Is rental arbitrage legal?

Almost every residential lease restricts subletting. If your agreement does not explicitly allow short-term subletting, you need the owner's written consent, ideally as a clause in the lease rather than an email. Operating without it is the fastest route to eviction and a lost deposit — regardless of what local short-let law says.

Rules are set city by city. Many cities require a short-term rental permit or business licence, some restrict non-owner-occupied short lets entirely, and others cap the number of nights per year.

HOA rules and building bylaws can prohibit short stays even where the city permits them. Check the city code, the building rules and the lease — all three.

A standard assured shorthold tenancy usually forbids subletting without written consent, and mortgage or leasehold terms on the landlord's side may forbid it too.

In London the 90-night rule limits entire-home short lets to 90 nights per calendar year without planning permission. Scotland operates a short-term let licensing scheme, and Wales has its own registration requirements.

Rules are state-based. NSW runs an STRA register with night caps on non-hosted stays in parts of Greater Sydney; Western Australia operates a statewide register; other states vary by council.

Strata by-laws can prohibit short stays in apartment buildings independent of state law. Confirm with the agent and the owners corporation before signing.