How to Host Legally and Ensure Safety on Airbnb in Hong Kong

Becoming an Airbnb host can be both a challenging and rewarding experience. Here are some key steps and tips to help you start your journey as an Airbnb host in Hong Kong. This guide covers the essentials for legally operating an Airbnb, addressing common concerns like whether Airbnb is legal in Hong Kong and how to ensure your hosting complies with local laws.

What Is Airbnb?

Founded in 2008, Airbnb is a hallmark of the sharing economy, offering a new way to travel and stay. Homeowners can rent out their spare residential spaces to those looking for short-term lodging, providing travelers with a more personalized and local accommodation experience. The name "Airbnb" stands for "Airbed and Breakfast," reflecting the idea of offering temporary lodging, possibly with breakfast, on an air mattress in the living room.

Is Airbnb legal in Hong Kong?

Hong Kong's accommodation policies are quite strict. Under the Hotel and Guesthouse Accommodation Ordinance (Chapter 349), any provider of short-term lodging services must apply for a hotel license. However, many Airbnb hosts have not obtained such licenses, raising questions about the legality of their operations.

Both property owners and tenants who provide lodging services for less than 28 days without permission could be violating this ordinance.

The Hong Kong government imposes strict penalties for operating unlicensed guesthouses, including heavy fines and imprisonment. Running or managing an unlicensed guesthouse is a criminal offense in Hong Kong, which can result in a criminal record, with penalties of up to $200,000 HKD and two years in prison.

Beyond obtaining a hotel operating license, landlords should also consider whether their building's deed of mutual covenant or mortgage agreement allows for subletting or short-term rentals. Illegal rentals can lead to immediate mortgage repayment demands, potential invalidation of home and third-party insurance. More severely, illegal subletting of government-subsidized housing could result in loss of residence rights, fines, and imprisonment.

Does Airbnb Require a License in Hong Kong?

Yes, you must have a license. According to Hong Kong's Hotel and Guesthouse Accommodation Ordinance (Chapter 349), any short-term lodging service of no more than 28 days requires a valid hotel industry license. Prospective hoteliers must apply for this license before commencing operations. Licenses typically last from 12 to 84 months, and it's crucial to apply for renewal 3 to 6 months before expiry to ensure continued legal operation.

How to Become a Legal Airbnb Host in Hong Kong?

Applying for a Hong Kong Hotel License

The first step to legally operating an Airbnb is to apply for a hotel license from the Home Affairs Department's Licensing Office. Make sure your accommodation complies with building and fire safety standards. Application forms can be found on the official website of the Home Affairs Department, and should be sent back as directed upon completion. Once granted, the license should be displayed prominently at the premises to prove your business is legal.

Completing Airbnb Identity Verification

For the trust and safety of the platform, Airbnb requires hosts to undergo identity verification. This involves providing legal name, address, and other personal information, submitting identification documents (such as a passport, ID card, or driver's license), and a selfie for verification. Once verified, your account will be marked as such.

Complying with Tax Regulations

Income earned from Airbnb must be declared and taxed under property and income tax laws. Property tax is levied at a rate of 15% on net rental income, and the personal income tax rate is typically also 15%. Note that Airbnb may report earnings to the tax authorities, so ensure your reported income matches what Airbnb reports.

Complying with Building Deeds and Agreements

Before listing a property on Airbnb, it's crucial to adhere to all relevant building deeds and agreements. Check your lease and the building's deed to determine if short-term rentals are allowed. If in doubt or facing restrictions, communicate promptly with property management or the landlord. For those with mortgages or living in subsidized housing, it's particularly important to confirm whether the loan and housing policies permit renting out. If living with roommates, consider drafting a roommate agreement specifying the rules and financial arrangements for renting out the space to avoid future issues. With these precautions, you can confidently list your space on Airbnb for rent.

Is It Safe to Stay in Airbnb?

From the Guest's Perspective

Travelers opting for Airbnb accommodations must also consider safety. It's advisable to choose listings with good reviews and clear lodging information. Additionally, knowing whether the host holds a hotel license adds an important layer of safety assurance.

From the Host's Perspective

For hosts, ensuring property safety not only helps avoid potential legal issues but also plays a key role in attracting guests. Hosts should provide adequate safety measures, such as smoke detectors and fire extinguishers, and clearly mention these in their listings.

Ensuring Safety for Airbnb Stays

• Emergency Contact Info: List local emergency numbers, nearest hospital, and personal contacts.
• Medical Supplies: Keep a first aid kit in the Airbnb; inform guests of its location.
• Fire Safety: Follow gas safety rules, install carbon monoxide detectors, and provide fire extinguishers.
• Exit Signage: Mark fire escape routes and post maps.
• Hazard Prevention: Check for tripping hazards, secure dangerous items, and maintain safety features.
• Child Safety: Indicate if the space is child-friendly and highlight hazards.
• Temperature Control: Ensure HVAC systems are safe and instruct guests on thermostat use.
• Maximum Occupancy: Set a limit following local guidelines.
• Rules: Inform guests about building and Airbnb rules.
• Neighbor Notification: Alert neighbors about your Airbnb plans.
• Noise Management: Set quiet hours, ban parties and extra guests.
• Parking: Share parking information with guests.
• Pet Policy: Create a policy for pets based on lease and building rules.
• Privacy: Follow laws on surveillance and respect guest privacy.
• Smoking Policy: Define areas for smoking and provide ashtrays.

Ensure HK Rental Safety and Compliance with LetsGetHome

In summary, these guidelines aim to ensure a safe and compliant hosting experience for both guests and hosts on Airbnb. By adhering to local regulations, including obtaining the necessary licenses and following safety protocols, hosts can provide a secure and enjoyable stay for guests.

Property owners curious about the legality of Airbnb, subletting, short-term rentals, or leasing their properties are encouraged to reach out to LetsGetHome. As specialists in the Hong Kong rental market, we provide tailored pay-as-you-go rental services for both property owners and tenants. Register today to self list your properties without any commission or advertising fees.