Quote from @Kendall Moore:
Hi I have a multi-family2 unit property in Houston, Tx . Not sure what or if I should do anything. I use one side for an airbnb myself. I rent the other unit out. I have a renter, the gentleman that was listed is in his 70s. I thought it was strange for a 70 year man to want a 3 bedroom 2 bath unit with all of the bathroom being on the second floor. I rented the place to him because he met the requirement for the rental income. I have since notice that he had not once visit the property (a younger couple comes by) and I now see the unit listed on airbnb. In the lease agreement it states the property is to be use for personal use by the renter only. I will say that the unit I placed on airbnb does not make more than what I could rent the unit. I am concern that my unit will have to compete for listing on airbnb with a unit I plan to rent out. Should I say anything to the renter or just let it be as long as they pay the rent every month. I plan to stop airbnb my unit next soon and likely will rent it out.
Does your insurance policy cover sub-leased rentals? Answer is no. The old man is dodging the general liability of owning a rental and putting the financial burden on you. If a claim arises from his sub-let, you'll get zero Loss of Income and your claim entirely can be denied.
He's paying maybe $250 yr for a renters insurance policy that will cover him for loss of property/theft. Anyone renting out property should have a short term rental insurance policy to cover losses incurred, vacancy between renters and protect you from liability.
Claims can pull historical records of AirBNB, find this guy renting it out and deny you for any loss, say if the whole place went up.
