Tenant is AirBNB my property without permission.

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I leased a nice large house in West San Antonio. A couple of months later I get a letter from the city saying I need a permit to do short term rentals. It turns out the tenant never moved in but is AirBnB the property. My tenant is saying that they will go get the permit and assured me the payments would be on time etc.  

From a liability standpoint should I be concerned and do I need extra insurance or what should I do?