Subleasing an apartment
I am considering starting an Airbnb business in Tanzania. My plan is to rent apartments and then lease them out to short-term guests through the Airbnb platform. I successfully ran a similar model in Dubai, where I earned good money without owning property, and I believe Dodoma’s growing demand for temporary accommodation from travellers, students, and professionals could make this venture profitable. My knowledge of the law is limited. Before I proceed, I want to know whether Tanzanian law permits subleasing residential property for such purposes.
GH, Dodoma
Congratulations on this new business idea. Leases are governed by the Land Act [Cap. 113 R.E. 2023] (the Land). According to 89 (1)(i) of the Land Act, there is an implied term in every lease, other than a short term lease, covenants by the lessee (tenant) with the lessor (landlord) binding the lessee not to transfer, mortgage, charge, sublease or otherwise part with the possession of the leased land or buildings or any part of it without the previous written consent of the lessor, that consent not to be unreasonably withheld. To put it simply, you are required to obtain the consent of your landlord before you sublease. Likewise, the landlord is not expected to withhold this consent unreasonably. Remember some lease agreements specifically prohibit subleasing. It is therefore important to read the lease agreement before you consider subleasing the property. Since you plan to do this as a business, be sure to comply with other relevant laws governing business in Tanzania. Your lawyer can guide you further.
