FACTS:

A licensee assists several property owners with renting out their properties through Airbnb.  She is paid for her assistance. She does not run any of this activity through the brokerage.

ISSUE:

Can a licensee assist with Airbnb rentals outside of the brokerage?

ANSWER:

See discussion.

DISCUSSION:

Pursuant to Arizona Revised Statutes (A.R.S.) § 32-2121(A)(15): Licensing rules do not apply to “A person who, on behalf of another, solicits, arranges or accepts reservations or money, or both, for occupancies of thirty-one or fewer days in a dwelling unit in a common interest development.”

However, the Arizona Department of Real Estate (“ADRE”) Property Management Audit Package states:

Is a real estate license required to manage vacation rentals?

Yes and No.

The exemption ((A.R.S.) § 32-2121(A)(15)) applies to Vacation Rentals in a single, common interest development, i.e., a condominium complex or subdivision with common areas, not properties located in various locations throughout a city or adjacent cities.

Therefore, the licensee may be conducting real estate activity.

As a best business practice, the activity should be conducted through the brokerage.  The broker may be subject to liability if the activity is deemed real estate activity and the licensee failed to notify the broker.