Can renters Airbnb a rental property?

[Benjamin Dougherty]

Can tenants Airbnb a rental property? I believe this is called Airbnb arbitrage? From the landlords perspective, what would be the things to watch out for or the extra liability/risk involved? I'm a realtor and listing a rental property for lease that has a main house and garage appt. Potential renters are asking if they can live in the main house and Airbnb the garage appt but I want to make sure I'm advising them correctly. FYI this is in Houston. Thanks for the help y'all!