California Apartment Association

The state Senate on May 28 approved a pro-landlord bill that would help regulate short-term vacation rental companies such as Airbnb, HomeAway and Flipkey.

SB 761, sponsored by the California Apartment Association, would require online home-sharing sites to notify tenants that subletting their residence may constitute a lease violation. This notice would go on the websites of these burgeoning companies, which now represent a multi-billion dollar industry.

“Short-term rental websites are indeed a great part of the growing sharing economy and a valuable tool for travelers,” Hall told the Senate before its vote. “But properties listed on the sites should be in compliance with laws and contractual agreements that may limit the use of properties to third parties.”

In California, most rental agreements prohibit subletting without the landlord’s permission. Many tenants who list properties on home-sharing sites, however, aren’t aware of this.

“I think many people don’t look at the fine print of their leases, and this will certainly make them aware of the significant ramifications, including eviction, if they don’t follow their leases and do sublet,” Sen. Jeff Stone, R-Temecula, said in support of the bill.

Prohibitions on subleting exist for good reasons. Tenants who sublet their apartments often give out security codes and keys, and vacationers who rent the units use the common areas, such as swimming pools, parking spaces and workout rooms, at disproportionate levels. Neighboring tenants complain to landlords about noise and traffic.

SB 761 would require that short-term vacation rental companies do their part in educating their clients. This would help protect tenants from violating their lease, and it would help protect landlords who prohibit subletting.

Audio extra

Listen to the audio story on SB 761, which includes testimony from the Senate floor and an earlier committee hearing.

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