It's like hitchhiking for houses, just like you wouldn't take hitchhikers in your limo you probably won't sublet your fancy apartment. But a basic place with people that are not too nervous about appearances or that trust their sense of character judgment should be a fine way to make this work. You get to meet new and interesting people, life is risky anyway, this sort of thing seems pretty low on the risk ladder.
Also, in Europe the general sentiment is much less litigious than the United States and someone suing someone else here for small stuff like that is practically unheard of. Usually it would be understood that the party at fault would cover the damage.
In particular, since I'm near the beach, people like to rent out apartments and houses for bachelor parties, spring-break trips, graduation parties, etc., and those can end up causing significant damage, occasionally in the $10k+ range (beer-drenched walls requiring drywall replacement and repainting, etc.).
I don't really have a lot of choice about whether I'm worried about carpet stains or other damage, anyway. If there's damage when I move out that wasn't there when I moved in, my landlord will charge me for it. It's not a fancy apartment by any stretch, but I'm still not allowed to damage it.
My situation is a small farmhouse, I've given the keys to this place to quite a few people and only one didn't live up to expectations so I ended the arrangement. But for the most part it's been pretty positive, and I would do it again. I think it really boils down to being totally clear about what is and is not allowed and/or expected.