Swan.
Outside court she said the ruling gives landlords confidence that the persons they lease the property to are the persons who will be living there.
"We can't just be leasing out our properties and not knowing what's going on in them," she said, adding she wanted leases to be written differently in the future so that 'house sharing' is explicitly barred.
This story has been brought to you by the Emerald Chamber of Commerce Inc.
(Ph: 07 4982 3444)
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